Missouri Senate Bill SB601

Missouri 2023 Regular Session

• Introduced: 2/6/23
• Refer: 4/3/23

Caption

Establishes the Education Stabilization Fund

Impact

The introduction of the Education Stabilization Fund represents a significant amendment to Chapter 33 of RSMo. By allowing the governor to transfer funds during fiscal years of revenue shortfalls, the bill aims to uphold the foundation formula's funding for public schools relatively close to its fully appropriated amount. This measure is anticipated to provide added financial stability to school funding, which is crucial for maintaining educational standards across the state.

Summary

Senate Bill 601 establishes the Education Stabilization Fund aimed at ensuring consistent funding for Missouri's public schools. The fund will be created in the state treasury and will consist of moneys collected specifically under this bill. The intent is to provide a financial buffer in instances where actual state revenues fall below the revenue estimates that appropriations are based on, thus safeguarding educational funding during economic downturns.

Sentiment

The sentiment surrounding SB601 appears to be generally positive among proponents who view it as a necessary step to secure educational funding without interruption, especially in economically challenging times. Supporters argue that this fund will deter potential educational budget cuts that could arise during downturns and ultimately support the state's commitment to education.

Contention

Despite its favorable reception, there may be points of contention regarding the source of funding for the Education Stabilization Fund. Some critics might argue about the long-term sustainability of the fund and the implications of transferring excess funds back into the general revenue fund if the balance exceeds the designated limit. Such discussions could engender debate about financial management priorities within the state budget, particularly as they pertain to future funding commitments.