How does Missouri decide how much state funding each public school district receives?
The answer is the Foundation Formula—a calculation established in Missouri law that determines each district's share of state education funding.
Rather than dividing state funding equally among school districts, the Foundation Formula uses standardized information reported by each district to calculate how available state funding is distributed.
A note before we begin: The Foundation Formula contains many additional calculations and statutory details. This article is intended to explain the major components in plain language rather than walk through every provision of Missouri law.
It Starts with the Annual Secretary of the Board Report (ASBR)
Each year, every Missouri public school district submits an Annual Secretary of the Board Report (ASBR) to the Missouri Department of Elementary and Secondary Education (DESE).
A helpful way to think about the ASBR is like filing your annual income taxes. Before the IRS can calculate what you owe—or what you're owed—you first submit information about your income, deductions, and other financial details.
The ASBR serves a similar purpose for Missouri public schools. Before the state can calculate school funding, each district submits standardized information about its students, finances, property valuation, tax levy, and other data required by state law.
The ASBR doesn't determine funding any more than your tax return determines the tax code. It simply provides the information needed to apply the calculation.
Because every district reports the same types of information using the same reporting process, the Foundation Formula can apply a consistent calculation statewide.
Savannah R3's most recent Annual Secretary of the Board Report is available to the public here: https://apps.dese.mo.gov/ASBR/SSRSReportViewer.aspx
What Information Is Used?
The Foundation Formula contains many calculations, but several pieces of information are commonly discussed because they help determine each district's share of state funding. These include:
Average Daily Attendance (ADA)
Local assessed property valuation
Local tax levy (tax effort)
Other financial and demographic information reported through the ASBR
No single factor determines a district's state funding. Instead, the Foundation Formula considers multiple pieces of information together when calculating each district's share.
Why Do These Factors Matter?
Each factor included in the Foundation Formula is intended to measure a different aspect of a school district.
Average Daily Attendance (ADA) helps estimate the number of students a district is serving from day to day over the course of the school year.
Local assessed property valuation reflects the taxable value of property within a district.
Local tax effort recognizes the level of financial support provided locally through the district's operating tax levy.
Together, these and other factors provide the information needed for the Foundation Formula to calculate state funding consistently across Missouri.
The Legislature Still Plays an Important Role
While the Foundation Formula determines how state funding is distributed, the Missouri Legislature determines how much funding is appropriated for public education each year through the state budget.
In simple terms:
The Missouri Legislature determines the amount of funding available.
The Foundation Formula determines how that funding is distributed among Missouri's public school districts.
The Big Picture
The Foundation Formula is designed to provide a consistent, statewide method for distributing state education funding. It relies on standardized information reported annually by every Missouri public school district and applies the same calculation across the state.
In short, the process works like this:
Missouri school districts submit standardized information through the Annual Secretary of the Board Report (ASBR).
The Missouri Legislature appropriates funding for public education through the state budget.
The Foundation Formula uses the reported information to calculate each district's share of the available state funding.
While the calculations themselves are complex, the process is built on a simple principle: consistent information, applied consistently across every public school district in Missouri.
Looking Ahead
Missouri's current Foundation Formula has been in place for two decades. In 2025, state leaders created the Missouri School Funding Modernization Task Force to study whether the funding formula should be updated to better reflect today's schools and students. The Task Force is expected to make recommendations to the Governor by December 2026.
We'll continue following those discussions and share updates as Missouri considers potential changes to the way public schools are funded.
Common Foundation Formula Questions
Why does attendance factor into the Foundation Formula?
Missouri uses Average Daily Attendance (ADA) because it reflects the number of students a district is serving from day to day over the course of the school year, rather than simply the number enrolled on a single day.
ADA is calculated across the district over time and is only one of several factors used in the Foundation Formula. No single absence determines a district's state funding.
Does one student's absence reduce school funding?
No. The Foundation Formula uses district-wide Average Daily Attendance over time—not individual daily attendance. No single absence determines a district's state funding.
Who decides how much money is available for public schools?
Each year, the Missouri Legislature appropriates funding for public education through the state budget. The Foundation Formula then determines how that funding is distributed among Missouri's public school districts.
Can I view Savannah R3's Annual Secretary of the Board Report (ASBR)?
Yes. The ASBR is a public document submitted annually to DESE.
View Savannah R3's most recent ASBR here: