Fixed: An Analysis of Missouri’s Foundation Formula and How Static Local Effort Leads to Increased Inequities
By James Shuls, Ph.D.
The following paper provides a primer in state education funding formulas, and a lesson in unintended consequences.
By design, school districts with low property tax bases will receive more per pupil than their more affluent peers. The following report examines an original feature that has become a bug in the funding formula, potentially undermining what the formula was originally designed to do.
Key Points:
State funding by district depends first and foremost on “local effort,” which is an estimate of the local property tax base.
It is important to note the local effort used in this calculation is based on 2005 property valuations. It is fixed.
As property values have changed over time, the state has continued to use 2005 values.
In this paper, I show how using fixed values leads to greater inequities.
Moreover, I demonstrate that adjusting to a dynamic model that utilizes more recent property values would increase equity among school districts.
Please Cite As: Shuls, J. (2024). Fixed: An Analysis of Missouri's Foundation Formula and How Static Local Effort Leads to Increased Inequities. Policy Research in Missouri Education, 6(13). Saint Louis University. https://www.sluprime.org/education-reports-database/fixed-an-analysis-of-missouris-foundation-formula-and-how-static-local-effort-leads-to-increased-inequities