COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0419H.02I Bill No.:HB 607 Subject:Education, Elementary and Secondary; Teachers; Department of Elementary and
Secondary Education
Type:Original Date:February 3, 2025Bill Summary:This proposal changes teacher salary provisions and the Teacher Baseline
Salary Grant Program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND
AFFECTED
FY 2026FY 2027FY 2028Fully
Implemented
(FY 2031 )
General
Revenue*$0 or (Unknown) $0 or (Unknown)$0 or (Unknown)
More or less than
$14,876,716
Total Estimated
Net Effect on
General
Revenue
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
More or less than
$14,876,716
* Oversight notes this proposal delays increases to the minimum salaries due to inflation from
starting in FY 2029 until 2030-31 (FY2031) school year. Oversight assumes this would be a
potential savings. Therefore, Oversight will note the savings of $866,605 for FY 2029 and
$1,759,208 for FY 2030 to general revenue and the school districts which will exceed the
$250,000 threshold. This savings is not reflected in the tables due to the fiscal note being
fully implemented in FY 2031.
** Oversight notes section 163.172 states that moneys granted to a school district under this
subsection shall not exceed fifty percent of the necessary amount to increase minimum salaries.
Due to this limitation the other fifty percent has been passed onto the school districts unless they
expend their whole Classroom Trust fund. Therefore, by adding a cap of fifty percent to the
Teacher Baseline Salary Grants, savings to general revenue will exceed the $250,000 threshold.
***There is the potential that some schools will become eligible for additional (1% up to 2%)
state aid payments that otherwise would not have been eligible. Oversight assumes this cost
would not exceed $250,000. L.R. No. 0419H.02I
Bill No. HB 607
Page 2 of
February 3, 2025
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ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND
AFFECTED
FY 2026FY 2027FY 2028Fully
Implemented
(FY 2031 )
Teacher Baseline
Salary Grant
Fund* $0$0$0$0
Total Estimated
Net Effect on
Other State
Funds $0$0$0$0
*Oversight notes the Fund nets to zero
Numbers within parentheses: () indicate costs or losses.
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND
AFFECTED
FY 2026FY 2027FY 2028Fully
Implemented
(FY 2031)
Total Estimated
Net Effect on
All Federal
Funds $0$0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND
AFFECTED
FY 2026FY 2027FY 2028Fully
Implemented
(FY 2031 )
Total Estimated
Net Effect on
FTE 000$0
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act. L.R. No. 0419H.02I
Bill No. HB 607
Page 3 of
February 3, 2025
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ESTIMATED NET EFFECT ON LOCAL FUNDSFUND
AFFECTED
FY 2026FY 2027FY 2028Fully
Implemented
(FY2031 )
Local
Government*$0 or Unknown$0 or Unknown$0 or Unknown
More or less
than
($14,876,716)
* Oversight notes this proposal delays increases to the minimum salaries due to inflation from
starting in FY 2029 until 2030-31 (FY2031) school year. Oversight assumes this would be a
potential savings. Therefore, Oversight will note the savings of $866,605 for FY 2029 and
$1,759,208 for FY 2030 to school districts. This savings is not reflected in the tables due to
the fiscal note being fully implemented in FY 2031.
** Oversight notes section 163.172 states that moneys granted to a school district under this
subsection shall not exceed fifty percent of the necessary amount to increase minimum salaries.
Due to this limitation the other fifty percent has been passed onto the school districts unless they
expend their whole Classroom Trust fund. L.R. No. 0419H.02I
Bill No. HB 607
Page 4 of
February 3, 2025
GS:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Due to time constraints, Oversight was unable to receive some agency responses in a timely
manner and performed limited analysis. Oversight has presented this fiscal note on the best
current information that we have or on information regarding a similar bill(s). Upon the receipt
of agency responses, Oversight will review to determine if an updated fiscal note should be
prepared and seek the necessary approval to publish a new fiscal note.
Section 163.045 - Additional funding to school districts with 169 day school calendar
Officials from the Department of Elementary and Secondary Education (DESE) assume this
section of the proposal will have no fiscal impact on their organization.
In addition, DESE provided the Department does not collect final calendars till the school year is
complete, so based upon the School Year (SY) 2024 actual calendar only 49 school districts had
calendars for all students claimed for state aid of 169 days or more. Please note, many LEA’s are
reviewing their SY 2025 calendars and considering adjustments based upon their LEA’s specific
benefit if they ensure calendars for all students claimed for state aid equal or exceed 169 days.
DESE expects these numbers to fluctuate as schools make decisions and changes to their
calendars.
Oversight notes Section 163.045 clarifies language relating to additional funding for teacher
salaries that districts receive if the district has a school calendar with 169 school days. The
clarification provided allows for inclement weather or authorized reductions to the number of
days the district must be in session to qualify for the funding
Oversight has no way to determine how many schools will adjust their school calendar to a 169
day or more school term to obtain additional funding. There is potential that more schools will
become eligible for the amount equal to one percent for fiscal years 2026 and 2027, or two
percent for fiscal year 2028 and all subsequent fiscal years, of each district's preceding year's
annual state aid entitlement moving forward. Therefore, Oversight will reflect a $0 or Unknown
cost to GR, as well as a $0 to Unknown gain to school districts in the fiscal note.
Section 163.172 - Baseline Teacher Salary
Officials from DESE assume section 163.172 would change the original estimate for Teacher
Baseline Salary Grants used in 2024 for SB 727. The CPI increase for Less than Master + 10
Teachers would not go into effect until 2030-31 postponing the need for an increase one fiscal
year. It would also postpone the CPI increase for Master's + 10 salaries until 2030-31,
postponing the needed increase there as well. The estimates are based on current eligible districts
and teachers. As districts adjust their salary schedules these estimates will change annually. L.R. No. 0419H.02I
Bill No. HB 607
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February 3, 2025
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DESE provided the tables below showing the cost for the total salaries with the new
implementation dates:
Less than Master
+10
Teachers
#/% of
Districts
# of
Teachers
Amount to
Raise
16% add for
benefitsTotal
Fiscal
Year
$ 40,000 436/78.1%5,474$23,256,562 $3,721,050 $26,977,612 2026 $ 40,000 436/78.1%5,474$23,256,562$3,721,050 $26,977,6122027 $ 40,000 436/78.1%5,474$23,256,562$3,721,050$26,977,6122028 $ 40,000436/78.1%5,474$23,256,562$3,721,050$26,977,6122029 $ 40,000436/78.1%5,474$23,256,562$3,721,050$26,977,6122030Raise to $40,800476/85.3%6,596$5,284,357 $845,497 $33,107,466 2031Raise to $41,616493/88.4%7,664$6,271,026$1,003,364$34,252,0032032Raise to $42,448505/90.5%8,770$7,326,581$1,172,253$35,476,4462033Raise to $43,297516/92.5%10,144$8,651,312$1,384,210$37,013,1342034Raise to $44,163525/94.1%11,646$10,138,102$1,622,096$38,737,8112035
Master +10
Teachers
#% of
Districts
# of
Teachers
Amount to
Raise
16% add for
benefitsTotal
Fiscal
Year
Raise to $46,000290/52.0%1,103$3,746,477 $599,436 $4,345,914 2026Raise to $47,000335/60.0%1,442$1,282,092 $205,135 $5,833,141 2027Raise to $48,000372/66.7%1,818$1,645,874 $263,340 $7,742,354 2028Raise to $48,000372/66.7%1,818$1,645,874 $263,340 $7,742,354 2029Raise to $48,000372/66.7%1,818$1,645,874 $263,340 $7,742,354 2030Raise to $48,960374/67.0%1,847$1,773,120$283,699$9,799,1732031Raise to $49,939408/73.1%2,285$2,233,396$357,343$10,333,0942032Raise to $50,938431/77.2%2,774$2,761,655$441,865$10,945,8742033Raise to $51,957448/80.3%3,351$3,398,637$543,782$11,684,7732034Raise to $52,996495/88.7%4,804$4,977,761$796,442$13,516,5572035 L.R. No. 0419H.02I
Bill No. HB 607
Page 6 of
February 3, 2025
GS:LR:OD
Oversight has calculated the fiscal impact in the table below with data provided from DESE to
reflect a 3% CPI adjustment starting in FY 2031:
FY Base Salary
Base
Benefits
(16% of
Salary)SubtotalMasters 10+
Masters 10+
Benefits
(16% of
Salary)SubtotalTotal
FY 2026$23,256,562$3,721,050$26,977,612$3,746,477$599,436$4,345,913$31,323,525FY 2027$23,256,562$3,721,050$26,977,612$1,282,092$205,135$1,487,227$28,464,839FY 2028$23,256,562$3,721,050$26,977,612$1,645,874$263,340$1,909,214$28,886,826FY 2029$23,256,562$3,721,050$26,977,612$1,645,874$263,340$1,909,214$28,886,826FY 2030$23,256,562$3,721,050$26,977,612$1,645,874$263,340$1,909,214$28,886,826FY 2031$23,954,259$3,832,681$27,786,940$1,695,250$271,240$1,966,490$29,753,431FY 2032$24,672,887$3,947,662$28,620,548$1,746,108$279,377$2,025,485$30,646,033FY 2033$25,413,073$4,066,092$29,479,165$1,798,491$287,759$2,086,250$31,565,414FY 2034$26,175,465$4,188,074$30,363,540$1,852,446$296,391$2,148,837$32,512,377FY 2035$26,960,729$4,313,717$31,274,446$1,908,019$305,283$2,213,302$33,487,748
Oversight notes this proposal delays increases to the minimum salaries due to inflation from
starting in FY 2029 until 2030-31 (FY2031) school year and only authorizes increases due to
inflation through the 2034-35 (FY 3035) school year. Oversight assumes this would be a
potential savings. Therefore, Oversight will note the savings of $866,605 for FY 2029 and
$1,759,208 for FY 2030 to general revenue and the school districts.
Section 163.172.8(3)
Officials from DESE state in 2030-31 districts will be eligible for 50% of the funds needed to
make these increases unless they use 100% of their Classroom Trust Funds on teacher salaries as
described. DESE cannot estimate how many districts this could apply to. With today's estimates
this would be a total annual cost as shown in the table below. DESE currently has an
appropriation for Teacher Baseline Salary Grants of $31,323,526 (FY26). L.R. No. 0419H.02I
Bill No. HB 607
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February 3, 2025
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DESE provided the information below showing the 50% required to be paid by state:
Less than Master
+10
Teachers
Total Annual Cost50% Required by
State
Fiscal
Year
$ 40,000 $26,977,612 $02026 $ 40,000 $26,977,612$02027 $ 40,000 $26,977,612$02028 $ 40,000$26,977,612$02029 $ 40,000$26,977,612$02030Raise to $40,800$33,107,466 $16,553,733.13 2031Raise to $41,616$34,252,003 $17,126,001.38 2032Raise to $42,448$35,476,446 $17,738,223.15 2033Raise to $43,297$37,013,134 $18,506,566.96 2034Raise to $44,163$38,737,811 $19,368,905.56 2035Master +10
Teachers
Total Annual Cost50% Required by
State
Fiscal
Year
Raise to $46,000$4,345,914 $02026Raise to $47,000$5,833,141 $02027Raise to $48,000$7,742,354 $02028Raise to $48,000$7,742,354 $02029Raise to $48,000$7,742,354 $02030Raise to $48,960$9,799,173 $4,899,586.68 2031Raise to $49,939$10,333,094 $5,166,546.98 2032Raise to $50,938$10,945,874 $5,472,936.99 2033Raise to $51,957$11,684,773 $5,842,386.59 2034Raise to $52,996$13,516,557 $6,758,278.70 2035
Oversight notes beginning in 2030-31 the proposal limits grants authorized under the "Teacher
Baseline Salary Grant Program" to 50% of the amount necessary for a district to increase the
minimum teacher's salaries to meet the threshold set. The remaining 50% must be spent by the
district from the Classroom Trust Fund moneys unless the fund is expended and then the district
may receive additional grant funding. The proposal adds an expiration to the grant program of
June 30, 2035, unless the program is reauthorized.
Oversight notes based on our calculations with data provided by DESE for 50% of the amount
necessary for a district to increase the minimum teacher's salaries to meet the threshold set would
be as shown as follows: L.R. No. 0419H.02I
Bill No. HB 607
Page 8 of
February 3, 2025
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Less than Master
+10
Teachers
Total Annual Cost50% State
reimbursement
Fiscal
Year
Raise to $46,000$31,323,525$0FY 2026Raise to $47,000$28,464,839$0FY 2027Raise to $48,000$28,886,826$0FY 2028Raise to $48,000$28,886,826$0FY 2029Raise to $48,000$28,886,826$0FY 2030Raise to $48,960$29,753,431$14,876,716FY 2031Raise to $49,939$30,646,033$15,323,017FY 2032Raise to $50,938$31,565,414$15,782,707FY 2033Raise to $51,957$32,512,377$16,256,189FY 2034Raise to $52,996$33,487,748$16,743,874FY 2035
As this proposal limits the state grants to 50% of the cost, Oversight assumes this would be a
savings to General Revenue of 50% of the cost of the salary increases. Therefore, Oversight will
show a savings to General Revenue of $14,876,716 beginning in FY 2031.
In addition, Oversight notes these grants are subject to appropriation and school districts can
receive greater than 50% of cost in grants if the districts expend 100% of the money distributed
from Classroom Trust fund for salary increases. Therefore, Oversight will show a savings that
could be ‘More or Less Than’ the estimated savings to General Revenue.
Oversight assumes school districts would incur the additional cost to increase teacher salaries if
the Teacher Baseline Salary Grants are limited to 50% of the cost. Therefore, Oversight will
show a cost to school districts of $14,876,716 beginning in FY 2031.
Bill as Whole
Officials from the Office of the State Treasurer assume the proposal will have no fiscal impact
on their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note.
Officials from Sedalia 200 School District assume attaching teacher salaries to the CPI would
result in the following for their school district based on FY 2024 final numbers:
These figures are of course on the low side because their FY 25 salaries have increased.
Additionally, these increases over the years compound themselves. In years where the CPI might
be much higher than average like they have seen since 2020 there would be no possible way to
have enough revenue to cover the mandated costs of those increases. L.R. No. 0419H.02I
Bill No. HB 607
Page 9 of
February 3, 2025
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Oversight received a limited number of responses from school districts related to the fiscal
impact of this proposal. Oversight has presented this fiscal note on the best current information
available. Upon the receipt of additional responses, Oversight will review to determine if an
updated fiscal note should be prepared and seek the necessary approval to publish a new fiscal
note.
FISCAL IMPACT – State
Government
FY 2026
(10 Mo.)
FY 2027FY 2028Fully
Implemented
(FY 2031)
GENERAL REVENUESavings - DESE - teacher
salary grant limitation of
50% - §163.172 p.8$0$0$0
More or less
than
$14,876,716
Costs – DESE – additional
funding for 169-day calendar
to schools §163.045 p. 4
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET
EFFECT ON GENERAL
REVENUE FUND
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
More or less
than
$14,876,716
TEACHER BASELINE
SALARY GRANT FUND
Cost Avoidance – from
teacher salary grant
limitation of 50% from
General Revenue
§163.172 p. 8$0$0$0
More or less
than
$14,876,716
Reduced Expenditure
Transfer – to School
Districts from the teacher
salary grant limitation of
50% - §163.172 p. 8$0$0$0
More or less
than
($14,876,716)
ESTIMATED NET
EFFECT ON THE
TEACHER BASELINE
SALARY GRANT FUND$0 $0$0$0 L.R. No. 0419H.02I
Bill No. HB 607
Page 10 of 11
February 3, 2025
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FISCAL IMPACT – Local
Government
FY 2026
(10 Mo.)
FY 2027FY 2028Fully
Implemented
(FY 2031 )
PUBLIC SCHOOLSRevenue Loss – from the
Teacher Baseline Salary Grant
Fund - §163.172 – p. 8$0 $0$0
More or less
than
($14,876,716)
Savings - Additional State Aid
163.045 p. 4
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT
ON PUBLIC SCHOOLS$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
More or less
than
($14,876,716)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill clarifies language relating to additional funding for teacher salaries that districts receive
if the district has a school calendar with 169 school days. The clarification provided allows for
inclement weather or authorized reductions to the number of days the district must be in session
to qualify for the funding (Section 163.045 RSMo).
The bill modifies the minimum teacher salary to remove the requirement that a teacher's master's
degree must be in an academic teaching field directly related to the teacher's assignment.
Additionally, the bill delays increases to the minimum salaries due to inflation until 2030 and
only authorizes increases due to inflation from 2030 to 2035.
Beginning in 2030-31 the bill limits grants authorized under the "Teacher Baseline Salary Grant
Program" to 50% of the amount necessary for a district to increase minimum teacher's salaries to
meet the threshold set. The remaining 50% must be spent by the district from the Classroom
Trust Fund moneys unless the fund is expended and then the district may receive additional grant
funding.
The bill adds an expiration to the grant program of June 30, 2035 unless the program is
reauthorized (Section 163.172).
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 0419H.02I
Bill No. HB 607
Page 11 of 11
February 3, 2025
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SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Office of the State Treasurer
Sedalia 200 School District
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 3, 2025February 3, 2025