YOUR BUSINESS AUTHORITY
Springfield, MO
For the past five years, the Logan-Rogersville R-VIII School District has added close to $1,000 each year to its starting teacher salary. The effort paid off, pushing the baseline to a competitive $41,500.
Superintendent Rocky Valentine said the 2,500-student district cannot make the same investment this year. The pay increase will be roughly half the size.
“We have a couple scenarios we’re still hammering out with the board,” he said, noting the 2027 fiscal year budget will be approved in late June. “They won’t be on par with where we’ve been the last couple years.”
Top school officials in the Springfield area said higher costs and lower than expected state funding are prompting tough budget decisions.
They are offering smaller pay raises, filling fewer jobs and limiting the pace of growth for programs and services.
“We’re having to identify areas where we can pause what we’re going to be spending,” he said.
Missouri’s FY27 budget includes more than $4.2 billion in state aid for K-12 schooling but falls short of full funding. The state adequacy target, a key part of the formula that determines how much per-pupil state funding goes to each district – was set at $7,145. However, districts have been told to plan for $6,900 or perhaps lower.
There is more than $375 million for school busing in the state’s FY27 budget, but that will likely result in a lower reimbursement level amid high fuel prices.
Springfield Public Schools recently presented a budget plan that called for cutting 67 positions, due to lower state funding and enrollment, to help offset $6.4 million in proposed increases for employee pay and benefits.
Gov. Mike Kehoe issued an executive order to create the Missouri School Funding Modernization Task Force, which is required to submit a report by Dec. 1 with suggestions for how to overhaul the way the state funds public education.
District officials said that potential change, increased inflation and efforts to roll back income tax in the state have created layers of uncertainty.
Gearl Loden, superintendent of Nixa Public Schools, said teacher pay in Missouri is in danger of falling further behind some neighboring states, making it tougher to recruit and retain high-quality staff.
He said the district took the unusual step of cutting nonpersonnel spending after the start of the school year and may do the same again this fall.
“I’m glad we did that because that means we protected our reserves this year, which gives us a better playing field for next year,” he said.
Republic School District’s retiring superintendent, Matt Pearce, worked with the incoming superintendent, Tyler Overstreet to develop a conservative FY27 budget. It included cutting eight positions through attrition, including four classroom teachers, and buying two buses instead of three.
“We didn’t have anybody lose their job, but we didn’t rehire every single one,” Pearce said.
Overstreet, assistant superintendent of academic services, said the budget includes a pay raise, but it was “not as big as what it’s been in the past, due to the uncertainty in funding.”
“We always want to be fiscally responsible, but it’s really made us sharpen our pencil even more,” Overstreet said. “We are fortunate to be in a situation where we can be proactive and start doing some things now.”
Eric Wilken, superintendent of Willard Public Schools, said if the state fully funded K-12 education next year, it would result in $1.2 million more for his district. He said four years of Willard’s conservative budgeting, and a healthy reserve, will help the district weather lower than expected state funding,
“We do plan to deficit-spend a couple years as the state figures out what kind of direction they’re going to be going,” he said.
Wilken said the district has cut 25 positions through attrition during the past three years, but employees will get a pay raise this year.
“We’re protecting instruction and classroom opportunities,” he said. “We have not cut anything like that.”
Wilken said Willard’s operating reserve fund stands at 32%, more than twice the 15% recommended by the state, but district leaders only plan to spend down so much. He said if state funding does not go up in a couple of years, cuts are likely.
“We’ve been proceeding with caution, and I’ve been very transparent with the staff and community about what we could face,” he said. “I don’t think it’ll be a surprise to anyone.”
Brian Breeden, superintendent of the Clever R-V School District, said if the state funded K-12 education to the $7,145 target, the Clever district would receive nearly $559,000 more next year.
“The FY27 budget reflects lower state revenue projections and continued increases in expenses such as salaries, benefits, transportation, maintenance and operational costs,” he said.
He said employees will receive a pay bump, but the district opted not to fill three open paraprofessional jobs and a transportation position.
“These decisions were made carefully and are not expected to negatively impact classroom instruction or student services,” he said.
The district also successfully asked voters to approve a tax levy transfer, freeing up a portion of local tax revenue earmarked for debt repayment and using it to cover operating expenses.
“This local support helps the district continue meeting student needs despite uncertainty in state funding,” he said.
A trio of brothers own Southway Storage LLC, which opened Oct. 7 and has 289 units to serve customers in Ozark, Nixa, Springfield and elsewhere in southwest Missouri.