It’s Time to Hold DESE Accountable

A version of the following commentary appeared in the Columbia Missourian.

For years, the Show-Me Institute has scrutinized the Missouri Department of Elementary and Secondary Education (DESE) —not out of malice, but out of a desperate desire to see our students succeed. The state’s commitment to education is vast, in terms of both a constitutional mandate and billions of dollars. Yet, as we examine the latest DESE budget request, it’s impossible to ignore the contrast between the department’s boldness when asking for money and its apparent bashfulness about what it will deliver to Missouri’s students. This disconnect reveals a fundamental weakness at the heart of the agency and a failure to act in a way that provides clear, student-focused leadership and results-based accountability.

In its FY 2027 budget request, DESE is seeking just under $9 billion, $7.5 billion of which comes from Missouri’s public coffers, to execute its mission. A large portion of the budget revenue is distributed to districts through the Foundation Formula. Other big-ticket items are the state institutions for students and adults with disabilities, subsidizing childcare for eligible families, and offsetting district transportation costs. Beyond this, there is a laundry list of programs managed by DESE and funded by the state, such as virtual education, teacher of the year awards, and summer enrichment programs. “And while there is a thousand-page accompanying document that explains what each budget line item is, there isn’t any real explanation for why the money is being requested or how it furthers education in Missouri.

Ideally, the budget request should correspond to the Strategic Plan created by DESE, with each line item of the budget request connected to a stated goal of the agency. Unfortunately, the two documents are only very loosely connected, and the disconnect demonstrates a lack of transparent, performance-driven accountability.

According to the DESE Strategic Plan for 2023–2026, DESE’s vision is to improve lives through education via the four pillars of (1) early learning and literacy, (2) success-ready students and workforce development, (3) safe and healthy schools, and (4) educator recruiting and retention. To accomplish this, DESE has given itself the following five performance measures and three-year targets.

  1. The percentage of students entering kindergarten ready to learn (from 54% to 60%).
  2. The percentage of students scoring proficient or advanced on the English Language Arts state assessment (from 43.5% to 50%).
  3. The percentage of students pursuing gainful employment after graduation (from 91% to 94%).
  4. The three-year average of initial teacher certificates issued (from 3,662 to 3,850).
  5. The three-year average annual teacher retention rate (from 89.9% to 91.2%).

Setting aside the fact that according to its Strategic Plan Scorecard it hasn’t hit any of the targets yet, this very short list of performance measures reflects an agency that is more focused on process and inputs than on measurable student outcomes. Where are the performance measures for math, science and social studies? What are the outcome goals for students with disabilities? Is all of the work of the 215 employees of the Office of Childhood to be measured by just the percentage of students entering kindergarten “ready to learn”? How does one even measure “gainful employment”? At the very least it seems like an easy number to game. How can we possibly measure the appropriateness of a 369-page, $9 billion budget request based on just these five items?

As they return to Jefferson City after the first of the year, it is time for the Missouri legislature to demand more from an agency asking for $9 billion. To hold DESE accountable and ensure taxpayer dollars are serving students first, the legislature should, at a minimum, require DESE to publicly issue an annual report that explicitly links every major budget request line item to a specific, measurable goal in its strategic plan. If a request does not directly advance a key student outcome, it should be subject to maximum scrutiny. And there should be repercussions for missing targets year after year.

The state constitution vests the responsibility for education in the legislature, not DESE. It is high time the legislature exercises its authority and forces DESE to replace its bureaucratic double-speak with real, measurable results for Missouri’s children. Our students deserve a budget that reflects a true commitment to their future, not one that simply preserves the machinery of a struggling bureaucracy.

What Should St. Louis County Do about Its Budget Shortfall?

The two largest counties in Missouri are both having difficulties. Over in Jackson County, the assessment system is still a mess, the county executive was just recalled by the voters, and the Chiefs and Royals are being coy about their future plans, which may involve leaving the county (or state).

In St. Louis County, parts of the county are still recovering from the tornado, the county executive is under indictment (everyone is innocent until proven guilty), and county government’s 2026 budget forecast says there is an $80 million budget shortfall. The last part is the focus of this post.

Every government budget can be cut, and in every government budget there is enough waste and fat to be trimmed to make a difference. That said, cutting government spending is hard (I wish it weren’t). County governments in Missouri are not bloated bureaucracies wasting money hand over foot. They tend to operate fairly efficiently, at least by government standards. So, while making cuts should be the highest priority for the budget shortfall, I doubt that there is $80 million in waste and fraud to be trimmed. Some tough choices are going to have to be made. So, beyond cutting all the waste that it can, what should St. Louis County do?

First, if you are in a hole, stop digging. St. Louis County continues to inexplicably grant tax abatements and other subsidies that never live up to their promises. If these subsidies worked—and by “worked” I mean generated long-term revenues that outweighted the short-term costs—then St. Louis County wouldn’t be in this predicament in the first place. St. Louis County needs to stop giving away taxpayer money as part of a delusion that government planning grows the economy. And yes, this includes getting rid of the senior property tax freeze among other subsidies.

Privatization and outsourcing some services are always an important option for local governments. St. Louis County’s options here are limited, in that the county doesn’t operate any public utilities and it already provides many services via outsourcing. (This is, of course, all a good thing.) The biggest mistake county government has made in recent years is the debacle with the animal shelter. The county should never have taken the animal shelter back in-house. St. Louis County officials should admit their mistake and once again outsource management of the animal shelter.

One of the reasons St. Louis County is in this situation is that it has gone over a decade without a qualified county auditor catching mistakes and making suggestions for fiscal improvements. Hopefully, the recently hired county auditor can change that.

Now let’s talk about the revenue side. Nobody likes tax increases, but sometimes they are necessary. If the county were to consider raising taxes, what taxes should it either institute or increase?

St. Louis County voters have rejected a use tax several times, most recently in April, 2022. A use tax (which is a sales tax on online purchases) is probably the best tax option for the county from a revenue perspective. Two other options could be imposing a small county gas tax to help fund roads or a modest property tax increase. Both of these would be politically complicated.

Beyond all of this, cuts will have to be made. Those may be cuts to services people like, such as the police department or highway projects. But elected officials are there to make hard choices.

Eliminating Missouri’s Income Tax, Subsidies for Gas Stations, and Early Literacy Reform

David Stokes, Elias Tsapelas, and Avery Frank join host Zach Lawhorn to outline what a responsible plan to eliminate Missouri’s income tax should include, from revenue triggers and spending restraint to rethinking other taxes. They also break down St. Louis County’s Bill 182 expanding prevailing wage and DBE mandates, Independence’s proposed TIF package for a new Wally’s gas station and what it says about corporate welfare, Missouri’s early literacy crisis and reforms like a universal third grade reading screener, mandatory retention, and banning three cueing, and what they are watching next on prefiled tax bills, data center policy, and rising property tax bills across the state.

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Timestamps

00:00 Introduction to Missouri’s Income Tax Elimination Plan
02:52 Strategies for Reducing Income Tax Reliance
05:19 Understanding Missouri’s Tax System
08:26 The Importance of Competitive Tax Policies
10:53 St. Louis County’s Prevailing Wage Bill Discussion
13:45 Economic Implications of Tax Subsidies
16:24 Independence’s Wally’s Gas Station Development
19:28 The Flaws in Tax Increment Financing
20:20 Addressing Early Literacy in Missouri
27:54 Looking Ahead: Legislative Priorities

Produced by Show-Me Opportunity

New National Debt Analysis Offers Fresh Lens for Missouri’s Fiscal Picture

Earlier this year, I wrote about the annual rating by Truth in Accounting (TIA), which found that Missouri earned a “B” grade after reporting a small taxpayer surplus under full‑accrual accounting. Now a new study by the Reason Foundation—its “State and Local Government Finance Report” (October 2025)—offers a different methodology and a somewhat different perspective on Missouri’s fiscal health and national peers.

The Reason study finds that U.S. state and local governments held approximately $6.1 trillion in debt at the end of FY 2023. That figure breaks down roughly as $2.66 trillion at the state level, $1.4 trillion among municipalities, $1.27 trillion in school districts, and $757 billion in counties.

For state governments alone, Reason reports $2.7 trillion in debt as of end of 2023, which is about $8,000 per person nationally. The methodology includes near‑term liabilities (like unpaid bills and payroll) plus long‑term obligations (bonds, pensions, and retiree health).

Missouri ranked 25th in combined state and local debt at $53.34 billion. Broken down per capita, Missouri ranked 43rd at $8,829.

Truth in Accounting’s evaluation looked only at the state budget and divided the amount by taxpayer—while Reason considered state and local debts and divided by population. TIA concluded Missouri had a Taxpayer Surplus™ of approximately $200 per taxpayer. Lastly, Reason relied on 2023 data while TIA used 2024 numbers.

The TIA result is reassuring at first glance—but that’s because it looks only at the state obligations. Reason’s analysis reminds us that local governments carry significant obligations beyond what the state government balance sheet shows.

Missouri’s fiscal position is better than many states—but neither the TIA nor Reason analyses justify complacency. Policymakers at every level of government in Missouri should focus on liabilities, funding discipline, and structural reform. This includes being mindful of the long-term commitments we have made to fund government employee pensions and healthcare plans.

A lot of attention is focused on cutting taxes, and that is worthwhile. But fiscal restraint is not merely about cutting taxes—we must rein in our spending too, and that includes long-term commitments.

Shocker! Kansas City’s Affordable Housing Set-Asides Nets Zero Housing Units

In 2021, Kansas City passed an ordinance requiring large market-rate apartment developments to either set aside 20% of units at 60% of area median family income (MFI) or pay $100,000 per unit into the city’s Housing Trust Fund. Yet a recent investigation by the Kansas City Business Journal (KCBJ) found that not a single new affordable unit has been built under this mandate.

That result should raise alarms—but not eyebrows. Set-aside requirements like this often function less as solutions and more as stumbling blocks. Rather than spur construction, Kansas City’s policy has become something to work around. Developers have leaned on other incentive-granting agencies or opted for minimal in-lieu payments instead. Meanwhile, regulation continues to inflate costs and suppress supply. As I’ve written before, regulation can be a root cause of unaffordability.

The KCBJ analysis looked at 114 development incentive applications since 2021. None resulted in affordable units under the set-aside rule. Many projects qualified for exemptions—using low-income housing tax credits (LIHTCs), being historic rehabs, or receiving incentives from agencies outside the city’s economic development corporation (EDCKC).

Examples:

  • Of six qualifying EDCKC projects since August 2022, just one plans to meet the 20% set-aside (16 of 78 units at 60% MFI).
  • Larger developments often went through the Port Authority of Kansas City (Port KC) or other entities, thereby sidestepping the requirement entirely.

The result is a policy with good intentions but poor results—and plenty of incentive for developers to seek workarounds.

Two themes stand out.

First: Incentives, not mandates, are doing the real work. Port KC has become the go-to agency for developers. Since mid-2023, it’s reviewed 17 housing proposals totaling over 5,000 units and $2.6 billion in investment. Because Port KC isn’t bound by the set-aside ordinance, many developers simply pay a lower in-lieu fee and move forward. A city spokesperson even admitted that some of these workarounds were done “at the request or with the blessing of city leaders.”

Second: Regulation continues to push costs up. Developers cited permitting delays, costly energy codes, and other burdens as key barriers. As one put it, requiring reduced rent on top of high costs is a “double negative.”

This tracks with previous findings: When regulation increases costs, it restricts the market’s ability to deliver lower-priced housing. If the goal is more affordability, then cities must lower the baseline costs—not just impose mandates.

In Memory of Joseph Forshaw IV

Joseph Forshaw IV
January 10, 1952 – November 11, 2025

It is with deep sadness that I share the news of the passing of Joseph Forshaw IV, longtime member of the Show-Me Institute’s Board of Directors, former treasurer, and past chairman of the board.

Joe was more than a board member to us. He was a steadfast champion of the Show-Me Institute’s mission, a source of wisdom and clarity, an incredible mentor, and a man whose integrity and good humor strengthened everyone around him.

A lifelong St. Louisan, Joe brought to our organization the same qualities that defined his life: intellectual curiosity, disciplined thinking, and generosity of spirit. Before joining the Show-Me Institute, he served for 30 years as president of Forshaw of St. Louis, the family business founded in 1871. His deep understanding of entrepreneurship and free enterprise made him an invaluable voice on our board and a trusted adviser to our team.

Joe served with humility and conviction, and he cared deeply about Missouri’s future. He was an extraordinary mentor to many of us, always ready to offer thoughtful counsel, encouragement, and the perspective that comes from a life well lived. Whether asking the question no one else had considered or reminding us to stay focused on the people we serve, he did so with grace, steadiness, and genuine kindness. His presence made our work better, and his passion for ideas strengthened the entire organization.

I extend my heartfelt condolences to his beloved wife, Liza; their children Sr. Maria Battista, Juliet, and J. Alexander; his grandson Aidan; and the entire Forshaw family. Joe’s leadership, generosity, and friendship will be deeply missed.

Details about visitation and services can be found here.

We’re Destroying Meritocracy

A report released earlier this month by the University of California at San Diego (UCSD) gives some startling numbers. UCSD is an elite public university—it ranks 6th among public colleges and 29th overall in U.S. News & World Report’s 2026 rankings—yet a growing share of its incoming students lack even basic math skills.

The report is from an admissions workgroup consisting of university faculty and a handful of administrators. It focuses on a remedial math course UCSD introduced in 2016 to help freshmen fill gaps in high school–level math. The course initially enrolled about one percent of incoming students. However, instructors began to realize many students lacked even more fundamental middle- and elementary-level math skills. In response, the math department split the course into two courses: one focused on elementary and middle school math, and the other on high school math.

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

To give a sense of the skill deficiencies among students in these remedial courses, the report shows specific math problems along with the fractions of students who could answer them correctly. Here are three example questions at the elementary level (edited very lightly for presentation here):

1. Fill in the blank: 7 + 2 = __ + 6

2. Round the number 374518 to the nearest hundred.

3. Find (13/16) ÷ 2

While it would be reasonable to expect every student who is accepted into an elite public university to be able to answer these questions correctly, many tested students could not. Just 75, 39, and 34 percent of test takers gave the correct answers to these questions, respectively.

The report identifies several factors that contribute to these disturbing—and frankly embarrassing—outcomes, including grade inflation in California’s K-12 schools that allows students to graduate with good grades but weak skills, the pandemic (every educator’s favorite scapegoat), and the UC system’s stubborn refusal to require standardized tests for admissions. But beneath all of this lies a deeper issue: a system-wide erosion of meritocracy. When merit is downplayed and standards are continually lowered, you end up with students arriving at elite universities unable to do elementary math.

To be clear, UCSD is not the only institution that has this problem, and I don’t want to punish it unduly for being transparent. In fact, the report talks about similar problems at other UC campuses, and what it describes aligns with my own experience as a professor at the University of Missouri.

There is evidence all around us of the shift away from meritocracy in education. Nationally and in Missouri, student grades, and high school and college graduation rates, are at historic or near-historic highs despite clear evidence of declining academic skills. Educational administrators at all levels of schooling have demonstrated a blatant disregard for excellence.

(Disclosure: I am a proud —though less so by the day—alumnus of UC San Diego, where I received my BA, MA, and Ph.D.)

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