Susan Pendergrass speaks with Cory Koedel, director of education policy at the Show-Me Institute, about Missouri education policy following the 2026 legislative session. They discuss the governor’s A to F letter grade executive order, why literacy legislation failed to pass, leadership turmoil at DESE, Show-Me’s latest Report on the effects of open enrollment, the case for expanding charter schools in Missouri, and more.

The post Missouri’s Stalled Education Reforms with Cory Koedel appeared first on Show-Me Institute.

The St. Louis Public Schools District (SLPS) routinely overspends its budget. A recent state auditor’s report warns that continued deficit spending could push the district’s reserve fund below the 3% threshold—the Missouri Department of Elementary and Secondary Education’s formal marker for serious financial stress. In fact, the district was already downgraded from accredited to provisionally accredited by the state school board over its financial troubles.

Yet even as enrollment declines, budgets tighten, and accreditation hangs in the balance, SLPS continues to fumble basic asset management. The district has failed to sell six long-vacant school buildings in north St. Louis, many of which have sat empty for nearly two decades. It is now moving forward with plans to demolish them. So, instead of aggressively pursuing sales and accepting realistic offers, the district is preparing to charge St. Louis taxpayers for million-dollar demolitions.

This pattern is not merely troubling. It is mind-boggling, especially for a district with only 18,284 students still enrolled — a drop of more than 97,000 students since its demographic peak of 115,543 in 1967.

To be fair, selling these properties is genuinely difficult. St. Louis has suffered decades of population loss, concentrated poverty, and economic decline, making redevelopment of large, aging, and often deteriorated historic buildings a tough sell. Attracting private developers willing to take on major rehabilitation projects in these neighborhoods is no easy task.

But that reality makes the district’s track record even more damning. In one case, it seems that SLPS didn’t even bother to respond to offers on a building:

Benjamin Anderson said that he has tried to buy the 133-year-old Euclid School in the Fountain Park neighborhood for three years—he even had the property under contract for $200,000 at one time—but he couldn’t get the district to respond before the contract expired.

“They completely ghosted us,” Anderson said Friday.

The building is now slated to be demolished.

Many of these schools are among the city’s most architecturally significant buildings. Symbols of inertia and vanishing civic pride, they are simply left to decay while the district explores expensive demolition using insurance funds and city taxes. Critical resources that could support classroom instruction are thus directed toward tearing down infrastructure.

The challenges at SLPS underscore a deeper failure of accountability. When a public school district cannot control costs, manage its real estate portfolio effectively, or adapt to enrollment reality, students and taxpayers bear the costly burden of that failure.

The post A Failing Grade in School Management appeared first on Show-Me Institute.

Birth rates have been declining in the United States for decades, and there is little indication that the trend will reverse anytime soon. This poses challenges for many of our institutions that were built on the implicit assumption of continued population growth. Social Security is the most prominent example. Because the program relies on taxes paid by current workers to fund benefits for retirees, it depends on a steady influx of younger workers. Social Security is in trouble, and its day of reckoning is not far off.

More quietly, schools across the United States are struggling with declining enrollment. After decades of needing more—more buildings, more teachers, more staff—we’re entering an era where we will need less of all these things.

In Missouri, public school enrollment has declined about 4 percent since the turn of the century. The decline has been even steeper in many urban areas.

The enrollment decline is not a temporary phenomenon. Demographic projections indicate the trend is likely to continue and, in many places, accelerate. And unlike forecasts of the weather or stock market, demographic projections are highly reliable. We know what is coming.

Yet many districts continue to operate as if enrollment will rebound. This is understandable. School closures and staff reductions are politically difficult and often deeply unpopular. However, delaying these decisions does not change the underlying demographic reality.

Preparing for continued enrollment decline means consolidating and, in some cases, closing schools. It also means aligning staffing levels with student enrollment. With limited resources available for public education, maintaining excess capacity spreads those resources too thinly, undermining educational quality.

The demographic writing is on the wall. One way or another, our school system will need to respond. Districts that plan proactively for declining enrollment are likely to navigate the transition more successfully than those that postpone difficult decisions until circumstances leave them no choice.

The post Declining Enrollment Will Force Hard Choices in Missouri Schools appeared first on Show-Me Institute.

Susan Pendergrass speaks with Tim Carney, senior fellow at the American Enterprise Institute, about why American culture may be making it harder to have and raise children. They discuss the long-term consequences of the declining U.S. birth rate, how intensive parenting culture may be driving childhood anxiety, the “travel team trap” and the arms race of youth sports, what cities and communities can do to become more family-friendly, and more.

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Episode Transcript

Susan Pendergrass (00:00): I’m really looking forward to this conversation with Tim Carney. Thank you for joining us. You’re a senior fellow at AEI? I listened to a podcast the other day with a demographer from the University of Pennsylvania, and it was really good. I think they have a pretty strong department. He said that the United States reached peak child in 2012 or 2013, and basically

Tim Carney (00:06): That’s about right.

Susan Pendergrass (00:24): numbers have been going down on babies ever since. We definitely see that in Missouri. That was our biggest kindergarten cohort, and numbers are going down. I have five grandchildren under the age of five, and it seems to me this is going to be the policy conundrum of their generation. What do you think?

Tim Carney (00:44): It is certainly the biggest story of the next thirty years, policy, cultural, economic, everything. Another way of putting it: the number of births in the US peaked in 2007. Those kids born in 2007 either graduated last year or are graduating this week. Colleges know this very well. They’re all bracing for it. What about ten years from now when the workforce starts significantly shrinking?

Susan Pendergrass (01:03): Yeah.

Tim Carney (01:11): What about the towns that are built around a public school, elementary school, middle school, high school, and those start shrinking? Particularly in rural places, they’re seeing consolidation, two different public schools or two different Catholic schools consolidating. Can schools adjust to being small? How much is this a self-reinforcing spiral? When there are fewer kids, people aren’t used to seeing kids around. Yes, absolutely. It’s the biggest story of the next thirty years.

Susan Pendergrass (01:37): In your new book, Family Unfriendly, I think it’s interesting to juxtapose these two things. At the same time, we’re making it so much harder to raise kids in our culture, and we’ve raised the expectations for each and every one of them so high that people who are considering having kids find it daunting. It used to be, when I was young, people had six or seven kids and just hoped for the best. Everyone did okay. But now every child has these insane expectations, and I sympathize. If your child doesn’t roll over by six months old, they need occupational therapy now. That did not used to be the case. Doesn’t that work against it?

Tim Carney (02:12): Yes. A lot of economists have been praising quality over quantity parenting for years. Isabel Sawhill is an economist I’ve worked with for years, but I think she’s dead wrong when she says this is good, that people are choosing fewer kids so they can invest more in each one. That sounds right, but then you realize

Susan Pendergrass (02:33): Okay.

Tim Carney (02:53): the American Pediatrics journal says the number one cause of the epidemic of childhood anxiety we’re facing right now is lack of unsupervised play. So parents who are giving their kids the best of everything, making sure they’re not just wandering around the neighborhood, making sure they’re safe and busy with violin lessons and enrichment activities and a special private pitching coach for softball, that’s supposedly high-quality parenting. But it comes with low-quality results, which is very anxious kids, as well as stressed-out parents. People ask how my wife and I do it with six kids. I like giving answers about the special cool systems I have, but the real answer is a lot of times we just don’t.

Susan Pendergrass (03:41): Yeah. I feel like I’m probably going to say a lot of unpopular opinions on this. I never liked elite sports or travel sports, but I see travel sports going nationwide now. People from Texas are going to Florida, going to California for travel sports, which I always thought was kind of insane because it didn’t work for my family. We would normally have tournaments at Fourth of July and Thanksgiving. I also see kids being absorbed into the adult world more. Craft breweries have children trying to find something to do there, which is not a very normal environment for them. High-end restaurants have little kids in them, and I just feel like that takes away from the time when they’re supposed to just be kids.

Tim Carney (04:28): I actually think mixed-age mingling is something we need more of. Sometimes when I need to get work done, I’ll go to the local craft brewery to get away from my kids, and then somebody else has all their kids there. But those kids aren’t asking me any favors, so I’m fine with it. I think it’s good that we’re building places for parents to bring kids. The way I put it, though, and again

Susan Pendergrass (04:35): Okay. Yeah. That’s right.

Tim Carney (04:58): my local brewpub allows for this, but we need places where parents can bring kids and ignore them. I brought my kids to the brewery on a cold winter day when they couldn’t be outside because it was ten degrees and forty-mile-an-hour winds. I start the book with a story, in contrast to

Susan Pendergrass (05:05): Yeah. Yeah.

Tim Carney (05:27): high-intensity travel sports, of a program that we saw and then emulated in the Catholic parishes when we lived in Maryland, which was called Friday Night on the Field. There was T-ball and coach-pitch baseball, so this was kindergarten, first grade, second graders. Maybe 10 percent of the dads were coaching. The rest of them, if they were there, were hanging out with other dads. And the kids who were older

Susan Pendergrass (05:53): Yeah.

Tim Carney (05:56): were running around or playing wall ball. The kids who were younger were on a playground. When my wife found out what was going on there, she said, you are bringing all six of the kids to this while I stay home and rest. So I brought the kids there. I maybe had a baby in my carrier, ignoring the other four while one of them played T-ball. And that was exactly what suburban parents needed. Not this high-intensity mom and

Susan Pendergrass (06:08): Yeah, sure.

Tim Carney (06:22): child attached at the hip, but the whole family is there, it’s mixed age, and the children have freedom. This is a really important part of it in so many ways. One, that childhood is expansive and not just intensive. Two, that raising kids isn’t this hyper-intensive, constant thing. There was a commercial I cite in the book about Mother’s Day and how we need to honor mothers more. But it goes way overboard. It says they pretend they’re hiring for a job, and the requirements include you’re never allowed to sit down and you don’t get to eat meals until all of your colleagues are out for the evening. Being a mom is exhausting, and there are days where you don’t sit down, but come on. This is just not true.

Susan Pendergrass (07:00): The hardest job in the world. Yeah. I have three kids that are pretty close together. It was rocky there for a while, but I wouldn’t trade it for anything. As a practical matter, how do you change culture? If the prescription is to back off on intensive parenting, it feels more like an arms race where people say, maybe I don’t even agree with it, but if every other kid is going to Kumon Math, my kid has to go to Kumon Math. What do you do?

Tim Carney (07:36): It’s a tragedy of the commons sort of thing. I discuss it particularly in sports. In chapter one I call it the travel team trap. The reason it’s a trap is you get stuck without wanting to. I know lots of people whose kid just wants to play JV baseball, but the coach says they have to play fall baseball too. But I’m a football player. If you’re saying I’ll miss some reps and the other guys might get ahead of me, well

Susan Pendergrass (07:57): Yeah.

Tim Carney (08:05): that’s one thing. But then the coach says you’re shirking if you’re not playing year round. We have sought out schools and programs that explicitly do not do that, but we had to seek them out. It’s harder to be a backup point guard on a varsity basketball team if you’re going to play three sports, so you might get cut from the team. To some extent the parent is just saying, I really just want them to make the team, and that’s why I’m doing this.

With the academics, there’s a similar dynamic. We put our daughter, who was struggling in math, in a remedial program, something like Kumon. When we showed up, we realized, this was in Northern Virginia, specifically McLean, which is a wealthy area. Nobody else there was remedial. Everyone else there was an A student whose parents wanted their third grader

Susan Pendergrass (08:52): I see. Okay.

Tim Carney (09:03): to be at the sixth-grade level so they could get into Thomas Jefferson, the special super-magnet high school.

Susan Pendergrass (09:08): Yeah. If kindergarten is the new second grade and preschool is the new kindergarten, where does it end? I just feel like we’re overwhelming parents. You said it’s raising anxiety in kids. It’s definitely raising anxiety in parents too. It’s making people not want to be parents. It feels very stressful right now. There are books and apps, and there’s even a book on how to be a more free-range parent, which is strange to me. Does somebody need to be told how to do this? You just let them go outside.

Tim Carney (09:46): No, it does take work. And another thing is, to quote what a wise woman once said, it takes a village to raise a child. Being free-range is easier when other people are doing it. We used to back up to a big playground, and nine times out of ten my kids were the only ones there unsupervised. I actually got an email from a neighboring parent. It wasn’t criticism. It was saying your kids are great and it’s great that you let them run free, and asking if I could talk to them about letting their own kids run free. If you’re in a neighborhood where there are kids but they don’t come out, you might have to build organized activities. We didn’t do that growing up. We just played stickball. My mom wouldn’t organize it. We did it on our own. But now parents might have to be more involved. It’s a little bit of labor, but you connect the families, connect the kids, build the trust.

Susan Pendergrass (10:19): Yeah. Yeah.

Tim Carney (10:44): The community, and we talked about policy. I’m in DC. Everybody wants it to be a federal bill, this or that. The fact is it’s a cultural thing, as I said, and the community is going to have to have these organic, or sometimes deliberate and intentional, structures to help parents raise kids. The more parents who are walking around the neighborhood, the safer the neighborhood is. The more parents making it clear that their kids are going out and should come home when the streetlights turn on, the more that’s known, the safer it is. Remember when you and I were young, other people’s parents would correct us when we were wrong? Now, I have close friends I know I can do that with, but a lot of parents say they’re terrified of correcting someone else’s kid because they’ve been screamed at by the other parents. Your kid was

Susan Pendergrass (11:25): Mad at us. Yes.

Tim Carney (11:41): about to shove gravel down the throat of her two-year-old sister at the playground. And that’s my job too, if I’m right there. That social trust and community takes work. There are people who say it takes a village, and they can’t find their village. You have to build your village. I’m one of those conservatives who really believes that.

Susan Pendergrass (11:54): Are we willing to do the work? Do you see people doing it?

Tim Carney (12:09): We’re too individualistic, and that’s part of all of this. But I’m also one who believes the burden is really on you. You can’t wait for somebody else to do it. You build the community, and then you can sit back and bear the fruits of your labor as a neighbor yells at your kid so you don’t have to.

Susan Pendergrass (12:25): You’ve also talked about building family-friendly communities. There’s a conundrum we face in Missouri: no one wants to live in downtown St. Louis. A lot of cities face that, and St. Louis is probably at the forefront. We’re in the top five for cities in decline, and St. Louis and Pittsburgh are going to serve as examples, because

Tim Carney (12:28): Yes. Mm-hmm.

Susan Pendergrass (12:53): we hit that death spiral with more deaths than births a while ago, and all of our demographic trends are going to be out ahead of everyone else. People are going to look to us. But parents don’t want to raise their kids in the city of St. Louis. And if you don’t have children, you just keep getting older. Tell me a little bit about what has happened to make cities unfriendly to families and what they could do to change it.

Tim Carney (13:19): I’m a believer that we need all of the above. I’m very pro-suburbs. That’s where I raised my kids, that’s where I went to high school. But before high school I grew up in Manhattan, and I’m very pro raising kids in cities if you can do it. The number one thing is crime, or crime and disorder. You saw this a lot during the 2020s when people would say, who cares if people are hopping over the turnstile, so what if people are smoking pot, that homeless guy sleeping on the corner isn’t going to do anything. All those little things that adults can, maybe they shouldn’t but can, turn a blind eye to are disturbing to kids and disturbing to parents. Crime and disorder needs to be put in its proper place.

But then also, this is something where liberals tend to be better than conservatives: walkability and public amenities. I don’t mean my ability to walk to work or to my favorite cocktail bar. What I really mean is my ability to walk my baby in a stroller somewhere nice, and my eight-year-old and ten-year-old’s ability to walk together to a cool park, and more importantly to walk together to their friend’s house. Cities can actually do that better than suburbs to some extent, because they can put in those amenities, which are playgrounds, parks, and other things. That means traffic. Cars have to slow down. This is something I’m really studying now at AEI. The federal government has a walkability index, and it’s laughably bad. It’s published by the EPA, so it doesn’t actually show you

Susan Pendergrass (14:45): It’s about car exhaust.

Tim Carney (15:10): whether your kids can walk somewhere without getting run over by a car. We’re trying to see if there’s a way to improve this. That’s part of the built environment. That’s explicitly a government duty. Are the roads too wide? Are the cars too fast? Are there crosswalks? Are there trails? Because once you can let your kids walk around without getting run over by cars and without running into meth heads, their childhood is so much better. And your family life is so much simpler.

Susan Pendergrass (15:41): What about safety? I think it was you mentioning something like setting up safety zones within which families could have some reasonable degree of comfort that police respond and that crime is being attended to.

Tim Carney (15:58): A big part of raising kids, in my view, is you want to give them a sort of walled garden and let them be free in that garden. Every year that garden gets bigger, and at some point you realize the walls are gone and they’re out in the world. For me, this was a back campus at St. Bernadette’s and St. Andrew’s, the parishes where we had these programs. The kids were running free, but unless there was a kid who was going to run into traffic, and there are those kids, and probably some of your viewers and listeners have one who they know is a flight risk, in general they were going to be safe. When I would leave my kids alone in a museum, I tell the story of my son Sean, who three times I’ve totally lost him, but it was always in a botanical garden or a museum or someplace similar,

Susan Pendergrass (16:33): Yeah.

Tim Carney (16:55): where someone would say, hey, who are you with, four-year-old? And then slowly expanding that realm of freedom. You can walk around the neighborhood but can’t cross over Route 50, and then slowly it gets bigger and bigger. Community norms are really what make that possible. That two-year-old shouldn’t be walking down the street alone. That six-year-old is fine.

Susan Pendergrass (16:57): Yeah. Who are you with? But haven’t we kind of ruined that with the twenty-four-hour news cycle where everybody believes their children are at risk of being abducted by a stranger at every moment?

Tim Carney (17:35): Yes, and this is part of the problem I run into. When I say we need to let kids be free to run around like we Gen Xers were, people say it’s so much more dangerous now. It’s not. Statistically, almost the whole country has gotten over the violent crime wave that came with the George Floyd unrest and COVID lockdowns. That caused a spike in all the cities, and every place in the country right now is much, much safer than it was in 1984 when I was six. By a long shot. Every parent’s worst nightmare is their child getting abducted by a stranger. These cases happen, they end up in the news, and so we all think they’re happening all the time and all around us. Evolutionarily, we don’t have a brain that can understand a country of 340 million people.

Susan Pendergrass (18:08): Yeah. Yeah.

Tim Carney (18:32): So if there are three major cases a year and people talk about it for a few weeks, it seems like there’s some kid who got kidnapped half the year. It happens fewer than a hundred times a year. If you see numbers saying children are abducted ten thousand or a hundred thousand times, those are bad situations, but they’re not stranger abductions. In almost every case, the boyfriend goes off with the kid without the mom’s permission, or the grandparents have custody and then the mom comes and takes the kid. These are not good situations, but they’re not a kid who was left alone at a playground and then shoved in the back of a white van.

Susan Pendergrass (19:20): To the extent that we could bring any of that back, and this is where I’m a little pessimistic, I think kids learn decision-making in a way that isn’t being taught now, so that we end up working with people who never made an independent decision in their life. I certainly was out and got hurt and had to figure out: am I hurt enough to go home? Am I hurt enough to keep going?

Tim Carney (19:37): Ask a boss who has hired somebody right out of college recently. Yes.

Susan Pendergrass (19:45): Got a flat tire or whatever, we had to make decisions on the fly. I just don’t think we’re building that type of independence and resilience into our kids, and it’s a loss at the global level.

Tim Carney (19:58): Absolutely. Employers should all really be getting behind what you and I are saying right now, because if they want to hire a kid out of high school or college who can make a decision. I always remember the time I used to mow lawns in high school. Once I showed up at a lawn across town, used his mower, and it just didn’t start.

Susan Pendergrass (20:05): Yes.

Tim Carney (20:21): He was not home. He had a number on the fridge. I called and said, Mr. Zellinger, your mower’s not starting. And he said, good news is I don’t come home until Monday. So you have between now and then to get the lawn mowed, and I’m confident you’ll figure out a way to do it. It wasn’t an assignment. It was a responsibility. The best way to give your kids a responsibility that’s not an assignment they can just beg out of is to let them be free. And all of a sudden they’re like, wait a second.

Susan Pendergrass (20:40): Yes. Right.

Tim Carney (20:51): I need to be there in twenty minutes. How do I make that happen? Or I’m lost, how do I get unlost? And again, the children suffer. It’s not just that they go through life happy and dumb. They end up more anxious because life will inevitably bring them these problems. There is an epidemic of childhood and adolescent anxiety, according to

Susan Pendergrass (20:56): Yeah.

Tim Carney (21:19): HHS, and it’s caused by the fact that kids don’t have enough freedom in childhood.

Susan Pendergrass (21:29): I want to circle back to actionable items. What can we do about it, realistically?

Tim Carney (21:33): On the parental freedom side, there’s not that much the government can do except build better sidewalks, crosswalks, and pathways. Housing reform is interesting here. I’m a big believer in suburbs, but that doesn’t mean they can’t be more dense. One thing that’s really freeing is when you can buy a house in the neighborhood you want to live in,

Susan Pendergrass (22:01): Yeah.

Tim Carney (22:01): because your mom lives there and you have grandma to babysit. That’s a huge predictor. So many people in Washington think everybody needs universal daycare paid for by the government. Most people want mom to work a little less and grandma and grandpa to chip in, with neighbors to fill the gaps. More housing is what enables that to happen. But for the most part, we need more robust community institutions and more robust community connections. And every parent out there has to think: maybe I’m going to be the one who does this. There’s a field across the street from your house. Start a soccer league, bring food, run a grill. This is exactly what we did with T-ball. Throw in some money to pay for it. Buy the burgers at Sam’s Club or Costco and feed everyone. Bring your six-year-old to play soccer. This is not his or her path to a college scholarship. It’s a fun thing for the families to do. But you have to start it. We started it because we saw somebody else had started it. A lot of this is going to be on an individual level. On the policy side of supporting families, there’s a lot of debate about a child tax credit, a baby bonus, universal child care, and requiring employers to give parents parental leave.

Susan Pendergrass (22:58): Yeah. A lot. Leave.

Tim Carney (23:22): I write about that a lot at AEI. AEI scholars disagree about it. In the book, what I argue is we need a child tax credit, and it needs to be a little bigger. A family of eight making a hundred thousand dollars should not be paying the same taxes as a family of two or three making a hundred thousand dollars. That should be reflected in the tax code, because this isn’t just some consumer thing. It’s not like saying, I bought a Tesla, I deserve a tax credit. It’s saying, we’re eight people, we need to eat eight people’s worth of food, and the tax code should reflect that. But on the other programs, forcing employers to offer certain benefits or creating government-run childcare, I don’t think any of that works.

Susan Pendergrass (24:02): I mean, the Nordic countries do all of it and they have population decline.

Tim Carney (24:05): They have worse population decline than we did. There was a slight uptick, and one of the arguments I make is that subsidized childcare is not really a family subsidy, it’s a work subsidy. Notice who’s lobbying for it as these things bubble up. It’s going to be the Chamber of Commerce. I’m fundamentally a family guy. I think we need work. Part of fulfilling our human dignity is doing work. But that doesn’t always have to be paid work. In the book I defend stay-at-home moms and dads. I really think our society should be oriented around families. Now that’s a little heretical these days because, well, what if you choose not to have a family? Fine. There have always been people who chose not to have families. But that doesn’t mean families can’t be the central organizing principle of our culture.

Susan Pendergrass (25:04): More people now are choosing not to have families. And a lot of cities are pursuing those people, the childless professionals with Top Golfs and loft apartments.

Tim Carney (25:10): I quote a local official in Family Unfriendly saying families are a cost and businesses are an asset. Families come in, they pay income taxes and property taxes, but then they require sewage, they require schools, they complain that the playgrounds and the sidewalks are in bad shape. Businesses are mostly revenue. Washington, DC has explicitly said they don’t just want anyone to move in. They want the college-educated 22-to-28-year-old, meaning a person who gets to spend every dime of disposable income in the restaurants and bars and shops in DC. And if you look at the housing being built in Falls Church, right near me, it’s all studio and one bedroom, because that’s what the local government wants: more singletons who go out and spend their money. Sometimes we do things that are really bad for the economy. My wife makes homemade dinner. We almost never go out. A lot of our activity doesn’t involve paying anyone. The kids are just playing wiffle ball. All of that is horrible for the economy.

Susan Pendergrass (26:19): Yeah. Falls Church used to be such a big attraction for young families because of the schools. I’ve seen the shiny buildings going up recently, and I’m shocked by it. That’s interesting to me.

Tim Carney (26:44): I think it’s good to build more housing. But if it helps boomers sell their single-family homes to move into apartments, then it frees up family housing. This is a really complicated thing. We need more housing, but so many of the YIMBYs just want massive apartment buildings with as many apartments as possible, and that’s family unfriendly. What we really need, in my opinion, is slightly more dense suburbs,

Susan Pendergrass (26:54): Yeah. Yeah. Yeah.

Tim Carney (27:14): a starter home that somebody can buy. That’s basically impossible to build, especially in a high-cost area like this, or in the nicer suburbs around St. Louis and Kansas City. You’re not going to build them because of the regulatory overhead. If I build a single-family house and sell it for two hundred thousand dollars, that’s not worth it. I’m either going to build a McMansion or an apartment building.

Susan Pendergrass (27:26): They’re not building them. No. They’re doing the six hundreds. Yeah.

Tim Carney (27:41): Getting rid of a lot of the regulations that make it impossible to build a starter home is one of the best things that states and counties can do.

Susan Pendergrass (27:49): I really appreciate you coming on to talk about it. It’s a thorny issue. Countries that have really tried their best to encourage people to have more children haven’t been successful. This is going to be one of the biggest policy conundrums of the next few decades. The earlier we start talking about it, the better. I’ve been talking about it for at least five years in Missouri. We just had our smallest high school graduating class two years ago. People ask, where did the people go? They didn’t go anywhere. The babies haven’t been born, and we need to get used to it so that we can start thinking about how to solve it. I love a lot of your ideas. We have to think about solutions to this because if it feels overwhelming to have children, then people won’t have them.

Tim Carney (28:41): That’s exactly right.

Susan Pendergrass (28:42): Family Unfriendly. And your other book was Alienated America.

Tim Carney (28:44): Family Unfriendly. And Alienated America, which is about the collapse of community, which is upstream from this problem.

Susan Pendergrass (28:53): Lack of social capital and all of that. I think these are going to be some of the most important issues we can think about going forward. I really appreciate you coming on to talk about it.

Tim Carney (29:00): Thank you, my pleasure.

Produced by Show-Me Opportunity

The post Is America Family Unfriendly? with Tim Carney appeared first on Show-Me Institute.

Life comes at you in waves. You graduate high school, watch friends start careers, get married, and have kids. Then social media shows you their children repeating the cycle. As a member of the Pacific High School Class of 1999, I didn’t expect to reach the retirement wave so soon.

Yet a recent post stopped me: a high school classmate, still in his mid-40s, announced his retirement after 25 years in Missouri public schools. Most recently a principal earning roughly $130,000 per year, he is now eligible for approximately $71,500 in annual (with cost-of-living adjustments) pension benefits for the rest of his life. He can also continue working and earning additional income.

He is retiring at exactly the age when most professionals hit their career peak—when experience, leadership, and judgment are most valuable. And that’s the problem.

Missouri’s Public School Retirement System (PSRS) is pushing talented educators out of the classroom at the very moment students and schools need them most. This isn’t just a fiscal issue. It’s a direct loss to Missouri’s school children.

My classmate is doing exactly what the system incentivizes him to do. The “25-and-Out” provision hands him a guaranteed lifetime annuity worth over $3 million in today’s dollars. He’d be foolish not to take it. But Missouri schools are left without a proven leader right when his institutional knowledge and expertise could have the greatest impact.

This is the perverse reality of the current defined-benefit system. It encourages strong teachers and administrators to leave mid-career, creating turnover, knowledge gaps, and disruption for students. Districts then spend time and money searching for replacements, often settling for less experienced candidates.

Reform is long overdue. What could Missouri do?

• Raise the minimum age or service requirements for unreduced early retirement.
• Adjust benefit formulas for new hires to match longer careers and lifespans.
• Offer new employees a hybrid or defined-contribution plan with portability and shared risk.

Current retirees and vested members should be protected. But going forward, incentives should align with what’s best for students. Competitive benefits matter, but not at the expense of keeping great educators in our schools during their most productive years.

The post Life Comes at You in Waves—And Sometimes It Brings Early Retirement appeared first on Show-Me Institute.

FORWARD MOVEMENT

INCOME TAX REFORM: HJRs 173 AND 174

Lawmakers approved a constitutional amendment for voter consideration that would authorize the eventual elimination of Missouri’s individual income tax. The measure represents the most significant advancement of income-tax reform in Missouri in years and ensures that the future of the state’s tax system will ultimately be decided by voters.

• Asks Missouri voters to decide whether the state should pursue eventual elimination of the individual income tax
• Allows lawmakers to modernize Missouri’s sales tax system as part of future income tax reductions
• Requires local governments receiving additional sales tax revenue to reduce other local taxes

OCCUPATIONAL LICENSING: SB 1233

Expanded opportunities for experienced professionals moving to Missouri by creating a pathway to temporary licensure for individuals with at least three years of work experience in a profession from a state that does not require a license for that occupation.

HEALTH CARE: HB 2372, HB 2974, SB 878, AND SB 1233

• Removed outdated barriers, allowing more patients to establish provider relationships remotely
• Eased restrictions on prescribing medications through telehealth
• Expanded access by allowing providers licensed through reciprocity to serve Missouri patients statewide
• Expanded pharmacist authority to test and treat for common illnesses and prescribe certain medical devices

MORE WORK TO BE DONE

Despite extensive discussion, several major policy proposals were left unresolved at the close of the 2026 legislative session.

EDUCATION REFORM

Legislation intended to address Missouri’s reading crisis passed in the House but died in the Senate. Meanwhile, 42 percent of the state’s fourth graders can barely read—the worst results in 20 years.

• Literacy reform
• A–F school accountability grades

TAX AND BUDGET REFORM

• Property tax reform
• Spending restraint

The debate over Missouri’s future did not end with the adjournment of the legislative session. Voters will soon weigh in on income tax reform, and lawmakers will return next year facing unresolved questions about education, taxation, and government spending. The most difficult reforms still lie ahead.

Download a copy of the report here.

The post 2026 Legislative Session Report appeared first on Show-Me Institute.

MOScholars isn’t a hypothetical policy experiment anymore—it is a rapidly scaling alternative for families across our state. In just four years, student participation has gone from just over 1,300 students to nearly 6,500. The state treasurer’s office reported a massive surge in applications early this spring, indicating that even more families would like to participate in the program this fall.

It is likely that the number of scholarships will expand even further in the near future. Governor Kehoe recently announced that Missouri will opt into a new federal tax credit program, allowing any U.S. taxpayer to redirect up to $1,700 of their federal liability toward school choice initiatives in any participating state, including Missouri.

When we fund students rather than systems, we create an environment where every child has a path to success. The legislature’s decision to back the growing demand for MOScholars with a $60 million commitment shows that parental empowerment is no longer a fringe priority. Now, the focus must shift to ensuring this funding flows transparently, efficiently, and directly into the hands of the parents who know their children’s needs best.

The post The $10 Million Budget Boost for MOScholars Is a Win for Missouri Families appeared first on Show-Me Institute.

During his State of the State address in January, Governor Mike Kehoe indicated Missouri is opting into the federal government’s new school choice tax credit program. The program resembles Missouri’s MOScholars program. Taxpayers can receive a dollar-for-dollar federal tax credit for donations up to $1,700 annually to a scholarship-granting organization, or SGO, in Missouri. The SGO then distributes scholarships to families in Missouri seeking alternatives to their residentially assigned public schools.

For many families, the scholarships will be used to pay private school tuition. But the potential is broader. At least two public school districts in Missouri already participate in MOScholars, allowing nonresident students to use scholarships to pay transfer tuition; a similar arrangement may be possible under the federal program. Funds could also support homeschooling expenses, tutoring, after-school programs, or enrollment in a microschool (the latter is a fast-growing but loosely defined sector and there is no clear consensus on what defines a microschool). The eligibility criteria are still unsettled.

Non-traditional providers are pushing for few guardrails and minimal regulation, while others argue for stronger oversight and quality controls.

I have mixed feelings. The real value of this program is its potential to expand Missouri’s education marketplace. Competition improves quality in virtually every sector of the economy, and education is no exception. But markets don’t work well when consumers have poor information, so I’d like quality controls and transparency so parents can make informed choices. Here’s the tension: expanding choice and imposing quality controls can work against each other. To illustrate, consider a heavily regulated system in which schools that accept the tax-credit payments must administer standardized tests, publicly report results, and disclose detailed information about their curricula and finances. This level of transparency would reassure policymakers, but the problem is that we cannot force private providers to participate.

And if we make it too difficult (and too costly) to participate, which schools are the most likely to opt out? The answer: the ones that already have plenty of customers without this new program—likely the best schools. And if the best schools opt out, it undermines the value of the education marketplace we’re trying to build in the first place. (This is a complicated problem. See here for a deeper discussion in the context of research that finds negative effects of a voucher program on student achievement in Louisiana.)

I don’t have all the answers, but I hope Missouri lawmakers think carefully about how to strike the right balance, particularly if the federal government gives states meaningful discretion in implementation, which I expect it will. I’d favor a middle-of-the-road approach that requires participating schools to provide straightforward, low-cost information, but without overly burdensome regulations or reporting requirements. I want the best education providers to open their doors to more Missouri students; I don’t want to scare them away.

The post The Dicey Details of the Federal Government’s New School Choice Tax Credit Program appeared first on Show-Me Institute.

For years, the education establishment in Missouri has relied on a predictable playbook. Whenever state test scores drop or national rankings look bleak, we are told that the data don’t capture the whole picture, or that a new bureaucratic report card will soon show things are turning around. We are urged to wait, to invest more taxpayer money, and to trust the system.

But a newly released look at the numbers from a joint Harvard and Stanford project strips away the capacity for spin. According to the report, Missouri’s reading scores, which declined substantially during COVID, have continued to fall since 2022. We now rank 26th of 38 states (with usable data) in academic growth in math and 28th of 35 states in reading. In both reading and math, Missouri students are more than a half of a year behind where they were performing in 2019 (0.58 grade equivalent and 0.66 grade equivalent, respectively).

The authors point out that the pandemic slide was actually the acceleration of a trend that started around 2013. The pandemic simply poured gasoline on a fire that was already burning.

This scorecard release comes at a critical time for Missouri education policy. Recently, we’ve watched efforts to implement clear, transparent A–F school report cards go sideways in Jefferson City, bogged down by attempts to shift focus away from academic achievement and instead prioritize ambiguous school climate surveys. Fortunately, the governor’s executive order mandating report cards with letter grades will still be implemented.

Similarly, efforts to bring real accountability to early reading were derailed this legislative session. Lawmakers couldn’t commit to rigorously applying the science of reading or to making sure that students who can’t read aren’t socially promoted to grades where they will struggle to understand their textbooks.

If we want to reverse this generation-long decline, we must stop protecting the status quo. The folks in charge of public education need to be held to the highest standards of accountability. Furthermore, we must empower parents with robust educational choice, forcing the state system to compete and innovate rather than take families for granted. If we don’t make changes, we’ll only continue to fall further behind.

The post Missouri Students Continue to Fall Behind appeared first on Show-Me Institute.

Susan Pendergrass speaks with Jacob Light, Hoover Fellow at the Hoover Institution, about his research on how artificial intelligence is reshaping higher education. They explore which college majors are most exposed to AI capabilities, why professors are largely not changing their syllabi or assessment methods despite widespread awareness of AI, and what students are doing in response to the uncertainty. They also discuss whether the backlash against AI on college campuses is real, what previous waves of technological change can teach us about the current moment, and more.

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Episode Transcript

Susan Pendergrass (00:00): Thank you so much for joining us today on the podcast. Jacob Light, Hoover Fellow at the Hoover Institution, talking about something that’s very timely right now in this college graduation season. I’m hearing that all the college students are having a backlash against AI. I don’t know if you would agree with that or not, but I want you to try to explain to people listening what first of all you’ve been looking at in terms of AI in college in general, and also what your findings have been, because I find them to be very interesting and somewhat surprising.

Jacob Light (00:31): Thank you so much for having me. I’m really excited to join the podcast today. I’m an economist who studies how universities respond to different forces of change, whether that be changes in the labor market, changing political conditions, and more recently, changing technology, which feels very central both as a former student and now as an instructor at a university, thinking about how AI is affecting the way that students interact with their courses. My work right now thinks about this problem of AI in higher education in two ways. First, where should we be looking for exposure of higher education to AI? Where do the skills that students are learning to develop in their courses overlap with the capabilities of artificial intelligence? The second strain of the research is how are universities adapting? How are instructors changing the way that they administer courses? How are students changing which courses they take? And how should we look at these movements as indications of how these two sides of this market are responding to this big shock?

Susan Pendergrass (01:39): So to be clear, you’re not just saying that ChatGPT becomes available and all the professors outlaw the use of AI in classes, but more so: are students continuing in 2026 to be taught skills that we know AI can do? And what’s the answer?

Jacob Light (01:57): Yeah, exactly. I think it’s important to contextualize that we teach students many skills that have already been automated. We teach students basic arithmetic and spelling, even though we have calculators and spell check. We have these tools that can perform a lot of the cognitive work that we teach students to do from a very young age, and yet we still think it’s important for students to develop skills in these areas. We still teach students to add and subtract both because those skills unlock higher order cognitive skills and also just because that exercise is useful to students. So what I do in my research is think not just about whether instructors are changing the courses they offer to reduce the weight on things that ChatGPT and large language models are able to do, but if we think it’s important for students to develop these skills even though AI can do them, things like analyzing data or writing essays, then it becomes important for instructors to modify the way they offer courses so that we still get information about how well students are learning to do the tasks that AI can potentially substitute for them.

Susan Pendergrass (03:13): I don’t want to minimize the effort you put into this, because it’s massive. You went through thousands of syllabi to really look at what’s being taught in a very specific way. You also included not just large language model AI but robots, and a lot of the skilled trades. I would imagine that the skills needed 10 years ago have changed now that robots can do a lot of that work. What are you seeing there?

Jacob Light (03:42): For this first part of the project, where I think about how different fields of study are exposed to artificial intelligence, I should say upfront that exposure here doesn’t necessarily mean that every computer scientist is going to have their job completely automated. What I’m thinking about is the degree to which students are able to use AI as a substitute for, or maybe even a complement to, their work in the classroom. The approach I take is to leverage a dataset that I’ve spent many years collecting of course offerings from a large number of US colleges and universities. For about 1,000 schools, I’ve scraped the course catalogs and course schedules, which gives me insight into every course offered at the school over a period of up to 30 years. I see course offerings, enrollment, titles, instructors, and course descriptions. I use these course descriptions to build a sense of what skills and tasks a student develops in, say, an economics class. The exposure measure is the degree to which what a student does in that class overlaps with the capabilities of artificial intelligence. To be very specific with an example: in an economics class, students are often trained to analyze data, use models, and evaluate policy. The intuition for the approach I use is that if we see AI is really good at analyzing data, using models, and evaluating policy, we would think of economics as a field of study that is highly exposed to AI. I think about exposure to AI in two different ways. For the broad capabilities of AI, I glean from patents related to artificial intelligence. I look at the overlap between the tasks that students do in their courses and tasks that AI technology patents say those technologies are capable of doing. And then very specifically at the capabilities of large language models, which I think of as a subset of AI.

Susan Pendergrass (05:21): Yeah.

Jacob Light (05:35): So I look at two measures of what AI can do: the broad range of AI capabilities, which I extract from patents, and then the specific capabilities of large language models. What I find is that when you compare the exposure of college courses to AI versus to previous types of technologies, such as robotics, we see that courses are much more exposed to the things that AI can do than to the capabilities of previous technologies. This is consistent with existing research that suggests highly skilled jobs, the types of jobs that college graduates flow into, are more exposed to artificial intelligence than they were to previous waves of technology. That’s the first order finding. But within college majors, there’s pretty wide variation in exposure, and it differs based on whether we think of exposure to the broad class of AI technologies versus just large language models.

Susan Pendergrass (06:55): What’s the most exposed? It looks like it’s computer science, right?

Jacob Light (07:00): Statistics and data science and computer science are highly exposed majors. Unfortunately, economics is also a highly exposed major. I should say it’s not necessarily a good thing or a bad thing to be exposed. On one hand, there’s a risk that students are not developing the same skills when they have access to these AI tools as they did in a pre-ChatGPT period. But also, we lower the barriers to entry into computer science and economics through the availability of these tools, because everyone’s vibe coding, and also you have bespoke tutors in your pocket that can help you navigate difficult courses and overcome barriers to entry. So it’s not obviously a bad thing.

Susan Pendergrass (07:35): Because everyone’s vibe coding.

Jacob Light (07:53): But to be specific, especially when we think about exposure to AI as represented by the capabilities of large language models, what seems to drive exposure is a combination of fields of study that involve data analysis and generating text. These are the two things we think of LLMs as being very good at. So the quantitative social sciences, economics, political science, even sociology, as well as fields that involve applied data analysis, including statistics and computer science, are going to be the fields where the skills that students develop overlap most with what AI is capable of doing.

Susan Pendergrass (08:31): So are professors changing their syllabi to reflect that? Are they dropping things that clearly could just be covered by AI?

Jacob Light (08:40): That gets to the second part of this project. Having documented that there is this concern that AI overlaps with what we teach students to do in their courses, and that students might be able to substitute AI for their own work, we might look specifically at these highly exposed fields as places where we want instructors to modify the way they teach as a means of ensuring that students are developing the skills they were developing before ChatGPT was released. We read a lot of these articles about blue books being back.

Susan Pendergrass (09:12): Using blue books? I feel nostalgic for the blue books. There’s something almost romantic about writing in a blue book versus clicking buttons on a Canvas quiz.

Jacob Light (09:12): Yeah, I don’t like blue books by the way, but using blue books, yes.

Susan Pendergrass (09:23): But isn’t that just working against an enormous tide? To think that requiring students to write in a blue book is going to force them to not use AI for the exam, but aren’t they using it daily in their coursework?

Jacob Light (09:53): Again, it’s not obvious to me that using AI in their coursework is a bad thing. So much of the work I did when I was a college student was pretty inefficient. I spent a lot of time writing code that didn’t work and writing essays that read very poorly. To automate some of those experiences might allow students to invest more in the types of higher order thinking and learning that are more valuable. But on the other hand, I think I became a better coder because I made mistakes through the process. Now I can distinguish good code from bad code because I’ve written a lot of bad code and I know what my bad code looks like. So we might think that even if we’re not changing the types of skills that students develop in their courses, that we continue to offer economics courses and computer science courses, the way that we assess whether students are learning the skills they need is going to change. There are certain types of assessments, like out-of-class essays and homework, where you just can’t get as much information about how much students are learning, versus in-class proctored exams, participation, and presentations where students have to demonstrate mastery through assessments where you can’t use AI tools. What I do is, for about 20 universities, I’ve collected a panel of syllabi covering both the pre and post-ChatGPT period, and I extract two pieces of information. The first is whether the syllabus has an AI policy or not. The second is the weights that instructors put on different types of assessments, such as half the grade being based on exams and 25% based on essays. I find two interesting things. The first is that following the release of ChatGPT, instructors became very aware of AI. We see a massive increase in the share of courses that have any AI policy, and most of those policies are restrictive of the use of AI. My own syllabus has clear instructions about when I want students to use AI and when I don’t. My students are very compliant and of course listen to everything I say, both when I’m lecturing and in the syllabus. So we see that instructors are aware of AI and think of it as a concern in the classroom.

Susan Pendergrass (09:12): You think they follow that?

Jacob Light (12:24): Sure, great, okay. But the second thing I extract is assessment weights, which allow me to assess whether instructors are changing the way they offer courses in a way that lets them extract more information about how much students are learning. What I find is that despite instructors being very aware of AI, we see virtually no changes in how much weight instructors are putting on the types of assessments where students can substitute AI for their own work, versus assessments like exams and participation where they can’t. We hear a lot about blue books being back. We hear anecdotal stories about how instructors are concerned about students using AI in the classroom. But I just don’t see this in the data.

Susan Pendergrass (13:23): That’s surprising to me.

Jacob Light (13:42): I think what’s interesting and informative is that there are two shocks in pretty quick succession over the last couple of years that push in opposite directions on the information that instructors can get from different types of assessments. During the pandemic, it became harder to offer in-person exams. There was a physical constraint that limited exams. What I see is a shift away from exams and towards homework, a gradual pre-pandemic shift away from exams that sharply accelerated during the pandemic, and that persists even in the years after in-person instruction resumes. We can use that as a benchmark: at minimum, instructors could revert back to the way they were weighting courses before the pandemic. What we see is basically nothing. There are very modest shifts away from homework and other AI-substitutable assessments, primarily essays. We’re slightly reducing the weight on essays and offsetting that with increases in participation and presentations. But we’re seeing very little movement at scale away from the types of assessments where students can substitute AI for their own work.

Susan Pendergrass (14:44): Maybe higher education just moves slowly. It’s an ivory tower. People get entrenched. Some professors use the same syllabus for 20 years. Maybe it just moves more slowly in reaction to this. I know some that are angry about the AI thing, but it’s up to them to figure out how to change it. In terms of what students are doing, how are they reacting to the changes in terms of what they’re choosing as majors? What are you seeing there?

Jacob Light (15:32): Yes, so I track changes in enrollment over the last 20 years using this course schedule data from a large number of universities. Similar to the relatively slow movement on the instructor side, students are moving pretty slowly as well. Despite stories about concerns about the viability of computer science as a major, and after a period of very rapid growth in CS enrollment, we’re only seeing a slight dip in CS enrollment and in other AI-exposed fields of study in the last couple of years. What I can show is that for the first time since around 2005, when CS enrollment began to take off, this current year, the 2025-26 year, we see a slight decrease in computer science enrollment. But it still remains elevated compared to the start of the pandemic and substantially elevated compared to 2010. In a way, perhaps this makes sense, because although there is greater uncertainty around the returns to developing CS skills, CS courses are now easier to take because you have tools that can help you with your homework and tutor you. One of the barriers to entry into CS courses previously was that they were hard, and these tools make more AI-exposed courses easier. I think the risk and the concern is that the same tools that can do your work in the classroom can also potentially do your job, and I don’t think we see students internalizing that risk yet.

Susan Pendergrass (17:12): Even though the Wall Street Journal has a layoff tracker and Meta is constantly seemingly laying folks off, and Amazon as well. We see a lot of thinning of the herd when it comes to software engineers. I just imagine it’s going to change. Is this generation of college students in a weird bind? They’re right between the pre-AI and post-AI worlds, spending a lot of money on college tuition at a time when the future of different types of work is very uncertain.

Jacob Light (17:54): I’m very sympathetic to college students who are navigating uncertainty right now of a form that I don’t think college students have had to navigate previously. During previous technological change, we’ve always looked to universities as the resource that we send people to upskill, with the promise that the skills you develop in college are going to have returns when you enter the labor market. I continue to believe that’s the case, certainly in the short term. But I recognize that the nature of work is changing quite rapidly as new technology can perform some of the tasks that workers are able to do. Economists often conceptualize occupations as a bundle of tasks, and when a new technology comes online, the technology is able to do some of those tasks while the human worker continues to perform others. The net impact on an occupation really depends on which tasks are being automated, and whether that means we need fewer people doing that occupation because the technology can do it for us, or whether the ability of technology to make workers more efficient actually increases the demand for people with those skills because now more firms will benefit from having a single software engineer on staff when it previously would not have been rational for them to have any. There’s a lot of uncertainty right now, and I think it’s difficult to navigate as a 19 or 20 year old.

Susan Pendergrass (19:37): What about this backlash? Eric Schmidt spoke at a college graduation and folks booed him, I think. Even Jonathan Haidt, who is sort of anti-smartphone and screen time. Do you perceive that? You work on a college campus. Do you see that age group wanting to turn away from AI?

Jacob Light (20:02): My perception is that the backlash is to the uncertainty that AI introduces. Many students are eager to use the technology when it makes them more efficient or when it allows them to substitute time they would spend solving problem sets towards leisure and other pursuits. But I’m sympathetic to the frustration that students are feeling, that this investment they’ve made and the promise of opportunity that college has previously offered is now at risk because of the changing technological landscape.

Susan Pendergrass (20:53): I was talking to a lawyer recently about AI and how they use it and how great it is for them. They said basically every lawyer now has their own legal assistant. And I was like, what does that do for legal assistants? Everyone’s got a research assistant, which is great. I use it all the time. But what does that do for people who used to start as a research assistant? It’s obviously changing things. I kind of remember, because I’m pretty old, desktop computers being the thing that was going to kill all these jobs, and it just shifted the market. It didn’t kill anything. It just dramatically increased productivity. I think people have a lot of dystopian views of this, but you sound like you’re a little more on the utopian side, and I think there could be a lot of positives that come out of it.

Jacob Light (21:38): I think that’s right. Economists are not in the business of making predictions generally, and I’d have to give up my PhD if I did. I take some comfort looking at previous waves of technological change, exactly as you said. Computers created more job opportunities than they reduced. Mechanized agriculture unlocked widespread growth in the economy despite reducing some employment in agriculture. My belief, if we take the past as precedent, is that we will see something like that with artificial intelligence as well. Some, perhaps many, occupations will be disrupted. Workers in those occupations will experience difficult consequences of this change. But there will be more and new opportunities available once this technology is more widely deployed. There’s a trade-off, and the transition is messy and painful. But I think on net, the precedent is that new technology is generally helpful for society.

Susan Pendergrass (22:57): AI spits out a lot of bad content and you still need a human, I think, to determine what’s bad and what’s good. I think that’s the skill set within the CS world. You can have AI code five versions of something, but somebody needs to know which one is good. So what do you think about that?

Jacob Light (23:22): I think that’s exactly right. The expertise becomes more valuable. In a way, it’s kind of a bummer that the parts of work where humans maintain their advantage are in evaluating quality rather than in generating. We’ve kind of taken the creative component of work away. I think it creates a less satisfying, perhaps less intellectually stimulating workflow. At this stage, certainly, we continue to need humans with expertise beyond the capabilities of AI to evaluate what AI is producing. I think that points to the crisis that higher education faces: if we are not able to produce these experts because students are not developing the skills we need them to develop in college, then how will we produce the next cohort of experts? Similarly to your point, if we don’t have legal assistants and research assistants who will eventually become lawyers and researchers, then we are not training people to preserve their comparative advantages over these new tools. I think that’s a big risk we face, and it emphasizes the importance of education right now more than ever.

Susan Pendergrass (24:56): So are you going to continue with this, scraping the data and looking at it?

Jacob Light (24:58): Yeah. It’s my maniacal hobby. I started this data collection in February 2020, and a month later the world changed. But I had a lot of free time on my hands, so it gave me something to do. This little hobby of mine became my pandemic hobby. It was my sourdough. This data gives really rich insight into how universities differ in ways that I don’t think researchers have been able to explore previously.

Susan Pendergrass (25:36): No, I think it’s great. That’s really cool. If people want to find out more, where can we find it?

Jacob Light (25:42): I’m a researcher at the Hoover Institution. You can go to my website at jacob-light.com. I’m always eager to talk about this work.

Susan Pendergrass (25:51): That’s fascinating stuff. Well, thanks so much. I’d love to see a follow-up in a year or two. I think it’s really interesting. Thank you so much.

Jacob Light (25:57): Absolutely. Thank you so much for having me.

Produced by Show-Me Opportunity

The post AI and the Future of College with Jacob Light appeared first on Show-Me Institute.

Avery Frank, Elias Tsapelas, and David Stokes join Zach Lawhorn to break down the final week of the 2026 Missouri legislative session. They discuss the constitutional amendment heading to voters that would begin the process of eliminating Missouri’s state income tax, where property tax reform efforts stand heading into the final days, the early literacy bill’s uncertain path through the Senate, the legislature’s approach to A through F school report cards, what the state budget does and does not get right, the Ferguson city council’s rejection of a major data center tax subsidy, and more.

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Episode Transcript

Zach Lawhorn (00:00): Welcome to the Show-Me Institute podcast. I’m Zach Lawhorn from Show-Me Opportunity. Today I’m joined by Avery Frank, Elias Tsapelas, and David Stokes from the Show-Me Institute. It is the last week of the 2026 Missouri legislative session. Today we’re going to go through what has crossed the finish line, mostly what has not crossed the finish line, and see what these guys think about the possibility of that happening here in the home stretch. Elias, we’ll begin with something that has crossed the finish line, and that is the start of a discussion about phasing out Missouri’s state income tax. Legislation did pass. It goes to the governor, and he gets to decide when it goes on the ballot. So what do we know right now, what passed, and what are Missouri voters going to be asked sometime in the fall?

Elias Tsapelas (00:50): By May 22nd, the governor needs to decide whether this constitutional amendment will go on the August or November ballot. What it says, essentially, is to Missouri voters: do you want to start the process of getting rid of Missouri’s income tax? It comes with three main components. The first piece is the legislature will be required to enact legislation that would get rid of the state’s income tax based on revenue growth. Once that income tax is gone, it cannot be reinstituted. Previous versions of this bill had some details lined out about how the income tax rate would be cut based on revenue growth, but in later versions this was stripped back to just the legislature will decide this later. The other two pieces say you will also be authorizing the legislature to expand the state sales tax base, meaning the things the state sales tax applies to. This could also involve changing the rate, because right now Missouri’s constitution does not allow the state legislature to expand the sales tax to anything that was not taxed in 2015. But this does come with a guardrail: if the legislature does change the state sales tax, it has to be done in a revenue neutral fashion. So expanding the sales tax base or raising the rate to bring in additional tax revenues has to go towards lowering the state income tax. That gives the legislature the authority to change how much revenue comes in, which would speed up the process for getting rid of the income tax. The last piece is a component for local governments. If the state changes the number of things that the sales tax applies to, this would also increase revenues to local governments. Those additional revenues would have to go towards a list of other taxes that would be lowered. In places like St. Louis and Kansas City, that would go towards lowering the earnings tax. For other local governments, they get to choose whether it goes towards lowering the sales tax, property tax, personal property taxes, or real property taxes. The key piece being revenue neutral. This is not going to be a windfall for anyone. It is basically the start of a discussion, because they don’t say what the rate might need to go to, what the sales tax could be expanded to, or what revenues would trigger income tax elimination or cuts. This is just the start of the discussion, giving the legislature the authority to keep moving in the direction we started around 2014.

Zach Lawhorn (03:57): Taking those a piece at a time: the first one, if it passes and the income tax is eliminated at some point, it cannot come back. That seems pretty straightforward. The next two seem like responses to opposition that we hear on a regular basis. The first being the revenue triggers, which seem designed to prevent what we often hear about with Kansas, where they cut the income tax without cutting spending, leading to revenue shortfalls. And the expansion of the sales tax base seems like protection against having to raise the sales tax rate on goods. Do I have that right?

Elias Tsapelas (04:40): Yes. The revenue trigger piece is basically what Missouri has been doing for a while, waiting to see how much revenue we have before lowering the income tax by that amount. We’ve been doing that for over a decade now and have lowered the top individual income tax rate from 6% to 4.7%. We’re just continuing down that path to be sure we don’t create some enormous budget hole. Now, when you look at the sales tax, Missouri has a very complicated, out-of-date sales tax system. The state sales tax rate is 4.225%, but when you go to the store you’re paying something significantly higher, largely due to local governments and a lot of special taxing districts. Missouri also has a lot of sales tax exemptions. Missouri really needs a full look at its entire sales tax system. But economically, when thinking about switching a state from being primarily funded by income taxes to something closer to sales taxes, the best way to fund a state is to tax as broad a base as possible so you can have the lowest rate possible. You want to be taxing final consumption, not business inputs. As we start the idea of transferring to more of a consumption tax in Missouri, the goal is to make sure it doesn’t become a tax increase for some people while things change elsewhere. It’s trying to keep it level the whole way, and at least right now it seems like a pretty neutral proposal going forward.

Zach Lawhorn (06:24): David, for people who don’t think about taxes as a corresponding tax system, can you explain the idea of local governments rolling back certain taxes and how people might experience that on their property tax bills or personal property tax bills?

David Stokes (06:44): It’s trickier than you might think, but it’s vital that it be done right. If you expand the sales tax base at the state level, as Elias discussed, you don’t want local governments to start collecting significantly more sales tax revenue for no reason. At the state level we’ll do something good with that and phase out the income tax, but at the local government level we don’t want just more revenue with nothing to spend it on. You need tax relief for citizens, which is why they’re going to require rollbacks. They’ve given local governments some options in how you roll that rate back, which is a good thing, but they need to give them a few more options. For example, they said you could roll back property taxes, real property taxes, personal property taxes, or sales taxes. A few things that need to be considered: many municipalities don’t have a property tax, so they won’t be able to roll back the property tax. And it’s trickier to roll back sales taxes than you might think. Unlike property taxes and income taxes, which can be reduced in small increments, sales taxes have to be done in set increments. You can’t go from a 1% sales tax to a 0.92% sales tax. It’s just not allowed and would be incredibly difficult for retailers to implement. So local governments need even more flexibility in how they roll back taxes. I would say the utility tax, which just about every county imposes, is a great option to add to the choice mix for rollbacks. These are the sales taxes that can be placed on utilities, which unlike other sales taxes can be rolled back in small increments. That’s a very good option. The biggest challenge of all, though, is the special taxing districts that Elias mentioned earlier, such as transportation development districts and community improvement districts. These usually only have sales taxes and nothing else. You have to address what they do if their sales tax collections go up 30% and they have no legal way to roll it back by that same amount. So we need to adjust that. I would also hope that part of this whole deal would be a substantial cap on how these special taxing districts like TDDs and CIDs operate in the first place, to really restrict their continued expansion in Missouri, which has been very harmful. Those are just a few ideas out of many in how local governments are going to have to address this.

Zach Lawhorn (09:59): Finally, Elias, as you said, it’ll be on the ballot sometime in the fall. But between now and either August or November, people interested in this topic are going to see a lot of data, modeling, estimates, and projections. We want to be honest about what we can know and what we cannot know. With the legislation that has passed now, what should people keep in mind when they see some of these estimates or models or projections this summer?

Elias Tsapelas (10:39): The first thing is, if you see anything claiming this is going to generate a tremendous budget shortfall or major harm to local governments, this thing is set up to be revenue neutral. This is not something that is going to create enormous holes. Most of the time, estimates that reach that conclusion assume this would work in an entirely different way than what is allowed. So that is something you don’t necessarily need to worry about. What people are more reasonably worried about is: if you empower the legislature to expand or raise the sales tax, how is that going to impact everyone? Missouri’s state and local combined sales tax rates are relatively high already. The state’s portion is pretty low, but combined it’s relatively high. So what the state decides to do in terms of how much it expands the sales tax base, whether that involves more services versus goods, will impact different people differently, in different parts of the state and at different income levels. Anything right now that says this is definitely going to be bad for X person, we just can’t know that, because there’s not enough information out there. Everyone should keep an open mind and also recognize that the reason for this amendment and this proposal is that Missouri’s economy is falling behind. We are falling behind our neighbors in terms of tax competitiveness, and the only way to change that is to improve Missouri’s tax standing. Our sales tax system is incredibly broken, so this is something that is going to need to be fixed. At least right now we are at the point of asking: do we want to go down this path? Let’s hope the legislature does a good job. We’ll be shining a light on whatever they do, but we can’t know some of the things that people are warning about right now.

Zach Lawhorn (12:50): David, after the legislature got the income tax bills out the door, they shifted to talking about property taxes, which is something we hear a lot about. People want property tax reform. With only a few days left in the session, where do those efforts stand and what are your thoughts?

David Stokes (13:11): Unlike a lot of the property tax changes of the past few years, I actually like the property tax changes being proposed this year. At least one property tax bill is in conference committee being debated between the House and Senate right now. Another major bill has passed out of the Senate but hasn’t made it through the House yet. I’m told there are going to have to be some compromises on both sides to get a bill across the finish line, and there’s nothing wrong with that. The biggest change this year, which seems very much in the weeds but is significant, would take the way property taxes are imposed in St. Louis County and apply it to the rest of the state. St. Louis County has different tax rates for all the different types of property: residential, agricultural, commercial, and personal property, which includes your car, boat, farm equipment, livestock, and the like. Those rates adjust differently as assessments go up and down each year. This approach was originally intended to be extended to the rest of the state about 20 years ago when they did it in St. Louis County, but the following year they came back and said the rest of the state didn’t have to do it. It’s a good idea. It might sound strange to some people, but a good example of why it would be beneficial came from stories in the St. Louis Business Journal about the real decline in commercial property values in the city of St. Louis over the past year. Because they set one tax rate measured under one unified property value, residential homeowners in St. Louis end up making up with their taxes for the decline in commercial property. In St. Louis County, with the siloed tax rates, if commercial property goes down, the commercial property tax rate will go up to offset that instead of passing it on to homeowners. In rural Missouri, which has so much agricultural property, this would allow agricultural property tax rates to increase to fund goods in rural areas without as dramatically impacting commercial and residential property. I think this is a good idea and I hope it passes. There are also some good amendments that would put taxpayer protections in place to avoid the temptation of local officials to target commercial property with these new different tax rates. It’s in the weeds, but I think these are good changes this year.

Zach Lawhorn (16:24): That sounds like the other side of the coin from what’s happened in Jackson County, where over the last few years people have been very upset that their assessments have gone up by more than 20% and residential homeowners have seen gigantic leaps in their property taxes. Is this kind of like having to turn one knob one way and another knob the other way?

David Stokes (16:55): Sort of. The tricky part is that the situation in Jackson County for the past 10 years has been so bad, it’s hard to compare it to other counties. It’s been uniquely horrible for the people of Jackson County. But it does start with one basic truth: 15 to 20 years ago, Jackson County was under-assessed. The assessor was ordered to increase the valuations because they were improperly low, and probably artificially and intentionally low. The right approach would have been to raise those assessed valuations to more accurate totals while lowering the rates at the same time to avoid crushing people with higher taxes. But Jackson County’s taxing entities have not really done that, starting with the Kansas City 33 school district, a very large school district in Kansas City, which is the only taxing body in Missouri exempt from rolling back rates as values increase. So you’ve seen these giant increases within that school district and they don’t even have to roll back rates. They just get to keep their same rates, as they have frequently over the past 10 years. So people are getting walloped. And then you throw in the fact that the Kansas City Assessor’s Office has done a terrible job managing the process year after year, not hitting deadlines for notifying people about changes and not properly running the appeals process. It’s just been a terrible system in Jackson County, and almost uniquely so.

Zach Lawhorn (18:30): All right. Before we have Elias read the budget line by line, Avery, I want to get an update on the education items here in the last week of the session. Early literacy, the reading bill, we’ve been talking about it all session long. How’s it looking?

Avery Frank (18:47): When it first passed out of the House before spring break, 131 to 10, I was genuinely excited. It wasn’t necessarily that it passed so early; it was that it passed with such little resistance and such bipartisan support on both sides of the aisle. Teaching our students how to read, giving every student the best chance to become a confident, capable reader, that seems like common sense and a goal that everyone wants to work toward to help our state improve and perhaps become the next Mississippi. It looked that way before spring break, but the Senate version of the early literacy bill got filibustered and set aside. The House bill has made it through the process and is on the informal calendar for third reading, so it could be taken up at any time. If it does pass the Senate, I anticipate it would easily pass the House again. But that is the problem with a lot of education legislation: can it pass the Senate? There have been different concerns about the early literacy bills. Some people are concerned that the MAP test, or the Missouri Assessment Program, which we use to test all of our students, is not a good measure and we shouldn’t be basing anything on it. Some are concerned with third-grade retention and whether it actually helps, looking at states like Mississippi and noting that while fourth-grade scores are great, eighth-grade scores have only improved a little. Those are the main pushbacks we’re seeing. I would still say this is something we really need to do. The early literacy bill is built on two different pillars. The first is a mandatory third-grade retention policy. Missouri already tests all K through third-grade students with a reading screener to see how they’re doing with reading. What this bill would do is set a passing score for those screeners. If students don’t meet that score, they would be retained in third grade, because reading is such a foundational skill. If you don’t know how to read, that’s something worth holding back for, to make sure students get it down before moving on for the rest of their educational career. Students would still have the opportunity to retake the screener, and there would be good-cause exemptions for students with disabilities, for students who have been held back previously, and for English language learners. The second main pillar is reforming our teacher preparation programs. In 2023, the National Council on Teacher Quality conducted a survey of all of our universities and teacher preparation programs and found that half of them received an F in teaching the science of reading, which is the best evidence-based way to teach students to read. The early literacy bill would align our teacher prep programs with those best practices. If they don’t do it, they can’t certify teachers. You can see how there could be pushback and reason why people would filibuster or not want it to come to the floor. That’s where it stands right now. I’m hoping people set aside their objections and recognize that this is a great first step to get Missouri back on track. Our reading scores have been really poor, especially after the pandemic. They continue to decrease and have not bounced back at all. They’re lower now than they were the first year after the pandemic, and we have to turn things around. These early literacy bills, I hope people see the common sense in them.

Zach Lawhorn (22:30): It’s not even the perfect being the enemy of the good. It’s just people being afraid to push back against the status quo. Missouri has fallen back in reading test scores, and other states, most notably Mississippi, have found ways to improve. I don’t think it’s helpful to frame this as some kind of radical moonshot. In the final days of the session, the urgency cannot be overstated. The other thing we’ve talked about a lot this session is A through F report cards, a transparency measure. Governor Kehoe issued an executive order before the session started. What’s the status of the legislature trying to adhere to the governor’s executive order?

Avery Frank (23:19): The legislature has tried to legislate its own way into how the executive order gets implemented, because DESE, the Department of Elementary and Secondary Education, could implement it in their own way. The legislature wants to determine how things are going to be scored instead of letting DESE make that decision. There’s been a lot of back and forth, and a lot of different interested parties. Not to get too in the weeds, but some districts really want academic achievement, their base score on the Missouri Assessment Program, to be weighed the most heavily because that would give them the highest score. Some want growth to be weighed the most heavily for the same reason. Some want basically no grades and a lot more qualitative information. There are a lot of different factors. The best vehicle for A through F report cards right now looks like Senate Bill 1351, which continues the long legacy of education omnibus bills used in recent years in Missouri. It combines the report card, limits on screen time for young students, and a couple of other things. I’m not sure if that’s going to make it past, to be honest. People are still concerned about whether the Missouri Assessment Program is something they want to base all of this on. Personally, I think the executive order is better than the legislation as it currently stands. They got rid of one aspect I liked as a researcher: in Governor Kehoe’s executive order, there was a penalty if districts didn’t report their data properly. In the current legislation, Senate Bill 1351, if districts don’t report sufficient data, it’s just written as an aside, basically saying they have to note on their report card that there is not sufficient data, and then they’re not included in the ranking as much. I don’t like that. It gives districts, especially poorly performing ones, an incentive not to report their data so they can have this qualifier on all of their report cards. I also don’t like it because, from all the education research I’ve been doing, we really do have a data reporting problem and we need to be a lot better about transparency. I hope we get some good report cards, because right now at the Show-Me Institute we do our best with the data we have, but we have to work with unsuppressed data, meaning we don’t have data that could potentially identify certain students. So there are some districts we have no data on because they’re so small. But DESE and the state have the best data possible. They could make a really good report card even better than we could, because they have better data than we do. That’s why I’m really hoping we get a good report card, because it would be very helpful for all the parents, legislators, and researchers across the state to see which districts are doing well and learn from them, and which ones are doing poorly and need more support.

Zach Lawhorn (26:42): Let’s talk about the budget. Elias, the legislature passed the budget a little early this year. They beat the deadline by a couple of days, right?

Elias Tsapelas (26:53): They finished early, which is a little bit different than the last few years.

Zach Lawhorn (26:56): Are we spending more or less money than last year?

Elias Tsapelas (27:01): Spending less, but I’m not throwing them a party. There’s just a lot less federal money going around. There was a lot of COVID money in recent years, and Missouri hasn’t spent all of it. The current budget this year is about $54 billion. What the legislature passed is a little bit less than $50 billion, depending on whether you count different construction items. But there was a lot of federal money in that total. At the end of the day, what we’re looking at is a budget that is still going to spend more general revenue, where our income and sales tax dollars go. It’s still going to spend more than we expect to bring in. So we’re still going to exhaust all of our surplus that we built up over those years. There were some positive things that happened this year, but ultimately part of how they got the budget done early was by spending just a little bit more, so they left some of the good on the table.

Zach Lawhorn (28:20): So we’re spending the surplus, as you’ve been warning about for several years, the federal money is drying up, and to circle back to the opening segment, I think part of the trust the legislature is going to have to build this summer is demonstrating we’re getting spending under control. You said you’re not throwing them a party. But is this reduction, whatever the reason, directionally good enough for the legislature to say they’re working on the spending side of things, or is it just not good enough?

Elias Tsapelas (29:00): I think I’ll know a lot more going into next year, because there were a lot better discussions this year, especially looking at spending incentives. As was mentioned, DESE is going to have a new funding formula, or at least the governor has a task force working on one. The way education is funded for K through 12 is going to change. There was also a big fight this year about how to fund higher education. What seemed to me like a common sense idea, essentially having the legislature fund colleges based on how many students are enrolled, turned out to be considered too radical and was pushed off for the future. But there’s talk of coming back with a performance funding measure going forward. There’s also some movement on changing how the state does its IT work. There are a lot of IT changes coming, including things affecting Medicaid and the Supplemental Nutrition Assistance Program. Missouri has a very bad track record with IT. Part of this budget moves some IT resources over to the Department of Social Services to support getting things going there, because most IT for the state of Missouri is currently consolidated in the Office of Administration. While that can seem efficient because every state department doesn’t need its own IT department, it also makes it a lot harder to hold people accountable. There has been a big issue recently with the state’s accounting software, where a contract is millions of dollars behind schedule and not working. The budget tries to get at that too, and it raises this major incentive question: are the people in charge of implementing new IT going to do their best at something that will ultimately try to eliminate their job? I think the legislature is finally starting to deal with that. Ultimately, if we go down the path of a more efficient government and a better tax system, that may mean fewer state employees, and that is something that hasn’t come up much but I think the legislature is finally starting to look at. Pushing toward better funding models, a better state workforce, all those type of things, is moving in the right direction as opposed to how it has been, where the budget just grows larger every year. They’re looking in the right direction. I would have liked to see more, but I think we’ll know a lot more in the next year, especially because the federal COVID funding will essentially be gone.

Zach Lawhorn (32:12): Our final topic, partly so we can put it in the title of the episode for clicks, but also because it seems like every week there’s a story from across the country or across the state about data centers and communities pushing back for a lot of reasons. The most recent one was Ferguson in the St. Louis area. David, can you catch us up on what was on the table for this data center in Ferguson and what happened?

David Stokes (32:40): The vote that the Ferguson city council took last week was strictly on a tax subsidy, I believe about $1.8 billion in tax abatements and various subsidies for the project. It was not a vote on approving the data center itself. This was a commercially zoned area, so it didn’t need any permission to put a data center there, and that’s a good thing. But the city nonetheless rejected the tax subsidy, which I thought was the right call. These data centers are very profitable and important, and I’m certainly not anti-data center. But the demand that they get enormous subsidies everywhere they seem to be going is improper. Festus was right to approve the data center operation there, but I think very much wrong to approve the enormous tax subsidy the city granted, which I believe was about a half a billion dollars. Avery can correct me if I’m wrong on that exact number. I like what Ferguson did, and I hope the data center moves into the old Emerson complex there nonetheless. We need data centers. Data centers produce so much tax revenue that they can generate their own tax cuts, and I don’t mean a special subsidy for the data center itself. I mean they go into a city or a small area, generate so much revenue, and you can cut taxes for everybody in that community, including the data center itself. I think that’s the road to follow, and hopefully that’s what we’ll have in Missouri. I also think we need to change the way data centers are taxed in an upcoming legislative session, taxing them a little more like utilities to reduce the incentive for one city or county to hand out a big subsidy and instead spread those tax benefits around a little more.

Zach Lawhorn (34:46): Avery, are you heartened by this rejection? Because as David said, we need the data centers, but we really want to avoid this new layer of corporate welfare that could pop up everywhere. So how do you feel about it?

Avery Frank (35:00): I’m actually very excited by the rejection in Ferguson. I’ve talked to a lot of people on both sides of the data center debate, those who have gone to the meetings and stayed up until 3 a.m. and protested, and those who want them. When I look at this Ferguson project specifically, the numbers David was talking about involved granting up to 15 years of tax abatements on real estate, personal property, and sales tax for a data center project. When I see something like that, it gets at what David was talking about. The only true significant benefit of a data center is the tax revenue it could bring. It doesn’t bring a lot of jobs. It takes a lot of electricity and a lot of water. It generates noise. It already makes a lot of people upset, and there are concerns about housing values and everything else. So if you’re not getting any tax revenue, there really is no strong incentive to have a data center project. That Emerson complex in Ferguson had thousands of employees. A data center does not take very many employees at all. So when you have people coming up and saying this data center project won’t succeed unless we get all these tax subsidies, I say that’s fine and I hope you don’t build a data center there, because the tax revenue is really the only benefit you’re getting from it. One of the bigger things is just something about Missouri in general. I’m from Tennessee and there are a lot of concerns there about having too much growth. Missouri sometimes feels like the opposite of Tennessee. We’re so desperate for growth that we’re willing to hand out a bunch of money. We don’t have enough pride. This Emerson complex is a good building and a good place. Ferguson has a STEM high school that produces very high test scores and graduates people who can work in the tech industry or an engineering industry. We shouldn’t waste a good building and a good workforce on a project that’s going to get all these tax subsidies and not bring a lot of jobs. The same thing happened over in Independence, where they gave out billions in subsidies for a data center project. Whenever I see that, I think we have to have a little bit of pride in Missouri. We can’t just be giving out all this money to get anyone to come. We have a good parcel of land, a good workforce, a lot of water, and a central location in the country. We can attract good projects, data centers or not, without giving out a bunch of subsidies. We need to understand what the benefits and costs of a data center are and what data center developers are actually looking for. They have a lot of money already. If you give them a good workforce, a place to build, and community support, I think they’ll come, even without a bunch of money.

Elias Tsapelas (38:28): I was really hoping this was the discussion we were going to have this year in Missouri’s legislature, because it started off so well with the discussion of how to get rid of the income tax and everything that goes with that. Talking about the income tax is really about how you make your state more desirable and how you grow faster. But Missouri for so long has just said: we want this industry or this type of business, so let’s give it an economic development tax credit. Let’s give out a billion dollars worth of those. Let’s give out sales tax exemptions. As far as I know, data centers in Missouri already get state and local sales tax exemptions. We just give those out. If we’re really going to start thinking about how to make the state the most desirable place, how to grow the fastest and be the most desirable for families and businesses, that’s really more about making the tax climate the best for everyone, not constantly picking winners and losers. Unfortunately, the budget didn’t see as many cuts as I had hoped. As we go into the last few days of the legislature, there are plenty of tax credit bills waiting to pass. The film tax credit is back and there’s talk of extending the sunset on it. There are other tax credits. We’re still going down that path. There are still more sales tax exemptions being considered. Missouri just needs to decide what direction we want to go, because ultimately if we do get rid of the income tax, a lot of these economic development incentives don’t even really work anymore. You have to look at different things. You have to look at what is really the criteria for families and businesses. States across the country are dealing with these issues, changing their economic conditions, their tax policy, and people are moving there. We know people are leaving Missouri. We know income is leaving Missouri. We need to change things. The status quo is not going to work going forward, and I was hoping that would have sunk in a little bit more this year than it did.

Zach Lawhorn (40:37): We will leave it there this week. We’ll talk to everyone again after the session ends over the next few days and see how everything turned out. As always, plenty more at showmeinstitute.org. David, Avery, and Elias, thank you very much.

The post Missouri’s 2026 Legislative Session Final Week appeared first on Show-Me Institute.

By 2024, more than 900 students—12.5 percent of the entering freshman class at UCSD—placed into these remedial courses.

I do not believe UCSD is unique; to the contrary, I believe that the degradation of student skills that the authors of the UCSD report had the courage to call out is endemic to our education system. In my earlier post, I wrote about this from the university perspective and used it as an example of the broad shift away from meritocracy.

Over at Chalkbeat, Matt Barnum just released an interview with a student enrolled in remedial math at UCSD, which gives a complementary and valuable perspective. Her name is Cecilia Lopez Alvarado, and you can read the full interview here.

The first part of the interview is what really struck me. It focuses on how Alvarado ended up in remedial math in the first place, based on what happened in high school. She earned mostly A’s and B’s in high school math but now questions what those grades really reflected. With generous retake policies, she says it was easy to improve her scores without fully understanding the material. When asked why she believes she was given so many opportunities to redo her work in high school, she responded: “I’m sure it’s because they wanted us to not have F’s and D’s on our transcripts. It was just wanting us to be able to move on to the next grade.” In retrospect, she believes stricter expectations would have encouraged more discipline and deeper learning.

In short summary, Alvarado’s high school failed her. She did not learn what she needed to know, and the adults in the building didn’t have the guts to tell her. The New Teacher Project calls this “The Opportunity Myth.” It’s sad because our school system is giving up on the hard work of educating our children, and it’s frustrating because no one seems interested in doing anything about it.

Have you had enough yet?

Show Me Institute researchers are pushing for big, fundamental changes to how our education system works. Namely, we want more school choice and more accountability. Alvarado’s story is a great example of why. Our schools show us again and again that they simply will not do the right thing without being pushed.

The post One in Eight UCSD Students Are Placed into Remedial Math: Here’s What One Had to Say About It appeared first on Show-Me Institute.

Evidence highlighted by Show-Me Institute researchers shows that charter schools are disproportionately represented among “Bright Spot” schools nationwide; that is, schools where students consistently exceed expectations academically. And Missouri charter schools are doing even better—ours are among the most effective in the country in terms of improving academic achievement relative to their traditional public-school alternatives.

The introduction of a charter school does not replace existing public schools; instead, it adds another option for parents and students to address their diverse needs. The move signals broader momentum for school choice across Missouri. It represents an important step toward a much more diverse and adaptable educational system, one designed to give every student access to high-quality instruction and the opportunity to succeed.

The post Columbia’s First Charter School Approved for 2027 Opening appeared first on Show-Me Institute.

Earlier this month,  the United States Department of Education proposed a regulatory framework to hold postsecondary educational institutions accountable for their students’ labor market and earnings outcomes.

Under the proposed rule, students risk losing eligibility for federal loans and, in some cases, Pell Grants, if they are enrolled in undergraduate programs whose graduates’ earnings fail to exceed those of a typical high school graduate. Graduate programs face similar consequences should their graduates earn less than the average bachelor’s degree holder. Though the benchmarks are modest, in the sense that most college programs will meet these criteria, some will not. And the consequences for college programs are severe, as most universities rely heavily on federally subsidized tuition dollars.

For-profit colleges already have a related form of accountability in place: the 90–10 rule requires them to derive at least 10% of their revenue from non-federal sources. This proposed legislation marks the first major step to holding public colleges accountable in a similar way. It remains to be seen whether this rule will become law, and if so, how it will shape institutional outcomes. But this new regulation could create better accountability for the use of taxpayer dollars in higher education.

The post Proposed Accountability Rule for United States Colleges and Universities appeared first on Show-Me Institute.

Interestingly, the bottom ten spenders had a higher average academic letter grade than those in the top ten. However, many of the top spenders in the state are tiny rural districts with fewer than 50 students. That raised an important question: Would this pattern hold when comparing districts of a similar type?

Table 1 begins to answer that question by focusing specifically on suburban and city districts—schools that are far more comparable in size and structure, but still vary widely in student demographics. It should be noted that Table 1 includes non-current spending items like interest and capital outlay (such as constructing a new gym, renovations, etc.).

For reference, in the 2023-24 school year, the average expenditure per student was around $19,500. Of that, about $15,900 were current expenditures and $3,600 were non-current expenditures.

Source: MOSchoolRankings.org

Interestingly, the five highest-performing school districts in the state are split between the highest and lowest total spenders. Table 1 suggests that it is overly simplistic to assume that more money per student automatically leads to better academic outcomes.

Consider Valley Park and Park Hill as examples. Both spend relatively high amounts per student (including non-current expenditures) and serve comparatively lower shares of low-income students, yet neither achieves top-tier academic results. Meanwhile, several lower-spending districts of similar demographics earn strong academic grades.

This does not mean funding is irrelevant, but rather that the process of producing strong academic outcomes is complex and money isn’t everything.

The post The Wide Difference in Spending Per Student in Missouri’s Suburban Schools appeared first on Show-Me Institute.

The University of Missouri (MU) recently hosted a lecture by Robert Henderson, who coined the term “luxury beliefs.” These are beliefs that signal status among the affluent while imposing little cost on them, but that burden the poor and marginalized. A common example is the idea of defunding the police: it’s easy to endorse from a safe, well-resourced neighborhood, where the consequences are less likely to be felt personally.

Once you understand the concept of luxury beliefs, you see them everywhere.

After Henderson’s visit I found myself thinking about school choice, and specifically the debate over charter schools in Columbia. Charter schools are public schools that operate independently of traditional school districts. They have more flexibility in how they educate students, but they’re also held accountable for results. Unlike traditional public schools, they can be closed if they fail to perform or attract students. The data on charter school outcomes in Missouri are unambiguous: Charter schools consistently outperform traditional public schools.

A recent state law change allows charter schools to open in Columbia, but there is vocal opposition locally. This is despite the fact that many district schools perform poorly. Moreover, the first approved charter is operated by one of the most successful Charter Management Organizations in the entire state, Frontier Schools. In the PRiME Center’s 3-Year Growth Report, Frontier has two schools in the top five statewide in terms of promoting academic growth.

Columbia Public Schools has opposed Frontier’s entry (luckily to no avail thus far). Several current and prospective school board members are also opposed, and community forums are full of what I suspect is an angry minority of citizens who don’t want Frontier to open a school in Columbia.

The opposition screams of luxury beliefs.

I wonder how many of the opposing voices send their kids to Battle High School, where of all the students who take Algebra-I, just 7 percent—this is not a typo, 7 percent!—score proficient or higher on the state’s Algebra-1 End of Course Exam. Or how many send their children to Derby Ridge Elementary School, where fewer than 5 percent of 5th graders—again, not a typo—score proficient or higher in mathematics.

How many of those in opposition send their children to any of Columbia’s low-performing schools?

I bet very few, if any.

For families with means, school choice already exists—they can buy homes in neighborhoods with higher-performing schools. Opposing charter schools costs them little. But for families without that option, the stakes are much higher.

What are those families supposed to do?

Why not allow a proven operator like Frontier to offer another path? If you were a family without means, wouldn’t you want that option?

If you’re fortunate enough to send your children to a school you like in Columbia Public Schools, I’m happy for you, genuinely. But don’t stomp on other people’s opportunities with your luxury beliefs.

The post School Choice and Luxury Beliefs appeared first on Show-Me Institute.

These are all relevant questions, and at the Show-Me Institute, we’ve created a resource to answer such questions: MOSchoolRankings.org

As an example of what these data can be used for, Figure 1 shows how Missouri school districts are distributed across different levels of spending per student. It should be noted that these statistics include non-current spending items like interest and capital outlay (such as constructing a new gym, renovations, etc.).

For reference, in the 2023–24 school year, the average expenditure per student was around $19,500. Of that, about $15,900 were current expenditures and $3,600 were non-current expenditures.

Figure 1: Number of School Districts and Charter Schools Grouped By Average Expenditures Per Student, 2024–25

Source: MOSchoolRankings.org

Most Missouri school districts and charter schools spent between $13,000 and $22,000 per student in the 2024–25 school year, but there are numerous outliers in the data, as shown below.

Table 1: Public School Districts and Charter Schools with the Highest and Lowest Average Expenditures Per Student, 2024–25

Source: MOSchoolRankings.org

In Table 1, many of the highest-spending school districts in Missouri are rural, including several extremely small districts, such as Missouri City 56, which enrolls just 14 students. By contrast, many of the lowest-spending districts are also rural, though they tend to be larger and vary more in size.

Missouri’s mean total expenditure per student (weighting each district equally and including non-current expenditures) is $20,406, while the median is $18,934. Even so, there is a surprisingly wide spending range across the state, from roughly $12,000 per student to more than $60,000 per student.

These kinds of statistics are important when evaluating potential changes to the funding formula. To take one small example, Spickard R-II saw enrollment decline from 54 students in 2005–06 to 21 students in 2024–25: a 61% decrease. For state funding, Missouri’s hold-harmless policy guarantees that Spickard R-II receives no less than the state funding it received in 2005–06, even though the district has far fewer students. This likely contributes to why Spickard spent $41,224 per student in 2024–25.

Clear, accessible data are important. And of course, spending is only one aspect of this. MOSchoolRankings.org allows users to go further by comparing districts on academic performance, student demographics, growth, and much more.

The post Which School Districts Spent the Most Per Student? Which Spent the Least? appeared first on Show-Me Institute.

Susan Pendergrass speaks with J.S. Onésimo “Ness” Sandoval, demographer and professor in the Department of Sociology and Anthropology at Saint Louis University, about what the data says about the future of the St. Louis region. They discuss record low birth rates and what they mean for school enrollment, why St. Louis is among the top regions in the country for deaths outnumbering births, how the region compares to Pittsburgh and Cleveland, and why suburbs like Chesterfield and St. Charles are aging faster than most people realize. They also discuss the role of housing supply, school choice, crime, and domestic migration in whether St. Louis can attract and retain young families, and more.

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Episode Transcript

Susan Pendergrass (00:00): Well, certainly not the first time we’ve spoken, Dr. Sandoval. At St. Louis University, you are such a fascinating demographer of the region, and I’ve been following your work as new census data has been released. You’ve been writing about it and creating what I think are really cool mapping tools that folks can look at to see how the St. Louis region is impacted. Thanks for coming on to talk about that. But first I want to sort of expand our view, because pretty sure that I read within the last week that the number of babies born in the United States was at an all-time low. Is that right?

Ness Sandoval (00:35): Yeah, so every year the United States will probably be breaking records. The data coming out for 2025 is a record low, and the data coming out for 2026 is even lower. The first few months of 2026, the provisional data that’s out shows even fewer. And this is what we expected. We call this a demographic shock, because in 2026, whenever you create an atmosphere of uncertainty and fear, rational people do not have children until they understand that their job is safe, there’s not a recession coming, and we’re not at war. When you create this sense of fear, young people do the rational thing and don’t have children. We saw this in 2020 with COVID. We saw this in 2008 with the Great Recession. Anytime there is uncertainty, young people will postpone births. And that’s what we’re seeing. This started in November. We started to see the decline in births, and it’s continued from November, December, January, February. And so this is what we’re going to see.

Susan Pendergrass (01:51): So next year is going to be lower. And when you look at the state of Missouri, I’ve been saying this ad nauseum for years that our K-12 school enrollment is declining and will decline because of that sort of peak in 2008, just before the Great Recession. So our biggest kindergarten class was around 2012, and our kindergarten classes have by and large declined ever since. And so those kids are moving through the system. You can project that we will just have fewer and fewer kids enrolled in our K-12 system in the state of Missouri.

Ness Sandoval (02:06): No, we peaked in 2008.

Susan Pendergrass (02:11): By and large declined ever since 2012. And so those kids are moving through the system. So you can project that we will just have fewer and fewer kids enrolled in our K-12 system in the state of Missouri.

Ness Sandoval (02:24): Yeah, this is true, and we have a pretty good chart. We make these for every city. We’re replacing very large cohorts of children who were born. I have a son who was born in 2007, just before the recession. That cohort that graduated in St. Louis was 40,000 students. The baby birth cohort is now 27,000 students. So that’s just in that one year a 13,000 decline. And it’s going to decline every year for the next 15 to 18 years, because we don’t know what the bottom is yet. It has not reached the bottom.

Susan Pendergrass (03:01): Right. People say where are the kids going? I’m like, they’re not going anywhere. They weren’t born. The St. Louis region, like Clayton is declining, Ladue was, I mean, all of these school districts, I think almost everyone in the county has fewer kids today than they had 10 years ago.

Ness Sandoval (03:07): They weren’t born. Yes, and it’s not just St. Louis County. St. Charles County is experiencing this. There are some parts that are growing, in the Wentzville area, O’Fallon, but if you look at the old St. Charles areas, they’re experiencing decline. Families with children are declining in those areas. We had made an interactive map that I think shocked a lot of people, of seniors outnumbering youth. People could not comprehend this. Like, my gosh, this is not 2000 where youth were dominating these neighborhoods. I live out here in Chesterfield. The entire Route 64 corridor is senior citizens dominating the youth in Chesterfield. People are shocked. More seniors lived in Chesterfield than youth in 2010, and that’s only grown since. This is happening throughout West County.

Susan Pendergrass (04:14): Wow. And your maps actually go down to the zip code, right? You have very granular data.

Ness Sandoval (04:27): Across into Illinois, yes. The only way you can turn this around is young people from across the United States deciding that they want to make St. Louis their home, have a family there, create a business there. This is what I promote. We have to get younger. We really should have a preferential option for families with children. And that’s a hard message for a lot of people because they’re like, wait a minute, we grew from 1970 to 2020. And I’m like, but all of that growth was driven by babies born. Over 1.8 million babies were born. And I tell people, just do the math. 27,000 babies per year times 50. That’s the back of the envelope for what’s coming over the next 50 years. Unfortunately, that’s not what’s going to come. It’s going to be a lot lower than that. People are starting to get it. We’re not going to have 1.8 million babies born over the next 50 years.

Susan Pendergrass (05:33): Yeah, and I think about things like individual school systems building new elementary schools when there have got to be a lot of buildings that are empty. And also, won’t there be more competition for public resources between children and older people?

Ness Sandoval (05:49): Yeah. At my previous job at Northwestern, we did a project on this in one of the suburbs because we were studying seniors. There was a debate about how to spend public money. Was it for transit for seniors or transit for children? This was 2006, and this was the debate happening in Chicago. How do you provide paratransit for senior citizens when that number is increasing? We’re just having this discussion because St. Louis is leading. We’re in the top three of regions. Pittsburgh leads the country, Cleveland is second, and St. Louis is third, tied with Tampa. More people dying than babies born. We simply don’t have the number of babies born for the size of our population. And it’s because we’re a very old region. We’re the ninth oldest region in the country.

Susan Pendergrass (06:58): Yeah, I mean, we used to have 800,000 people in the city of St. Louis, right? And now we’re 280,000 or something.

Ness Sandoval (07:05): Yeah, and I was just looking at the numbers. It is very possible within two years that Kansas City will have more babies born in absolute numbers than the St. Louis metro region. That’s how few babies. I’m talking about the region. Indianapolis is about 700 babies behind St. Louis. Nashville is about 800 babies behind. All of these smaller regions are having lots of babies, and young people are moving there. Your future depends on the number of children born. And when you look at population projections, I kind of know what this looks like. When you fall below Kansas City in number of births, at some point Kansas City will be larger than St. Louis. We can project this out. We’re talking absolute births, not birth rates. We had lots of babies born 10 years ago. We were fine 10 years ago.

Susan Pendergrass (08:09): Yeah, wow.

Ness Sandoval (08:29): We can go back and talk about what happened since 2010.

Susan Pendergrass (08:35): Yeah, please. I’m curious what did happen. I know you call it the death spiral when there’s more deaths than births, but how did we get into this?

Ness Sandoval (08:41): So I moved here for the Great Recession. I moved in 2008 to start my job at SLU. And there was hope when I got here. There was some positive momentum happening. I think the region took it for granted that it didn’t have to do anything. We just have to be St. Louis. We don’t have to do anything. Unfortunately, Nashville came on the scene. Then you started to see regions change. Regions thinking we need to get young. And St. Louis absolutely did nothing. Since I’ve lived here, there’s been a lot of resistance to economic development in the region. Nashville, I think it was the popularity of being young, being pro-development. I went to Nashville to actually look at it, like why are young people there? And I went to Vanderbilt. And I saw this really interesting integration between the city and Vanderbilt University. That does not exist here in St. Louis. Making it a vibrant, cohesive, urban experience.

Susan Pendergrass (09:47): Yeah. Right. Now you step off campus at SLU and you’re in an area you don’t want to walk at night.

Ness Sandoval (10:00): Yeah, and even if it was WashU, right. And then you can talk about the Loop. It never recovered from COVID, traffic is down. I think the region has really struggled to attract young people to stay here and live here.

Susan Pendergrass (10:13): Well, we’ve been looking into the issue of crime in St. Louis quite a bit, and I know it’s down and everyone’s celebrating that fact, but I’m not sure when you survey people and ask how they feel walking alone at night, that it’s changed all that much. Even if the number of murders are down, I don’t know that people feel safer walking alone at night, and that’s got to have an impact on whether you want to stay in St. Louis after you have kids.

Ness Sandoval (10:47): Yeah. I think in the city you move out to the suburbs. The challenge is they work and you live for affordability. So many suburbs are against new development, even though they can develop. We see these debates in Chesterfield, that debate in Creve Coeur, several debates out in St. Charles. They don’t even talk about Jefferson County, because they’re celebrating voting down housing. My point is if you don’t want to build housing, Indianapolis is going to build it. Columbus is going to build it. Nashville is building it. We are no longer in the top 50 in new housing permits in the country. We’re 58th.

Susan Pendergrass (11:34): Why though? Is it because there’s not demand, or is supply being constrained?

Ness Sandoval (11:42): Supply is being constrained. Part of it is, when I speak to people, they say it’s going to hurt my home values. People want supply down. But you understand there’s a consequence to this. And home values are always good in St. Louis. But again, we always say there’s a city that we can look to that’s our future, and that’s Pittsburgh. If you really study Pittsburgh and look at it, you’re like, wow, there’s a lot of things we can learn as a city, and say this is not what we want to be. Pittsburgh leads the country in discounted rates on home sales. When people offer their price, most people do not get the price that they want. It’s a significant discount because the demand’s not there. We are about 20 years behind Pittsburgh.

Susan Pendergrass (12:25): Wow. I think a lot, in what I do, about the educational offerings in the region. Before we were recording we were talking about Texas. Texas, number one, doesn’t have an income tax, and also you can pick your child’s school from the get-go. They have hundreds, if not thousands of charter schools. And now they have a private school choice program that I think 250,000 families apply to. And Missouri has an extremely limited private school choice program, maybe 6,000 or 7,000 kids in the state, and not even the ability within St. Louis County to go outside of these tiny little districts. You can’t even go from Clayton to Brentwood. People really feel strongly about this and fight the idea of opening up the county and letting kids go within the county to any school district, and then the legislature fights it every year. And I’m like, we are just becoming less and less competitive.

Ness Sandoval (13:36): I don’t think people understand. I do a lot of work with schools now. We’re going to lose at a minimum 100,000 children under 15 by 2045. This loss is built into the system based on 27,000 births right now. The numbers are starting to show up in kindergarten. We have a smaller kindergarten class, a smaller first grade class coming in. And so a lot of schools are like, wait a minute, what’s going on? This is just starting. You have another 20 years, because we have these large cohorts that were still born after the Great Recession that are going to be replaced by smaller cohorts coming in. And there is no significant migration of children coming into the region.

Susan Pendergrass (14:28): So there are going to be difficult staffing decisions, and people don’t want to hear it. Like, we cannot continue to hire more teachers.

Ness Sandoval (14:32): You have to close schools. You have to close schools, have to merge schools. I’m doing some work in Parkway. People should not be surprised. Parkway is having meetings this month about what Parkway looks like going forward, and people are discussing consolidation. Rockwood is talking about a 15% decline in 10 years. Go out another 10 years, Rockwood will be talking about school consolidation. St. Charles will be talking about school consolidation in the old St. Charles area, the city of St. Charles. This is coming. Everybody focuses on the city and says the city needs to close schools. But you will see a discussion, I think, between Clayton and Brentwood.

Susan Pendergrass (15:06): For sure. Clayton had 2,500 kids. Now they’ve got closer to 2,000. I mean, that’s teachers, that’s buildings. And I know in Indianapolis, I’ve talked to a superintendent in that area. All parents can pick a public school. And he was like, I had some under-enrolled elementary schools and it was great for me because I put a language immersion program in one to bring parents in. I think the resistance to this idea is all about not wanting kids who aren’t paying property taxes, but I think it’s going to flip. Then you’ll be like, we’ve got to fill these seats. We’re paying the same teacher for 18 seats that we could pay for 22 kids. At some point they’re going to have to start laying off teachers. So I think there are some very difficult decisions ahead that you can see now, and there are things that could be done now, like at least not filling open positions.

Ness Sandoval (16:16): I think universities are seeing this, because many of them are relying on tuition and those dollars are not coming in. A smart university has to make cuts because it doesn’t get any better next year or the following year. There will be fewer students coming in. So universities that want to survive are making necessary cuts to survive.

Ness Sandoval (16:45): Again, we don’t know what the bottom of the birth decline looks like. We just happen to live in a state and a region that has seen a significant decline in children. I keep saying we’re modeling the future for people, either as a good or bad thing. They’re like, we want to be like St. Louis, or we don’t want to do what they did.

Ness Sandoval (17:13): I think a lot of people are starting to understand this. It’s like, we’re letting our children go, and we’re not doing a very good job of trying to keep them here. When you had 1.8 million births, you had enough to let children leave your region, leave the state. You don’t have that luxury anymore. Our models show the region should have anywhere between 1.3 million to a million births coming in over the next 50 years. We hope it’s not a million births, because that means you have an 800,000 decline in your population under 50. Or it’s 1.3 million births, which is only a 500,000 decline. But that’s coming.

Susan Pendergrass (17:43): How does immigration factor into it? Because I remember the last time we talked, you said that St. Louis is not very immigration friendly. And of course, the current national environment is not very immigration friendly.

Ness Sandoval (18:03): Missouri and St. Louis cannot rely on immigration to save it. It’s not a state that immigrants are going to come to in large numbers. They’re going to go to Florida. Miami leads the country. Even though domestic migration has people leaving, international migrants are going there as their top destination. They’re going to Philadelphia, they’re going to New York. We get immigrants who come here, but it’s a very small number, like 6,000 a year. We’re not even in the top tier as a top 25 metropolitan region. And Missouri is not either. So Missouri has to rely on domestic migration.

The data will show that probably for the decade, there will be more people dying than babies born in Missouri. Missouri will start to have from a natural perspective more people dying than babies born. And 91 counties across the whole state will have more people dying than babies born. So Missouri will become dependent for growth on domestic migration.

Susan Pendergrass (19:29): Or do we just accept that we’re not going to grow anymore? What’s the impact of that?

Ness Sandoval (19:33): Again, it’s going to be specific. I do think the Springfield area is going to grow, the Branson area, there’s growth. Part of this is retirement, I think. Kansas City is growing.

Susan Pendergrass (19:42): Why Kansas City more than St. Louis? What’s attracting younger people to Kansas City that is not happening here?

Ness Sandoval (19:49): Kansas City is a younger region. St. Louis is a fairly old region. Kansas City is a lot younger and it has a large Latino population, and that’s the largest growing population in the country, birth-rate wise. Latinos are now the second largest population in Kansas City. They surpassed the Black population, which I think even shocked me, because we thought we knew this was coming, but we thought this was going to be post-2030. The fact that it already happened shows just how many Latinos are moving there. And then you have an exodus of Black residents leaving Kansas City as well as St. Louis. I always tell people, when you have young Black families leave or young Black adults leave, those children ultimately leave too. And so that’s part of the story.

Ness Sandoval (20:48): When young people leave, the children that traditionally were born to those young people are now being born in Charlotte, Atlanta, Houston. The number one challenge for St. Louis and the state is the decline in births. If that doesn’t change, then you’re going to see that decline start to show up in five to ten years in our schools.

Ness Sandoval (21:17): And the private schools will simply go out of business because that’s dictated by the private market. Or they’ll do what many of the Catholic schools are doing. They think, we’re going to have middle school now, or we’re going to be K through 12. But then what about the parochial schools? There’s no growth. They’re just taking children out of other schools and putting them in their school system.

Ness Sandoval (21:45): And so again, I go back to Pittsburgh. Pittsburgh is about how do we manage population decline? The city is growing a little bit, but 100% of the growth in terms of the losses is in the suburbs. And that’s going to happen in St. Louis. When this loss starts to show up in the demographic accounting, most of the loss is going to be outside of the city of St. Louis. It’s going to be in the Chesterfield areas. It’s going to be in St. Charles.

Susan Pendergrass (22:18): So what could be done from a policy perspective? Chesterfield is trying to have this arts and entertainment district. They put in Topgolf and the concert venues. They’re trying to attract younger people there. Is it working?

Ness Sandoval (22:34): It’s not working. I mean, they have the same slight increase. I just posted this yesterday. People are shocked. The growth is in non-family households in Chesterfield. If you look at the new development, I call it downtown West Chesterfield. These are million-dollar homes, very expensive. Very few families with kids are there. These are empty nesters or dual-income, no-kids households. It’s very expensive for young families to get into Chesterfield today, when your entry-level home that was $170,000 in 1980 is $600,000 today. These are the challenges.

Susan Pendergrass (23:23): So build more starter homes?

Ness Sandoval (23:32): You need more entry-level homes. I’m not even going to use the word affordable. You need attainable homes for two incomes. And they can be built. But what I’ve heard is that a lot of cities do not want these homes. They want the $600,000 to $700,000 homes because of taxes. And so there is this tension there.

Ness Sandoval (23:56): Parkway and Rockwood are going to look very different in 30 years. They were very attractive amenities for young families with children. But I look at the data, and my kids are in Parkway. These schools are under-enrolled. You go and objectively look at the classrooms, you’re like, there should be 30 kids in these rooms and there’s 15. It’s great for me as a parent. I’m glad there’s only 15 kids for my fourth grader. One of the classes in Parkway Central, in the middle school, in his math class, there are eight students. I love it as a parent, but as someone who looks at the data, this is not sustainable.

Susan Pendergrass (24:45): Yeah, lots of one-on-one. Yeah. I’m just trying to figure out what would cause a renaissance in St. Louis. It doesn’t feel super safe. It has some great amenities and a great food scene and now MLS soccer. What would it take? Well, number one, you do have the school system problem where the St. Louis public school system is kind of a dumpster fire. So people want to move out if they have small children.

Ness Sandoval (25:32): Yeah, the decision to move out is made within the first three years once the baby’s born. We can see that in the data. When we moved from Chicago, because we lived in the city of Chicago, we wanted to live in the city of St. Louis. I think most people who move from Philadelphia or Boston are living in the city. We thought the city of St. Louis would be offering the same amenities. Because of the Great Recession, I came a year before my family, and we soon realized the city of St. Louis was not the city of Chicago in terms of amenities. And so we ended up in St. Charles. And I think most people make that same decision.

Susan Pendergrass (26:25): Yeah, my husband and I moved right into the city.

Ness Sandoval (26:27): We see it in the data. People are moving into the city from Philadelphia, from Boston, from Houston. But then, like me, if you have children and you’re not going to pay for private school, because that’s a tax in many ways, they’re going to exit out. And then with the Catholic schools closing in the city, there are going to be fewer options.

Susan Pendergrass (26:50): Yeah. But the public transportation is no good. I mean, there are things.

Ness Sandoval (26:57): And it’s interesting. We did see a kind of experiment during COVID. When COVID happened, the Catholic schools in the county opened up. A lot of families wanted their children in face-to-face instruction. So they left the city. They did not stay. So we had kind of a quasi-experimental design there. Education was very important.

Ness Sandoval (27:26): A lot of people left the city because of that and never came back. And that started before COVID. But I think this idea of school choice is something where parents want it. We have enough anecdotal evidence. When Normandy closed, the school system closed, families moved to Normandy to get their kids into Francis Howell. There’s enough evidence to show that families want to make these decisions. The question would be, would Parkway accept all of the students that would want to be in Parkway?

Susan Pendergrass (27:56): Yeah, the law would have to say that they would have to. You couldn’t let them pick and choose.

Ness Sandoval (28:15): Yeah. And so the question is, you have a lot of people who would love to be in Parkway. I gave a talk at Marquette and I was shocked because a good percentage of the students there were saying those public school students, but the parents had left to get out to West County for their children. So the question is, do you just let the private market dictate this? Those who can leave the city will ultimately leave the city and get out to West County.

Susan Pendergrass (28:50): There’s movement out. And I think in terms of domestic migration, to get parents to move in, you can go to our northern border, Iowa. The state pays for private school tuition. Oklahoma to the south, the state pays for private school tuition. Kansas, you can go to any public school in the state. It’s 100% open enrollment. Arkansas is one of the strongest for school choice, both public and private. I think we’re going to be surrounded by it and just have our arms folded across our chest. Because Parkway doesn’t want all those kids coming, or Rockwood doesn’t want all those kids coming. Parents are simply going to move across the border to a state where they can pick any public or private school. I’ve talked to some parents who have reached out to say, I’m thinking about moving to the region, is it true I can’t pick a school? And I’m like, it is true. You cannot pick a school. And I think they’re like, forget it. I’m not going to make this big decision on where to buy a house. I think if we don’t do things that are family friendly, and if we don’t get crime under control in some way, or have a 911 system where when you call somebody responds, I think it’s interesting that St. Louis will become this example for the nation of what a dying city looks like.

Ness Sandoval (30:08): We have three examples today: Pittsburgh, Cleveland, and St. Louis. Tampa is kind of unique because it is a destination for retirees. The Wall Street Journal has an article today on Cleveland, the renaissance of downtown Cleveland. And Detroit too, it’s a renaissance.

Susan Pendergrass (30:29): Wow. What about Detroit now? So St. Louis hasn’t figured out our renaissance yet.

Ness Sandoval (30:49): And to be honest with you, I think it will be hard. I’m not pro anything, but I find this whole debate about the city and county interesting. I’m not from here, so I don’t have this history of growing up here. But I think objectively, when I look at the budget of the city of St. Louis and compare it to Pittsburgh, Pittsburgh is a little bit bigger. It’s got 25,000 more people. But their budget is significantly smaller than St. Louis City’s budget. Part of me wonders, because the city is both a city and a county, it doesn’t have enough people or revenue to operate as both. And this is what’s helping Pittsburgh out. This is what’s helping Cleveland out, because that county revenue is spread among more taxpayers. In St. Louis City, the county functions are spread among a dwindling number of taxpayers. The city probably cannot be a county anymore. There’s just too few taxpayers to provide both city services and county services.

Ness Sandoval (32:08): I looked at these budgets and I’m like, my gosh, why is St. Louis’s budget so much more? I’m talking not a little bit more, a lot more than Pittsburgh’s budget. Pittsburgh is having trouble. And I don’t see the long-term fiscal situation turning around for the city because it’s got to provide all of these services. The tax base is going to decline. The next three years are probably going to see population loss in the city. The numbers just came out in March, but we’ll get the numbers in May. It’ll probably lead the country again in population decline for large cities.

Susan Pendergrass (32:58): Are we still a top 20 city? We’re number one in population decline, but what about in population size?

Ness Sandoval (33:01): We’re number one in decline. Last year, St. Louis City was number one. We’re declining. We’re not in the top 20 yet, but we’re very close. If we go back to 2020, we’re smaller than we were in 2020. The only reason we’re not number one in decline is because we had so many immigrants that offset our domestic migration loss. But this will be an interesting 2030 census, because it’ll be the first time the region will go into a census with more people dying than babies born. In the last census, we had about 75,000 natural growth. We’re looking at about 25,000 to 30,000 natural decline going into this census without any domestic migration. I tell people that this story is just starting. We have 74 years of the century left.

Ness Sandoval (34:18): I’m just trying to get people to move from the mindset that this is 2010 St. Louis. You don’t have 36,000 births anymore. You have 27,000 and it’s declining, one of the fastest declines in the country. Because of it, we’re aging very fast, and so we have to shift. The region has to make a choice that we start to organize our economy around senior citizens. There’s lots of money to be made from senior citizens, but we will never be viewed as Nashville or Austin as a place for young people.

Susan Pendergrass (34:52): Absolutely. That Route 64 corridor is just going to be all retirement homes.

Ness Sandoval (35:04): We won’t be talking about single family homes anymore. We’ll be talking about senior housing. We’ll be talking about a workforce that’s going to work with seniors instead of a workforce for children. And there is money to be made in that economy. I’m not saying that this is a bad thing. But again, we can look at other parts of the country where this transition has happened. Local government spending is being consumed by senior citizens, the healthcare of senior citizens, the paratransit of seniors. Seniors will lose their ability to drive. That cost typically gets covered by local governments. And so you will not be providing buses for children. You’ll be providing paratransit to get seniors to their doctors. Churches will have to think about being accessible to seniors. I go to Church of the Ascension and they are not prepared. At Easter, one of the Masses, one-third of this section was senior citizens in wheelchairs. The churches are simply not prepared for a parish that’s going to be 50% of the population at 70 years old and older. Restaurants have to think about this.

Susan Pendergrass (36:30): Wow, that’s crazy. Well, interesting stuff. I hope you’ll come back and talk about this more. And certainly I’m very interested in reading everything that you write about what St. Louis can do. We need to figure out a renaissance.

Ness Sandoval (36:51): We’ve got to get younger. The kids are giving us a try. They’re coming to school, they’re coming here because they have hopes. We just have not responded the way we need to. A lot of companies are starting to recognize this. I talked to the mayor and said, you need to be a more proactive voice on this. But the region, this is not a city of St. Louis issue. This is a St. Charles issue, a Jefferson County issue, a Chesterfield issue. Most of the people live outside of St. Louis city. The loss we’re projecting is going to come from the suburbs. And that’s what’s happening in Pittsburgh, that’s what’s happening in Cleveland. 100% of the demographic loss is in the suburbs.

Susan Pendergrass (37:21): Yeah. Wow, that’s crazy. Well, fascinating. Thank you so much for explaining it. I don’t want to be depressed about it, but it’s not super optimistic. We’ll find a silver lining. Thanks, Dr. Sandoval.

Ness Sandoval (37:59): All right, thank you very much.

Produced by Show-Me Opportunity

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This resolution prohibits students in first grade and younger from using devices and outlines a process for parents to choose to opt their student out of technology use. It also requires LAUSD to develop a comprehensive screen time policy for each grade and subject, set to take effect in the 2026–2027 school year. This decision has gained broad support from parents, many of whom have formed an advocacy group, Schools Beyond Screens, to voice their concerns about excessive screen time.

House Bill (HB) 2230, a bill recently passed by the House, reflects Missouri’s efforts to address concerns surrounding screen use during school. Missouri’s law would be an important first step, and LAUSD’s resolution offers a helpful example of how those concerns can be effectively translated into clear, actionable policy—such as limiting use in early grades or parental choice. A key part of HB 2230 is that it will require each district to develop its own policy. LAUSD’s policy can be a useful guide for Missouri districts.

The post Major Los Angeles School District Becomes First to Implement Screen Time Policy appeared first on Show-Me Institute.

Once again, Missouri has been outdone by a neighbor. On the very important issue of early literacy, we should look closely at the move Oklahoma just made. With the signing of Senate Bill 1778, Oklahoma Governor Kevin Stitt has essentially ended the era of social promotion for children who can’t read. Oklahoma’s “Strong Readers Act” provides a roadmap that Missouri should follow.

One of the more controversial aspects of the law relates to third-grade retention. Starting in the 2027–28 school year, students who score below the basic level on the Oklahoma state test (the equivalent of Missouri’s MAP test) and who cannot pass a secondary literacy assessment may be required to repeat the grade. While retention is an unpopular strategy, the bill balances this with a multi-tiered system of support. This means schools will use statewide screenings to identify issues as early as kindergarten, triggering immediate interventions such as small-group tutoring and summer academies. Missouri should adopt a similar mandate. By making retention a real possibility, the law forces the system to pivot toward early intervention.

Unfortunately, Missouri’s attempts at literacy reform have stagnated this legislative session. Despite broad recognition that our reading scores are headed in the wrong direction, Missouri lawmakers are stuck in debates about which test to use, the negative effects of retention, and local control. There are still a few weeks left for them to resolve their differences. They owe it to our students to stop passing them through a failing system and start ensuring that every student is equipped with the reading skills they need to succeed.

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