Demand for charter schools is at an all-time high. Unfortunately, student’s charter schools are functionally limited to St. Louis and Kansas City, denying thousands of children an opportunity for a better education. Isn’t it time to expand charter schools in Missouri?
To learn more about charter school expansion check out our 2018 Missouri Blueprint.
The federal tax reform bill is likely to have many consequences, intended and unintended. One intended consequence is that it expands the use of funds in 529 education savings accounts beyond college expenses to K-12 expenses. If parents open these accounts for their children and add money to them, they can withdraw those funds when needed for education expenses without paying taxes on what the savings have earned. In addition, in states that allow it, deposits to these accounts can be deducted from income on state forms, thereby lowering the tax bills of savers.
The St. Louis Post Dispatch cited an analysis of the impact this change could have on state coffers which found that Missouri tax revenue could drop by as much as $42 million dollars once all private school parents open these accounts and route their child’s tuition through them in order to reduce their state taxable income. That amount is dramatically higher than the likely reality, because it depends on several conditions being met.
First, every current private school student would suddenly have to have one of these accounts with enough funds to cover tuition. Second, in order to take the maximum deduction, all private school students would need to have married parents who file their taxes jointly. And third, all of those parents would need to have a marginal tax rate that is higher than the average for the state.
It is more likely that the impact would be about $32 million. We get this by multiplying the number of students enrolled in private elementary schools in Missouri by the average private elementary school tuition in Missouri ($6,800) and most (75 percent) private high school students by the average high school tuition of $11,500, with the remaining 25 percent of students taking the maximum benefit allowed for a single filer in Missouri of $8,000. Further, we use the average marginal tax rate in the state, which is 3.6 percent.
And while it is unlikely that a tax break of $500 or so would be enough to induce public school parents to switch to private schools, any who did would essentially save the state money. They would pay $500 less on their tax bill, but their child’s education bill would no longer be paid for with public dollars.
It makes sense to try to anticipate the impact of federal tax reform on state tax revenue, but it needs to be done in a sensible way.
On Thursday, January 18, the Show-Me Institute’s Patrick Tuohey appeared on KCPT’s Ruckus to discuss recent controversies surrounding government officials in Jefferson City and Jackson County, the economy, and other state and local issues.
Amazon has released a list of their top 20 contenders for their new headquarters. Neither Kansas City nor Saint Louis made the cut.
Previously, both cities refused to publicly release the details of their bids, including what tax incentives they were offering, claiming that Amazon required confidentiality. Some have questioned whether that is a legitimate claim. But regardless, both cities should, in the name of transparency, release the entirety of their proposals. Maintaining faith in government requires no less.
3:50 pm: CBS-St. Louis/KMOX News has posted St. Louis’ Amazon HQ2 proposal.
It is one of the most important decisions for parents to make—where to send their children to school. Some parents even pick up and move to the school district they desire, but of course this is impossible for many middle and low-income families. This week is National School Choice Week, which celebrates programs that offer parents and students options and trust them to tailor their education to suit their needs. It stands as a stark reminder of how far Missouri lags behind other states in offering real educational choice to our families, many of whom live in poor urban neighborhoods or isolated rural communities.
There are nearly one million public school students in Missouri. And, with the exception of the 50,000 students who attend public charter schools or magnet schools, a vast majority of them have exactly one choice for where they will get their education. That “choice” is based on the address on their mailbox. Imagine if that were the case for every child’s medical care – a doctor assigned to them based on where they live.
Missouri does have charter schools—but only in two cities and as punishment for low test scores. In most states, charter schools can open wherever there are teachers, school leaders, parents or community organizers with an innovative vision and a willingness to be held accountable for results. Parents in these states can choose charter schools with unique approaches, from personalized learning to a focus on the classics, and many others in between. In a 2014 survey, 15 percent of Missouri parents responded that they would choose a charter school if they could select any type of school, including private schools. By comparison, charter schools in Missouri currently enroll less than two percent of our public school students.
Beyond charter schools, eighteen states have organizations that grant tax-credit funded scholarships for low-income students to attend private schools. Six states directly give parents a portion of their child’s state funding to purchase educational services, such as tuition or tutoring. And sixteen states provide scholarship money for parents to choose a private school. Missouri does not offer parents any of these choices.
Children are unique, and parents should be able to chart the right course for their children to reach their potential. This week there will be more than 32,000 celebrations of school choice across America. Isn’t it time for Missouri to step up and expand the options available to parents, so that our state has a real reason to celebrate?
THE PROBLEM: Missouri’s Certificate of Need (CON) law restricts health care competition by requiring many health care providers to get state approval before entering new markets or expanding services offered in existing facilities. This restriction hampers innovative start-ups and market newcomers that would provide Missourians care. It also puts upward pressure on health care prices.
THE SOLUTION: Repeal the Certificate of Need law.
Eliminating CON requirements would allow Missourians to benefit from true marketplace competition in the health care arena.
WHO ELSE DOES IT? California, Colorado, Idaho, Indiana, Kansas, New Hampshire, New Mexico, North Dakota, Pennsylvania, South Dakota, Texas, Utah, and Wyoming have no CON law.
THE OPPORTUNITY: Missouri would join a growing list of states that have opened the door to real health care competition.
KEY POINTS
SHOW-ME INSTITUTE RESOURCES
Essay: Demand Supply: Why Licensing Reform Matters to Improving American Health Care
Blog Post: Missouri’s Certificate of Need Law Needs to Go
For a printable version of this article, click on the link below. You can also view the entire 2018 Missouri Blueprint online.
THE PROBLEM: Demand for charter schools in Missouri is at an all-time high. Unfortunately, for practical purposes charter schools are limited to the Kansas City and Saint Louis School Districts. Establishing a charter school is nearly impossible in any district that meets minimum state accreditation requirements. Tens of thousands of students are denied the opportunity for a better education.
THE SOLUTION: Expand charter schools statewide.
Charter schools should be allowed in districts regardless of whether the district meets minimum state accreditation standards. Per-student funding should be the same for both charter school and traditional public school students. Demand among families and charter school authorizers like universities should determine where and when charter schools open in Missouri.
WHO ELSE DOES IT?
Over 6,900 charter schools operate in 43 states and the District of Columbia, serving more than 3.1 million students. States like Indiana place no caps on the number of charter schools and fund charters and traditional public schools at equal or nearly equal levels. Unlike Missouri, almost all other states allow charter schools to operate anywhere.
THE OPPORTUNITY: Charter schools are growing. Over 23,000 students enrolled in charter schools in Missouri for the 2016–2017 school year—an 11% increase from the previous year. University Academy, one of the top-performing charter schools in the state, has a waitlist of 700 students. The demand is there. Simply by getting government out of the way, we can offer students a way out of underperforming schools and into schools they want to attend.
KEY POINTS
SHOW-ME INSTITUTE RESOURCES
Essay: Expanding Charter Schooling in Missouri
Blog Post: Charter Schools Boost College Completion
Blog Post: No, Charter Schools Don’t Push Out Kids Who Are Too Hard to Educate
Blog Post: The Charter School Discipline Problem That Isn’t
For a printable version of this article, click on the link below. You can also view the entire 2018 Missouri Blueprint online.
THE PROBLEM: All across Missouri, students lack access to higher-level coursework such as AP courses, calculus, and physics.
THE SOLUTION: Course access.
Course access programs allow students to direct a portion of their annual per-pupil funds to take—and receive college credit for—courses outside of their traditional public school course offerings.
WHO ELSE DOES IT? Eleven states across the country have some form of course access program.
THE OPPORTUNITY: Missouri has much of the infrastructure needed to create a course access program through an underused program known as the Missouri Virtual Instruction Program (MoVIP), which was signed into law in 2006. In addition, the Grandview R-II and Springfield school districts have created their own online programs, but these courses are not available to all students in the state. In all three cases, the course offerings are vetted by the Missouri Department of Elementary and Secondary Education (DESE) and can be credited toward graduation.
KEY POINTS
SHOW-ME INSTITUTE RESOURCES
Essay: Course Access in Missouri: Diversity, Personalization, and Opportunity
Blog Post: Missouri Students Need Access to Advanced Coursework
Video: Course Access: Opening Opportunities across Missouri
Video: Course Access Brings the Classroom to the Student
For a printable version of this article, click on the link below. You can also view the entire 2018 Missouri Blueprint online.
THE PROBLEM: State spending is on the rise in Missouri, led by a growth in public welfare dollars. Public welfare spending now accounts for more than 46% of total spending and is the largest driver of general spending growth in Missouri.
THE SOLUTION: Transition toward the Earned Income Tax Credit (EITC).
An EITC is a credit that may be used to offset a worker’s state income tax liability. Proper use of EITCs could slow the growth of public welfare spending while providing material benefits to working families.
WHO ELSE DOES IT? Twenty-five states and the District of Columbia offer EITCs at either the state or local level, although the amounts and refundability of the credits vary.
THE OPPORTUNITY: Moving current public welfare dollars to an EITC will encourage self-reliance among the state’s poor while also restricting growth in public welfare spending. Not only does the EITC help working families make ends meet, but it also encourages recipients and families to find jobs and increase hours worked. Missourians can move up the economic ladder with the aid of the EITC—which can help people get off state assistance entirely, thus bringing down the cost of the credit.
KEY POINTS
SHOW-ME INSTITUTE RESOURCES
Blog Post: Moving Missourians from Welfare to Work
Blog Post: Making Strides toward Welfare Reform
For a printable version of this article, click on the link below. You can also view the entire 2018 Missouri Blueprint online.
