Public school districts need money to compensate teachers, pay utilities, buy supplies, and transport students. In Missouri, this money comes from three main sources: Local, State, and Federal.
Think of school funding as three different buckets.
1. Local Money: The Biggest Bucket (50-60%)
Unlike most states, Missouri school districts rely very heavily on money from their own communities.
- Where it comes from: This money comes mostly from property taxes. When people pay taxes on their homes, land, and businesses, that money stays in the community to support the local school district.
- How it works: Because this is the biggest source of income, school districts in areas with expensive homes and businesses often have more money than school districts in areas where property is worth less.
- The Missouri Difference: On average, in the US , the state government pays the largest share of each school districts total budget. In Missouri, the state pays less, forcing local community tax payers to pay more than the national average.
2. State Money: Filling the Gap (30-32%)
The state government provides the second-largest amount of funding using a calculation called the Foundation Formula.
- The Goal: The state sets a minimum amount of money it thinks is needed to educate one student. This is called the State Adequacy Target.
- How the Formula Works:
- Step 1: The state counts how many students actually show up to class (Attendance).
- Step 2: The state adds extra funding for students who need more help, such as those with special needs, students learning English, or students from low-income families.
- Step 3: The state looks at how much money the district raised from Local Money (Bucket 1). If local taxes aren’t enough to reach the target, the state sends money to help fill the gap.
- The Problem: The formula assumes local districts contribute money based on property values from 2005. Because these numbers are very old, the funding calculation does not always match what schools actually need today.
3. Federal Money: The Smallest Bucket (8-14%)
The United States government provides the smallest portion of funding.
- Where it comes from: This money comes from federal taxes paid to Washington, D.C.
- What it does: This funding is usually consistent year-to-year and is used for specific programs, like school lunches or support for special education.
Summary: Why Funding Varies
Because Missouri relies so much on Local Money (Bucket 1), a school district’s funding depends heavily on the property values of homes, businesses, and land in each respective school community. While State Money (Bucket 2) tries to fill the gaps, Missouri ranks 49th in the country for the portion of funding provided by the state, leaving local communities to pick up the tab.communities to pick up the tab.