Commissioner's Newsletter
DATE: May 13, 2005
TO: School Administrators
FROM: D. Kent King
Re: New Funding Formula Approved
As you know, the General Assembly has adopted a new Foundation Formula to provide basic state aid for public schools. The formula provides for a different approach to school funding, and it will require all of us to think differently about funding.
The development of a new formula was a top priority for Governor Matt Blunt, and he worked hard for its passage. Gov. Blunt showed his commitment to education through his FY ’06 budget proposals, and that commitment continued with his efforts to secure passage of the new formula. The legislature began the process almost two years ago with the interim committee on school funding. Senator Charles Shields, St. Joseph, chaired that committee and provided outstanding leadership in crafting the new formula. The House of Representatives’ effort related to the formula was led by Representative Brian Baker, Belton, who provided effective leadership in balancing the diverse viewpoints in the House.
Attached are two simulations that project the estimated financial impact of the new formula for all school districts. The first simulation (Conference Committee Report for Senate Bill 287) may show zero additional funds for some school districts with fewer than 350 students in average daily attendance. All of these small districts are listed in the second simulation because they will be eligible for funding apart from the formula, through the Small School Grant Program. Both of these reports are pdf documents.
As you know, simulations are only as good as the data available at the time they are prepared. These simulations are useful for understanding the general effects of the new formula, but not as budgetary tools.
Remember: We will still be using the current formula to distribute state aid for 2005-2006. The new formula will begin to be phased in with the 2006-2007 school year. As we move forward, there will be many questions and many opportunities for discussions about how to implement the formula. For the moment, however, the important thing is that a new formula has been approved that will guarantee funding for all students that is consistent with the amount spent by districts that meet all performance standards set by the Department of Elementary and Secondary Education.
These simulations are in pdf format:
(A note on downloading .pdf documents)