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Weekly Update



February 27, 2026

Reassessing Local Capacity

Missouri's school funding task force faces property tax conundrum


At this week’s School Funding Modernization Task Force meeting, members finally turned to one of the most consequential elements of the formula: the calculation of local effort, or how much funding districts raise on their own with property taxes.


Currently, the formula still subtracts an assumed local contribution based on 2004-05 assessed property values.


In FY 2024, that assumed local effort totaled $2.92 billion. However, using current assessed values reveals that districts raise $5.68 billion in local funding, meaning a difference of $2.76 billion in what the formula assumes and what districts do receive from local property tax revenues now.


That gap reflects more than a difference in accounting. When the assumed local capacity to fund schools is based on property values from 20 years ago, the formula no longer reflects the present fiscal reality — especially after the last 6 years, when property values have increased substantially. But as these values have increased, the funding model has remained frozen in time.


Options to modernize the calculation


The Local Effort Factors working group proposed several approaches to updating the local effort calculation to the wider Task Force.


  • One proposal would replace the frozen assessed values with the current values, updated on a regular cycle with a built-in two year lag to preserve budget predictability.


However, since property growth and valuation have not been uniform across counties and school districts, updating values would shift state aid distribution. This process would likely require a phased transition to maintain stability, as accounting for more local funding would reduce state dollars in some districts.


  • From there, the Task Force heard proposals to incorporate an income factor alongside property wealth to determine assumed local capacity. This would recognize that property value alone does not fully capture a community’s ability to pay.


While adding a community’s income could improve precision and make things fairer, it would also introduce complexity and affect state aid distribution depending on how heavily income relative to property is weighted.


Each option involves tradeoffs: accuracy versus simplicity; stability versus responsiveness; incremental change versus structural adjustment.


Assessment practice complicates things further


The conversation also highlighted a foundational issue underlying all property tax discussions: assessment practices vary significantly between the counties.


Under Missouri’s law and constitution, property is assessed locally by elected county assessors. The State Tax Commission provides oversight and conducts ratio studies to monitor compliance, but the methods to assess values differ, as do the levels of staffing, data quality, and reinspection cycles depending on the county.


Missouri law requires property to be assessed at their true market value, with the State Tax Commission expecting counties’ median assessment levels to fall within a 90–110% compliance band. Recent ratio studies show many counties outside that range.


Property-wealthy districts in general have higher underlying market property values. However, since counties differ in how closely assessments track their true market value, any formula built on assessed value will reflect those differences.


Inherently, this creates a policy tension.


  • Updating local effort calculation using current assessed values would improve alignment with fiscal reality.
  • But with assessment practices being inconsistent, modernization could embed uneven valuation into the formula.


For state and local policymakers, the question is not simply whether to update the formula; it’s how to ensure the data used to measure local funding capacity is consistent and reliable statewide.


Faced with this issue’s complexity, the Task Force agreed to reconvene and discuss further at the next meeting armed with more data.


Aligned’s Take: Missouri’s formula cannot remain anchored to property values from 2004. Updating assessed values is essential to correct longstanding distortion in how local capacity is measured. At the same time, the state has a role to ensure assessment practices are consistent, so the formula reflects true fiscal capacity. 

Missouri News

Missouri Senate looks at “low-earning” degree funding proposal


The Senate Education Committee recently heard testimony on S.B. 1617, legislation that would prohibit state funds from supporting academic degree programs classified as “low-earning outcome programs” under federal law.


The proposal builds on a new federal “earnings test” that requires certain degree programs to demonstrate that graduates earn more than typical high school graduates within four years of completion. Programs that fail the federal test in two of three years risk losing access to federal student loans; SB 1617 would extend similar consequences to state funding streams.


Under the bill, the Coordinating Board for Higher Education would be required to annually identify programs that meet the federal definition and restrict state dollars from flowing to those programs.


The board would also be required to publish an annual report detailing affected programs and the estimated fiscal impact.


Supporters argued the proposal aligns state spending with measurable workforce outcomes and ensures public investment is directed toward programs that deliver economic returns for students. They framed the bill as a guardrail against growing student debt and incentivizing institutions to prioritize high-performing programs.


Opponents and several committee members raised concerns about relying heavily on early-career earnings as the primary accountability measure.

Opponents also noted that some professional and public service fields do not immediately yield high wages and that earnings-based metrics may not fully capture the long-term value of certain degrees. Others suggested that improving transparency around program-level outcomes could achieve similar accountability goals without restricting funding.


Higher education representatives testified that most Missouri degree programs would likely not meet the federal “low-earning” threshold but acknowledged ongoing uncertainty around federal implementation and how the criteria would be applied over time.


The proposal highlights a broader policy question: how should states balance workforce return-on-investment metrics with institutional mission and long-term economic mobility goals?


House considers media literacy bill


The House Children and Families Committee heard testimony this week on H.B. 1792, the Media Literacy and Critical Thinking Act, which would establish a two-year pilot program through the Department of Elementary and Secondary Education.


The proposal directs the state to select five to seven districts to integrate media literacy skills into classroom instruction and report back to lawmakers before the program sunsets in 2029.


The bill defines media literacy broadly, including:


  • Analyzing news content
  • Recognizing bias
  • Understanding digital citizenship
  • Identifying misinformation


Participating districts would test strategies, identify high-quality resources, and provide feedback that could inform future statewide standards.


Committee discussion was largely supportive in tone. Several members signaled interest in eventually making the effort permanent rather than limited to a pilot.

Lawmakers also raised implementation questions, particularly how the program would operate alongside any limits on classroom screen time or device use. The sponsor indicated a willingness to work through those concerns.


Testimony leaned in favor. Education groups and teachers highlighted the growing challenge of AI-generated content and social media misinformation. No formal opposition was presented in committee, and the conversation suggested continued interest in refining the proposal as it moves forward.


Priority bill update


Our Missouri Priority Bill Tracker reflects the most recent developments across our focus areas this session.


In other news


Kansas News

What lawmakers heard about Kansas test scores


This week, the House Education Committee took up a technical and important topic: changes to Kansas’ state assessment and cut scores.


Since last fall, we have been covering this issue, and the committee hearing was a chance for the Kansas Department of Education (KSDE) to add clarity, answer Representative’s questions, and add more nuance to the conversation.


Kansas recently updated the Kansas Assessment Program (KAP). When a state introduces a new version of a test, the score scale changes, meaning the old threshold for proficiency (the score that defines when a student is labeled “level 3”) cannot be simply copied over.


Everyone wants to know how students are faring over time. That becomes difficult when both the test and the score scale have changed.


To make comparisons possible, KSDE published what are called concordance tables.


A concordance table is a statistical translation tool. It estimates where last year’s proficiency cut would fall on the new test scale if student performance were distributed similarly. In other words, it keeps the student’s percentile position the same and shows where that would land on the new scale.


Using those tables, the old 2024 proficiency cut can be translated in 2025 terms. In every tested grade and subject, that translated cut sits above the new 540 threshold.


Mechanically, that means the proficiency line is lower on the new scale.


The size of that shift varies between subjects and grade levels. It is substantial in English language arts (especially eight grade) and minimal in third grade math, where the difference is roughly five scale points. Since classification depends on how many students cluster near the cut score, a small shift does not guarantee higher proficiency rates.


In fact, when KSDE applied both cuts to the same third math data, proficiency rates were about 8 percentage points lower under the new standard. In third grade ELA, proficiency would have been about nine percentage points higher under the new cut.


Those changes reflect distributional effects. When the cut score moves, the share of students labeled proficient can move in either direction depending on where students’ scores are concentrated


Understanding the broader context


During the hearing, KSDE did not present the cut score adjustment as arbitrary. Dr. Frank Harwood, Deputy Commissioner of KSDE, argued the previous proficiency standard had become misaligned with other indicators of student readiness.


KSDE made three main points.


First, Kansas’ prior proficiency standard was notably high relative to national benchmarks.


Indeed, a recent federal NAEP mapping study showed that Kansas’ previous standards in 4th grade math and 8th grade math and reading aligned with NAEP proficient, placing Kansas among a small group of states with similarly demanding standards. (Kansas 4th grade reading remains set at NAEP basic.)


Most states set cut scores ranging in the NAEP basic category. KSDE said the state had effectively defined proficient at a level that placed it among the most demanding standards nationally.


Second, KSDE cited comparisons to other national assessments, including MAP growth projections. KSDE stated that, under the old system, students had to perform near the top quarter nationally to be predicted “proficient” on the Kansas assessment. KSDE argued that this created a disconnect between how students were classified on the state test and how they performed on other, widely used measures.


Third, KSDE pointed to postsecondary outcome data. Students scoring in the upper portion of level 2 (officially labeled as “not proficient”) were enrolling in postsecondary education and persisting at rates like students classified as proficient. The old cut score may have been overstating the number of students who were not on track.


Taken together, these factors led KSDE and, ultimately, the State Board of Education to recalibrate the proficiency threshold for the new test.


The concordance tables show the result: the new level 3 cut at 540 points sits below the translated 2024 cut in every test grade and subject.


Whether the new threshold represents a more accurate signal of grade-level mastery, or a move away from a higher national benchmark, is the question lawmakers and the public will continue to debate.


Cell phone ban status update


It has been an active and at times confusing week in Topeka regarding the state’s cell phone legislation.


On February 18th, the Senate ruled that the substitute version of SB 281 was “materially altered.” When a bill is deemed materially altered, it reverts to its original language and is re-referred to committee. (This process is governed by Rule 73 of the Kansas Senate Rules (2025–2028). In this case, the bill was sent back to the Senate Education Committee. This is a procedural move that keeps the original bill alive while resetting it to its base version.


Given this action, attention has shifted to SB 302, a separate bill that previously received a hearing in Senate Education. There is potential interest in advancing SB 302, which contains stronger language, including provisions around inaccessible storage during the school day.


Maintaining multiple legislative vehicles is a common strategy late in session. It allows language to be negotiated and potentially amended in conference committee. Even if bills begin with different languages, provisions can be amended, exchanged, or merged before the final passage.


Moving forward, the future of the cell phone policy will largely depend on Senate action and any potential conference committee negotiations. While the House substitute language is no longer the active version of SB 281, that policy language could still reemerge through amendments or conference committee negotiations, alongside SB 302.


Kansas cell phone restriction bills have taken a winding path this session. We break down where they started, what changed, and where they stand now in our latest blog post.


Aligned will continue monitoring developments closely and will provide updates as the process unfolds.


Priority bill update


For the latest on where our priority legislation stands, visit our updated Kansas Priority Bill Tracker.


In other news


Designing data systems that deliver

The Data Quality Campaign’s new brief, Purpose Drives Design, makes a simple but important point: statewide longitudinal data systems (SLDS) don’t all serve the same function and design choices determine who benefits.


DQC outlines three distinct roles an SLDS can play:


  • Public reports and dashboards
  • Research and analytics
  • Direct support for individuals


Most systems focus on reporting and research. Few are intentionally built to provide timely, personalized information to students and families.


For states working to connect education and workforce outcomes, the lesson is clear: if the goal is better decision-making, system design must align with intended users.


We encourage you to check out their new brief!

Enjoy your last weekend of February,







Torree Pederson

President

torree@wearealigned.org


Eric Syverson

Vice President of Policy & Research

erics@wearealigned.org

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 systems, expand the teacher workforce, modernize school finance, improve literacy, accelerate data and accountability systems, and support safe, focused learning environments.


Learn more about our work.