Senate Bill 3 could spell trouble for area schools as funding shrinks

Missouri Senate Bill 3 in Missouri has appeared on the ballot in 97 of the 114 counties in Missouri, passing in many of them, including Lawrence County. This bill, intended to be a property tax relief measure for homeowners, may affect the funding of area schools, according to district leaders. 

The bill was sent to ballots on the April 7 election, giving counties the option of capping property taxes on homeowners in their respective areas. The bill places a 0-percent cap on property taxes for eligible taxpayers in Lawrence County. The exact language of the ballot measure in Lawrence County is as follows.

“Shall the County of Lawrence exempt eligible taxpayers from certain tax increases on eligible taxpayers’ primary residence above the liability incurred during the initial credit year?”

The measure was passed in Lawrence County, garnering 60.6 percent of the total 3,271 votes, giving Mt. Vernon School District Superintendent Christina West cause for concern. The new bill, she said, is set to result in a loss of $287,000 to $362,000 for the district. This bill is not the only thing that could impact the funding of the district, as there is currently another bill working its way through the state legislature that could lower the minimum state levy, adding an additional loss of $192,000. 

“When you combine the state funding cuts projected for next year with the current year's shortfall from the state, this represents a significant financial challenge that could greatly affect the school,” said West. 

District considers loss mitigation

The district could also face further financial hardship as enrollment in Mt. Vernon Schools has dwindled.

“We also look at enrollment and how many teachers we have at each level,” said West. “Our enrollment is down, which in turn also is a loss of funding for us.”

In order to address the losses, the district will be forced to reevaluate their staffing. West said that, because of these changes to state law, the district will have to take a close look at a position when a staff opening occurs, evaluating whether the position is needed at all. With this method, the district hopes to avoid making any larger cuts. 

“To address this, we are looking closely at all staff openings as they occur,” said West. “Our strategy is to use attrition to our advantage—evaluating each position as people leave to determine if we can consolidate roles or leave them unfilled. We are hopeful that by managing these openings carefully, we can mitigate the financial impact without having to make any major program cuts.”

May be stopped in courts

There is hope, however, said West, as the bill’s constitutionality has been in question since before it appeared on the ballot. For now, however, the district must do what they can to live with the reality of Senate Bill 3. 

“Regarding the legality of the bill, I do feel it may eventually be deemed unconstitutional,” said West. “However, as it is currently the law, we must be responsible and plan for the loss of these funds today to ensure the district remains on stable footing.”