Rural School Leaders Warn Proposed Tax Bills Could Strip Millions from Northeast Missouri Classrooms

By Mike Scott, NEMOnews Media Group

Superintendents across northeast Missouri say three proposed property tax measures moving through the Missouri House could significantly reduce funding for rural school districts — potentially affecting staffing, programming and long-term financial stability.

The legislation — Missouri House Bill 2780, Missouri House Bill 1766, and Missouri House Bill 2329 — would change how personal property is assessed and how local tax rates are calculated under the Hancock Amendment.

While supporters say the bills would reduce tax burdens, rural superintendents say the revenue impact on schools could be severe.

Clark County R-1: “You Can’t Lose Half a Million”

At Clark County R-I School District, Superintendent Lyndel Whittle said property taxes account for about 25 percent of the district’s $15.8 million budget. Personal property represents just under one-third of assessed valuation.

Whittle estimates:

•HB 2780: approximately $108,000 loss

•HB 1766: no impact locally due to minimum levy

•HB 2329: just under $500,000 annual loss

“You can’t lose half a million and not expect to have to make changes,” Whittle said. “You can’t save $500K by cutting back on copy paper or getting rid of an activity or two. The only area in which you could find that amount of money would be in salary and benefits.”

“As a taxpayer, I like legislation that reduces my tax burden,” he added. “However, I also know that the only way to have schools, police, and other services is by paying taxes.”

Knox County R-1: Nearly a 10% Cut

In Knox County, Superintendent Alex Van Delft of Knox County R-I School District projects combined impacts approaching a 10 percent revenue reduction.

Projected annual losses include:

•HB 2329: $728,625

•HB 2780: $86,316

•HB 1766: $134,050

“To put a 10% revenue cut into perspective, that amount pays for approximately 13 to 15 teaching positions,” Van Delft said.

He noted the state foundation formula is unlikely to replace the losses.

“There is serious concern that proposed modernization of the funding formula could back out our local effort, potentially reducing our state aid further rather than replacing what we lose locally.”

Scotland County R-1: “Devastating for SCR-1”

At Scotland County R-I School District, Superintendent Ryan Bergeson said personal property generates approximately $1.12 million annually — more than 14 percent of projected yearly revenue.

Under HB 2329, Bergeson estimates:

•$193,847 loss in the first year

•$1,164,349 cumulative loss by 2030

“A shortfall of this magnitude would be devastating for SCR-1,” Bergeson said. “There is no proven revenue source that is going to make up the difference.”

He added that everything from staffing to transportation could be affected.

Palmyra R-1: Over $1 Million at Risk

Superintendent Jason Harper of Palmyra R-I School District said personal property generates more than $2.6 million annually for the district — nearly 18 percent of its total budget.

“Just over $2.1 million goes toward operating funds, and approximately $600,000 goes toward debt service to pay off our bonds,” Harper said.

Harper’s fiscal projections show:

•HB 2780: $378,609.92 loss

•HB 1766: $264,636.08 loss

•HB 2329: $1,017,672.96 loss — with the potential to increase

“HB 2329 would have an extreme impact on Palmyra R-1,” Harper said. “That number will only increase as it does not calculate any assumptions related to new personal property.”

Harper said while the state formula might adjust slightly due to reduced local effort, “it would never make up for the drastic losses these bills would cause.”

He also pointed to additional financial pressures.

“The loss of revenue combined with the requirements of SB 727, which includes mandated salary raises… might force us to examine every facet of the district,” Harper said.

While Palmyra currently has fund balances that provide flexibility and a rolled-back levy that offers some breathing room, Harper said a levy increase is not currently being considered.

“My hope would be that a levy increase would be a last resort,” he said.

Harper strongly opposes the legislation.

“The state adequacy target is now at $7,145 per ADA, and the state is currently only funding us at $6,900,” he said. “If the state is not going to be able to fully fund public education, I would oppose legislation that will restrict local funding options.”

“Missouri state funding comes in at 49th out of our 50 states,” Harper added. “I know our local residents would love to see the burden of property taxes alleviated, but I want them to know that we are thankful for all they sacrifice to give us the opportunity to have a great school district.”

A Regional Concern

Though each district’s tax base differs, one theme was consistent: rural schools depend heavily on personal property taxes, and significant reductions could ripple through classrooms.

Superintendents acknowledged taxpayers’ desire for relief but questioned how districts would replace six- and seven-figure losses without affecting students.