Even Elon Musk Wouldn’t Support Missouri’s EV Tax Credit Bill

Electric vehicles (EVs) are gaining popularity in Missouri and across the country. Thousands of Missourians buy EVs each year; Kansas City is one of the fastest-growing EV markets in the country. Nationwide, EVs are expected to be about 25 percent of new car sales in 2030.

So what do some in the Missouri Legislature want to do with this burgeoning market? Subsidize it, of course. A bill prefiled in the Missouri House would subsidize Missourians for a purchase many are already making by giving out a thousand-dollar refundable tax credit for each EV purchase.

This is so redundant and unnecessary that even Elon Musk wouldn’t support it.

In a recent interview, Musk favored ending subsidies of any kind for all vehicles, whether gasoline or battery-powered.

When asked about the possibility of an up-to $12,500-per-EV tax credit being considered in Congress, Musk criticized it as unnecessary. While most makes of electric vehicles still qualify for the existing $7,500 federal tax credit, Tesla’s cars—which made up over two thirds of all EV purchases this year—haven’t for several years. Admittedly, Musk’s market power may account for some of his opposition to EV tax credits.

Musk also criticized the $7.5 billion dedicated to building EV charging stations in the recently passed federal infrastructure bill, saying that if gas stations don’t need support, EV charging stations shouldn’t either. If he doesn’t support these subsidies, I can’t imagine he’d support Saint Louis-area governments mandating new construction and property renovations being built with EV charging stations.

If the godfather (or Dogefather?) of electric vehicles thinks EV tax credits and subsidized charging stations are unnecessary, shouldn’t we?

Innovative Springfield School Up for $1 Million Prize

The Discovery School of Springfield has been named a finalist for the STOP Award. Presented by the Center for Education Reform and Forbes, the award is intended to “ensure that families, now and in the future, get what they deserve: access to individualized learning opportunities for their students, offered in supportive environments, alongside their peers.”

The Discovery School has an amazing story. When the coronavirus struck in March of 2020, the Discovery Center, a children’s science museum, worked around the clock to transform into a licensed childcare center to continue students’ education even if their schools were closed to in-person instruction. Every member of the team agreed to work in person instead of working from home. By August, it had cultivated a community of learners who wanted to keep the good times going. The Discovery Center leased and renovated a building that used to be part of Everest College and created a space for children to do their virtual learning in small learning pods. By January of 2021, it was ready to launch a standalone school. It currently operates as a private school for students in Springfield. The STOP award created an informative webpage on the school, and it is worth checking out.

Simply by being named a finalist, the school is guaranteed at least $250,000 in prize money. The full prize will be announced December 14th at Forbes’ annual 30 under 30 event.

Podcast: 2022 Priorities, a Win in Webster, and Fight for $15 in Jeff. City

Susan Pendergrass, David Stokes, and Elias Tsapelas join Zach Lawhorn to discuss legislative priorities for 2022, the rejection of a TIF in Webster Groves, and a bid to raise the minimum wage to $15 an hour for state workers.

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Credit Where Credit Is Due

Show-Me Institute analysts have been saying for quite some time that parents need choices when it comes to their children’s education. Those who disagree have often relied on the ridiculous argument that giving parents choices will make bad schools worse, since anyone in their right mind would abandon them. But finally, we may be seeing reason from those folks.

The Missouri Board of Education released its 2022 Legislative Priorities and, surprisingly, giving families the option of enrolling in a district other than the one in which they live made the list. Interdistrict choice is not a new idea—44 states and the District of Columbia allow it—but it would certainly be new for Missouri. Currently, only students who can demonstrate that they have a transportation hardship due to natural barriers that make the distance to their assigned school farther away than a school in a neighboring district can apply for interdistrict choice. The state board of education, seemingly, would like school choice extended to every student, regardless of their transportation situation.

It should be said that it’s a tough time for public education in Missouri. District- and school-level test scores for the prior school year were released this week and an initial look at the data suggests the results are pretty dismal. In many districts there are not enough teachers, substitutes, or bus drivers. At a recent hearing of the Missouri Legislature’s Joint Committee on Education, the state school board association seemed to be at odds with the superintendents and even with rural educators—two groups with which it is typically aligned. Perhaps the news has made its way to Jefferson City that, for the near future at least, “it’s the parents, stupid.” Finally, parents are being heeded as a political force that shows up and votes.

Whatever the reason, I look forward to seeing the Missouri Board of Education press for its legislative agenda. I look forward to seeing members of the board in committee hearings giving testimony on the need for parents to have options beyond their assigned public schools. I look forward to joining forces in pressing for this policy. I hope that it is pursued with integrity.

Virtual Town Hall: Ideas to Move Missouri Forward in 2022

Download a copy of the 2022 Blueprint here

The 2022 Blueprint: Moving Missouri Forward presents 14 policy ideas aimed at moving Missouri forward to a brighter future. The Blueprint covers a broad range of issues—from education to health care, from public pensions to corporate welfare, and from tax policy to government transparency. Our expert policy team has thoroughly researched and analyzed the problems facing our state today, and their work informs the policy solutions that follow. We believe that with the right policies Missouri could lead the nation in wealth, quality education, and a vibrant and flourishing civil society.

On December 8, 2021, Show-Me Institute held a virtual town hall to discuss the ideas presented in the 2022 Blueprint.

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2022 Missouri Blueprint

The Show-Me Institute’s mission is to advance liberty with individual responsibility by promoting market solutions for Missouri public policy. Our vision is for Missouri to be a place where entrepreneurs can pursue their dreams, parents are free to direct the education and upbringing of their children, and a growing economy provides opportunities for all. Critical to achieving this vision is a state government that understands the value of freedom in the lives and future of our people.

The 2022 Blueprint: Moving Missouri Forward presents 15 policy ideas aimed at moving Missouri forward to a brighter future. The Blueprint covers a broad range of issues—from education to health care, from public pensions to corporate welfare, and from tax policy to government transparency. Our expert policy team has thoroughly researched and analyzed the problems facing our state today, and their work informs the policy solutions that follow. We believe that with the right policies Missouri could lead the nation in wealth, quality education, and a vibrant and flourishing civil society.

Download the 2022 Missouri Blueprint

Missouri Gets a D Grade in Electric Competition

Missouri’s report card for electric competition is in, and it’s not good. According to a new study from the University of Texas, Missouri received a D for competitiveness in electricity markets, which is not surprising considering lawmakers have barely tried to incorporate competition. Missouri policymakers ought to take note, as Missourians have seen the fourth-fastest electricity price increases nationwide since 2008.

The study grades each state from A through F on several factors relating to electricity market design and competition. On most of the important criteria in the study, Missouri gets few of the answers right. For example, while some Missouri utilities do participate in wholesale electricity markets, where grid operators select the lowest-cost electricity to meet demand, in no part of Missouri do customers get to choose their electric service from among competing providers. Moreover, monopoly utilities are not required to submit requests for proposals to find the lowest-cost new generation portfolio. Monopolies utilities can simply build the generation portfolio themselves, potentially at higher cost. This lack of a competitive market means that hardly any power plants in Missouri are owned and operated by non-monopoly utilities.

Not having a competitive market comes with its costs, and lately Missourians have been paying the price. For instance, customers of states that allow them to choose from competing retail electric service providers have seen their prices decrease 17 percent since 2008, whereas the average Missourian has seen his prices increase 17 percent during the same time period. Additionally, flexibility in choosing electric service providers appeals to businesses, as they can negotiate their own contracts and pursue their own electric generation goals.

If lawmakers want to reverse rising electricity prices in our state and create a more competitive and business-friendly environment, they don’t have to look far. Illinois received the second-highest grade in this study and has competitively structured electricity markets. As a result, its prices have decreased 13 percent since 2008. Based on these facts, shouldn’t lawmakers consider allowing greater competition in Missouri’s electricity markets?

The House Is on Fire

We’re in the midst of an educational crisis. We’re halfway through a third disrupted school year and Missouri students, especially the most vulnerable, have fallen dangerously behind. While the Missouri Department of Elementary and Secondary Education (DESE) has cautioned against drawing conclusions from last year’s test scores, they can’t just be ignored.

It’s troubling enough that only about one third of the Missouri students who took the state assessment last year scored at grade level in math. But for certain categories—Black students and students with disabilities—roughly ninety percent did not hit that benchmark last year. When 75 percent of students in multiple subgroups are below grade level, it’s time for immediate and intensive interventions.

Parents are well aware of what’s going on and many are upset that their children are losing ground. A recent survey found that over half of parents think tutoring would be very helpful for their children this year. Nearly two thirds of parents of students with disabilities would like tutoring for their children. Parents who can afford it are seeking tutors and paying out of pocket for them. But what about the 80 percent of low-income students who are falling behind?

Tennessee just pledged $200 million of its federal stimulus funds to launch a three-year tutoring project called the Tennessee Accelerating Literacy and Learning Corp (TN ALL Corps). High-dosage/low-ratio tutoring has “consistently proven to accelerate achievement as quickly as possible” says Tennessee’s education commissioner. In fact, a study from Brown University found that regular, frequent tutoring sessions can increase learning by up to 10 months.

DESE also has nearly $200 million in funding from the American Rescue Plan, plus millions from earlier rounds of stimulus. So far, Missouri has pledged stimulus funds to teacher recruitment and retention, to the Missouri Leadership Development System for principals, to improving the longitudinal data system, and to teacher professional development. While these may be great ideas in the long run, they don’t address the immediate crisis. Missouri’s needs big, bold ideas from its leaders and it needs them now.

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