Missouri Department of Elementary and Secondary Education

TO:  School Administrators

FROM:  D. Kent King

Re:  The Latest Word on Projected Budget Cuts

The Department of Elementary and Secondary Education has prepared another simulation to show the estimated impact of reductions in state financial aid for next year, based on figures approved last Friday by the House and Senate.

The new simulation (dated May 12) shows the estimated impact on each school district of the following reductions in statewide funding: $163.2 million for Basic Formula and Line 14 aid, $19 million for transportation aid, and $2.9 million in gifted education aid.

Again, we remind you that this report does NOT project actual payments for your district. We do not have all the data that will be used in the calculations for FY04. Consequently, the proration factors used in this latest simulation are higher than they will be when we use the new data. More realistic proration factors are .91 on Lines 1A and 14A, and .86 on Lines 1B and 14B.

In total, the general budget for K-12 education in FY04 will include reductions of about $224 million from this year’s level. News accounts have been focusing on the proposed Foundation formula reduction of "only" $163 million. In addition to the reductions that are shown in this simulation, the legislature is proposing cutbacks in several other areas, including:

• Technology Grants $ 8.8 million

• A+ Schools 5.9 million

• Safe Schools Grants 2.6 million

• Parents as Teachers 2.4 million

• Vocational Education $ 800,000

• Career Ladder $ 771,400

The legislature had been considering a reduction of about 17% in funding for the career ladder program. The amount shown here ($771,400) would mean a reduction of about 3.6% instead. If your district is affected and you need assistance with the equalization worksheet, please contact Janet Goeller at 573-751-1191.

These numbers are NOT final. Next year’s appropriations for public schools are contingent upon the legislature and governor reaching agreement on a bundle of special measures designed to increase revenue for next year. If additional revenue sources are not approved, the reductions in aid for next year will likely be greater than those outlined here. The legislature’s regular session ends at 6:00 p.m., this Friday, May 16.