MOScout Daily Update: $400M More for Foundation Formula? - AI Regulation Patchwork - More on Gamble & Schlemeier - Wyatt to Ryan and more…

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Big $$$ Ask Coming From DESE

According to the agenda for Tuesday’s State Board of Education meeting, two new members will be sworn in.

But the big news might come from the Fiscal Year 2028 Budget Request Update…

According to the pre-meeting document, the Department of Elementary and Secondary Education (DESE) is asking for over $640 million in general revenue for new decision items, including a $400 million increase in the “foundation formula” which directs how state aid is divvied among public schools.

·       $400 million – Foundation Formula increase.

·       $65 million – Early Childhood Special Education increase.

·       $30 million – High Need Special Education Fund increase.

·       $26 million – Foundation Transportation.

·       $10 million – Struggling Schools Grants.

·       $6 million – A-F School Grade Card.

Why It Matters

These are pretty huge numbers, considering budgeteers are likely looking for hundreds of millions of dollars to cut to make the budget balance this year.


Evergy’s LLM Concern

An order issued on Friday by the Public Service Commission denied “an artificial intelligence (AI) protective order” sought by Evergy.  I missed its original motion which was filed last month.  But it’s an interesting development as use of Chat, Claude and other LLMs proliferates.

On July 17, 2026, Evergy filed its Motion for Protective Order and for Expedited Treatment requesting a Protective Order concerning disclosure of its confidential and highly-confidential information through unsecured or generative artificial intelligence (AI) tools, platforms, systems, or similar technology…

Evergy’s Motion seeks to prohibit any party, counsel, or their agents to whom confidential information is disclosed from inputting, uploading, submitting, or otherwise introducing such information into any unsecured or generative AI tool (e.g. standard ChatGPT, Claude, Gemini, or similar platforms), including, but not limited to, the use of AI meeting note takers.

What It Means

In the absence of a statewide framework, we’re building a patchwork of regulations for the new technology, case by case, institution by institution.


More on Gamble Schlemeier

Many capitol denizens were surprised by my report on Saturday that Bill Gamble had deregistered for PENN Entertainment and picked up J & J Ventures as a new client – and by the apparent creation of a new firm, Rubicon Alliance.

One source says that Gamble did not speak to any other Gamble & Schlemeier partners about launching his new “alliance,” but they had heard about his plans from several lobbyists who were approached about affiliating.

The main question circulating was how the firm will resolve the seeming conflict this creates. Will Gamble continue earning a share of the profits from Gamble & Schlemeier's existing clients while also becoming managing partner of a new firm that apparently might have directly conflicting clients?  We’ll see…

Why It Matters

With 93 clients, Gamble & Schlemeier is one of the most successful lobbying firms in the capitol.


Time for Milk Price Freedom?

I found this post by Denis Beganovic interesting.

I looked it up and Missouri’s Unfair Milk Sales Practices Act says a retailer may not sell milk below its statutory “cost” when the intent or effect is to unfairly divert business, injure a competitor, destroy competition or create a monopoly.

·       It’s remarkable how much regulation persists after two decades of Republican legislative control.

Children’s Division Plans FACES Replacement

The Department of Social Services plans to issue an RFP in September for MOFACS, a new statewide computer system for the Children’s Division that would replace FACES.  See the project page here.

Missouri has been trying to impose objective performance measures on the division and private foster-care contractors. But DSS says FACES does not allow parent-child visit data to be easily examined.

·       A better system could give administrators and lawmakers a clearer picture of required visits, caseloads and contractor performance. But it will not solve the shortages of caseworkers or foster placements driving much of the crisis.

On the Move

Zach Wyatt announced last week that he’s left the Missouri Department of Revenue, where he served as legislative liaison.

It’s difficult to put into words what this experience has meant to me. I’ve had the privilege of working alongside some incredibly talented and dedicated public servants, Governors and their administrations, members of the Missouri General Assembly, state and federal partners, and stakeholders from across Missouri and around the country.

·       Wyatt says he’s taking a job with Ryan LLC.

Billington Running Hard 2028

The start of the 2028 cycle?...

New Contribution Limit Coming

According to a rules amendment filing, it looks like the new campaign contribution limit for candidates, adjusting for inflation, is set to rise to $3,225 from the current $2,825.

Lobbyist Registrations

Mike Grote deleted Nexus Group, and Waymo LLC.

Nexus Group deleted McCormack Baron Salazar, Inc.

$5K+ Contributions

AshPac (pro-Aune) - $10,000 from PENN Entertainment, Inc. (Wyomissing,  PA).

Lori Rook for Missouri - $30,000 from Lori Rook.

Birthdays

Happy birthday to David Berry.

Congratulations

Rachel and Bryce Beal on the birth of their son yesterday morning.  Bryce on social media: “Beal family of 4 established 8/16/2026! James Eugene Beal made his appearance at 6:53am this morning!”

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