Weekly Update

May 10, 2024

Missouri teachers gets pay and incentive boost

Earlier today, the Missouri House gave the final approval to the state's operating budget for FY25, and earlier this week, Missouri Governor Mike Parson signed SB 727 into law.

Together, these actions will result in the biggest boost to education funding for Missouri in recent history. The fact that it's also Teacher Appreciation Week makes today very special. Estimates suggest that Missouri will have added approximately $500 million to its annual education budget in the coming years after the phase-in of all provisions.

Governor Mike Parson said, "I have and always will support Missouri teachers. Since the beginning of our administration, we've looked at ways to increase teacher pay and reward our educators for the hard work they do, and this legislation helps us continue that progress."

Aligned caught Representative Ed Lewis (R-Moberly) in between his legislative duties for a few minutes today to discuss the provisions in SB 727 related to teacher recruitment and retention.

"SB 727 has so much good," he emphasized.

Before Lewis joined the legislature, he worked as a high school educator for 32 years in Vandalia and Moberly, teaching chemistry and physics. So, he understands the struggle rural communities face when they can't offer as competitive wages as their suburban counterparts.

That's why Lewis wrote a bill this year, HB 1447, to address the shortcomings related to teacher recruitment and retention and worked to amend its provisions onto SB 727.

"Every piece is not a solution on its own, but together, the provisions will work to retain teachers," said Lewis. Knowing they will be paid more moves the needle."

Some of the provisions Lewis worked to incorporate into the bill include:

Permanently raising starting teacher pay to at least $40,000 per year,
Allowing school boards to include differentiated placement of teachers on the salary schedule for hard-to-staff or subject areas or hard-to-staff schools,
Removing a testing barrier for students who want to enter college teaching programs,
Adding flexibility to the career ladder program, and
Tripling the number of teacher scholarships over time.

Lewis also added that the increase in the state adequacy target related to the state's school improvement plans' emphasis on accountability will result in an additional $300 million for public schools by FY26, which will help sustain and improve teacher salary enhancements.

"While there are always tradeoffs, we got so much for public education this year and a commitment for years to come," added Lewis. "This was the first significant increase in public school funding in the past five to seven years."

Aligned appreciates Lewis and the other legislative leaders who prioritized teacher compensation this session. SB 727 also doubled the state's investment in Pre-K, which has been another top priority for our organization.

About Aligned

Aligned is the only state-wide non-profit, nonpartisan business group working in Kansas and Missouri on educational issues impacting the full development of our children, from supporting high-quality early learning to solid secondary programs that provide rigorous academic programs and real-world learning opportunities.

Our vision is that our public education systems in Kansas and Missouri have the resources and flexibility to prepare students to pursue the future of their choice.

We are currently focused on education policies that will strengthen early childhood education, teacher recruitment and retention, and school finance reform.

Learn more about our work.

Missouri News

Time is not on their side

This week, the action in the House was all on the floor, as Committee work has wound down and members begin to realize that the number of days remaining in Session will severely limit their ability to pass additional legislation.

While the House continued to operate in a workmanlike fashion, many Senate watchers remained baffled and frustrated. Plan A turned to Plan Z and back again so many times it was hard to keep up, and the Xerox machines worked overtime to try and print accurate copies of budget bills negotiated by Senate Appropriations Chairman Lincoln Hough and House Budget Chairman Cody Smith over the weekend (more in our budget section below).

Most of the work centered on Truly Agreeing and Finally Passing House bills, but the Senate found time for two of their own, including:

SB 912 (Brown-26), an omnibus veterans services bill directing various state agencies and departments to improve and promote veterans' services, was passed by a vote of 29-1.

SB 1359 (Trent) - a financial services omnibus updating several state statutes to align with federal financial regulations, by a vote of 28-4.

Standings with one week remaining

House Third Read Bills: 133 (including 18 Budget bills)
Senate Third Read Bills: 77
Truly Agreed: 31
Signed by Governor: 6

Reports

Due to the Missouri House being in session today, we will not have a full legislative report until next week.

See all tracked legislation here.

Budget Update

Minutes after the Senate completed its work on the $51.7 billion FY 2025 state budget and passed SB 748, which renews the hospital provider tax (FRA) with a five-year sunset, the Senate took up SJR 74 (Coleman), a resolution asking voters to significantly alter the initiative petition process (i.e., make it harder to pass ballot measures).

Part of the deal brokered that allowed the Senators to take up and pass the bills making up the FY25 budget hinged devoting some floor time to initiative petition reform. After about 20 minutes of debate between Democratic senators, the bill sponsor withdrew her motion.

That legislation will likely come up again next week. Some suggest that there are enough votes to force a vote on this resolution, while others disagree and say that the sponsor will need to remove the "ballot candy" before Democrats agree to sit down.

The good news is that despite the drama, delays, and dysfunction that plagued the budget process this year, the House diligently hunkered down this afternoon and Truly Agreed and Finally Passed each of the 20 budget bills with more than 3 hours to spare before coming up against the constitutional deadline at 6:00 p.m.

We owe a very special debt of gratitude to Senator Lincoln Hough and Representative Cody Smith, who led the General Assembly through the budget process, exercised remarkable patience, determination, and flexibility, and worked an excessive number of hours to fulfill their constitutional duty.

Highlights in HB 2002 (the appropriation bill for the Department of Elementary and Secondary Education)

$4.2 Billion for the Foundation Formula, which includes an increase to the State Adequacy Target to $6,760
$26 million for Pre-K grants to childcare facilities
$55.8 million for Pre-K grants to public districts and charter schools
$69.3 million for the Career Ladder program
$33.4 million for a grant program to provide a baseline educator salary of $40,000
$18.6 million for the Teacher recruitment and retention grant program
$18.8 million for the Missouri Read, Lead, Exceed literacy program
$25 million for the Evidence-based Reading Instruction Program Fund
$4.3 million for the Comprehensive Literacy Development Program
$9.3 million for the Missouri Mathematics Mastery Program
$16.9 million for Mental health support initiatives
$9.3 million for summer learning programs by community-based organizations
$10 million for after-school programs
$25 million for the Close the Gap program
$2 million for the Competency-based Education Program
$3 million for an innovation waiver program
$80 million for career and technical education programs
$2.5 million to provide the WorkKeys program free of charge statewide
$28 million for home visiting
$29 million for parent education

HB 2002 also included a change in the childcare subsidy policy that will increase the reimbursement rate up to the 100th percentile for infants and toddlers and the 65th percentile for preschool and afterschool based on the most recent market rate survey.

Revenue Update

State Budget Director Dan Haug announced that net general revenue collections for April 2024 increased 20.3% compared to those for April 2023, from $1.15 billion last year to $1.38 billion this year. Net general revenue collections for the 2024 fiscal year-to-date increased 2.7% compared to April 2023, from $10.42 billion last year to $10.70 billion this year.

GROSS COLLECTIONS BY TAX TYPE:

Individual income tax collections

Decreased 7.3% for the year, from $7.96 billion last year to $7.38 billion this year.

Increased 10.6% for the month.

Pass Through Entity tax collections

Increased from $0 to $537.2 million this year.

Sales and use tax collections

Increased 10.2% for the year, from $2.42 billion last year to $2.67 billion this year.

Increased 22.1% for the month.

Corporate income and corporate franchise tax collections

Increased 2.2% for the year, from $795.2 million last year to $812.6 million this year.

Increased 4.5% for the month.

All other collections

Increased 21.2% for the year, from $634.6 million last year to $769.1 million this year.

Decreased 28.9% for the month.

In other news

Aligned Priority Bills Report for Missouri

With only one week left of the session, here is where things stand:

SB 727 (Koenig) contains our two big priorities (early childhood education and teacher recruitment and retention) and was signed into law by the governor on Tuesday, May 7th.

Early Childhood Education and Childcare

SB 727 doubled state aid for Pre-K in the foundation formula for public school students who qualify for free or reduced lunch.

There has been no new progress on the childcare tax credit package, HB 1488 (Shields), as it still remains on the Senate Informal Calendar. Despite massive support from stakeholders across the state and an overwhelming vote in the House (113 in favor and 39 opposed), a few select senators remain staunchly opposed, and therefore, this bill is likely dead.

Teacher Recruitment and Retention

SB 727 includes the differentiated pay and teacher scholarship program provisions from HB 1447 (Lewis); as we mentioned above, the governor signed this into law.

School Finance Reform

Alternative Poverty Metric - SB 1080 (Arthur) is dead.*

Other education legislation

Open Enrollment - HB 1989 (Pollitt) - is dead.*

Accountability Measures - HB 2184 (Haffner) - is dead.*

*REMINDER - Nothing is truly dead until 6:00 p.m. on the final day of the session (May 17th).

See the status of all Aligned priority bills here.

Kansas News

Kelly commits to a special session call

Kansas Governor Laura Kelly has reaffirmed her commitment to vetoing the tax bill recently passed by the state Legislature, citing significant financial risks to the state's future stability. Despite facing considerable pressure from opposing parties, Governor Kelly told Steve Kraske on KCUR's "Up To Date," "The state's impressive financial surplus could be jeopardized if I were to sign off on this bill," making it clear that she will not compromise on measures that could potentially lead the state back into economic distress.

The bill, which both parties in the Legislature supported, would have implemented sweeping tax reductions. However, Governor Kelly criticized the proposal for its potential long-term economic impact, stressing that it could drain the state's coffers.

Amidst these fiscal concerns, Governor Kelly announced her plans to propose a new tax plan during a specially convened legislative session.

Details of this forthcoming proposal are still under development, but the Governor hinted that it would align more closely with the needs and desires of Kansas residents. "It will be a plan that truly benefits our constituents and supports sustainable growth," she noted.

Since her tenure began in 2019, following the tax cuts enacted and later mostly repealed during former Governor Sam Brownback's administration, Kansas has seen a restoration of fiscal health. Increased revenues have enabled full funding for schools and other critical infrastructure.

Despite the strong legislative support for the tax bill — with the Senate and the House passing it with a substantial majority — Governor Kelly remains opposed. She believes that the bill's approval could have significant consequences, potentially returning Kansas to the problematic fiscal conditions of the past. These conditions included reduced school operating days and underfunded state departments, highlighting the potential risks associated with the bill's implementation.

In contrast, Republican leaders and several conservative groups argue that the state's current financial health can support the proposed tax cuts, pointing to recent increases in revenue projections and tax collections as evidence. Senate President Ty Masterson and others have expressed frustration at the delay in providing tax relief, suggesting that the proposed plan is economically feasible.

As the debate continues, Governor Kelly's determination to convene a special legislative session reflects her proactive approach to crafting a tax strategy that ensures immediate relief and long-term fiscal responsibility. This decision underscores a critical juncture in Kansas politics, where fiscal strategy and political will intersect, shaping the state's economic future. Governor Kelly concluded by emphasizing her readiness to negotiate a tax plan that would support Kansas' economic growth and uphold her promise to maintain the state's financial integrity.

In other news

Revamped, recharged and revealed

We are thrilled to announce the launch of our revamped website, wearealigned.org, and are delighted to share it with you officially.

Our team has been diligently crafting this digital space to better serve our community and provide a richer experience for all visitors.

Here are some highlights of what you can expect:

Sleek Design: Our website now boasts a modern and intuitive design, making navigating and finding the information you need more accessible than our previous site.

Enhanced User Experience: We've listened to your feedback and revamped our site to ensure a smoother and more enjoyable browsing experience for everyone.

Rich Content: Explore our updated content offerings, including a newsletter archive, success stories, and policy briefs (we are still adding to these sections).

Mobile-Friendly: Whether you're browsing on your desktop, tablet, or smartphone, our website is fully optimized for all devices, ensuring accessibility anytime, anywhere.

Visit wearealigned.org today, bookmark the page, and stay tuned for exciting updates and announcements!

One MO week of session...hooray!