Governor wants to rewrite the state education funding formula
During this week's State of the State address (SOTS), Governor Mike Kehoe highlighted the need to update Missouri's Foundation Formula, acknowledging that the current system no longer meets the State's evolving educational needs.
As Governor Kehoe stated, "The Foundation Formula in its current form has gotten out of control," clarifying that reform is essential to incentivize performance and manage funding adjustments more effectively.
Aligned has prioritized school finance reform for the past three years. In 2023, we drafted an issue brief explaining why the State should update the formula to measure poverty more precisely.
We are grateful for the Governor's leadership on this much-needed reform and stand ready to assist in any way needed to ensure that this task force makes the necessary changes to better serve Missouri’s students.
We provide more details on his SOTS address and priorities below.
House committees hear open enrollment and childcare tax credit bills
This week, the House Committee on Elementary and Secondary Education heard HB 711 (Pollitt), a bill that allows interdistrict transfers in the public school system, otherwise known as open enrollment.
In his open remarks to the committee, Pollitt said, "Should your home address be the main determination in what public school district your children attend? Should the child and family be the center of the educational focus? I believe it should."
There are currently 43 states have some form of open enrollment. HB 711 is a voluntary opt-in policy and caps transfers at 3%. The state money follows the student and the local funding stays in the home district.
Pollitt filed an open enrollment bill in the past four legislative sessions. In 2024, his bill passed out of the House by a vote of 86-73.
Aligned, Yes Every Kid, Excel in Ed, and the Century Foundation testified in support. The Missouri NEA, Cooperating School Districts of Greater Kansas City, ArmorVine, Missouri State Teachers Association, Kansas City Public School District, North Kansas City School District, and American Federation of Teachers testified against the bill. St. Louis Language Immersion Academy and the Missouri Charter Public School Association testified for informational purposes encouraging the committee to include charter schools in the eligibility for nonresident student transfer.
Aligned's take: We will work with lawmakers to add provisions that allow charter school participation and allocate funding for transportation.
Childcare tax credits
Also this week, the House Committee on Economic Development heard HB 269 (Shields) establishing the "Childcare Contribution Tax Credit Act". This bill creates three tax credit programs to incentivize investment in childcare programs and provide tax relief for providers.
During the hearing, Representative Brenda Shields explained that this legislation will help address the state's lack of childcare supply in our rural communities. The Missouri Chamber of Commerce testified that this bill is their organization's top legislative priority as the state has lost $1.3 billion annually in lost wages and revenue over the last three years.
Aligned, Campaign Life Missouri, Kids Win Missouri, United WE, City of Kansas City, Greater Kansas City Chamber of Commerce, Civic Council of Kansas City, Missouri Economic Development Council, City of Raymore, Northland Regional Chamber of Commerce, Greater St. Louis Inc., Next Missouri, a private business owner, BJC Health, National Association of Social Workers, Jewish Federation of St. Louis, Missouri Hospital Association, Cox Health, JE Dunn Construction, Missouri State Alliance of YMCAs, Columbia Chamber of Commerce, Springfield Area Chamber of Commerce and Missouri Catholic Conference all testified in support.
There was no opposition.
Eslinger returns to the Senate for a frank DESE discussion
Karla Eslinger, former State Senator and current Commissioner of the Missouri Department of Elementary and Secondary Education (DESE), returned to the Senate Lounge this week to update her former colleagues on the department's current challenges.
Her presentation provided an overview of how the department works, the need to update the state’s 20-year-old school funding formula, and the challenges facing schools for severely disabled students. She also updated committee members on the status of the childcare subsidy payment backlog, which strained the state’s provider network for much of 2024.
“The calculator in the system is fixed,” Eslinger said, explaining that the calculator determines how much subsidy reimbursement each provider receives for their services. DESE launched a new subsidy payment system in December 2024.
Eslinger attributed the issue to insufficient front-end training, which resulted in “messy data” that prevented many providers from receiving their payments last year. With 75% of the backlog resolved, she believes the Office of Childhood will have all outstanding payments cleared by February.
In addition to a fully functional childcare subsidy system, she said providers would benefit from switching to a reimbursement policy based on enrollment rather than attendance.
Nice recap from the Missouri Independent here.
Read the weekly legislative report.
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