Uncertainties in state funding, tax considerations and student enrollment could have a significant impact on the Houston R-1 School District.
Dr. Justin Copley, superintendent, shared during Tuesday’s monthly meeting of the board of education that there are potential challenges looming as he develops the district’s annual budget.
“These things are fluid and can change,” Copley said during a budget overview presentation. “I want to give you some perspective now.”
The first potential impact, Copley said, is a possible reduction in state funding for public education from Gov. Mike Kehoe. If the state’s projected state adequacy target (SAT) multiplier decreases from $7,145 to $6,900, it would decrease the district’s budget by $240,000 beginning in fiscal year 2027.
The district’s largest chunk of funding – 43% compared to 40% locally and 17% federally – is provided by state dollars.
“The governor’s budget reflects a tightening of state financing,” Copley said. “I don’t want to call it a sense of urgency, but it’s a sense of reduction of funds for public education.”
Copley said House Bill 2780, sponsored by Rep. Tim Taylor, would have a major impact on small school districts like Houston. The measure, which was passed by the House in March, could reduce the district’s minimum operating levy from 2.72 to 2.20.
“That is a major, major concern for our district if that happens,” Copley said.
Another piece of state legislation, the Senior Property Tax Freeze, projects to cut about $25,000 from district funding annually, Copley shared.
VIDEO: Watch the March board meeting
Copley, who stressed the importance of continuing financial conversations with local and state representatives, also highlighted the impact and importance of enrollment.
He said the district began the 2025-26 school year with 940 students in K-12. The number has declined to 915.
“Enrollment and attendance are one of the primary multipliers for the monies that are received at the state level,” Copley said. “We are trying to identify patterns. Declining enrollment seems to be something happening in a lot of schools.”
Open enrollment continues to be discussed at the state level, Copley said. He did not have a prediction of a final outcome.
With unknown and possible significant budget impacts looming, Copley said the district will adjust strategically.
“We have to continue to think ahead 3-5 years,” he told the board. “In times like this, we probably have to consider moving to a higher fund balance to offset uncertainties that may come.”
Salary, benefits comparison shared with board members
Randi Wilson, a high school teacher and member of the Climate, Culture & Compensation Committee, presented information comparing salaries and benefits at Houston R-1 with conference and county districts. Wilson said with adjustments for fully paid insurance and low premiums, Houston ranks first in comparisons for bachelor’s degrees and second for master’s degrees plus 10 years experience.
Wilson said along with continued salary support, the committee’s priorities for the district are career ladder – she said 85% of eligible teachers participated last year – and fully paid insurance.
Insurance rates renewed at 4.6% increase
District health services were renewed with Missouri Educator Trust (MET) Consortium for the 2026-27 school year. Copley said the insurance premium will increase by 4.6% from $703 monthly per employee to $736. He said the district’s annual increase will be nearly $80,000.
Plan options and rates were provided as information only. Board of Education premium contributions will be decided in the future during the budget session.
Bids approved, prom details announced
Other business during the monthly March meeting:
- Supplies and equipment bids were approved for equipment for the district’s new Auto Mechanics program from NAPA Auto Parts and Snap-On Industrial. Some bids were rejected from both vendors for additional investigation of pricing.
- The purchase of a food steamer and amendment of the budget for the purchase was approved from Artic Food Equipment to replace a broken one in the MS/HS cafeteria.
- Reports were received from each building administrator. Amanda Munson, high school principal, said there are 103 students participating in spring sports: track 41, baseball 24, softball 18, golf 13 and tennis 7. She also shared with the board that an open house will be held March 30 at the Piney River Technical Center and prom is April 11 at Pine Meadows in Willow Springs with after-prom following at Andy B’s in Springfield.
- Job descriptions were approved for the positions “teacher” and “occupational therapist.” The board was provided with descriptions for “building principal” and “speech language pathologist” to be considered in April.
- Approval was given to the following: an annual agreement with the Exceptional Child Education Cooperative; BBFA/Conflict of Interest policy, which is considered each alternating year; adding Thrivent to a list of 403(b) vendors available to staff; and Artificial Intelligence (AI) and Curriculum program evaluations from Wytney Steelman.
- Special recognition was given to senior T.J. Royal, who was honored for his work as an intern with the maintenance department, as well as the board members, who were provided with treats and tokens of appreciation from across the district.
- The May regular board meeting was moved from May 12 to May 19 to open up the evening for the district’s annual Academic Awards ceremony.