Missouri Senate Rejects School Funding Increase Despite $245 Per Pupil Shortfall
Missouri lawmakers approved a school budget that diverts Capitol renovation funds to address a $245 per pupil shortfall, but key officials haven’t guaranteed support for the plan.

JEFFERSON CITY, MISSOURI β The Missouri Senate approved a spending plan Wednesday that maintains current education funding levels despite a projected $245 per pupil shortfall affecting school districts before the fiscal year ends in June.
Optimistic revenue predictions from lottery and casino taxes created the funding gap, forcing state lawmakers to build next year’s budget around uncertain funding sources. The Senate budget diverts $118 million from the Missouri State Capitol Commission to close the foundation formula gap and adds $15.2 million to school transportation funding.
Senate Appropriations Chairman Rusty Black, a Republican from Chillicothe, acknowledged during floor debate that he has received no guarantees from House Budget Committee Chairman Dirk Deaton or Governor Mike Kehoe that the Capitol renovation fund diversion will be approved.
Uncertain Political Support
“Have you talked to the second floor?” asked state Sen. Lincoln Hough, a Republican from Springfield, referring to Kehoe’s office. “No guarantees,” Black replied.
When Hough pressed about the possibility of a gubernatorial veto, Black responded, “Anybody that sent me a thank you for doing this would probably want their thank you back.”
The foundation formula represents the basic state aid program for public schools, designed to ensure each district can spend similar amounts per student to high-performing districts. The state adequacy target stands at $7,145 per student for the current fiscal year.
Revenue Shortfall Details
Most of the $4.3 billion allocated for the foundation formula and $361.5 million for transportation in the current budget comes from the general revenue fund. The remainder depends on lottery revenue, casino taxes and other funds that have fallen short of projections.
“It is unlikely that the amount of revenue received from lottery, cigarette tax and gaming funds will meet the amount appropriated,” the Department of Elementary and Secondary Education said in a statement to The Missouri Independent.
The funding shortfall highlights ongoing challenges in Missouri’s education finance system, which relies heavily on revenue sources that have proven difficult to predict accurately. School districts across the state now face the prospect of receiving significantly less per pupil funding than originally budgeted for the remainder of the fiscal year ending in June.

