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MSBA podcast warns Missouri Amendment 5 could sharply change school funding
Summary
An MSBA podcast episode previewed at the association's July board report explains that Amendment 5 would phase out Missouri's individual income tax by 2032 and shift funding toward sales taxes — raising concerns that replacing a steady income-tax stream could jeopardize school formula revenue and cash flow.
Missouri School Boards Association staff and podcast guests outlined the potential impact of Amendment 5 on school funding and urged voters to understand the tradeoffs before the August ballot. The association previewed the episode of its podcast Always Bored, Never Boring during the MSBA board report, noting the measure would phase out the state's individual income tax by 2032 and rely more heavily on sales taxes.
Speakers on the podcast said the state funding formula for K–12 next year is about $4.28 billion, with roughly 58% of that amount coming from general revenue. The presenters said the income tax currently makes up about 60% of general revenue and that income taxes produce a more steady, withheld stream month to month. By contrast, sales tax receipts fluctuate with consumer spending, and shifting the revenue base could increase volatility for school budgets.
"When you go to sales tax, it's about how you and I decide to spend," one presenter said, noting that even a few percentage points of shortfall would be "huge" for education budgets. The podcast hosts advised listeners to ask candidates and campaign proponents clear questions about how the transition would work, and what assumptions underlie revenue projections.
The episode was presented as context for boards and school officials ahead of the August election; MSBA encouraged listeners to review the full podcast episode on its website, Spotify or YouTube for detailed assumptions and data underlying the discussion.
The preview did not present new revenue estimates beyond those cited, and it did not report a formal district position. It framed the measure as a long-term fiscal change that requires voter understanding of effects on cash flow, the state formula and individual districts' ability to plan.
