Blunt is recommending a $121.3 million increase, which could have a big impact on Missouri students of all ages

Thorpe Gordon Elementary School students are having fun at recess.  But they gathered inside later to hear the governor announce his plan to increase funds for the school Foundation Formula.

"Education is the most important, most critical and most significant investment that the state makes in our future," said Blunt.  "It helps promote our freedoms, it helps preserve our happiness and it helps us progress towards greater prosperity."

There are 524 public school districts in the state, all vying for money from the government.  Jefferson City School District is one of them.  It received $8 million through the Foundation Formula for this school year.  If the legislature approves the increase, Jefferson City School District says it could use the additional $500,000 it would receive.

"We're predicting our health insurance costs to go up by about $500,000 next year so just health insurance costs alone will eat up our whole increase in state aid for next year," said Jason Hoffman of Jefferson City Public Schools.

Blunt says state revenue would fund his plan and it would not include a tax increase.  The increase would not include funding for additional school programs such as special needs, the A+ program or virtual schools.