HB 1552, Three Years Later

What Happened After Missouri Changed Charter School Funding?

In 2022, Missouri lawmakers passed House Bill 1552, making the largest change to charter public school funding since the state’s charter law was adopted.

Three years later, researchers Andrew Camp, Collin Hitt, and David Griffith examined whether the law accomplished what it was designed to do. Their study focused on five important questions.

1. How large was the funding gap before HB 1552?

The researchers found that charter public schools in Kansas City and St. Louis were receiving substantially less funding than neighboring district schools before the law was passed. In the 2021-22 school year, charter schools received about 27 percent less funding per student in Kansas City and 30 percent less in St. Louis. Those gaps amounted to $7,065 per student and $8,146 per student, respectively.

2. Did HB 1552 close the funding gap?

HB 1552 delivered more funding than originally projected. By the 2024-25 school year, charter schools were receiving nearly $4,000 more per student in combined state and local revenue than before the law. However, the study found that the funding gap was reduced, not eliminated. Charter schools in Kansas City and St. Louis still receive about 20 percent less funding per student than neighboring district schools.

3. How did charter schools use the additional funding?

The researchers found that charter schools largely invested the additional funding in people. Schools hired about one additional teacher for every 100 students, increased average teacher salaries by approximately $2,366, and devoted roughly three-quarters of the additional spending to salaries and benefits. Overall, expenditures increased by $2,429 per student, closely matching the increase in revenue.

4. Did students benefit?

The study found evidence that charter schools improved in mathematics after HB 1552. The researchers estimated the gains were roughly equal to moving an average school from the 50th percentile to the 59th percentile in math effectiveness. The study did not find statistically significant improvements in English language arts during the same period.

5. What does the research suggest comes next?

The researchers conclude that Missouri’s remaining challenge is not simply charter funding, but the design of the state’s funding formula. Because district enrollment continues to decline while local property tax revenues continue to grow, the state’s payments under HB 1552 are projected to increase significantly over time. The authors suggest Missouri should consider a more sustainable approach that allows funding to follow students more directly.

The conversation isn’t over.

One of the strengths of this study is that it moves the conversation beyond predictions. Rather than debating what might happen, Missouri now has evidence about what actually happened after one of the state’s most significant education reforms.

Why care about this?

At CEAM, we’ve long supported expanding educational opportunities for Missouri families, including policies that allow education funding to follow students to the public school that best meets their needs. This study suggests HB 1552 made meaningful progress toward addressing a longstanding funding disparity while also raising broader questions about Missouri’s school funding formula. Those questions are especially timely as Governor Mike Kehoe’s school funding task force begins examining how Missouri funds K–12 education. We hope this research contributes to that important conversation.