As the fiduciary leader of Cassville R-IV Schools, my role is critical in overseeing the financial health and well-being of our school district.

Acting as the steward of public funds, I strive to ensure that financial resources are allocated effectively to support the district’s mission of providing quality education to our students while adhering to legal and ethical standards. During the spring semester, I am deeply involved with school leadership, teachers, the finance committee and the board of education in the budget process for the upcoming fiscal year.

All of the aforementioned stakeholders work together to analyze financial data, forecast revenues and expenditures, and to make informed decisions about resource allocation to support instructional programs, extracurricular programs, personnel, facilities and other essential services.

Additionally, the finance team must carefully interpret the state’s ever-changing budget priorities and other politically influenced legislative bills that impact public education. Every year, this involves advocating for additional funding from state and/or federal agencies or seeking alternative revenue sources to supplement the budget. Below, I will share the most recent state budget update for all public schools in Missouri.

With last Friday’s budget deadline, the Senate was able to come to some resolution that allowed them to move forward on the passage of the state budget and the extension of the federal reimbursement allowance (FRA). The budget now heads to the Governor. The new fiscal year begins on July 1, 2024. The final version of the education budget looked virtually identical to the Senate’s version and contains a number of positive developments for public schools. As it stands, the final 2024-25 budget contains the following:

• A fully funded formula which is an increase of approximately $120 million from our current budget.

• Fully funding the transportation categorical. The Senate took the added step to ensure that the $16 million increase in next year’s budget will be classified as on-going funding.

• Full funding for the Missouri Baseline Teacher Salary Grants in order to fund a minimum salary of $40,000.

• An increase of approximately $119 million in Proposition C funding. This increase is based on the consensus revenue projects for sales tax.

• The Career Ladder Program will receive flat funding next year. If additional funding is necessary to fund the program for the upcoming school year, a supplemental appropriation will be necessary during the 2025 legislative session.

Governor Parson signed SB 727, which creates and modifies provisions relating to elementary and secondary education, into law on May 7. While many school leaders are disappointed with the outcome, we are encouraged by the level of engagement shown by teachers, board members and community advocates for public education. These efforts were key to ensuring school districts’ voices were heard on this topic throughout the legislative process.

This engagement will be important as we learn more about the implementation of SB 727 over the next few weeks. The financial impact of this bill on the state and local school districts is very real.

Missouri schools are living the impact of the teacher retention and recruitment crisis. There is a widespread belief that increasing teacher pay is an important step to solving it.

Teachers deserve more money for the great work they do for our students, but SB 727’s financial structure is not sustainable for many school districts across Missouri. While not necessarily the solution most school leaders would have chosen, SB 727 provides a framework to move forward on this important topic.

Successful implementation of SB 727 is going to take an incredible amount of collaboration between stakeholders at every level of state government and local school districts. School superintendents and board members are committed to that effort and we look forward to working with our incoming Commissioner of Education; the next Governor; current and future members of the State Board of Education; current and future legislators; and our local school district’s teachers, boards and taxpayers in order to ensure students continue to get a world class education in Missouri public schools.

Although there are some concerns about the approval of SB 727, school leaders are extremely grateful for the investment lawmakers have made with this budget. As federal COVID dollars are depleting, we expect the state will be forced to tighten their belts in future years, meaning tough decisions are likely to be needed with upcoming budgets.

These tough decisions will inevitably mean that most school districts across Missouri will be put into a position to raise operating levies to sustain the Missouri Baseline Teacher salaries once state funds are no longer available.

As more information is learned over the next few weeks, I will provide clarity about the direct impacts of SB 727 to Cassville R-IV Schools and the possibility of district leadership to consider the need to adjust our present operating levy.

Merlyn Johnson is the superintendent of the Cassville school district. He may be reached at mjohnson@cassville.k12. mo.us.