CPS finance committee backs $10 million bump to operating budget; teacher pay increase among proposed items

Editor's Note: Some of the financial figures have been corrected

COLUMBIA, Mo. (KMIZ)

Columbia Public School's finance committee has voted to move forward with a $10 million increase in the district's operating budget for the next academic year, despite some anticipated changes to the state budget.

The Missouri Department of Elementary and Secondary Education is projecting a flat line in funding for school districts in the upcoming fiscal year, attributing the shortfall to declining revenues from sources such as lottery ticket sales and state sales tax. 

This comes after some districts were initially anticipating a roughly $7 million increase, which has resulted in changes to district finances across the state.

The DESE's recent financial memo highlights several key budgetary figures for fiscal year 2025:

• State Adequacy Target (SAT): Set at $6,760.00.
• Classroom Trust Fund: Allocated at $621.00 per Average Daily Attendance (ADA).
• Proposition C: Funded at $1,514.00 per Weighted Average Daily Attendance (WADA).
• Transportation: Fully funded at 100%.

According to Columbia Public Schools, there will be little change in the funding from last year. Current legislation in the Missouri House would keep the State Adequacy Target, Classroom Trust Fund the same, while Gov. Mike Kehoe has recommended fully funding transportation for the upcoming year. 

The state adequacy target, a key factor in calculating foundation formula payments, is currently set at $6,760. While projections initially suggested a $7 million increase for the 2025-26 school year, the governor's budget proposal, now advancing through the legislature, keeps it flat due to other funding adjustments.

“We were pretty conservative. The other big state line we have is transportation. They are also projecting again for next year to keep the full funding of transportation. But prior to about three years ago, the transportation line was not fully funded and so we did not project that they will be able to keep both lines,” CPS Chief Financial Officer Heather McArthur told ABC 17 News. “The overall bottom line was about a $2 million difference in what we had projected and what we're now projecting.  But again, still less than what we had originally projected. 

CPS leaders have outlined their proposed compensation package for next year. In total, the district is considering an overall $10 million increase, a portion of which would go toward salaries and benefits for teachers and staff, reflecting an effort to remain competitive in attracting and retaining educators and staff.

“Our people are our biggest asset,” McArthur said. “When we're talking about $10 million, we're continuing to put money into our people, which is important to recruit and retain and get the best, highly qualified people in our classroom to be able to get the best service for our students.”

The proposed changes feature a roughly $3.6 million increase in teacher salaries, which would add an additional $200 increase to the originally proposed base salary increase for teachers from $44,000 to $44,200 and a $1.00 per hour wage increase for support staff. 

The average teacher salary in the district is set to increase from $61,015 to $63,940 for the 2025-26 fiscal year, with a base salary of $44,200 under a previous three-year agreement with the teachers' union.  That increase is expected to be voted on during the school board’s next meeting on April 14. 

"We have about 1,500 teachers,” McArthur said. “A big part of that process is making sure we go through the collective bargaining process with our teachers' union and making sure that we are competitive with other school districts to recruit and retain teachers.”

Despite these planned increases, the district is preparing to tap into its reserves, as projected expenditures are expected to outpace revenues. Current estimates show CPS will need to draw approximately $5.8 million from its fund balance to cover operational costs in the 2024-25 school year.

Check back for updates.