Opinion -- Understanding the Missouri Funding Task Force and What It Means for North Nodaway

By Chris Turpin

North Nodaway Superintendent

Missouri’s public school funding system is undergoing close examination through the work of the Missouri School Funding Modernization Task Force, which is now at the halfway point of its meetings. Several workgroups have been formed to study key areas such as Local Effort, Performance Incentives, Student Counts, and Funding Targets. Each group will meet six times before presenting recommendations that could significantly affect how schools across Missouri are funded. While no final decisions have been made yet, the discussions this fall will lay the foundation for potential changes that could reshape funding for rural districts like North Nodaway.

One area under review is Missouri’s hold harmless provision. North Nodaway is classified as a hold harmless school district, meaning our state funding is still based on what we received in 2005, the last time the formula was written. At that time, funding was set under a different economic landscape and with lower operating costs. Today, the district’s operating budget for the 2024–25 school year is $3,879,289.71, with $1,493,512.31—about 38%—coming from the state. Despite rising costs and salary mandates, that portion has remained largely unchanged.

Currently, about 38% of all Missouri districts are classified as hold harmless. Two groups assisting the Task Force have proposed phasing out hold harmless funding, which would result in North Nodaway losing approximately $318,000 per year.

Approximately 80% of the $50 million in general revenue approved for MO Scholars was directed to schools in Kansas City and St. Louis. These are state funds collected from all Missouri communities, including rural areas like ours, and most of the funding currently flows to urban districts. While families may choose private schools for a variety of reasons, this means that public school funding in rural areas must operate within the remaining available resources.

One example of new mandated costs is the state requirement that all school districts pay starting teachers a minimum salary of $40,000 per year. At North Nodaway, our base salary had been approximately $33,000 prior to this change. Including salary and benefits, a starting teacher now costs approximately $55,245 per year, and a paraprofessional costs around $32,234. Without additional revenue, maintaining these salary levels may require reductions elsewhere. If hold harmless funding is removed or local property tax revenues are limited, districts may need to reduce staff, delay facility improvements, or cut programs and extracurricular activities.

There’s also a common misconception that if schools consolidate, local taxpayers stop paying school taxes. That is not the case. If a school district closes, taxpayers continue to pay the levy of the district where their students are reassigned. Additionally, closures can affect property values for homes, businesses, and farmland, impacting the local economy.

The Task Force is exploring potential formula changes that could further shift funding away from rural districts. One proposal would move away from using attendance percentage—which benefits small rural schools—to a membership-based formula, which would favor larger urban districts. Other proposals include additional funding weights for English Language Learners, special needs students, and student test scores. While these may reflect important considerations, such changes could redistribute limited resources, potentially affecting rural schools with declining enrollments. At North Nodaway, we believe that standardized test scores should not be the primary factor in determining funding, as they represent only a brief snapshot of student achievement.

As the work of the Missouri Funding Task Force continues, North Nodaway will monitor developments and provide information to our patrons. The future of public education in Missouri depends on a balanced approach that supports both equity and opportunity. We encourage our community to stay informed and engage with available resources to understand potential impacts. As a district we have built up our fund balances the past few years for a rainy day and it appears that it may be coming.

Thank you for your support.