Heritage Foundation Leadership for America

Background/Footnotes: In January 1998, then-State Representative Rich Chrismer (R-16) introduced the Pilot Project Scholarship Program bill (House Bill 1472) to provide scholarships to students in school districts that were under a federal court desegregation order. Scholarships would have been valued at 75 percent or 90 percent of tuition, depending on the parents' income level, with an additional amount available for students with disabilities. The bill died in committee.[1]

In 1998, the legislature enacted Senate Bill 781 to permit the establishment of an unlimited number of charter schools in the St. Louis and Kansas City school districts. Local school boards or colleges and universities with an approved teacher education program can grant charters. Charter schools receive 100 percent of the per-pupil funding, and 80 percent or more of the teaching staff must hold state certification.[2]

Two tax credit bills were introduced during the 1999 legislative session. S.B. 497 would have provided $5 million worth of tax credits to individuals who donated to organizations that provide scholarships. S.B. 483 would have provided tax credits of up to $500 a year to scholarship organizations. Both bills died in committee.[3]

In early January 2000, a judge dismissed a lawsuit filed by the Missouri School Boards Association challenging the state's charter law. The association had contended that the Missouri Charter School Act was unconstitutional and was in violation of several state laws.[4]

In 2000, then-State Representatives Rich Chrismer (R-16) and Harry Kennedy (D-66) introduced the Pilot Project Challenge Scholarship Program bill (H.B. 1373), which would have established a pilot voucher program in school districts that were under a federal desegregation order. Students would have been able to attend a private school or public school in another district. The bill died in committee.[5]

Senator Anita Yeckel (R-1) introduced S.B. 592 in 2000 to authorize state income tax credits for contributions, not to exceed $500 per year, to a school tuition organization. Another bill, S.B. 656, would have established a tax credit for donations to scholarship charities. The total annual amount of credits would have been limited to $20 million. Both bills died in committee. S.B. 599 would have authorized corporate and individual tax deductions of up to $2,500 for the cost of tuition, supplies, or transportation for students in grades 9-12. The Senate Ways and Means Committee approved the bill, but no further action was taken.[6]

On February 15, 2000, the St. Louis School Choice Scholarship Fund gave some 750 St. Louis students scholarships to escape poorly performing schools. The scholarships, which totaled $3.6 million, were made possible largely by retired St. Louis businessman Eugene Williams and his wife, and by David Farrell, a former chief executive of the May Department Stores Company.[7] The Children's Scholarship Fund of Kansas City also has provided scholarships to students in need.

In 2000, enrollment figures indicated that about 45 percent of St. Louis's charter school population came from private schools. Nationally, about 11 percent of charter enrollment comes from private schools.[8]

Several choice bills to give tax credits for contributions to scholarship programs were introduced during the 2001 legislative session. S.B. 74, S.B. 576, and H.B. 906 would have provided tax credits of up to 50 percent of a contribution to organizations that provide scholarships. No action was taken on the bills. S.B. 177 would have provided a $2,500 income tax deduction for private secondary school expenses. The Senate Ways and Means Committee approved the bill, but no further action was taken.[9]

During the 2002 session, S.B. 659 (prefiled in late 2001) was introduced to amend the state's charter school law. The legislation would have allowed teachers in charter schools to retain tenure status and seniority rights for three years, would have doubled the number of public schools that could be converted to charter schools, would have created a Charter School Sponsor Oversight Fund, and would have required charter schools to publish audits and financial reports. The bill was approved in committee but never made it to final passage.[10]

S.B. 735 would have provided $5 million worth of tax credits to taxpayers who contribute to scholarship foundations. The credit would have been worth up to 50 percent of the taxpayer's contribution to a scholarship charity, not to exceed $50,000 per taxable year per taxpayer. Eligible students would have had to come from failing schools and qualify for the federal free or reduced-price lunch program. The bill was approved by the Senate Ways and Means Committee but received no other action.[11]

Similarly, H.B. 1278 would have provided tax credits to individuals and corporations that contribute to scholarship organizations. Credits would have been worth up to 50 percent of the donation but not more than $50,000. The bill died in committee.[12]

In 2003, three educational tax credit bills were introduced. H.B. 398 would have created tax credits worth the amount spent on education expenditures, up to $2,500. This bill died in committee.[13] H.B. 345 would have created credits for individuals or corporations that donate to scholarship organizations. The credits would have been worth up to 50 percent of donations of $200 or more. This bill was approved in committee but did not advance.[14] S.B. 497 was introduced to create the Show Me Parental Choice Tax Credit Program, which would have provided tax credits for donations made to scholarship organizations in Kansas City or St. Louis serving students eligible for the free or reduced-priced lunch program. The bill also would have created Schools of Choice Resource Centers to inform parents in these two cities of their children's educational options. S.B. 497 died in committee.[15]

The General Assembly passed S.B.666 to require school boards overseeing multiple schools to establish a policy regarding intradistrict student transfers.[16]

On March 30, 2004 the Committee on Financial and Governmental Organization approved two bills by State Senator Anita Yeckel (R-1) to remove discriminatory language from the state constitution that denies funding to faith-based providers of social services, including schools. Senate Joint Resolution (SJR) 25 would have given voters in the next election the option to strike Section A, Section 8, article IX, from the state constitution.[17] SJR 26 would have enabled the voters to replace similar discriminatory language in Section A, Section 7, article I, with the requirement "That no preference shall be given to nor any discrimination made against any church, sect or creed of religion, or any form of religious faith or worship."[18] The bills received no further action.

The Committee on Tax Policy approved a tuition tax credit bill, H.B. 1702, on April 27 by a 10-7 vote. Introduced by Representative Betty L. Thompson (D-72), the bill would have provided tax credits for individuals who donated $200 or more to tuition scholarship organizations. The tax credit would have been worth 50 percent of the contribution. The bill authorized up to $10 million in credits per year. No further action was taken.[19]

Representative Roy W. Holand (R-135) introduced H.B. 1519 to establish the Equal Opportunity Education Contract Program. The proposal would have provided students with low-income or incarcerated parents a voucher worth 50 percent of the district's per-pupil expenses or the cost of tuition, whichever was less. Students in special education programs would have received a voucher equivalent to the cost of their education. Districts with low-achieving schools would have been required to participate in the program. Districts meeting other criteria such as excessive enrollment could have opted to join. The Assembly did not act on the legislation.[20]

In February 2005, State Representative Jane Cunningham (R-86) introduced H.B. 639, which would create a tax credit for contributions to groups that give money to students for assistance with educational expenditures.[21] The program would be called the "Betty L. Thompson Scholarship Program" and would provide tax credits worth up to 90 percent of any such donation. The bill passed the House Special Committee on Urban Issues, but after it was moved to the full House, opponents added several amendments that weakened the choice provisions, including an amendment to delay implementation of the program until public education in the state is "fully funded"--indefinitely stalling the legislation. (Another amendment would require private schools enrolling students using scholarships to administer state assessments.)[22] The bill did not see any further action before the end of the session.[23]

Several educational tax credit bills were introduced in 2006. Rep. Cunningham again introduced a bill for this purpose, H.B. 1479, which would create the Angell Scholarship Program. This program would provide tax credits to individuals and corporations that made qualifying donations to scholarship granting organizations. The credits would be capped at $40 million annually.[24] The bill was referred to committee.

Rep. Carl Bearden (R-16) introduced H.B. 1783 in February, which would create the Betty L. Thompson Student Success Scholarships Program. This program would provide tax credits to any taxpayer who contributed to a scholarship granting organization. The scholarship awards must average $5,000, and this program would also be capped at $40 million per year. This bill was also referred to committee.[25]

Senator Luann Ridgeway (R-17) introduced S.B. 962 on January 26. The bill would establish the Missouri Student Success Scholarship Tax Credit Program. Like H.B. 1479, this bill would provide tax credits to individuals and corporations that make donations to scholarship granting organizations serving students in Kansas City, St. Louis, or the Wellston School District. The credits are again capped at $40 million annually. The program would last six years, and it would be studied by the Committee on Legislative Research. The bill was referred to the Senate Education Committee.[26]

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