Recessionary School Funding in Missouri: Lessons from the Great Recession
In the spring of 2020, the COVID-19 pandemic caused dramatic shifts in everyday life, including a shutdown of schools, businesses, and economies. The state of Missouri, like many other states, experienced sharp declines in tax revenues, forcing substantial cuts to the state budget. The state’s PK-12 and higher education budgets underwent substantial reductions, with Gov. Mike Parson announcing over $120 million in cuts to PK-12 education alone. In this brief, we discuss the implications of the COVID-19 pandemic and ensuing economic recession, as well as how federal fiscal aid from the American Recovery and Reinvestment Act helped mitigate similar budget cuts following the Great Recession. We note that districts with varying local wealth experienced heterogeneous school funding recoveries and discuss other policy implications in education.
