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House budget hearing: DESE seeks $47.4M settle-up, $95M cash to cover lottery shortfall
Summary
At a House Budget Committee hearing, state budget director Dan Hogg and DESE officials outlined supplemental requests addressing a $47.4 million settlement to the school foundation formula and a $95 million general-revenue transfer to cover lower-than-expected lottery receipts that fund parts of public education.
The House Budget Committee heard testimony on a supplemental budget for K‑12 education in which the Department of Elementary and Secondary Education (DESE) and the state budget office asked for $47.4 million to settle FY25 formula obligations and an additional $95 million in general‑revenue authority to cover a shortfall in lottery cash.
The settlement request stems from updated student and enrollment data and recent legislative changes, officials said. "This is all legislation based," State Budget Director Dan Hogg told the committee, noting the request ties to changes made by Senate Bill 727 and House Bill 447 that affect the formula’s parameters.
Why it matters: Missouri’s foundation formula is funded from multiple sources, including a portion of lottery proceeds that are constitutionally dedicated to education. When lottery revenues fall short of the amount budgeted, the state must decide whether to backfill with general revenue to ensure school payments continue…
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