Last week the Missouri Senate passed Senate Bill (SB) 727—a comprehensive education bill—that, among other things, tinkers with the state education foundation formula. The foundation formula is used to, theoretically, even out spending between wealthy and poor school districts. The formula was developed by the Missouri Legislature the same year that Mark Zuckerberg started working on “The Facebook” at Harvard (2004). It’s outdated and rife with shortcomings. We don’t need to tinker around the margins of the current formula—we need to build a new one.
What SB 727 does is transition the counting of students from all attendance based to half attendance based and half enrollment based. That matters. If attendance is the method of counting students for state funding, districts are incentivized to get kids to school. If it is enrollment, districts are incentivized to register students. Right now we have a chronic absenteeism crisis in Missouri. We should not simply change the rules because we know that poor students are less likely to attend school.
Either way, it won’t really matter for many years because, even under the current system, districts can use the highest number of students from the past three years—meaning pre-pandemic attendance numbers are still being used this year. That is the most generous counting of students in a funding formula of any state in the nation. Many states use prior year numbers. A couple use the highest of the last two years, or an average of them. Only Missouri uses the highest of the last three years.
Most school districts rely on state funding. If it goes down, either local funding needs to go up or districts will need to reduce costs (likely meaning cutting staff). We have had declining enrollment for at least a decade. We now have declining attendance combined with declining enrollment. So, the effort to change the formula is not surprising.
Missouri needs to take its funding formula back to the drawing board and start over. Tennessee did so several years ago and created the Tennessee Investment in Student Achievement (TISA) formula. TISA is student centered, weighted to reflect student needs, and outcome based. It is considered the gold standard of funding formulas. Until we are ready to make a wholesale improvement, let’s not tinker around the edges of the foundation formula.
