EXCELSIOR SPRINGS, Mo. — The Excelsior Springs School District (ESSD) is preparing for another major financial uncertainty as Senate Bill 3 (SB 3), passed by Missouri lawmakers in June 2025, introduces potential property tax changes that could freeze or cap local government revenues, including those that fund public schools, pending voter approval in April 2026.
According to the official summary on Senate.mo.gov, SB 3 would establish a new property tax credit system for Missouri homeowners. Those who own their homes, or have a legal interest in their property and pay annual property taxes, could receive a credit to offset increases beyond a certain threshold compared to their base year.
While the bill is designed to offer tax relief for homeowners, its implementation could come at a cost for local governments and school districts that rely heavily on property taxes for operational funding, according to local school officials.
How SB 3 Works
The bill divides Missouri counties into two categories: “zero-percent” and “five-percent” areas.
In zero-percent counties, which include 22 primarily suburban and mid-sized areas, voters can choose to freeze their property tax liability at the amount paid during the 2024 tax year, preventing future increases.
In five-percent counties, spanning 75 largely rural areas, voters can approve a measure to cap annual property tax increases at either five percent or the rate of inflation, whichever is lower.
Once approved locally, the property tax credit would appear on a homeowner’s next annual tax bill.
Supporters of SB 3 argue that the measure will protect homeowners from rising property assessments and offer stability for those on fixed incomes, particularly seniors. Meanwhile, critics warn that the bill could limit revenue growth for schools, libraries, fire districts, and city services, shifting the financial burden elsewhere or forcing budget cuts.
A Unique Challenge for ESSD
The Excelsior Springs School District faces a particularly complicated situation, as its boundaries span both Clay and Ray counties, which fall under different classifications.
“Clay is currently classified as a zero-percent county, meaning property taxes could be frozen,” said Superintendent Mark Bullimore. “Ray County is a five-percent cap county, which allows for limited annual increases. That split means we’ll be impacted differently depending on where our students live.”
Missouri already ranks last in the nation for state funding of public education and fifth for reliance on local property taxes to make up the difference, Bullimore added.
“Any cap on assessed property values means slower growth in local tax revenue,” he said. “And in Missouri, that has real consequences. It affects the dollars available to fund our classrooms, pay competitive salaries, upgrade facilities, and offer the kind of education our students deserve.”
Currently, about 52% of ESSD’s $42 million annual revenue, roughly $22 million, comes from local property taxes, while another 4% (or $1.9 million) comes from county revenue.
“With that kind of revenue at stake, we have to plan carefully and advocate for the resources our students, families, and staff need to thrive,” Bullimore said. “When the total ‘budget pie’ shrinks, tough conversations have to happen about how to stretch every dollar.”
Potential Local Impacts
If SB 3 takes effect, ESSD may need to review spending, use reserves strategically, delay capital projects, and reconsider future salary adjustments.
Because of the county split, Bullimore said that impacts won’t be confined to one side of the district. “Schools like Elkhorn, located in Ray County, will cause an impact that won’t be isolated just in that county,” he explained. “It’s all a piece of the same pie for our total revenue sources. It doesn’t impact Elkhorn independently; it impacts the district as a whole.”
When asked if the district might seek a voter-approved tax levy to offset potential losses, Bullimore said those discussions have not yet taken place.
“We believe it’s important for our community to understand how changes to school funding, whether through local taxes or state policy, could impact our students, staff, and schools,” he said. “We’ll work with other districts and education partners to share clear, factual information.”
The Bigger Picture
Proponents of SB 3, including state lawmakers who supported the measure, say the bill addresses concerns about rapidly increasing property assessments that have left some homeowners struggling to keep up with tax bills. They argue that voters should have more control over how much local governments can collect each year.
Opponents, including educators and municipal leaders, counter that the legislation could stifle long-term growth, undermine public services, and widen the gap between wealthier and rural districts, since state funding formulas already favor local revenue sources.
For ESSD, Bullimore said the district’s focus will remain on transparency and engagement. “For those who want to get involved, stay informed, ask questions, and talk about how legislation like SB 3 affects your family and our community,” he said. “Together, we can help ensure that students remain at the center of the conversation.”
The district plans to continue monitoring SB 3’s progress and will share updates with the community as more details become available ahead of the April 2026 ballot.
If you appreciate the value our local journalism brings to the community, please consider making a recurring contribution to the Excelsior Citizen!
