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Federal funding will help pay for the statewide initiative to keep kids in class this summer and help make up for pandemic-related learning loss.
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An original version of the bill would have taken funding from St. Louis Public Schools, but lawmakers found a compromise that pleased education leaders in St. Louis.
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The budget bill that includes grants to pay for teacher raises will only cover the next school year, are optional and require the districts to pay for part of the raise.
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Republicans voted down Democratic amendments for transportation aid and a $100 million boost to higher education campuses.
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The legislature has a March 24 deadline to appropriate the $1.96 billion in federal funding for K-12 education.
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Arts and Education Council President and CEO Cynthia Prost will step down in July after 14 years of leading the organization. Prost plans to work as a strategic consultant to nonprofits.
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The state auditor said lack of funding from the state shifts the burden to Missouri residents, who end up paying higher property taxes to support their schools.
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The legislation creates what is called the Missouri Empowerment Scholarship Account and falls in line with the Republican effort of so-called school choice.
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The program is designed to help Missouri students attending a community college or technical school.
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The Missouri House on Tuesday passed a $1.2 billion supplemental budget with a vote of 133-4. Most of the money is federal coronavirus relief funds.