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Public Schools Face Increased Costs of Doing Business


The Missouri General Assembly is in session, and once again, tax breaks for businesses are on the table. HB 1253, sponsored by Representative T.J. Berry (R-Kearney) — the same representative who sponsored last year’s HB 253 — promise these breaks to businesses across the state.

As you may remember, HB 253 was vetoed by Governor Nixon and the override attempt by the legislature failed.

Missouri’s General Revenue provides approximately 84% of public education funding. If HB1253 passes, the state’s General Revenue is expected to fall between $71 million and $347 million per year.

Businesses in Missouri face increased operating costs in 2014, including:
· Increased insurance costs
· Increased transportation costs
· Increased litigation costs
· Increased technology expenses

The same can be said for Missouri’s K-12 public schools.

Missouri’s public school systems face all of the same increased costs of doing business that businesses do: Insurance, transportation, litigation, and technology costs are all on the rise for Missouri’s schools. HB 1253 and similar pieces of legislation will reduce taxes for business, but it won’t help schools.

In fact, it could hurt them by reducing the General Revenue.

In FY2013, Missouri’s Foundation Formula for public schools was already underfunded by $621 million. Our students can’t afford HB 1253’s additional $71 million to $347 million hit on the General Revenue.

Missouri Parent will continue to keep you informed throughout the legislative session. Be sure to subscribe to email updates and follow us on Facebook and Twitter for the most immediate news on legislative and funding issues that affect Missouri public school students.

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