Fiscal Responsibility, School Priorities, Legislative Challenges, Campus Improvements and Doing More With Less
To our students, families, staff and Scotland County Community:
For the ten fiscal years before the current budget cycle, Scotland County R-I Schools operated with balanced budgets and annual operating surpluses. During that time, the district maintained financial stability while investing in educational programs, facilities and student opportunities. We balanced the needs of students and staff while operating conservatively, and that commitment remains unchanged.
Financial Outlook
As we progress through the current school year, we want to make the community aware of the potential financial impact of the State Board of Education’s recommendation to flat-fund the state foundation formula rather than follow DESE’s recommendation for full funding.
If adopted, current estimates indicate the State Adequacy Target (SAT) could fall to nearly $6,700. The SAT is the estimated base amount needed to educate one public-school student before adjustments for student needs, regional costs or local property wealth. It is calculated using the average expenses of Missouri’s top-performing schools.
The foundation formula uses average daily attendance (ADA) in its student count. It also accounts for local tax effort and Classroom Trust Fund revenue. The formula provides additional weighted funding for certain student groups, including students with individualized education programs (IEPs), students who qualify for free or reduced-price meals, and English learners (EL) above state-set thresholds.
If fully funded, the SAT would be $7,145. It has not been fully funded for the past two years. Last year, it was funded at $6,950. For the 2026–27 school year, it is funded at $6,750 and could increase to $6,850 by year’s end if state revenues come in as projected.
The State Board’s flat-funding recommendation would leave approximately $270,000,000 below the amount needed to fully fund the formula next year. Current estimates suggest the SAT could return to $6,700 or slightly higher under that recommendation. This could mean an estimated state funding shortfall of more than $200,000 for Scotland County R-I Schools in each of the 2026–27 and 2027–28 school years.
The district’s overall financial position remains strong, but its operating results have changed considerably over the past four years. In 2024 and 2025, the district recorded operating surpluses of approximately $373,703 and $223,634, respectively. In 2026, expenditures exceeded revenues by approximately $634,556. The 2027 projected budget anticipates an operating deficit of approximately $602,473.
Revenue declined from approximately $9.58 million in 2024 to a projected $8.00 million in 2027, a decrease of nearly $1.58 million, or about 16.5%. During that period, expenditures remained relatively stable, ranging from approximately $8.6 million to $9.2 million annually.
Although projected expenditures for 2027 are lower than in both 2024 and 2026, the district still faces a deficit because revenue has declined more quickly than expenses. We are working to maintain essential educational programs, staffing, transportation, facilities and student services while operating with significantly less revenue.
Much of the district’s budget covers fixed or contractual costs, including employee salaries and benefits, retirement contributions, Social Security, Medicare, transportation, utilities, insurance and required instructional services. These costs are necessary to operate the district and provide an outstanding education for our students. As a result, relatively few areas can be reduced without affecting employees, programs or student services.
We will continue to monitor enrollment, state funding, local revenue, staffing and operating expenses. Spending decisions will prioritize student learning while maintaining our commitment to fiscal responsibility.
Missouri’s Pilot A–F School Report Card
Missouri’s pilot A–F ratings for public schools are another part of the information communities may be seeing about schools. The district has not yet received the results of the initial grade release. When they become available, we will share what we know.
No state rating can replace what teachers and parents know about a child, and progress looks different for every student. The pilot rating is based on 2024–25 data. The state is still refining the system and how ratings are calculated, so the framework may change. A rating is one measure of school performance, but it cannot capture the full picture of our students, schools or community.
We will continue reviewing our progress and adjusting our work to meet students’ needs. Developed with input from students, families, staff, board members and community members, the 2026–27 Continuous School Improvement Plan (CSIP) identifies improvement in MAP and EOC results, graduation rates and district attendance as strengths.
The CSIP also sets priorities for aligning curriculum with Missouri Learning Standards, using assessment data to guide instruction, and preparing students for college, trades, careers and life after graduation. It recognizes the increased number of dual-credit courses available to high school students.
Balancing Expectations and Resources
The pilot A–F rating system reflects the state’s focus on academic performance, student outcomes and accountability. We support high expectations for students. Our teachers and staff work every day to help students grow, improve and succeed. Accountability and continuous improvement are important parts of that work.
At the same time, the State Board of Education has recommended a budget that current projections indicate would leave the Foundation Formula underfunded. Schools are being asked to improve while potentially receiving less than the funding formula calls for. Meaningful improvement also requires resources. Quality instruction, professional development, student interventions and academic support all come with costs. If expectations for schools increase, the conversation should also include how to provide the resources needed to meet them.
The Board of Education and administration take their stewardship to taxpayers seriously. We continually examine expenditures, look for efficiencies and make thoughtful decisions about available resources. Responsible budgeting is important, but it cannot fully make up for state funding that falls short year after year.
A funding gap does not necessarily mean immediate reductions to staff or programs. It can mean delaying improvements, postponing purchases or finding other ways to stretch limited resources. Over time, those decisions add up.
Grant Funding For Campus Improvements
Our commitment to fiscal responsibility also includes pursuing outside funding to reduce the cost of needed improvements. We have had numerous success stories in our community over the years using this grant model which include the TAP Project and Land Water Conservation Fund that helped fund our All-weather Track. Scotland County R-I Schools has been awarded $238,120 through two programs: $70,926 from the Safe Routes to School Program and $167,194 from the Transportation Alternatives Program (TAP).
The sidewalk project is estimated to cost approximately $297,650. With the grant funding, the district’s local share is approximately $59,530, or about 20% of the total cost. The district secured roughly four dollars in grant funding for every local dollar invested.
The need for a connected, ADA-accessible sidewalk system has been identified by the district’s Long-Range Facility Planning Committees for many years. The project took longer than initially anticipated because of the planning, engineering, environmental review and approval processes required by the Missouri Department of Transportation. These steps help ensure the project meets applicable state and federal standards before construction begins.
Without the grants, a project of this size would likely not be financially feasible using local funds alone. The funding allows the district to make long-needed campus improvements with a much smaller local investment. The sidewalks will improve campus accessibility, safety and connectivity for students, staff and the community. Construction on the TAP project is beginning this week.
Moving Forward
The Governor and Missouri General Assembly will make funding decisions during the upcoming legislative session. We are sharing this information so the community can understand how decisions made in Jefferson City affect Scotland County R-I Schools. When state funding falls short, pressure may shift to local taxpayers.
We are proud of the work happening in our classrooms each day and grateful for our dedicated staff and supportive community. Our commitment to providing a quality education has not changed, and neither have our expectations for students. If Missouri raises expectations for public schools, it is reasonable to expect a serious commitment to providing the resources necessary to meet them.
Scotland County R-I Schools will continue to use local data and community input to evaluate progress, focus resources on students and pursue funding opportunities that support district programs and facilities.
Thank you for your continued support and partnership. We sincerely appreciate everyone in our community that advocates for our school district and public education. We will continue to keep the community informed about our progress and legislative impacts.
Sincerely,
Ryan Bergeson, Superintendent
Scotland County R-1 School District