Funding Losses by Fiscal Year

FY 2026 - $1,779,555

FY 2027 $1,795,282 

FY 2028 $1,807,227 (estimated) 

 

Compounding Fiscal Pressures: 

State Underfunding and Local Revenue Reductions

Dear LCR3 Families, Staff, and Community Partners,

Public school districts across Missouri are confronting an urgent financial crossroads, and LCR3 is no exception. At this time, the trend looks to continue. While allocated state funds have increased or stayed flat over the past several years, funding has not met the threshold in Missouri state law to adequately and equitably fund public schools through the state foundation formula. In September, the State Board of Education recommended a budget that will not fully fund Missouri's Foundation Formula for the 2027-2028 school year. For growing school communities like LCR3, this looming state shortfall continues to be a serious disruption to our financial stability.

Even more concerning, these impending state-level reductions arrive on top of an already lessened local tax base caused by Senate Bill 190, creating a compounding financial squeeze on our classrooms.

A Double Financial Squeeze: State Shortfalls on Top of SB 190

To understand the full scope of the challenge ahead, it is vital to look at how state and local revenue streams intersect:

1. Recurring Reductions from Senate Bill 190:
   Beginning in November 2025, our district absorbed an initial recurring revenue loss of approximately $250,000 under SB 190. As we have shared previously, this reduction is ongoing, and because the state certification timeline delivers exact figures in November, months after our July 1 budget is legally established, we are already forced to navigate significant fiscal unpredictability at the local level. While we support this opportunity for seniors in our community, the timing creates annual budgeting challenges. 

 

2. Impending State-Level Funding Cuts:
   Rather than offsetting local revenue volatility, state education leadership has recommended a budget that fails to meet full statutory funding for the state Foundation Formula. When the state does not fulfill its commitment to the formula, public districts face substantial budget gaps that directly affect operational revenues used for instruction, personnel, transportation, and day-to-day operations. 

This school year, LCR3 is receiving approximately $1,795,282 less than what Missouri’s Foundation Formula calculates when fully funded. 

For the 2027-2028 school year, this amount is estimated to be approximately $1,807,227. 

Higher Expectations with Fewer Resources

This impending shortfall exposes a stark contradiction in state policy. On one hand, state leaders continue to raise performance standards, introduce more stringent accountability metrics, demand higher academic outcomes, and add more unfunded mandates. On the other hand, the state is contemplating budget allocations that provide fewer resources to achieve those benchmarks.

Missouri is 49th in state funding. Elevating student performance requires competitive compensation to retain exceptional educators, expanded academic intervention, robust mental health support, modern instructional technology, and dependable student transportation. Demanding higher outcomes while withholding the funding required to deliver them is unsustainable for public schools and unfair to our students.

The Real-World Consequence: Shifting the Burden

When the state steps back from its constitutional and statutory obligations, the financial burden doesn't simply vanish; it shifts to local taxpayers.

To make up for lost state dollars, districts across the state are ultimately forced to consider asking local communities for tax adjustments, depleting emergency reserve funds, or making painful cuts to classroom offerings, student activities, and capital improvements. We believe firmly in fiscal responsibility and exhaustive efficiency, but no amount of local belt-tightening can completely absorb compounding six- to seven-figure losses from both Jefferson City and local tax changes without impacting services.

How Our Community Can Help

The budget recommendations emerging from the State Board of Education are not yet set in stone. The final state budget will be debated and passed by the Missouri General Assembly and enacted by the Governor.

Our lawmakers need to hear from you.

We urge our parents, staff, business leaders, and neighbors to reach out to our local state representatives, senators, and the Governor's office:

• Urge them to fully fund the Foundation Formula and student transportation. Remind them that school funding must keep pace with actual statutory requirements.
• Share the local impact: Let them know that Lincoln County R-III cannot absorb state funding cuts alongside the ongoing, unpredictable revenue losses resulting from SB 190.
• Advocate for our children: Our students deserve the tools, teachers, and resources necessary to thrive and compete.

LCR3 has worked to tighten our belt while minimizing impact on the classroom. However, if this trajectory continues, we will have to look at deeper cuts that could include things already taking place in other districts, such as moving from a one-mile busing radius to the state-required three-and-a-half-mile radius, evaluating extracurricular activities, and limiting staff pay and benefit increases. 

Our commitment to the students and families of LCR3 remains our highest priority. We will continue to be rigorous stewards of your investment and keep you updated as state budget negotiations proceed. Thank you for your continued partnership, advocacy, and dedication to LCR3.

Sincerely,

 

Matthew Frederickson, PhD

Superintendent of Schools
Lincoln County R-III School District