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SB1805 • 2026

Modifies the calculation of state aid for certain school districts

Modifies the calculation of state aid for certain school districts

Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Lewis, Patty; House handler: N/A
Last action
2026-05-07
Official status
Second Read and Referred S Education Committee
Effective date
2026-08-28

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Modifies the calculation of state aid for certain school districts

The following summaries of this bill are available: Print All Summaries Introduced Print SB 1805 - Under this act, certain school districts shall no longer receive hold-harmless state aid payments or Small Schools Grant payments.

What This Bill Does

  • The following summaries of this bill are available: Print All Summaries Introduced Print SB 1805 - Under this act, certain school districts shall no longer receive hold-harmless state aid payments or Small Schools Grant payments.
  • Additionally, certain school districts shall have their foundation formula payments calculated using a new definition of the term "local effort" that is based on 2024 property values and local revenue from fiscal year 2025, rather than the 2004 property values and fiscal year 2005 revenue as provided under current law.
  • The following school districts shall not receive hold-harmless state aid payments or Small Schools Grant payments: Northwestern, Keytesville, Blackwater, Cooper County, Otterville, Pilot Grove, and Higbee.
  • (Subsection 1) The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Prairie Home, Brunswick, New Franklin, and Glasgow.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-07 S1609

    Second Read and Referred S Education Committee

  2. 2026-02-26 S486

    S First Read

Official Summary Text

The following summaries of this bill are available:

Print All Summaries

Introduced

Print

SB 1805 - Under this act, certain school districts shall no longer receive hold-harmless state aid payments or Small Schools Grant payments. Additionally, certain school districts shall have their foundation formula payments calculated using a new definition of the term "local effort" that is based on 2024 property values and local revenue from fiscal year 2025, rather than the 2004 property values and fiscal year 2005 revenue as provided under current law.

The following school districts shall not receive hold-harmless state aid payments or Small Schools Grant payments: Northwestern, Keytesville, Blackwater, Cooper County, Otterville, Pilot Grove, and Higbee. (Subsection 1)

The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Prairie Home, Brunswick, New Franklin, and Glasgow. Additionally, these school districts shall not receive state aid under hold harmless adjustments or the Small Schools Grant. (Subsection 2)

The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Salisbury, Boonville, Fayette, and Westran. None of these school districts shall receive state aid under hold harmless adjustments. (Subsection 3)

This act is identical to SB 1736 (2026).
OLIVIA SHANNON

Current Bill Text

Read the full stored bill text
SECOND REGULAR SESSION
SENATE BILL NO. 1805
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR LEWIS.
7371S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 163, RSMo, by adding thereto one new section relating to state aid allocations
to certain school districts.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 163, RSMo, is amended by adding thereto 1
one new section, to be known as section 163.039, to read as 2
follows:3
163.039. 1. Notwithstanding the provisions of section 1
163.031 and 163.044 to the contrary, beginning in school 2
year 2026-27 and for each subsequent school year, none of 3
the following school districts shall receive state aid 4
calculated under subsection 2 of section 163.031, and no 5
such district shall receive any funds under section 163.044: 6
(1) A school district whose boundaries wholly 7
encompass a village with more than sixty but fewer than 8
sixty-seven inhabitants and located in a county with more 9
than seven thousand but fewer than eight thousand 10
inhabitants and with a county seat with fewer than four 11
hundred eighty inhabitants; 12
(2) A school district whose boundaries wholly 13
encompass a city with more than four hundred thirty but 14
fewer than four hundred eighty inhabitants and that is the 15
county seat of a county with more than seven thousand but 16
fewer than eight thousand inhabitants; 17
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(3) A school district whose boundaries wholly 18
encompass a city with more than one hundred sixty-five but 19
fewer than one hundred eighty-five inhabitants and located 20
in a county with more than fifteen thousand seven hundred 21
but fewer than seventeen thousand six hundred inhabitants 22
and with a county seat with more than seven thousand but 23
fewer than nine thousand inhabitants; 24
(4) A school district whose boundaries wholly 25
encompass a city with more than two hundred ninety-three but 26
fewer than three hundred forty inhabitants and located in a 27
county with more than fifteen thousand seven hundred but 28
fewer than seventeen thousand six hundred inhabitants and 29
with a county seat with more than seven thousand but fewer 30
than nine thousand inhabitants; 31
(5) A school district whose boundaries wholly 32
encompass a city with more than four hundred thirty but 33
fewer than four hundred eighty inhabitants and located in a 34
county with more than fifteen thousand seven hundred but 35
fewer than seventeen thousand six hundred inhabitants and 36
with a county seat with more than seven thousand but fewer 37
than nine thousand inhabitants; 38
(6) A school district whose boundaries wholly 39
encompass a city with more than six hundred but fewer than 40
six hundred eighty inhabitants and located in a county with 41
more than fifteen thousand seven hundred but fewer than 42
seventeen thousand six hundred inhabitants and with a county 43
seat with more than seven thousand but fewer than nine 44
thousand inhabitants; and 45
(7) A school district whose boundaries wholly 46
encompass a city with more than four hundred thirty but 47
fewer than four hundred eighty inhabitants and located in a 48
county with more than twenty-two thousand but fewer than 49
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twenty-five thousand inhabitants and with a county seat with 50
more than nine hundred but fewer than one thousand four 51
hundred inhabitants. 52
2. (1) Notwithstanding the provisions of section 53
163.011 to the contrary, beginning in school year 2026-27 54
and for each subsequent school year, the state aid 55
calculation for the school districts delineated in 56
subdivision (4) of this subsection shall be calculated using 57
the definition of "local effort" contained in subsection 4 58
of this section and not the definition of "local effort" 59
provided in section 163.011. 60
(2) Notwithstanding the provisions of section 163.044 61
to the contrary, beginning in school year 2026-27 and for 62
each subsequent school year, no school district delineated 63
in subdivision (4) of this subsection shall receive any 64
funds under section 163.044. 65
(3) Notwithstanding the provisions of section 163.031 66
to the contrary, beginning in school year 2026-27 and for 67
each subsequent school year, no school district delineated 68
in subdivision (4) of this subsection shall receive state 69
aid calculated under subsection 2 of section 163.031. 70
(4) Subdivisions (1) to (3) of this subsection apply 71
to the following school districts: 72
(a) A school district whose boundaries wholly contain 73
a city with more than two hundred sixty but fewer than two 74
hundred ninety-three inhabitants and located in a county 75
with more than fifteen thousand seven hundred but fewer than 76
seventeen thousand six hundred inhabitants and with a county 77
seat with more than seven thousand but fewer than nine 78
thousand inhabitants; 79
(b) A school district whose boundaries wholly contain 80
a city with more than seven hundred sixty but fewer than 81
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eight hundred fifty-five inhabitants and located in a county 82
with more than seven thousand but fewer than eight thousand 83
inhabitants and with a county seat with fewer than four 84
hundred eighty inhabitants; 85
(c) A school district whose boundaries wholly contain 86
a city with more than nine hundred fifty-five but fewer than 87
one thousand sixty inhabitants and located in a county with 88
more than nine thousand nine hundred but fewer than eleven 89
thousand inhabitants and with a county seat with more than 90
two thousand five hundred but fewer than three thousand five 91
hundred inhabitants; and 92
(d) A school district whose boundaries wholly contain 93
a city with more than one thousand sixty but fewer than one 94
thousand one hundred seventy inhabitants and partially 95
located in a county with more than nine thousand nine 96
hundred but fewer than eleven thousand inhabitants and with 97
a county seat with more than two thousand five hundred but 98
fewer than three thousand five hundred inhabitants. 99
3. (1) Notwithstanding the provisions of section 100
163.011 to the contrary, beginning in school year 2026-27 101
and for each subsequent school year, the state aid 102
calculation for any school district delineated in 103
subdivision (3) of this subsection shall be calculated using 104
the definition of "local effort" contained in subsection 4 105
of this section and not the definition of "local effort" 106
provided in section 163.011. 107
(2) Notwithstanding the provisions of section 163.031 108
to the contrary, beginning in school year 2026-27 and for 109
each subsequent school year, no school district delineated 110
in subdivision (3) of this subsection shall receive state 111
aid calculated under subsection 2 of section 163.031. 112
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(3) Subdivisions (1) and (2) of this subsection apply 113
to the following school districts: 114
(a) A school district whose boundaries wholly contain 115
a city with more than one thousand five hundred but fewer 116
than one thousand seven hundred inhabitants and located in a 117
county with more than seven thousand but fewer than eight 118
thousand inhabitants and with a county seat with fewer than 119
four hundred eighty inhabitants; 120
(b) A school district whose boundaries wholly contain 121
a city with more than seven thousand but fewer than eight 122
thousand inhabitants and that is the county seat of a county 123
with more than fifteen thousand seven hundred but fewer than 124
seventeen thousand six hundred inhabitants; 125
(c) A school district whose boundaries wholly contain 126
a city with more than two thousand seven hundred but fewer 127
than three thousand inhabitants and located in a county with 128
more than nine thousand nine hundred but fewer than eleven 129
thousand inhabitants and with a county seat with more than 130
two thousand five hundred but fewer than three thousand five 131
hundred inhabitants; and 132
(d) A school district whose boundaries wholly contain 133
a city with more than one thousand three hundred but fewer 134
than one thousand five hundred inhabitants and that is the 135
county seat of a county with more than twenty-two thousand 136
but fewer than twenty-five thousand inhabitants. 137
4. For purposes of this section only, "local effort" 138
shall mean the following calculation: For each fiscal year 139
calculation, local effort shall be computed as the equalized 140
assessed valuation of the property of a school district in 141
calendar year 2024 divided by one hundred and multiplied by 142
the performance levy less the percentage retained by the 143
county assessor and collector plus one hundred percent of 144
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the amount received in fiscal year 2025 for school purposes 145
from intangible taxes, fines, escheats, payments in lieu of 146
taxes and receipts from state-assessed railroad and utility 147
tax, one hundred percent of the amount received for school 148
purposes pursuant to the merchants' and manufacturers' taxes 149
under sections 150.010 to 150.370, one hundred percent of 150
the amounts received for school purposes from federal 151
properties under sections 12.070 and 12.080 except when such 152
amounts are used in the calculation of federal impact aid 153
pursuant to Pub. L. 81-874, fifty percent of Proposition C 154
revenues received for school purposes from the school 155
district trust fund under section 163.087, and one hundred 156
percent of any local earnings or income taxes received by 157
the district for school purposes. 158
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