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Legislative Update No. 2

February 18, 2026 Update

Legislative Priorities & Local Impact Overview (2/18/2026)

Why This Matters Locally

  • Approximately 75% of district funding comes from local property taxes.
  • Changes to property tax law directly affect staffing, class sizes, programs, school closures and student opportunities.

Immediate Issue on the April Ballot

SB 3 – Property Tax Revenue Freeze

  • Would freeze growth in local property tax revenue.
  • Estimated local impact: nearly $780,000 annual reduction to district revenue.
  • This is in addition to the approximately $700,000 reduction impact from the Senior Citizen Tax Freeze already affecting the district this year.
  • Long-term effect: limits ability to keep pace with inflation, enrollment growth, and state mandates.

Major Property Tax Bills Advancing in the Legislature

HB 2780 – Omnibus Property Tax Changes

Would significantly change how school tax rates are calculated and limit local flexibility.

Key impacts:

  • Includes new construction and growth under rollback limits.
  • Requires levy reductions tied to economic development incentives.
  • Lowers minimum operating levy tied to state funding eligibility.

Estimated local impact: about $2.4 million annual revenue reduction.

HB 1766 – Expansion of Hancock Rollback

  • Would include personal property improvements in rollback calculations.
  • Limits districts’ ability to benefit from community growth.

Estimated local impact: about $1.37 million annual reduction.

HB 2329 – Personal Property Tax Reduction

  • Reduces assessment rate for personal property.
  • Impact estimate does not include future growth losses.

Estimated local impact: about $4.1 million annual reduction.

HB 2859 – Personal Property Tax Changes

  • Reduces assessment rate over time and could eliminate some personal property taxes entirely.
  • Long-term impact projected beginning in 2041.

Estimated local impact: about $4.6 million annually, likely higher.

Additional Legislative Issues to Monitor

Open Enrollment Legislation

  • State and local funding would follow students, creating unpredictable revenue losses for sending districts.
  • Uncertain enrollment numbers make long-term staffing, scheduling, and program planning more difficult.
  • Not all districts have the same capacity to accept incoming students, which could create imbalances across communities. We are likely to see an increase in special education students. 
  • Raises concerns about funding shifts, enrollment instability, and operational planning.

Private School Voucher Programs (MOScholars)

Missouri continues to expand tax-credit scholarship programs that provide public funding support for students attending private schools.

Key considerations for our district and public schools statewide:

  • These programs are funded through state tax credits, which reduce state revenue available for public services, including education.
     
  • As participation grows, they increase pressure on the state budget at a time when Missouri already ranks last nationally in state funding support for public schools.

While voucher programs do not directly reduce local district funding, they contribute to broader fiscal challenges that can impact future state education funding decisions.

Education Policy Bills

  • Parents’ Bill of Rights proposals
  • IEP consent legislation affecting special education processes
  • Potential changes to governance of high school activities (MSHSAA- Governance)

These could increase administrative requirements and operational costs.

The Bigger Picture - Combined Impact Concerns

The greatest risk is the cumulative effect of multiple proposals:

  • Reduced local revenue
  • Increased state mandates
  • Less local decision-making flexibility

Together, these pressures could lead to:

  • Staffing reductions
  • Larger class sizes
  • Fewer student opportunities
  • Long-term financial instability

Key Message for Legislators

Stable, predictable funding and local flexibility are essential to maintaining strong public schools and meeting student needs in our community.

When state resources are limited or redirected, local districts may face increased reliance on local taxpayers to maintain programs and services.


Questions for our Legislators

  1. Local Funding Stability
    How are lawmakers planning to ensure stable school funding if multiple property tax proposals move forward at the same time?
     
  1. SB 3 Impact
    Given that SB 3 could reduce our district’s revenue by nearly $780,000 annually, how does the legislature plan to help districts offset that loss while still meeting state requirements?
     
  1. Cumulative Effect of Bills
    Many proposals individually affect school funding. How is the legislature evaluating the combined impact of multiple tax and policy changes on local school districts?
     
  1. Growth and Community Development
    Several bills would limit districts’ ability to capture revenue from new construction and community growth. How should growing districts plan for increasing enrollment under those conditions?
     
  1. Open Enrollment Considerations
    What safeguards are being considered to ensure open enrollment policies do not create funding instability or unintended consequences for local districts?
     
  1. State vs. Local Funding Balance
    Missouri already ranks last in state funding support for public education. Are there discussions about increasing the state’s share to reduce reliance on local taxpayers?
     

Foundation Formula Changes
With potential changes to local revenue occurring now, how will upcoming work on the foundation formula ensure districts have predictable and sustainable funding?