KSD Legislative Update (Jan. 27, 2026)

Posted Date: 01/27/26 (03:36 PM)

KSD Legislative Updates

January 27, 2026

Thank you for taking the time to opt in to Kearney School District’s new Legislative Updates newsletter. As the Missouri legislative session gets underway, we will periodically share these short updates on state proposals that could affect our students, employees, and local taxpayers. Our goal is simple: keep the community informed in plain language, with a focus on local impact.

State budget & taxing proposals

Missouri Governor Mike Kehoe’s recommended state budget for the 2027 fiscal year is not final. The state House of Representatives and Senate will debate it, change it, and ultimately pass their own version. Still, the Governor’s proposal matters because it sets the tone for the conversation in the state capital.

Here are a few items KSD is watching closely:

Foundation Formula - Early budget recommendations indicate that the school funding formula could come in $190 million below the level recommended by the state’s Department of Elementary and Secondary Education (DESE). If that happens, districts across Missouri may face tougher decisions about how to maintain services and plan responsibly for the future.
Transportation - A proposed reduction in transportation funding could affect the resources available to support bus routes and daily operations.
Depleted Budget Reserves - The budget plan appears to lean heavily on one-time reserves, which can create short-term relief but make long-term planning harder, especially for high, ongoing costs like staffing, supplies, and student support services.

There is also significant discussion around tax policy, including proposals connected to phasing out Missouri’s state income tax and shifting toward a more consumption-based model. The key point is that tax policy decisions affect how much revenue the state can reliably collect year after year. Stable, predictable revenue is what makes stable, predictable school funding possible.

Several proposals being discussed would change how property taxes work in Missouri. While these ideas vary a lot, some would reduce revenue for local taxing entities over time, including public schools. Because Kearney School District is supported by a mix of state and local funding, any major changes to local revenue structures are important to track carefully.

What this means for Kearney

When state funding becomes less predictable, it increases pressure on local budgets. It can also make it harder to recruit and retain employees in a competitive market, because compensation and staffing decisions often require multi-year planning.

If the state’s long-term revenue picture changes significantly, it can impact future support for public education, including the foundation formula and transportation. Changes can also shift even more pressure to local revenue sources.

If proposals reduce or constrain local revenue growth over time, it can affect the district’s capacity to keep pace with inflationary costs while maintaining strong programs and competitive employee compensation.

Key education bills

Dozens of education-related bills are filed each year. Many never advance, but some do. Here are a few that could affect school operations if they move forward:

Gifted Identification - A proposal would require universal screening for gifted identification at least once before 3rd grade, along with specific process requirements and parent notification.
Teacher Certification Pathways - Proposals include new or expanded pathways that could impact how districts address staffing needs, including temporary authorizations tied to specific preparation programs.
Teacher Licensure Mobility - One proposal would create an interstate teacher mobility compact intended to streamline licensure for teachers moving across state lines, including support for military spouses.
Activities Oversight - There is a discussion of legislation to create a governor’s oversight board for the Missouri State High School Activities Association, which facilitates interscholastic activities for secondary students.
Open Enrollment - One of the priorities Gov. Kehoe included in his State of the State address was open enrollment, which would allow families to enroll children outside their home school system. In KSD, state funding would only cover about 30% of what it will cost to educate each of those additional students enrolling from outside our boundaries; approximately 65% of the remaining cost would be covered by KSD property owners.

What’s next

KSD will continue monitoring the state budget, tax proposals, and education bills with a focus on how they could affect our students, employees, and taxpayers. When issues reach a point where community awareness or engagement is helpful, we will share an update.