JOPLIN, Mo. — With the Missouri state legislative session having opened this week, educators across the state are waiting to see how funding will fare with a roughly $500 million statewide budget gap for fiscal year 2013 and a formula that could shift millions from some school districts to others.

The state’s foundation formula that determines how much school districts receive is in the last year of a seven-year phase-in. School officials say the formula, which has gone underfunded in the past several years, will create a bigger discrepancy in funding for school districts across the state if it remains unchanged, potentially shifting millions of dollars from some districts to others.

“Some districts are going to be winners, and some districts are going to be losers,” said Webb City Superintendent Anthony Rossetti, whose district receives about 50 percent of its funding from the state. “I have a feeling that we’re going to get less, and that’s what we’re going to plan for, and that’s why I’ve got to keep a close watch on what transpires.”

The new formula was aimed at helping equalize the resources that go to students in poorer areas with those in wealthier districts; the old formula was based on property values.

However, when state revenues decreased, districts across the state took cuts. If the new formula is underfunded, the per-pupil funding will be reduced, and that is prompting some to ask about rewriting the new formula to prevent the reduction.

At the same time, fiscal year 2013 will be especially tough because the state will not receive federal stimulus money like it has in the recent past to help buffer budget shortfalls, said Ron Lankford, deputy commissioner for fiscal and administrative services with the Missouri Department of Elementary and Secondary Education. The state’s fiscal year starts July 1.

“Now there are no federal dollars, so the reality of the budget circumstance is now strictly on the state of Missouri’s shoulders,” said Lankford, a former Webb City superintendent. “We’re seeing an uptick in state revenue. This can be the year of bottoming out. The question is: How severe is the fall?”

Gov. Jay Nixon will recommend a budget to the Legislature and give his State of the State address on Jan. 17. The budget will proceed to the House and then to the Senate. Both chambers will reconcile differences in the budget before it goes back to the governor to be accepted or rejected.

“It’s really far too early to tell, but the preliminary comments at the General Assembly are that they want to do everything they can to protect K-12 funding,” Lankford said. “They have demonstrated in the past that while not being able to increase (funding), they have at least made an effort to hold those funds level, but the reality is the state of Missouri is short a good amount of money.”

Rep. Mike Kelley, R-Lamar, a member of the House Committee on Appropriations-Education, said that while no legislation is pending, some groups are looking at proposals to change the foundation formula for school funding.

“If there’s going to be a cut, make sure every group is cut. Make sure it’s not one group,” Kelley said. “Missouri has a balanced budget — we’re not going to spend what we don’t have. We’re working to make sure schools are not the ones taking the brunt of the damage.”

It’s too early to tell how school funding will play out, said state Sen. Ron Richard, R-Joplin, who was endorsed by the Missouri School Administrators Political Action Committee in 2010.

“There are a lot of conversations about new formulas and higher ed, and then we’ve got the urban cities saying they don’t get enough state aid, so it’s just an early discussion of turf battles,” Richard said. “I’m open to find a possible solution to school funding. I doubt if it will get done this year. It may, but we’ll see.”

Carl Junction Superintendent Phil Cook said his district has made some reductions in the past two years to help prepare for potential state cuts, and he hopes those reductions will be enough to weather whatever turns out to be in the cards for the coming fiscal year.

He said the foundation formula is the district’s biggest funding source. The biggest issue moving into next year is that as the new formula is phased in, districts across the state will see a major shift in money, he said.

Cook is part of a subcommittee for the Missouri Association of School Administrators that is trying to put together compromises to recommend to the state education department and legislators. He said getting everyone to agree on formula changes would be difficult because of the differing demographics and enrollments among the school districts.

“We know we’re just a piece of the whole picture with services across the state,” Cook said. “We as educators think our piece of that is precious, but (we) understand, and want it to be done in an appropriate and equitable manner so districts are sharing pieces.”

Superintendents will have a better picture of the budget in late April and May, but for now, they are waiting.

Rossetti, at Webb City, said some districts may have to ask voters to raise operating levies if the state doesn’t provide the funding necessary to run the schools.

“We all watch it with bated breath to see what’s going to transpire in the next six months,” he said. “We’re going to continue trying to shield children from economic issues they didn’t create.

“I wish I could see a clear picture in this crystal ball. I hesitate to say that I’m going to make any decisions right now. We knew some of this was coming.”





House panel



THE HOUSE COMMITTEE on Appropriations-Education will meet next week for the first time in the new session.