Latest news with #MOScholars
Yahoo
5 days ago
- Business
- Yahoo
New funding for private school vouchers will ‘set precedent' for future Missouri budgets
Gov. Mike Kehoe announces a plan to give state funding to the MOScholars program during his State of the State speech Jan. 28 in the Missouri House chamber (Annelise Hanshaw/Missouri Independent). Gov. Mike Kehoe's first budget proposal launched a tug of war between public-school advocates and those hoping to use state funds for private education. Both sides ultimately came away with what they wanted — but neither expects this to be the final showdown. State Treasurer Vivek Malek, who oversees the state's tax-credit scholarship program, told The Independent in an interview last week that he expects to more than double the number of scholarships administered by MOScholars in the upcoming school year. Those students would have a 'reasonable expectation,' he said, to be funded through graduation. And if donor funds continue to come up short, state funds would be required to support them. In January, Kehoe laid out a budget that did not fully fund public education while giving state funds for private-school scholarships. His request cut back $300 for the formula that determines state aid for public schools, contrary to the state education department's recommendation. But he added a $50 million appropriation to the State Treasurer's budget to help fund private-school scholarships through the MOScholars program. This windfall was not part of the treasurer's initial request. 'The governor made a policy or a budgetary decision to invest in one form of education and not fully invest in the other,' said state Rep. Betsy Fogle, a Democrat from Springfield and ranking minority member of the House Budget Committee. The House kept the governor's recommendations, and the Senate flipped the two priorities: restoring full funding to public schools but axing the $50 million for MOScholars. In May, state lawmakers reached an agreement to fund both and are awaiting the governor's signature. But the infusion of funds to MOScholars is likely to create more need in the program. Malek said he expects to use the $50 million to offer more scholarships than the current pot of donations could provide. There are 6,000 students ready to participate in the upcoming year, and he expects more to sign up. This past year, 2,700 students received scholarships. Malek hopes to make MOScholars self-sufficient, with enough donations to meet demand. But until then, he will request funds to, at a minimum, sustain aid for students already enrolled. 'I'll be working through the years to make sure the tax credits are still utilized and nobody is depending on a direct appropriation from (general revenue),' he said. Fogle told The Independent that the $50 million did not appear to be a one-time request. 'The $50 million that was put in general revenue was done, in part, because the tax credit program wasn't very popular, and donors weren't giving to that,' she contends. 'And the governor wanted to figure out another solution to privatizing education.' MOScholars currently operates through taxpayer-directed spending, where state funds are given to scholarship organizations through donations that receive a 100% tax credit. The program has faced issues funding scholarships each fall with the majority of donations coming at the end of the year. An additional $50 million — more than double the amount of donations received last year — would solve the funding lag, Malek said. 'Our calendars were misaligned, so now we will be opening (enrollment) up for next year, starting early in the fall so that people can sign up for next year's academic school year,' he said. 'This will give us the flexibility of doing that, which was not possible before.' The program has a $75 million expandable cap thanks to a large education package passed last year. State Rep. Stephanie Hein, a Springfield Democrat, said during debate in April that she wondered why the legislature expanded the donation limit from $50 million to $75 million when there have been $23.4 million in donations in 2024. In 2023, donations totaled $16.6 million. 'Donors just are not that excited to give to this program, even at a 100% tax credit,' she said. The program is in its infancy, with just three years of scholarships completed. The increased funding could help grow MOScholars to meet outsized demand — or it could create dependency on general revenue. Hein said this problem would be exacerbated by tax cutbacks planned by Republican state lawmakers. 'We are setting a precedent,' she said. 'And if we eliminate state income taxes, tax credits go away and we are going to be on the hook with (general revenue) to cover this program.' Even if the appropriation is signed by the governor, it might face legal challenges as some question the constitutionality of using general revenue for MOScholars. The 2021 law that established MOScholars prescribes that scholarships are funded by tax-deductible donations to educational assistance organizations, which are nonprofits that apply to administer the scholarships. But 2% of donations are directed to an account dubbed the 'Missouri Empowerment Scholarship Accounts Fund' overseen by the Treasurer's Office. The fund is 'to be used by the state treasurer for marketing and administrative expenses or the costs incurred in administering the program.' Some believe the law does not authorize the program to use general revenue. Fogle expects legal 'challenges that argue that directly appropriating tax dollars to private schools is unconstitutional.' 'The direct appropriation of general revenue is a completely different foundation than the tax credit,' she said. 'There are people on both sides of the aisle, whether they're voting in favor of it or not, who have considerable doubts and concerns.' Malek did not speculate on the possibility of a lawsuit. 'We will deal with it and when that happens, we will defer that to our general counsel, the attorney general,' he said. 'I cannot predict which course it will take.' Malek says MOScholars is 'another tool' for educating children, in addition to the public school system. 'I don't see why people would be nervous. This is not taking away any funding dollars from our traditional educational institutions,' he said. As State Treasurer, Malek was not part of the governor's decision on public-education funding and considers himself a 'big proponent of public schools.' 'My focus was just for the MOScholars program,' he said. 'We need some help to strengthen this program… and I'm glad that need was listened to.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
09-05-2025
- Business
- Yahoo
Missouri budget negotiators agree to spend $50 million on private school scholarship program
Missouri Senate Appropriations Chairman Lincoln Hough, right, discusses a budget item Thursday with House Budget Committee Chairman Dirk Deaton during negotiations over spending differences in the fiscal 2026 budget (Rudi Keller/Missouri Independent). After a sharp, brief fight in which Democrats were outnumbered by majority Republicans, Missouri legislative budget negotiators agreed Thursday to spend $50 million to expand the MOScholars program that helps pay tuition at private and parochial schools. The general revenue support would be the first time state tax dollars have been appropriated directly to the program begun in 2021. The line item, a major part of Republican Gov. Mike Kehoe's budget proposal, found favor in the Missouri House but was rejected by the state Senate when it passed spending bills last week. The item was one of the last to be reached as budget negotiators worked through 13 spending bills paying for state operations in the coming year. All 13 bills, as well as three capital improvements bills awaiting a vote in the state Senate, must be passed by the 6 p.m. Friday constitutional deadline. Official figures were not yet available, but tracking by The Independent shows lawmakers intend to spend $53.5 billion in the coming fiscal year. Lawmakers negotiating Missouri budget add $300M to public schools spending State Sen. Maggie Nurrenbern, a Kansas City Democrat, said she objects to providing tax money for the tuition program because the state doesn't prevent parents from using the scholarships to send their children to schools that are selective for academic achievement or religious beliefs. 'This is fiscally irresponsible, and quite frankly I think it's shameful to put $50 million into funds that can directly discriminate against the students they are supposed to be serving,' she said. The program provides stipends equal to the State Adequacy Target, the figure that drives how much money is needed for the school foundation formula, the basic aid program for public schools. Families with incomes 300% of the federal poverty guideline or less — $173,000 a year for a family of four — can apply for the aid. Republicans argue the direct appropriation is legal and needed to expand access to the program, which was set up to be funded by donations secured by tax credits for donors. 'This was one that was very important to the House and we passed it out very strongly,' said House Budget Committee Chairman Dirk Deaton, a Republican from Noel. The budget negotiating committees are 10 members, five from each chamber made up of three Republicans and two Democrats. State Rep. Marlene Terry, a St. Louis Democrat, appointed to the negotiation committee over objections of other Democrats because of her support for school choice bills, backed Republicans on the MoScholars funding. 'I believe in education and a good education for all children, whether it be private schools, charter schools, public schools,' Terry said. 'We want our children to get the best education that they can, and we want to give them the help to get it.' All of the differences, large and small, were reconciled over two days of public budget negotiations. Several big decisions were made Wednesday, including agreement to increase school funding through the foundation formula by $300 million, spend $107 million more on child care supports and to use Kehoe's pay raise plan that rewards longevity in state employment. The budget overall calls for spending about $210 million less than Kehoe recommended, approximately $1.9 billion more than the House version and $237 million more than the Senate voted for when it passed the budget last week. The legislative budget calls for spending $16.2 billion of general revenue, money mainly from income and sales taxes. That is $200 million more than Kehoe proposed, $1 billion more than the House spending plan and about $391 million less general revenue than in the Senate budget. The final budget finds savings over the Senate plan in large part by tapping a pool of almost $500 million in banked federal funds to underwrite the Medicaid program. The Thursday meeting focused on funding for health, social services and state official and judicial budgets. Some of the decisions finalized Thursday would: Set aside almost $93 million to pay off a judgment against the state for damages claimed by a vendor who worked on the state's computerized Medicaid enrollment system. A $23 million judgment grew to more than $50 million as the state appealed and interest accrued. The appropriation includes both state and federal funds to allow flexibility in the way the judgment is paid. Allow more than 300 near earmarked projects — items sought by lawmakers for their district or lobbyists seeking money for clients — with a general revenue cost of $600 million and an overall cost of $750 million. Cut 25 open employee slots from Secretary of State Denny Hoskins' budget and one from the budget of Lt. Gov. David Wasinger. The cuts were initiated in the Senate, where Hoskins served eight years and sought repeatedly to cut unfilled jobs, while Wasinger won his job after defeating Senate Appropriations Committee Chairman Lincoln Hough in a primary last year. Hoskins had supporters on the negotiating committee but not enough to change the decision. State Sen. Barbara Washington, a Democrat from Kansas City, asked for five of the positions to be restored. And state Rep. Darin Chappell, a Republican from Rogersville, also backed Hoskins. 'I don't mean to belabor what appears to be a dead horse, but I would like to ask us to consider that the new secretary of state may need some time to be able to level out what he actually does need, and maybe a little bit of grace might be appropriate,' Chappell said. Despite the plea, Deaton made the cut stick. 'This wasn't a House position, but our Senate colleagues are pretty impassioned here,' Deaton said. After the meeting concluded, Hough said he is not concerned that the budget spends more general revenue than either Kehoe or the House included. The budget grows through the process, he said, as lawmakers seek help for community projects. 'A lot of members from the House and a lot of a lot of interested parties all over the state come banging on the Senate,' Hough said. 'They say, 'why would you leave $2 billion in the bank when we have investments that we'd like to see in our communities?'' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
12-03-2025
- Politics
- Yahoo
Open enrollment bill clears Missouri House for fifth year in a row
State Rep. Brad Pollitt, a Sedalia Republican, presents a bill to the House Education Committee that would require the reporting of grade-level equivalence data on statewide assessments (Annelise Hanshaw/Missouri Independent). Legislation that would allow students to enroll in neighboring school districts won approval from the Missouri House on Wednesday. The 88-69 vote saw 22 Republicans join with all but three Democrats in opposition. It now heads to the Missouri Senate. The bill's sponsor, Republican state Rep. Brad Pollitt of Sedalia, has filed the legislation for five years in a row. It narrowly passed the House four times but has never come to a vote in the Senate. Over the years, the bill has shifted with protections added, like a 3% cap on the number of students that may leave a school district each year. School districts may opt in to accept students, but schools do not have an option to restrict students from leaving. 'This bill has been vetted tighter than any other bill,' Pollitt said during the debate Wednesday. Supporters of the legislation commended it as a solution to make public schools more competitive during times when programs that allow public funding for private schools are growing nationwide. State Rep. John Black, a Marshfield Republican, said he is 'perplexed that any public-school advocate would oppose this bill.' Black voted against a bill passed last year that boosted MOScholars, a tax credit program that diverts general fund dollars to pay for private school tuition. State Rep. Marlene Terry, a Democrat from St. Louis, also spoke in favor of the bill Wednesday. Last year, she broke from much of her party as a deciding vote in passing the MOScholars bill. She is grateful for her choice, she said, because a student from her district was able to attend the school of his choice. Terry became emotional, saying the boy recently died. 'Pass this bill,' she said. 'Because you never know what might happen.' Opponents say unpredictability is exactly why the bill shouldn't pass. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX State Rep. Kathy Steinhoff, a Columbia Democrat, said future legislative sessions could remove protections in the bill. 'We have no guarantees that next year bills won't come forward to remove the opt-in provision, or remove the 3%,' she said. 'And these things could devastate our communities.' She pointed to the legislation establishing MOScholars, which passed in 2021 and was expanded last year. The program was written to be funded by tax-credit-eligible donations, but Gov. Mike Kehoe proposed in his budget this year to give $50 million to the fund. 'It's not hard to see that we're taking money from public schools,' she said. Democrats in opposition asked for funding for public schools instead of open enrollment. 'We should be focusing on the issues where the students live,' said State Rep. Raychel Proudie, a Democrat from Ferguson. If schools are marked as failing and students leave, it will hurt property values and further reduce the funding for public schools in the area because of the lower property tax revenue, she said. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
18-02-2025
- Business
- Yahoo
Missouri Senators propose tax credit for homeschool and private school families
State Sen. Rick Brattin, R-Harrisonville, mingles ahead of Gov. Mike Kehoe's inauguration ceremony (Annelise Hanshaw/Missouri Independent). Missouri's homeschool families and those enrolled in private schools could receive a tax credit for their educational expenses under legislation debated Tuesday by the Senate Education Committee. The credit would be capped at the annual state adequacy target, a number determined by the per-pupil expenditure of the highest performing school districts in the state. Currently, that amount is $7,145. The credit would be administered by the Missouri Department of Revenue. There is currently a tax-credit scholarship program overseen by the State Treasurer's Office, called MOScholars, which provides a credit for donations to certain nonprofits that then disperse the money to families enrolling in private schools. The proposals debated on Tuesday, in contrast, would allow families to directly get a refund for expenses related to educating their children. State Sen. Rick Brattin, a Republican from Harrisonville and one of the bill's sponsors, compared the structure to the gas tax refund, in which drivers can submit gas receipts to the state for reimbursement. The tax credit program would be a path for families to escape underperforming schools, said state Sen. Nick Schroer, a Republican from Defiance sponsoring a similar bill. 'For decades, Missouri dramatically increased education spending, yet student outcomes continue to decline,' he said. 'More money has not solved the problem in the state of Missouri, and it's clear that a one-size-fits-all system for educating our youth is failing to educate many of our children.' Budget battle brewing over Missouri Gov. Mike Kehoe's school funding proposal While the state education budget is due for an increase in the hundreds of millions this year, the formula that funds public schools has been relatively stagnant for over a decade with inflation outpacing any increases. Gov. Mike Kehoe, lawmakers and the State Board of Education have all called for an examination of the formula. Schroer began considering a homeschool tax credit when he was a state representative after hearing from homeschooling families about other states' policies. 'There are many individuals, whether it's private school, homeschool or hybrid, who've indicated that they would like to at least recoup some of those expenses since they're not utilizing the public school system,' he said. Brattin said his office received 'an influx of opposition,' referring to homeschooling families worried about alterations to the state's homeschool protections. Home educators have opposed tax credits and other public programs in recent years, saying they are worried about governmental oversight. Brattin said the idea that it would impose restrictions on homeschooling families is a 'myth.' 'Nothing in this bill is a requirement. Nothing in this bill is a database. Nothing in this bill is a list to take away rights, freedoms and liberties of individuals,' he said. 'In fact, this only bolsters that and gives the full capability and freedom and liberty for families that want different options.' Despite his reassurance, the first person in opposition represented home educators. David Klarich, a lobbyist for the homeschooling group Family Covenant Ministries, said Missouri has 'the best home education statute in the United States.' He asked for the bill to only apply to a separate category of home educators created last year in a large education package. 'Those parents who want to participate in public schools or take public dollars may then do so, and there would be no concern about governmental intrusion because then those parents and students go wide-eyed into the governmental system and they can still participate,' Klarich said. He feared there would be 'strings attached,' leading to curriculum oversight. State Sen. David Gregory, a Republican from Chesterfield, said he is 'not seeing where the strings are attached.' Public education groups also had concerns. Otto Fajen, lobbyist for teachers' union Missouri National Education Association, told committee members that the legislation could further restrict the amount of the state's general revenue available for public education. '(This bill) is on its own, without connecting with what's going on with the (public school funding) formula, what's going on with minimum salaries, and kicks in quickly to offer this tax benefit for supporting educational expenditures and significantly affects state general revenues,' he said. A large education package passed a year ago has raised teacher salaries statewide with the help of general revenue and created a funding obligation of $200 million this year with all its provisions. Kehoe has also indicated he will push to eliminate the state's income tax. If the governor's plan succeeds, Fajen said, there will be no money available for the rebate. 'It creates a lot of problems that you all will have to deal with through the budgeting process,' he said, 'and that schools will have to deal with going forward.' The committee, which is chaired by Brattin, did not take action on the legislation Tuesday. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
29-01-2025
- Politics
- Yahoo
Open enrollment bill gets public hearing after winning praise from Missouri governor
State Rep. Brad Pollitt, R-Sedalia, presents a bill to the House Education Committee earlier this month (Annelise Hanshaw/Missouri Independent). A Republican lawmaker from Sedalia has once again begun his push to allow some students to enroll in schools outside the district where they live. For the fifth year in a row on Wednesday, the House Elementary and Secondary Education Committee debated an open enrollment bill sponsored by state Rep. Brad Pollitt. As he introduced the legislation, Pollitt called it the 'only school-choice bill that allows students to make a choice and stay in the public school system.' In the previous four years that Pollitt filed the bill, state lawmakers have prioritized programs allowing families to use state funds for homeschooling and to attend private schools. The state's K-12 tax credit program, dubbed MOScholars, passed in 2021, and it was expanded last year in a sweeping education package. Pollitt's bill has cleared committee and made it out of the House four times. But it has never been debated by the Senate. He addressed his bill's four-year purgatory in Wednesday's committee hearing, saying good legislation doesn't completely please anyone. 'All four years I've passed this bill, neither side was happy. It didn't go far enough or it went too far,' he said. 'Sometimes Missouri does a disservice by looking for perfection and bypassing what is better.' Pollitt's legislation has evolved through the years of deliberation. The current version has a cap of 3% on the portion of students allowed to leave a district annually. He also added language suggested by the Missouri High School Activities Association, which oversees competitive athletics in Missouri schools, that would restrict students who transfer into a new district from competing in sports for one year. The bill does not require school districts to accept students living outside the area but, instead, has an opt-in structure. Receiving districts would get state funding for the students coming in, but local funds would remain with the district of residence. Some testified Wednesday that they are concerned the legislation would become mandatory for school districts in the future. 'Our worry is in the future. A lot of (laws) tend to start as voluntary and become mandatory,' said Tammy Henderson, who represents the North Kansas City School District. 'We are concerned about losing some of the local control.' Steve Carroll, a former lawmaker who now lobbies for school districts, cited his experience in the Missouri House in critiquing the bill. 'If this bill passes, within two or three legislative sessions, there is going to be a bill that is going to mandate this,' he said. 'Mark my word.' A majority of public comments were against the bill, and 220 school districts sent in a letter opposed to the legislation. However, Pollitt's proposal is not without its supporters — including Gov. Mike Kehoe, who included the bill in his State of the State speech Tuesday. 'To expand school choice, I urge the General Assembly to pass voluntary open enrollment in public schools,' he said. Jordan Zachary, representing a national education nonprofit started by Jeb Bush called ExcelinEd, said Missouri's neighbors already have open enrollment. 'We believe open enrollment to be one of those student-centered policies,'' he said. 'We do believe in giving students an opportunity to attend a school that best fits their needs.' The bill would not require school districts to add accommodations for incoming students, and some worry the program would exclude students in special education. Pollitt said he would work with Rep. Matthew Overcast, a Republican from Ava who serves on the education committee, to revise the bill to help students requiring accommodations. Overcast is an attorney with experience assisting students in special education. The updated version would be presented to the committee before a vote. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
