SB 1736 - Under this act, certain school districts shall no longer receive hold-harmless state aid payments or Small Schools Grant payments. Additionally, certain school districts shall have their foundation formula payments calculated using a new definition of the term "local effort" that is based on 2024 property values and local revenue from fiscal year 2025, rather than the 2004 property values and fiscal year 2005 revenue as provided under current law. The following school districts shall not receive hold-harmless state aid payments or Small Schools Grant payments: Northwestern, Keytesville, Blackwater, Cooper County, Otterville, Pilot Grove, and Higbee. (Subsection 1) The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Prairie Home, Brunswick, New Franklin, and Glasgow. Additionally, these school districts shall not receive state aid under hold harmless adjustments or the Small Schools Grant. (Subsection 2) The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Salisbury, Boonville, Fayette, and Westran. None of these school districts shall receive state aid under hold harmless adjustments. (Subsection 3) This act is identical to SB 1805 (2026). OLIVIA SHANNON

2026 Regular Session Introduced by Barbara Washington

SB 1736 changes how Missouri distributes state school aid to certain districts, affecting budgets, property taxes, and educational resources, though specific changes remain uncl...

Second Read and Referred S Education Committee

Legislative bill overview

SB 1736 modifies how the state of Missouri calculates and distributes state aid to certain school districts. The bill was recently introduced and is currently in initial reading stages. The specific modifications to the aid calculation formula are not detailed in the information provided, making it difficult to assess the exact nature of changes proposed. The bill appears to target particular school districts rather than applying uniformly across all districts in the state.

Why is this important

School funding formulas are foundational to educational equity and fiscal planning. Modifications to state aid calculations directly affect:

District budgets and operational capacity

Property tax implications for local communities

Educational resources available to students

Economic competitiveness of affected regions

Changes to aid formulas can shift funding between wealthy and under-resourced districts, making this legislation significant for education policy and community finances.

Potential points of contention

Selectivity: The bill targets "certain school districts," which raises questions about which districts benefit or lose funding and the rationale for differential treatment

Transparency: Without knowing the specific calculation changes, stakeholders cannot assess fairness or unintended consequences

Winners and losers: Any aid redistribution creates fiscal winners and losers, likely generating opposition from negatively affected districts

Property tax effects: Changes in state aid typically trigger property tax adjustments, affecting taxpayers differently across regions

Political equity: Selective aid modifications may draw criticism regarding fairness and whether funding decisions are merit-based or politically motivated