Education budget bill passes out of Missouri Senate, differences remain from House-passed version

JEFFERSON CITY, Mo. (KMIZ)

The Missouri Senate on Wednesday began advancing the state’s budget, approving a key education spending bill as lawmakers work to close a projected $2 billion shortfall, raising new questions about how the state will fund K-12 schools.

By a 21-11 vote, the senate passed its own version of funding the Department of Elementary and Secondary Education. The chamber also took up covering higher education and workforce development, for final consideration.

The house approved its roughly $50.3 billion budget plan in late March. Differences between the two chambers mean lawmakers are likely headed to a conference committee to negotiate a final version before the constitutional deadline.

Wednesday’s bill passed by the Senate outlined funding for Missouri’s foundation formula, the state’s primary method for funding public schools.

The senate’s version of the education budget totals about $8.34 billion, down from both the governor’s recommendation of $8.56 billion and the House-approved level of about $8.5 billion. Lawmakers in the House cut roughly $53.6 million from the governor’s plan, with the Senate making an additional $126 million in reductions.

That includes about $4.28 billion for the foundation formula, $376.5 million for transportation, and $30 million for the Small Schools Program.

The funding comes from multiple sources, led by roughly $2.58 billion from the state’s general revenue fund. Additional revenue includes about $837 million from the Outstanding Schools Trust Fund, $132 million from lottery proceeds, and $6.8 million from the Sports Wagering for Education Fund. 

Missouri’s financial outlook has worsened as federal pandemic aid dries up. Lawmakers have used much of the remaining surplus to help balance the budget, after billions of dollars from programs like the American Rescue Plan Act boosted spending in recent years.

Republican Gov. Mike Kehoe has pushed for spending cuts to address what his administration described as a long-term structural imbalance in January. While his proposal maintained funding for the foundation formula, lawmakers have signaled there will be no additional increases after record investments during the previous fiscal year. 

The senate is expected to continue debating remaining budget bills this week as lawmakers work to finalize a plan before the end of the legislative session.