Legislative Update for 

SDOW District Advocates: May 19, 2026

The 2026 Missouri legislative session officially came to a close on Friday, May 15th, running right up to the 6:00 PM constitutional adjournment deadline.

At a high level, the 2026 session was defined as much by what did not happen as by what did. While the halls of Jefferson City saw no shortage of intense debate regarding school funding, tax policy, literacy mandates, and district governance, many of the largest proposals discussed this year ultimately failed to cross the finish line. For school leaders and public education advocates, this creates both a sense of relief—as many proposals that would have severely damaged local budgets were stopped—and a continued responsibility, as these issues are certain to return next year.

Below is a final recap of where the key issues landed and what they mean for the School District of Washington:

1. The Budget & State Underfunding

With so many policy bills failing to pass, this session ultimately became a battle over state and local school budgets.

• The Reality: For the current school year, Missouri public schools are being underfunded by an estimated $138 million in the Foundation Formula because lawmakers initially tied school funding to nonexistent lottery and casino revenues.
• Looking Ahead: The approved FY27 budget carries a cumulative underfunding estimate of $362.7 million across the two fiscal years due to structural state budget challenges and formula shortfalls.
• Next Steps: The Governor retains broad administrative authority to implement spending restrictions throughout the year. We will be working closely with DESE in the coming weeks to monitor initial formula payments, transportation reimbursements, and career ladder grants to adjust our local budget accordingly.

2. Property Tax Reform Stalls

Property tax was one of the most heavily negotiated topics of the session. Up until the final hours, the Senate pushed for transparency and closing tax-rate loopholes, while the House sought deep cuts to local revenues. In a shocking, last-minute development, House leaders chose to walk away from the issue entirely, meaning no property tax legislation passed this year.

This issue will return with different dynamics next year, as the legislature is scheduled to completely rewrite the state’s Foundation Formula. The core debate will focus heavily on how much local taxpayers are expected to provide versus how much the state will make up.

3. Literacy & Mandatory Retention (HB 2872)

The sweeping literacy bill—which included controversial mandates to automatically retain certain third-grade students based on state test scores—did not pass. While policymakers maintain a strong interest in structured literacy, our "Let the Paint Dry" argument successfully delayed high-stakes mandates, allowing our teachers the time they need to complete their rigorous LETRS training.

4. Income Tax Phase-Out Goes to the Voters

Voters will decide the state's fiscal future this election cycle through HJRs 173 & 174, which propose to gradually phase out Missouri's individual income tax. Because the income tax is the largest driver of state general revenue, its elimination without a guaranteed replacement plan would drastically intensify future public school budget shortfalls. We will provide more information on this measure as the ballot campaign develops.

5. School Choice, Accountability, and Mandates

• School Choice: No major changes were made to the school choice landscape. Open enrollment did not pass, and charter school expansion did not advance. However, the state ESA voucher program did receive an additional $10 million in funding.
• A-F Report Cards (HB 2710): The bill mandating letter grades for schools failed to pass. However, DESE and the State Board of Education still hold the administrative authority to move forward with an A-F framework under a previous executive order, which we will monitor closely over the summer.
• Omnibus Mandates: The session closed with no massive education omnibus bill, meaning various mandates regarding physical education, screen time, and parental bills of rights did not advance.

Due to your consistent advocacy, lawmakers heard a unified message that protected our local levy authority, preserved community decision-making, and fought for stable funding. Thank you for your tireless dedication to public education and for standing up for the kids, schools, and future of Washington.