Legislative Links
MoASBO's legislative liaison, Kevin Supple, shares the following: While K-12 education fared poorly this year, we know that issues like school choice, minimum teacher salaries, and property tax legislation will return. And we will need to be prepared to address these topics.
Legislative Link from March 2:
HB 2780 — Revised Committee Substitute
As indicated above, numerous provisions were removed from the previous version of HB 2780 when the bill was returned to committee last week. The bill now represents a scaled back version of property tax reform that diminishes its impact on the budgets of school districts and other taxing jurisdictions. The bill now contains the following provisions:
- Replaces the single blended property tax rate structure with separate levy calculations for each subclass of real property and for personal property in the aggregate.
- Eliminates the requirement to compare revenue generated by multiple levies to a single rate baseline.
- Requires that if voters approve a levy increase before a temporary levy expires, the increase remains only until that temporary levy expires unless voters explicitly approve making it permanent.
- Requires political subdivisions to immediately use a voter approved tax rate increase in the next tax year and allows adjustments if assessed valuation declines, subject to constitutional revenue neutrality.
- Shifts the burden of proof to the assessor in valuation disputes involving computer assisted assessment methods.
- Requires a physical inspection before increasing the assessed valuation of certain commercial and industrial properties by more than 15 percent.
- Reduces the minimum operating levy required for certain foundation formula aid from $2.75 to $2.20 beginning in the 2026 to 2027 school year.
While several significant provisions were removed from the earlier version, we remain concerned about the reduction in the minimum operating levy from $2.75 to $2.20. This change carries long term structural implications for school funding and could affect districts’ ability to access full foundation formula support.
Districts that would be impacted by the reduction in the minimum levy are encouraged to contact their State Representative this week to communicate those concerns directly.
Summary of HB 2780
Text of HB 2780
Fiscal Note of HB 2780
HB 2668 — Omnibus Property Tax Reform
HB 2668 now represents one of the most extreme property tax reform measures being considered by the Missouri House this year. Nearly every problematic provision of the previous version HB 2780 is contained in the latest version of this bill. Those provisions include:
- Requires most property tax proposals by political subdivisions to be submitted to voters only at the November general election. Township governments may continue using April or November elections.
- Prohibits political subdivisions and election authorities from advertising or describing a proposed property tax as a “no tax increase” proposal, except in limited circumstances.
- Requires property tax ballot measures to be labeled numerically or alphabetically only.
- Beginning January 1, 2027, standardizes property tax ballot language and requires proposed taxes to be expressed in specified dollar amounts based on property type.
- Requires political subdivisions that receive revenue from tax abatements or similar economic incentives to reduce their real property tax levy by the amount of revenue received from those abatements.
- Expands and clarifies property tax credit requirements in certain counties and limits annual increases in eligible credit amounts to the lesser of 5 percent or inflation in certain counties.
We are opposed to HB 2668 in its entirety. The bill limits local flexibility, alters ballot timing and presentation, devastates local district funding and endangers vital services provided by those taxing jurisdictions.
Summary of HB 2668
Text of HB 2668
Fiscal Note of HB 2668
January 16:
Summary of pertinent information from Gov. Kehoe's State of the State address.
- "2026 State of the State - Bullets Points" - the Cliff Notes version
- "2026 State of the State - Bullet Points with Details" - contains excerpts from the Governor's speech to add more context to the initiatives
- "2026 State of the State Address" - the complete text of the Governor's remarks
- "Executive Order 26-01" - the complete text of the EO that addresses the A-F report card for districts
November 18:
ST. LOUIS COUNTY — Area school districts will forego nearly $20 million in the first year of St. Louis County's senior freeze on property taxes. The freeze comes as many area school districts already are grappling with budget shortfalls caused by rising supply prices, higher healthcare and staffing costs, declining enrollments and the end of pandemic relief funds. Download the St. Louis Post-Dispatch Article
October 2:
Senate Bill 3 Challenged
A group of taxing districts and property owners is challenging the constitutionality of the property tax provisions in Senate Bill (SB) 3. Plaintiffs in the group that filed a lawsuit on Sept. 26 include:
- Warren County R-III, Crawford R-I, Ozark R-VI, Meramec Valley R-III, Grandview R-II, and Doniphan R-I School Districts
- Ozark Fire Protection District
A taxpayer from St. Louis County, which will not have taxes subject to the law’s caps, and one from Warren County, which will have a cap that allows no growth in tax bills.
The lawsuit argues that SB 3 violates Article X of the Missouri Constitution, which requires uniformity in taxation and limits state lawmakers’ power to divide real property into subclasses, among other things. Some of the school districts in the group that filed the lawsuit cover multiple counties. If approved by voters, there would be different levels of taxation for their districts.
At this point, SB 3’s property tax provisions remain in effect. Click here to view information and talking points.
September 9:
Missouri Foundation Formula Tax Force - Update
The meeting was livestreamed for public access. Dr. Monsees reviewed selected responses to questions submitted after the
Bellwether Group’s presentation at the previous session. [Access the document here.]
The group then discussed data indicating that Missouri ranks 50th nationally in state-sourced funding for public schools. Notably, Missouri school
districts report Proposition C revenue—generated from the statewide sales tax—as local rather than state funding. If Proposition C receipts were
classified as state-sourced, Missouri’s ranking would improve slightly.
The meeting concluded with a review of upcoming workgroup sessions and a summary of each group’s focus areas.
[View the slide deck here.] All workgroup meetings will be held virtually and livestreamed for public viewing. To obtain more information, you can access
the DESE webpage for the task force here.
July 24:
Tax implications for overtime pay - With the signing of the “Big, Beautiful Bill” by President Trump on July 4, 2025, tax implications have changed with overtime pay. Click here to view document that contains information about on the new rules.
July 19:
The U.S. Department of Education will release $1.3 billion in grant money for after-school and summer programs, allowing some previously frozen funds to be distributed to the states.
No information is available on the other education funds that remain on hold.
Legislative Link 6-6-25
Download the Proposed Property Tax and the SB3 Impacted Counties
Legislative Link 4-14-25
Download the Legislative Committee Update
Legislative Link 4-1-25
The House plans to finalize the budget bills this week and send them to the Senate. The Senate will need time to make modifications, and then a conference committee will need to work out the differences. The General Assembly must adopt a budget by the end of business on May 9. Details about the major K-12 budget provisions are provided in this week's Update.
HJR4 is a Constitutional amendment proposal that would allow the General Assembly to cap the assessed value increase each reassessment year to the lesser of CPI or 2%. Geoff Macy and Patty Bedborough developed a Google doc that allows you to calculate the potential fiscal impact of such a change. Members are encouraged to complete the Google doc, send the result to Scott Kimble, and update your fiscal note response to HJR4 in MOLIS. Appropriate links to complete these tasks are below.
HB567 is legislation that proposes to undo the changes to Missouri's minimum wage and requirements for employers to provide some sick leave for employees, as approved by voters last November. This bill was recently amended to apply to public entities, like school districts. Under the bill's provisions, the minimum wage would be $13.75/hour beginning August 28, and rise to $15.00 per hour on January 1, 2026. Members are asked to calculate the potential fiscal impact of this legislation and communicate with your Senators about the impact.
Your major To Do items this week are:
- Call Senators regarding the financial impact of HB567 – state minimum wage changes
- Call Senators and Representatives to oppose HB711 – Open Enrollment
- Call Senators to oppose SJR62 - allows the General Assembly to place a cap on assessed values
- Complete the HJR4 calculator; send to Scott Kimble and update the fiscal note on MOLIS
HJR4 Fiscal Note Calculator Google Doc
For additional information or questions, please contact Kevin Supple, MoASBO 2025-26 Legislative Liaison, at ksupple@moasbo.org.
