State Funding Reductions & The Impact on Hillsboro R-3. Look inside to the see the communication emailed to families, students and staff on the impact of state funding reductions directly impact our schools.

District faces more than $2.1 million in state funding reductions and projected shortfalls as voters prepare to decide Proposition H on Nov. 3rd.

Read the full letter from Dr. Jon Isaacson by clicking here

The Hillsboro R-3 School District is facing significant financial challenges as reductions in state education funding continue to affect public schools throughout Missouri.

In a letter shared with families, students and employees on Oct. 19, Superintendent Dr. Jon Isaacson outlined the district's financial situation, anticipated changes to school operations and how the outcome of Proposition H could affect programs and services.

The numbers tell an important story.

Hillsboro R-3 experienced a $713,770 reduction in state funding during the 2025-26 school year. For 2026-27, the district now projects an additional $1,458,412 shortfall compared with the amount calculated under Missouri's school funding formula.

Combined, those figures total $2,172,182 in actual and projected state funding reductions and shortfalls.

Hillsboro is not alone. Jefferson County's 11 school districts face an estimated combined $11.1 million state funding shortfall.

These reductions are forcing school districts to examine staffing, transportation, educational programs and other services.

What Changes Could Families See?

Without additional local revenue, Hillsboro R-3 must identify ways to reduce expenses while maintaining essential educational services.

2026-27 School Year: Anticipated Changes

Among the changes identified by the district:

  • Transportation: Ending district-funded bus transportation for athletic events, extracurricular activities and field trips. Transportation could continue if teams or groups cover the costs.

  • Staffing: Not filling the vacant district communications director position and evaluating other vacancies as employees leave or retire.

  • Community Facility Use: Adjusting fees and procedures for outside organizations, including youth sports groups using district facilities.

  • Community Events: Reviewing district funding for activities such as Boo at the Barn and Christmas at the Farm.

2027-28 School Year: Additional Reductions Under Consideration

If financial challenges continue without additional local revenue, further changes could include:

  • Educational Programs: Adjustments to instructional staffing, elective courses, career and technical education, and sixth-grade band scheduling.

  • Student Services: Reductions or reassignment of library support, lunch aides and other support positions.

  • Athletics: Fewer nonconference home contests to reduce operating expenses.

  • Transportation: Potentially eliminating district-provided bus service for students living within one mile of school. Additional route changes or expanded transportation boundaries could also be considered.

  • District Support: Reductions in curriculum support, data analysis and leadership development positions.

These changes are not all final decisions. Some measures have already been implemented, while others are recommendations or would require additional Board of Education consideration.

What Happens With Proposition H?

Proposition H will appear on the Nov. 3, 2026, ballot. The measure asks voters to approve a $1.39 increase in the district's operating tax levy per $100 of assessed valuation.

While Proposition H includes proposed school safety improvements and facility upgrades, it also addresses the district's ability to maintain existing educational programs, staffing, transportation and student services.

If Proposition H is approved:

The district would receive additional local operating revenue to help offset state funding shortfalls, maintain existing programs and services, and undertake the identified safety and facility improvements.

Future spending decisions would continue through the district's annual budget process and Board of Education approval.

If Proposition H is not approved:

The district would not receive the additional operating revenue. Further spending reductions and changes to staffing, transportation, educational programs and services would need to be evaluated. The proposed facility improvements would not move forward.

Why This Matters to Our Community

For years, Hillsboro R-3 has provided opportunities and services beyond Missouri's minimum requirements, including extracurricular activities, field trips, specialized instructional programs and community access to school facilities.

These services benefit students, families and the broader Hillsboro community, but they also come with ongoing expenses.

Regardless of the election outcome, the district must balance its budget while prioritizing quality instruction, student safety and long-term financial stability.

We encourage families, employees and community members to read Superintendent Dr. Isaacson's complete letter for a more detailed explanation of the financial challenges, anticipated changes and potential impact of Proposition H.