Understanding the One Big Beautiful Bill with Elias Tsapelas

Posted on by Susan Pendergrass

Susan Pendergrass is joined by Elias Tsapelas, director of state budget and fiscal policy at the Show-Me Institute, to break down the sweeping new federal legislation known as the “One Big Beautiful Bill.” They discuss what it really means for Medicaid recipients, food stamp programs, state budgets, and Missouri taxpayers.

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Timestamps

00:00 Understanding the One Big Beautiful Bill Act
06:44 Medicaid: Changes and Implications
11:23 SNAP Benefits: New Regulations and Effects
14:18 Tax Implications for Missourians
19:09 Future of Medicaid and State Budgets

Episode Transcript: Understanding the One Big Beautiful Bill with Elias Tsapelas (Download Here) 

Susan Pendergrass (00:00)
Okay, here we go. You ready? Elias Tsapelas, we are going to talk about IT—the big IT—the One Big Beautiful Bill Act. I don’t feel like I understand it. I suspect there’s a lot of people reading the news that don’t understand it, but you seem to understand a lot of it. So thanks for coming to talk to us about it today.

Elias Tsapelas (00:19)
No problem. I think there’s a lot of misconceptions, especially about what’s happening with the welfare programs in the bill. So I’m happy to dive into those.

Susan Pendergrass (00:27)
Yes, yeah. I’ve definitely seen claims that this is going to basically strip health care from millions and millions of people and that kids will be hungry. And I don’t want to minimize that. But we had Brian Blase on the podcast, and I thought I had an understanding of it that didn’t exactly line up with that narrative. So let’s just start there. People are saying that tens of millions of people are going to lose health insurance under the One Big Beautiful Bill Act. Explain that to me.

Elias Tsapelas (01:01)
Well, the first thing people need to understand about Medicaid is that it’s gotten tremendously more expensive in recent years. The Biden administration made a lot of changes during COVID—changes to how the program works and its future trajectory. Even after the One Big Beautiful Bill goes into effect, we’re basically just putting the program’s costs back on the trajectory it was on in 2021. This isn’t going back to the Stone Age—it’s more like going back five years.

A lot of this stems from efforts to eliminate waste, fraud, and abuse. And while there’s certainly some of that, what many people don’t realize is that most states, including Missouri, now contract with private health plans to cover people on Medicaid—particularly the Medicaid expansion population, which consists of healthy adults.

Susan Pendergrass (02:11)
Okay, so let’s just pretend we know nothing. Medicaid is a program that covers health insurance costs for low-income and disabled individuals?

Elias Tsapelas (02:24)
Yes. About 50% of kids in Missouri are on Medicaid. The program covers around two-thirds of all nursing home costs and over a third of all births in the state.

Susan Pendergrass (02:34)
So low-income pregnant women can get Medicaid coverage, and their children can as well. Who exactly is in the “expansion population”?

Elias Tsapelas (02:47)
Good question. And just to clarify—yes, Medicaid also covers a lot of very disabled individuals who private health insurance wouldn’t. But the expansion population refers to healthy adults making up to 138% of the federal poverty limit. These are not permanently disabled people. They’re generally able to work.

Before 2021, someone like me—unmarried and childless—couldn’t qualify for Medicaid in Missouri, even if I lost my job. Medicaid expansion changed that, and with it came a lot of problematic incentives. One issue is that states are paying health plans monthly for enrollees, but there isn’t always a process to verify whether those people are still eligible.

Susan Pendergrass (04:53)
Let me just stop you there. So the state is paying monthly premiums for people who might not even know they’re on Medicaid? And they might have a job now and no longer qualify, but the state hasn’t gone back to check?

Elias Tsapelas (05:40)
Exactly. Ideally, people would notify the government when they get a job, but most don’t, and the IT systems don’t really catch that. Previously, states just paid the bills as they came in. If someone didn’t go to the doctor, there was no cost. Now we’re paying premiums whether they use care or not, which adds up quickly.

Susan Pendergrass (06:40)
So what’s in the One Big Beautiful Bill? Are states required to recertify people?

Elias Tsapelas (06:45)
Yes. One big provision is that states must check eligibility at least twice per year. The Congressional Budget Office projects significant enrollment losses just from checking more often. That’s raised concerns about red tape, but the goal is to ensure people who are no longer eligible aren’t still receiving coverage.

Susan Pendergrass (07:13)
Can Missouri do that? Do we have the systems in place?

Elias Tsapelas (07:20)
I’d like to think so, but I’m not sure. During COVID, states weren’t allowed to check eligibility at all for over three years. Missouri spent an entire year catching up when that ended. Right now, about 1.2 million people are on Medicaid in Missouri, including 350,000 in the expansion group. So yes, it would mean more IT strain.

Another major part of the bill is requiring “community engagement” or work requirements for the able-bodied expansion group.

Susan Pendergrass (08:24)
So that’s people under 65 who aren’t disabled? How do they know who’s supposed to work?

Elias Tsapelas (08:32)
There are carve-outs—new moms, parents with kids under 14, people over 65, etc. The idea is to target people who could be in the workforce. There are also alternative ways to meet the requirements, like volunteering. And it’s worth noting: the SNAP program (food stamps) has had work requirements since the 1990s.

Susan Pendergrass (10:25)
Then why are people saying this will “kick people off”?

Elias Tsapelas (10:33)
Because people will have to meet work or volunteer requirements, and the state will recertify them more often. The question is: how many people will get caught in red tape? That depends on how well states implement the changes. Most of the bill’s provisions are phased in over time to allow states to adapt.

Susan Pendergrass (11:34)
Let’s talk about SNAP benefits. People are saying this will take food away from families. What’s actually changing?

Elias Tsapelas (11:46)
The federal government will now penalize states with high error rates in SNAP administration. Missouri’s overpayment error rate is about 10%, and some states are worse—Alaska’s is nearly 25%. Under the bill, if your error rate is over 6% for two years, the state will have to start covering some of the cost. So Missouri may have to pay a portion of benefits if it doesn’t improve.

Susan Pendergrass (14:06)
How does the bill impact taxes for Missourians?

Elias Tsapelas (14:14)
The standard deduction is going up—by $750 for single filers and up to $6,000 more for seniors. There’s also a new deduction for car loan interest and temporary exemptions for taxes on tips and overtime. Since Missouri’s tax code follows the federal code, that could mean less state revenue, too.

Susan Pendergrass (15:41)
So what will this cost Missouri?

Elias Tsapelas (15:46)
It depends. If we reduce our SNAP error rate, the cost isn’t too bad. But a bigger issue is the provider tax cap dropping from 6% to 3.5% over a few years. Missouri is at 4.2% now, so we’ll need to lower it. That tax generates about $1.5 billion per year for hospitals.

Susan Pendergrass (17:09)
How does the rural hospital fund come into play?

Elias Tsapelas (17:24)
The bill creates a $50 billion Rural Hospital Fund to be distributed over five years. States will get a portion based on how rural they are. The hope is this fund offsets the provider tax losses—at least through 2030. But after that, the fund ends. So there’s concern about what happens long-term.

Susan Pendergrass (19:18)
Senator Josh Hawley mentioned he supports the bill but hopes to fix the provider tax issue in five years.

Elias Tsapelas (19:29)
That seems to be the thinking—pass it now and revisit the unpopular parts later. A lot of the tax and spending changes are temporary, which is partly how they got the bill to comply with budget rules.

Susan Pendergrass (20:30)
This reflects what voters asked for—smaller government and more state responsibility. It reminds me of the Department of Education cuts. Missouri will have to decide which programs to keep and how to fund them. But I was surprised the expansion of the MOScholars tax credit program made it in.

Elias Tsapelas (22:35)
Yes, Medicaid will continue to dominate the state budget if we don’t address it. Every year it’s, “How much more is Medicaid going to cost?” Then we build the rest of the budget around that. This bill will force Missouri lawmakers to reevaluate some of those assumptions and perhaps reconsider whether managed care is working.

Susan Pendergrass (25:02)
That’s going to be interesting to watch. Thanks for breaking it down, Elias. This bill is being talked about a lot, but I think a lot of people are still unsure what it really does.

Elias Tsapelas (25:16)
No problem. I think we’re all looking forward to seeing what happens next.

Produced by Show-Me Opportunity

Schools After the Storm with Noah Devine

Posted on by Susan Pendergrass

Susan Pendergrass speaks with Noah Devine, executive director of the Missouri Charter Public Schools Association, about how charter schools in St. Louis are responding after the recent tornado damaged multiple campuses. They discuss the need for flexibility for displaced families, how charter schools are working to reopen quickly, and the broader importance of school choice, especially in times of crisis. Noah also explains why Missouri’s lack of open enrollment makes recovery harder, and shares resources for families navigating this difficult time.

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Transcript: Schools After the Storm with Noah Devine

Download a copy of the transcript here

Susan Pendergrass (00:00)
Today I’m going to be talking to Noah Devine of Missouri Charter Public School Association. You basically represent, to a certain extent, the charter schools across Kansas City and St. Louis. To a certain extent, your organization helps them navigate policy processes, funding processes, and things like that in Missouri. So thanks for joining us.

Noah Devine (00:19)
Thanks for having me on, and yeah, you’re exactly right. We are a membership-based, dues-based organization that supports, represents, and advocates for public charter schools here in the state of Missouri.

Susan Pendergrass (00:30)
Well, like the Show-Me Institute, a few weeks ago, many schools in the St. Louis area were affected by a tornado. We lost the top floor of our building when it came through. I know that I’ve been reading that St. Louis Public Schools have about six buildings that are affected by the tornado. How many charter schools were affected?

Noah Devine (00:50)
Yeah, it was obviously really terrible what happened in St. Louis with that tornado. In total, seven charter school buildings were directly impacted. None of them will be compromised from opening this fall, so that’s a very good thing. Two of them were not able to open the week that it happened or the week immediately after. One of them has an annex that was very badly damaged, and so they’re going to have to rework how they meet the needs of their students. The building impact is very significant. What worries me the most is that they’re doing everything they can to meet the needs of their families and students who were directly impacted. Over the summer and into the fall, I think we’re going to see how things ultimately shake out. I’m quite worried that we’re going to have a large increase in students and families experiencing homelessness, and meeting those families’ needs will be really important.

Susan Pendergrass (01:41)
Why do you imagine that St. Louis Public Schools say six of their buildings can’t be used, but charter schools are going to find a way to use theirs? Do you have any thoughts on that?

Noah Devine (01:53)
Yeah, I honestly don’t know. Some of it could always be just good old-fashioned dumb luck, the location of buildings. I think that’s probably most likely. I do think the buildings that were more directly impacted and were charter schools were in better condition. I don’t know the condition of some of the SLPS buildings, but I think charter schools were able to mitigate things a little more readily.

Susan Pendergrass (02:30)
This is what I was thinking, because we had to scramble to find a place to work. Some of us are in temporary office space. Some people are working from home, and it really does affect people. I assume there are many students whose own homes were affected. It’s summer now, but we’re trying to figure out what to do in the fall. St. Louis Public Schools has said that the kids in these six schools are all being reassigned to new schools.

Wouldn’t it make sense, given that this is an emergency—an act of God type of situation—that families could be given flexibility over where their kids go? If they’re displaced, they might want their kids to stay with the same teacher and group of friends, or they might want to go somewhere closer to where they are displaced or where their job is. It seems to me this is the time for flexibility. What do you think?

Noah Devine (03:27)
Could not agree more. Setting aside the natural disaster of a tornado, we fundamentally believe, as all of our schools do, that the decision of where to send your kid—whether it be homeschool, private school, charter public school, district school, magnet school, whatever—is the decision of a family. In a time like this, we need to enact provisions, not dissimilar from what we did during COVID, to make sure families have what they need.

If a family in North St. Louis lost everything, let’s not upset the apple cart. If they want to stay at that school, we have to make sure they can get there. McKinney-Vento is the federal classification for students who are homeless. If you lost your home and are temporarily living with someone else, you meet that designation and can stay at your school. We’re working with charter schools and DESE to ensure that’s clearly communicated. But that designation comes with a cost, usually transportation.

We need help to meet that need. Big picture, we should always be trying to meet the needs of families with choice in mind. During emergencies, it’s even more necessary to push through red tape and ensure we aren’t telling families that, on top of everything else, they now have to move schools.

Susan Pendergrass (05:36)
Do you know if the governor has indicated he’s open to an emergency executive order to ensure St. Louis families have maximum flexibility?

Noah Devine (05:47)
I don’t want to speak for the governor’s office or DESE. But I’ve been extremely impressed with how they’ve moved to get direct support to families in St. Louis. During special session a couple of weeks ago, a huge pot of money was allocated to meet those needs. I’m confident they’ll do everything they can within the law. That said, Missouri does not have open enrollment, which limits flexibility. It’s come close many times, but hasn’t passed.

Susan Pendergrass (06:56)
In times of crisis, like pandemics or tornadoes, the need for flexibility becomes very apparent. You and I followed legislation last year that would have allowed students from outside the city to enroll in a charter school. It made so much sense and still couldn’t get across the finish line.

Noah Devine (07:47)
Yeah.

Susan Pendergrass (07:48)
Families often face personal emergencies too. A child being bullied, a move to live with grandparents—these are real. Charter school leaders want to keep kids where they belong. We just haven’t found the right words to convince enough people.

Noah Devine (08:21)
I couldn’t agree more. First and foremost, our thoughts are with the families impacted. But this is when policy limitations become very real. Missouri is surrounded by states that allow more enrollment flexibility. We shouldn’t lock families into bad situations, whether the crisis is natural or personal. We need to continue pushing for change.

Susan Pendergrass (10:04)
In Kansas City, many top-notch charter schools have strong reputations. If families live on the Kansas side, they can cross the river and choose from any school. Kansas has one of the strongest open enrollment laws in the country. Missouri should follow that example. Not every school is right for every child. And families shouldn’t have to move to find a better fit.

Noah Devine (11:04)
Exactly. I read an article recently about this. People often assume open enrollment would destroy public education. It won’t. Families pick different colleges for their kids based on interests and needs. Why shouldn’t the same logic apply to K-12?

Susan Pendergrass (11:58)
Pell Grants follow students to the college of their choice. It works. But in K-12, it’s somehow controversial. I was asked yesterday on the radio about some charter schools closing in Kansas City and St. Louis.

Noah Devine (12:26)
Great question. First, we can’t underestimate the impact of school closures on families. It’s very real and unfortunate. But charter schools are designed to be more accountable. If families leave or the school isn’t performing, it should close. That’s how accountability works.

We are in a period of declining enrollment nationwide. All public schools will have to make tough choices. The charter system allows closures based on whether families want to go there and whether the school is serving them well. That’s how it should work.

Susan Pendergrass (14:30)
Mm-hmm.

Noah Devine (14:45)
When you lead a charter school, you have to earn it. Every student is there by choice. That makes charter schools unique. Missouri ranks among the top five states in charter school performance, according to CREDO at Stanford. We should take that seriously.

Susan Pendergrass (15:36)
This reminds me of the Unsafe School Choice Option under federal law. If a school is deemed persistently dangerous, students have the right to transfer. Missouri has never labeled a school that way, even though the data suggests otherwise. But charter schools already give families that power. If parents feel unsafe, they can simply pull their child out.

Noah Devine (16:37)
Exactly.

Susan Pendergrass (16:50)
That’s how it should be in all public schools. If parents in St. Louis want to know what resources are available for displaced children or schools, where should they go?

Noah Devine (17:26)
Start with our website, mocharterschools.org. We have a resource page for families affected by the tornado. Also, we work with Show Me Mo Schools, which runs a common application system. Their site is schoolappstl.org. And finally, DESE’s website has guidance and updates, though it could use improvement.

Susan Pendergrass (18:12)
Good luck with that. Thanks again, Noah.

Noah Devine (18:20)
Thanks, and take care.

Produced by Show-Me Opportunity

Credit Where Credit Is Due

Posted on by Susan Pendergrass

Governor Kehoe took a red pen to the state budget before signing it, indicating that he takes his fiscal responsibility seriously. When it comes to cuts in the education budget, of which there were more than 25, the governor  repeatedly mentioned in a letter to the secretary of state that “the budget includes historic funding for public education, totaling over $4 billion, including a half a billion dollars in new funding over the prior fiscal year . . .”

His response to a laundry list of budget items that were earmarked for a particular school district was:

Given the State’s historic investments in education this year, it is incumbent upon local school districts to prioritize the use of their resources for this type of programming as they deem appropriate and necessary.

In other words, the Foundation Formula is intended to make sure that all districts have and are able to spend an amount that is “adequate” for the successful education of their students. The Foundation Formula funds should cover repairing an outdoor track in the Houston R-1 school district, not earmarks.

Some programs, such as the St. Louis reading literacy program or Kansas City for K-12 career literacy resources, were vetoed entirely because the budget contains “multiple other areas of funding for similar programs.”

Increases for programs such as the Teacher Recruitment and Retention Scholarships or the Workforce Diploma Program were removed. Perhaps the governor wants to see evaluations of the impact of these programs first.

All in all, the governor, along with his staff, appears to have finally taken a close look at the education items in the budget before signing it. Perhaps the next fiscal year, when the governor is involved from the beginning, will usher in a new era of responsibility and accountability for the spending of our hard-earned dollars.

Missouri Finally Dials in Telemedicine Reform

Posted on by Scott Tanner

Following years of unanswered calls, lawmakers finally delivered much-needed reform to the state’s telemedicine laws in the waning days of Missouri’s 2025 legislative session.

Senate Bill (SB) 79 will (if Governor Kehoe signs it), among other things, expand the definition of “telehealth” or telemedicine to include audio-only and audiovisual services. On its face, SB 79 may not seem like the biggest or most impactful change, but it addresses a major problem with Missouri’s telemedicine laws that has been needlessly restricting access to care for years.

A few months ago, I wrote about several ways in which healthcare access for Missouri residents could be improved, and abandoning the requirement for video in cases where it isn’t medically necessary was one of the policies I highlighted. There are still large parts of Missouri without reliable broadband internet access, and not everyone has a phone or computer capable of transmitting video. Further, not every medical treatment requires a visual examination (for example, mental health services). Given our state’s well-documented shortage of healthcare providers, any effort to improve healthcare access without sacrificing safety or quality of care is welcome.

It’s easy to forget that back during the COVID-19 pandemic, Missouri ranked among the national leaders in telemedicine access. Various laws and regulations were waived for emergency response purposes, allowing patients to access their providers virtually with more ease than ever before. In turn, telemedicine grew tremendously in both functionality and popularity, among patients and providers alike—until the emergency ended and many of the unnecessary regulatory burdens telemedicine previously faced were allowed to return.

After several years of telemedicine reform nearly reaching but failing to cross the finish line, SB 79’s passage feels like a long time coming. As states across the country continue improving their licensing laws to expand healthcare supply and account for changing technology, Missouri could no longer afford to keep reform on hold. And while the bill doesn’t address all of the areas in which I think Missouri’s telemedicine laws could be improved, it does represent a small, important step in the right direction.

Going into next year, there is still plenty of work to be done to improve Missourian’s access to care. Hopefully, SB 79 is a signal that our lawmakers are dialing up more expansive healthcare reforms for 2026.

Why Is PortKC Keeping Secrets?

Posted on by Scott Tanner

PortKC has become Kansas City’s go-to agency for economic development incentives—but with a troubling condition. Applicants must sign a non-disclosure agreement (NDA), quietly embedded on page 16 of its Development Application Package. Why?

Secrecy isn’t standard practice. The Economic Development Corporation—which oversees the TIF Commission and other incentive bodies—does not require NDAs.

These agencies also hold more public meetings, solicit community input, and include representation from schools and libraries. Mayoral appointments to the TIF Commission must be confirmed by the city council. In contrast, the mayor appoints PortKC board members unilaterally.

This lack of transparency disserves the public. While developers might prefer NDAs when pursuing public subsidies—which is a separate concern—here, it’s the public agency itself insisting on secrecy. That’s even more alarming.

PortKC has other problems, some of which I detail in a recent column for The Kansas City Star:

A series of audits from 2021 through 2024 flagged serious internal control problems, including one where the finance director had full authority over journal entries, deposits and account reconciliation — with no oversight. Port KC has repeatedly promised to fix these issues and repeatedly failed to act.

PortKC’s transparency problem is compounded by persistent failures in oversight. A string of audits from 2021 through 2024 flagged major internal control issues. In one case, the finance director had sole authority over journal entries, deposits, and account reconciliation with no checks in place. PortKC acknowledged the problem and pledged reform but never followed through.

The 2024 audit revealed yet another compliance failure: the agency hadn’t verified whether its development partners were barred from receiving federal funds—a basic federal requirement known as “Suspension and Debarment.” Given PortKC’s increasing intake of federal money, this oversight is especially serious.

These aren’t isolated lapses. PortKC also failed to properly vet Lux Living in 2022. The pattern is clear and ongoing. With long-standing problems still unaddressed, the question is no longer whether something will go wrong, but when.

These issues matter more than ever. At the time of my Star column, I noted PortKC might be involved in financing a downtown park for the Royals. That’s now more likely: the Kansas City Business Journal reports that tax-free bonds via PortKC are under discussion.

Meanwhile, city officials are exploring ways to approve deals without a public vote. Combine that with PortKC’s built-in secrecy, and the result is troubling: public funds deployed without public oversight.

Why Missouri Needs Universal Open Enrollment

Posted on by Susan Pendergrass

Missouri parents deserve real choices when it comes to their children’s education. Open enrollment—the ability for students to attend a public school outside their home district—is one of the most promising tools for expanding educational opportunity in the state. But unless open enrollment is universal, meaning every district must allow transfers in and out, it risks becoming an empty promise.

The goal of open enrollment is simple; give families the ability to choose a public school, regardless of where they live. But for the past few years, the Missouri Legislature has considered, and the governor has voiced support for, a limited system in which only students in certain districts would have this option. This creates a patchwork of access. Families in one district may enjoy a range of transfer options, while a family just a few miles away may have none because neighboring districts refuse to participate. True educational freedom requires that all districts be required to take transfer applications, subject to capacity.

Open enrollment that is voluntary for districts is designed to protect school systems, not students. High-performing or in-demand districts can refuse to accept transfer students in order to limit competition and maintain the status quo. Universal open enrollment instead puts the interests of students and families first. It ensures that every Missouri child—regardless of their zip code—has a real chance to attend a school that better fits their educational needs.

Missouri needs a universal open enrollment system that is clear and easy for families to understand. Parents should know they have the right to apply to any public school with available space, and districts shouldn’t be able to pick and choose who gets access. This type of system has worked in states such as Florida and Wisconsin, where universal open enrollment has provided thousands of students with better options and driven improvement in both receiving and sending districts. Our neighbors, Nebraska and Kansas, have recently launched some of the strongest universal open enrollment programs in the United States.

Voluntary open enrollment systems create confusion, inconsistency, and frustration. Families must navigate district-by-district rules, and many discover they cannot transfer simply because another district chooses to “opt out.” In 2026, Missouri lawmakers have the opportunity to enact a universal open enrollment policy that truly empowers parents instead of protecting districts. Shouldn’t open enrollment be designed for all Missouri families and not just some?

Why the New Property Tax Rules in Missouri Are Bad, Part 2

Posted on by Scott Tanner

This is the second in a series of blog posts about why the new property tax legislation passed as part of Senate Bill 3 in the recently concluded special session of the Missouri Legislature is harmful.

The new state law creates three types of counties with different rules for property taxes and assessments: five percent counties (75 total counties), zero percent counties (22), and unaffected counties (17). For more details on the differences among these counties, go here.

There are many reasons why these substantial changes to the system are bad. The first one, which I wrote about previously, is that property taxes are generally the least harmful tax for economic growth. So, if you want to create a tax system that encourages greater economic opportunity for all Missourians, the property tax is the last tax you should focus on.

This post is about the absurdity of putting Jackson County in the unaffected category. Jackson County is home to most of Kansas City and is the second-largest county in Missouri. It has had by far the worst administration of assessment and tax collection in recent years of any Missouri county. This is like a patient going to the doctor with a bad left knee and the hospital deciding to amputate their right arm. You made everything worse but didn’t address the main problem that started it all.

The solution to Jackson County’s issues is not to simply make it a zero percent or five percent county. That would cause serious problems over time, which we will eventually see in the other zero and five percent counties in Missouri if the law is upheld in court. What you need in Jackson County is first and foremost better administration. If 113 counties can generally make the assessment and tax process work without being sued by the state tax commission and one cannot, then the problem is with the one county, not with the overall process. Electing the Jackson County Assessor (instead of the assessor being appointed), which will be voted on soon, would be a good start. From a tax bill perspective, ending the rate rollback exemption for the Kansas City 33 School District is a vital change. The main reason bills increase so much in that part of Kansas City is because that district does not have to roll rates back at all, unlike every other taxing body in Missouri. Major reforms were needed in Jackson County, but instead in the special session we got bad legislation that did nothing for the taxpayers there. That’s not a win for anyone.

Future posts will discuss the potential constitutional problems with this bill, the harmful effects of favoring current homeowners over future homeowners, and a discussion of Charles Tiebout and his theories. For more information, please see my testimony from the special session, these policy studies on this issue of property taxes and assessments, and related commentaries.

Why Is the Department of Economic Development Keeping Secrets?

Posted on by Scott Tanner

At a Missouri House hearing on the stadium bill, Michelle Hattaway, Director of the Missouri Department of Economic Development, opened her testimony with a startling admission: “I am currently in negotiations with the Chiefs and the Royals. I am under a non-disclosure agreement with both teams, so I will do my best to answer your questions.”

Startling to me, anyway. None of the legislators on the committee seemed bothered.

Is there any public benefit to this secrecy?

There can be when vendors are bidding competitively for a state contract—say, road construction. Protecting proprietary financial or technical details in that context may encourage better bids and serve the public interest.

But stadium subsidies are different—there’s no obvious reason why secrecy is necessary or helpful. When public officials negotiate deals to hand out taxpayer money, the public deserves transparency. Teams may want discretion. State representatives may want to negotiate without tipping off competing states. But neither, in my opinion, is a good enough reason to give it to them.

Yet secrecy has become the norm. Kansas City Mayor Quinton Lucas won’t release the city’s proposal for a downtown stadium to the Royals—even though Clay County released its proposal. The city also kept its 2017 Amazon HQ2 bid under wraps, while many other cities disclosed theirs.

Judging by the lawmakers’ lack of reaction, non-disclosure agreements are now standard operating procedure. They shouldn’t be. Even if elected officials are fine being left in the dark, the public shouldn’t be.

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