Missouri’s education savings account program, MOScholars, which facilitates school choice in Missouri with student scholarships, got a decisive win in court this week. This is not a surprising outcome, but it’s worthy of celebration regardless.

The lawsuit against MOScholars was brought primarily by the Missouri National Education Association (MNEA)—i.e., the teacher’s union—against the State of Missouri. The MNEA argued that the $50 million state appropriation to support student scholarships with MOScholars, passed during the 2025 legislative session, violates the state constitution.

The court dismissed the case, offering several reasons. Most importantly, it ruled that the plaintiffs lacked standing. The plaintiffs claimed harm to public schools, but MOScholars funding comes from general state revenue—not funds allocated to public schools—and the court found that any alleged harm was speculative. The court also noted that the plaintiffs made several other procedural missteps.

The ruling went on to note that even on its merits, the plaintiffs’ case would lose. The legislature has broad authority to appropriate funds, the court said, and nothing in Missouri law prohibits funding a program like MOScholars. In short, the program is legally valid.

Again, this outcome is not surprising, but it’s still nice. The lawsuit was a desperate move by the MNEA to keep a stranglehold on all public education dollars. It failed, as it should have. Onward!

The post MOScholars Wins in Court appeared first on Show-Me Institute.

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Transcript

Susan Pendergrass (00:00)
Great. Mike McShane, EdChoice, always great to have you on the podcast. I read your Substack, Informed Choice. I know you do not write them all, but you write a lot of them, and I think they are super interesting. A month or so ago, there was a lot of “what’s out, what’s in,” closing down 2025 and starting 2026. I really liked your post about six words for 2026, but…

Mike McShane (00:03)
Always great to be with you. Thanks for having me. I tried to.

Susan Pendergrass (00:28)
I want to talk about that, but generally speaking, I have been having this feeling, and I think we have even talked about this on the podcast, that something has changed in K–12 education in the United States. Something seems different than it did. You track the number of kids in private school choice programs, which took forever to get to a million, and now it is like a million and a half, right? It just seems to have been growing so fast.

Mike McShane (00:52)
Yeah. I think there has definitely been a shift. I have noticed that, with the start of the year and legislative sessions starting across the country, I am talking to journalists and other folks, and it seems like the normal conversation I would have had in the past was, “Are we going to have these programs, is there going to be choice, or what?” Now it is, “What is the shape of it going to be?”

So much of choice now is being taken as a given. I think we are even seeing that within public school districts. Even in states that might not have private school choice or robust charter schools, they are at least saying, “Parents are going to need to have choice, and maybe we can keep the genie in the bottle by just having it within public school districts, or in between public school districts.” But the idea that we are going to go back to residentially assigned public schools…

Susan Pendergrass (01:41)
Like Kansas.

Mike McShane (01:50)
…with the odd aberration here and there, it just seems like that shift has happened. Now it is a question of what it is going to look like, and it is going to look different in different states. It is not a “whether,” it is a “how.”

Susan Pendergrass (02:03)
That’s right, because we have a whole bunch of second-generation choosers, right? We have parents of young kids whose parents chose it, so they are not, like you said, going to go backwards.

Another interesting outcome you have talked about over the years is that the Catholic school movement is growing again, right? Like in Florida, we are seeing a resurgence in Catholic schools, and in Iowa, because parents did not necessarily not want to send their kids to Catholic schools. Some got mad about the scandals…

Mike McShane (02:05)
Yeah, for sure. Iowa, Florida, and probably other places when data comes out, for sure.

Susan Pendergrass (02:32)
…or they did not want to pay tuition, and now they can. And certainly this survey you all have done for so long, on where parents would send their kids to school versus where they do send their kids to school, maybe we are going to see some sort of convergence where parents can actually send their kids to the school they want.

A couple of the words you said are going to be big in education in 2026, “participants,” is that right? Participants.

Mike McShane (02:34)
Yeah. Totally, absolutely. “Participants” is one of them.

Susan Pendergrass (03:02)
And “supply side.” What do you mean by “participants”?

Mike McShane (03:06)
“Participants” is, there is this big debate now, and in the piece I started with very general words that are part of the broader conversation, and then I got very narrow into school choice research words. “Participants” is kind of a school choice research word, but not entirely. I think it is going to be part of broader debates about choice in general.

There is a big question out there, who uses these programs? Who is going to participate? There are competing theories. Skeptics say it is going to be all rich kids, or kids who are already in private schools. Stronger advocates say it will be low-income kids, or kids desperate for more options.

The answer is probably somewhere in the middle, and it will probably be different in different places at different times. Some of the emerging research suggests that when universal private school choice programs first start, for reasons that are perfectly predictable, students who are already in private schools are the first movers.

Susan Pendergrass (04:01)
Sure.

Mike McShane (04:28)
That is probably because private schools find out about these programs and have an audience. They can say, “Hey, you all know how you are paying to go here? Now you do not have to do that anymore.” And then over time, the circle expands outward.

Susan Pendergrass (04:33)
They pass out a piece of paper in every backpack, yeah. “You should get this.”

Mike McShane (04:48)
More and more, those families have neighbors, cousins, and people they play YMCA basketball with. The word gets out over time. A lot of traditional channels for educating people do not work as well. It is not like everyone watches the nightly news or reads the local newspaper.

Susan Pendergrass (05:08)
“Put it on your website.” That’s a Missouri legislative mainstay, put it on your website.

Mike McShane (05:14)
So a lot of this comes out via word of mouth or discussions. You could look at the same state and see participation change over time.

Because these programs are rolling out in different states at different times, there is not going to be one national answer to who is participating. It could be the first year in Mississippi, but the second year in Alabama, and the makeup of students will be different. Because of the nationalized nature of coverage, people will keep pushing for “the one answer,” but there isn’t one. Though, to be fair, some people will say there is. I do not think that will be true.

Susan Pendergrass (06:07)
Yeah, I get a ton of questions around the rural issue. Either it is going to be the demise of our rural school system because we are all going to close, or rural families do not need it, which are opposites. It is opposites, right?

Mike McShane (06:09)
Yeah. It cannot be both. And yet a frequent criticism is that it will be both of them.

Susan Pendergrass (06:25)
But I get that a lot. “There are no private schools for them to go to,” and “it is going to cause rural schools to close.”

Certainly in Missouri, even our MOScholars program is quite small, and we do not really have charter schools outside of two districts, two very far away places. So I think for a lot of folks in Missouri, it is mysterious, who would do this, and why would anyone want it? And of course, “All the poor kids are going to go to the wealthy school districts.” Still a lot of talk about property taxes. It is almost like 2005 in Missouri, a lot of that going on.

But the reality is, in long-running programs, and now I am thinking open enrollment, anywhere you let parents pick, you get a lot of rural participation. They have the fewest choices, right? And you get a lot of urban participation, and some suburban participation. Like you said, I do not think you can…

Mike McShane (06:55)
Yeah, right.

Susan Pendergrass (07:20)
I have had so many parents over the years say, “We do not need that here because all our schools are good.” And I am like, I promise you there is a child who got on the bus with a stomach ache this morning because they did not want to go to school, for whatever reason. They think the teachers do not like them, or they are being bullied, whatever it is. I promise you there are families who would leave if they could easily do it.

Mike McShane (07:30)
Yeah, for sure. Totally.

One thing that is going to be interesting, as we watch this play out, with questions about who is participating and who is leaving public schools, is that there are broader trends of public school enrollment decreasing. You hear in some states, “My gosh, all these public schools are closing because of choice programs.” But the state next door that does not have a choice program, their public schools are closing too, because there are just fewer kids than there were before.

So that is another thing we have to disentangle, the broader population trends. I was just seeing something earlier about how congressional seats and electoral college seats are going to change because of population shifts.

Susan Pendergrass (08:17)
It’s huge.

Mike McShane (08:26)
You look at states like New York and California losing large numbers of people, Florida and Texas increasing numbers of people. These are people in general, because that is how it all happens. We have to start with that baseline and then layer these other things on top, because I feel like school choice is going to get blamed for this, even in places where it does not exist.

Susan Pendergrass (08:36)
Yeah. I cannot tell you how many times I have talked about this and shocked people. Every school district in St. Louis County, for example, has declining enrollment by large numbers. Clayton’s declining enrollment, Ladue declining enrollment, all declining enrollment. People are like, “Where are they going?” And I say, “They were not born.” They simply were not born.

We had our biggest kindergarten cohort in 2013. That moved through to senior year of high school like two years ago. It is just demographics. They just were not born.

Mike McShane (09:00)
Right? Yeah.

Susan Pendergrass (09:20)
We have net out-migration of some groups of people, people with bachelor’s degrees, but for sure, it is demographics. These kids were not born.

There is going to be this push and pull between five-to-seventeen-year-olds and retirees, basically, because we are getting more old people and fewer young people. Do we build a school or a nursing home? I think it is going to be a thing.

And we still have school districts getting bonds, 30-year bonds, to build schools and buy buses. I do not know if that is the right answer. At least the charter school sector, and probably similarly the private school sector, figured out how to not be in the real estate business, how to lease a building, or do different types of arrangements. They are going to benefit from this, while the public school system is still building schools. The kids are not being born, but we will see how that plays out.

Another thing you mentioned, one of your words I have been thinking about a lot, two of them, is “transparency.” I have wondered, can I start calling accountability transparency? Because accountability is kind of negative, but transparency, of course.

And you talk about “rage bait.” Sorry, I am rolling these into one, but with early media stories around some of these private school choice programs, like Arizona, people really jumped on what parents were spending their money on. As though they cannot be trusted to spend this money, in the way the public school system can be trusted with billions, I mean trillions, of dollars. Parents cannot be trusted with this $8,000, they will simply…

Mike McShane (10:52)
Totally. This is the irony. The irony is kind of like the discussion earlier, how there are no places in rural America, and everyone will leave rural schools to go to these non-existent places. Both cannot be true at the same time.

We cannot say these programs are not transparent and then talk about all the individual purchases families are making. That has to be transparent for you to be able to make those arguments. It is kind of a shell game people are playing when they talk about transparency.

When you say, “Here are ways in which ESA programs are not transparent,” your research is a perfect example of the opposite. Transaction-level data, you have published papers that offer transaction-level data on every purchase in the ESA program.

Susan Pendergrass (11:59)
Trust me, there are hundreds of thousands of records.

Mike McShane (12:00)
Right, hundreds of thousands of records that are available for anybody to look at.

I think this is actually good. We need to have discussions about what should be included in these programs and what should not. It is an education savings account, not just a savings account, so we have to draw the borders around what is an educational purchase and what is not.

We live in a big, vibrant democracy, so we need to have these discussions. Should you be able to buy a trampoline, or a Lego set, or whatever? Let’s talk about it. That’s fine. Maybe we decide in some cases it is allowed, and in some cases it is not.

This is part of transparency and accountability. You are democratically accountable, we need to participate in this.

But I am still blown away by the number of people who claim these programs are not transparent, when what we know about what parents are doing is more granular and more detailed than any public school district, any charter school network, almost any institution you are going to see. You just do not get transaction-level data on anything.

We can debate whether those are good purchases or not good purchases, but to say they are not being transparent is wild to me.

Susan Pendergrass (13:09)
No, I mean, my kids all went to public school. They certainly went to amusement parks. They certainly watched a lot of movies. They would not want anyone scrutinizing every, you know, you have 30 teachers buying 30 whiteboards. Decisions were made that were not the best.

I did not see anything in the transaction-level data that made me think, “This is outrageous.” And who am I to say woodworking is not an okay thing for your child to learn? Swimming lessons, I had to swim. I do not know.

I do not want to get into that conversation because I assume the best intentions for parents. I cannot understand why a parent would invest the time and effort to get into these programs to simply buy themselves a trampoline, and not really care if their kids are reading or not. I do not understand that, but that is what…

Mike McShane (14:04)
Right.

Susan Pendergrass (14:15)
…they are throwing mud at the wall to try to discredit. Clearly, it is what parents want.

I am baffled that, when you look at politics in the United States right now, those on the left just refuse to accept this fact. It is a fact. Parents want to choose their school.

There are certainly Democrats for education reform, and plenty of people working hard from the left, but the general approach feels very last century. The teachers’ union saying, “Nobody wants this, we have to stop it at all costs. We have to put a halt to this and put more money into the public school your address sends you to. We need to fund those fully first before we can ever let kids out.” That is such a failed argument to me.

Mike McShane (15:18)
Look, this is why “accountability” and “transparency” are two of the words for 2026. Opponents to choice have figured out they cannot just go out hammer-and-tongs against it, or directly say, “We are against choice.” People do not learn lessons in politics, but they learn that one.

I was looking at the gubernatorial candidate just to Missouri’s north in Iowa. It was interesting. There was an interview with the Democratic candidate for governor, Rob Sand. He would not come out and condemn the ESA program outright. The interviewer perceptively drilled down and asked, “Are you saying you are not opposed to this program, you just want changes?” He never said yes to that. He has never said, “I am for this program.” If you read between the lines, he is saying, “I am not for this program, but I cannot come out and say it.”

His pivot was immediately, “I am just talking about accountability and transparency.” He wants private schools to follow every single one of the same rules that public schools do, and expects them to somehow do better.

Part of it is, these are folks working in red states who need to make arguments that appeal to conservatives. Accountability appeals to conservatives. Fiscal responsibility appeals to conservatives, not wanting to waste tax dollars. So it is smart strategy. People need to see what it is.

If this is a blue state, these exact same people are making arguments that appeal to progressives. But you are in a red state, so they are trying to make arguments that appeal to you. If you think about it for a little bit longer, what they are saying does not hold a lot of water.

Susan Pendergrass (17:41)
Yeah, and with this federal tax credit program, even though every state has to decide whether or not they are going to take the money, it is going to be a weird shifting of resources. If I live in a state that says, “We are not going to take the money,” that is fine. I can give my $1,700 to a scholarship group in any state. I will just send my $1,700 to another state.

Some states, like Virginia, the governor, one of the last things he did when he left was opt in. Now the new governor is going to have to make this weird choice. Do I want to go against it? If you looked at any poll of parents, any poll, you would know they want to be able to choose where their kids go to school. Do you really want to be the person that withdraws?

Mike McShane (18:21)
Yeah, when she seems to be in a perfect position to just say, “Oh, the last guy did this on the way out, so I guess we are going to do it.” Once they do it for a year and everybody is fine with it, it is just, “Oh well, whatever.”

Susan Pendergrass (18:33)
I do not know. I did not do it.

I think it is going to be really interesting because, again, the way we started this, there is a groundswell. I do not think you are going to turn it back. If you stay on the side of saying it is better when kids can only go to their assigned public school, you are in quicksand. You are going to bury yourself.

Mike McShane (19:03)
Yeah. The only thing I would say, and it was another one of my six words, is “rage bait.” It is always lingering in the background for me. I am seeing it more and more, all day, every day, stuff that shows up in your feed deliberately to upset you, terrify you, whatever.

Rage bait is unpredictable. You never know what is going to catch fire and cause a big shift. There is obviously potential for rage bait content, as we mentioned, we have crossed one and a half million, hundreds of thousands of people in various states, with lots of flexibility in what they can buy. People making bad decisions, people stealing things, it is totally possible that happens. Something egregious could happen.

With a large enough population, even very improbable events can happen. One fear I do have is that something rage-bait-y happens and people lose their minds over it.

But this is the key, if one parent in Arizona does something crazy, that does not mean the other 1,499,999 parents around the country should not have the right or opportunity to do this. We have to be able to say, “This is rage bait, this is not actually what is happening.”

Susan Pendergrass (20:51)
Yeah, we have talked about this. Those of us who have pressed for school choice for so long have said, “We will do anything you want, take our arm. We will put all our data out there, we will be as transparent as possible.” And your colleague, Marty Lueken, had a Substack about this recently, like, “We will take half the money. We do not need all the money, half the money will be…”

Mike McShane (21:08)
For sure.

Susan Pendergrass (21:19)
…150 percent transparent. We will jump through all these hoops just to get this thing that everybody wants, and it is from that transparency that we are going to get those stories. We are going to pay for that.

Mike McShane (21:29)
Yeah. It is important for people to be more attuned to the rage bait they are getting. People ask, “Have you seen this thing that happened in this place?” And I am like, okay, yeah, even if it did, what do you extrapolate?

A teacher in Sacramento did something crazy. There are north of a hundred thousand schools across America. There are north of three million public school teachers. At any given moment, someone is doing something dumb. I do not know what to extrapolate from that. It could just be one crazy person.

This is not just education. Across public policy, you point to one person in the military doing something terrible to delegitimize the military in general. Do not fall for this.

To be fair, sometimes we in the school choice movement, or education reform, have done rage bait of our own. People have used social media to point out, “My gosh, look at this assignment that a second-grade teacher in Poughkeepsie did, this is why we need school choice.” People have done that.

The measure with which you measure will be measured back to you. If you live by the sword, die by the sword.

Susan Pendergrass (22:54)
John Oliver did a story on charter schools. Remember, it was the guy in Florida that was letting a charter school be a nightclub at night? There is no way that is representative of charter schools.

Mike McShane (22:58)
Yeah, I remember that.

Susan Pendergrass (23:10)
That was an example I found shocking, but it is not representative. And you are right, they will find those stories.

Mike McShane (23:13)
Yeah, totally. We should all use less rage bait. We should not use rage bait to say just because one teacher in one place did something dumb, that is an indictment of public education in general. Nor should we allow the same thing to be done in reverse, which is, because one family did something crazy, we should not have choice at all.

Susan Pendergrass (23:49)
That leads to another one of your words, “slop.” There is so much talk about AI in schools and what to do about it. Is one person going to figure this out for every school everywhere, or are we all going to figure it out individually?

Mike McShane (24:03)
Yeah, I played out the scenario I am worried about. I do not know if it will happen in 2026, but it might.

We have heard a lot about AI in schools, students cheating, which is real and worrisome. But the specific scenario I have not heard as many people talking about is the prevalence of AI video, and the ability to create videos of things that did not happen.

How many, if you have a student in a classroom, after taking a picture or a short, unrelated video of their teacher, they can put it through a series of prompts, “Hey, have this teacher do,” and then insert whatever horrible thing, say something horrible, do something horrible.

Susan Pendergrass (24:34)
Yeah.

Mike McShane (24:53)
And if you are not savvy, and I will be the first to say I think I am a savvy consumer of the internet, I have been fooled or very close to fooled. AI videos of animals doing things, dogs protecting people from bears, or that one recently that went around with a bald eagle that had ice on its beak that someone knocked off, whatever.

Susan Pendergrass (24:58)
It is like a parlor game, right? No dogs are going off diving boards, just to clarify. The rabbits on the trampoline, these are not happening. But you are right.

Mike McShane (25:20)
People who are not as savvy, the thing I spelled out was, someone does that, and then suddenly the next PTA meeting is flooded with people because this viral thing went around. The superintendent or principal has to say, “This did not happen, it is not real.”

If you do not have the media literacy, it is like one person’s word versus another. “We saw it happen, it is on video.” “No, it did not happen, it is AI.” How we adjudicate those things, and how it could be weaponized by teenagers, or by bad actors, all of that stuff will happen. Whenever a new model is released, everyone tries to break it immediately, they are much more creative than I ever was.

I am worried for teachers, worried for schools, worried for school board meetings. It could be anything. It could be taking video at a football game and saying something happened that did not. Even if it all works out eventually, the time and energy wasted dealing with it…

Now, again, I am hoping more and more schools, this could be a real kick in the rear end to get phones out of schools and say, “We are not going to have phones in schools, because people are going to be making AI videos of their teachers.” That is one of a thousand reasons we should not have phones in schools.

But it is not the only place kids are interacting with one another, or with teachers. So we have to be really skeptical when we see that video of that teacher, or that student, or that principal doing something. Take a deep breath and ask, “Is this video real? Does this pass the smell test? Does this sound like something a teacher would actually do?” I am increasingly worried about that. There are many other things people worry about that I do not really worry about, but AI video in the context of schools, bad news bears.

Susan Pendergrass (27:53)
Yeah, I think we are going to have to start adjusting our thinking to only believing things that happen in front of our face, things we can touch. The prevalence of, you know, Amazon ads now, they are… I mean, I went to get my haircut and somebody was holding up a picture, and she was like, “Okay, well, that is not a real person.” We are going to have to default to disbelief if it is on a phone or on a screen. If it is happening in front of you, you can touch it, you can believe it. But the rest of it, I think we are going to become extra skeptical, because I do not believe much stuff anymore.

Mike McShane (28:22)
Totally. Are schools going to need CCTV cameras everywhere? Are we going to be oddly surveilled in a lot of different ways, just for CYA? “If people are going to be making up fake videos, we need the real video of what is going on.” I do not know how that is going to go, but…

That was the “rage bait” one, my plea to people, please do not fall victim to rage bait. It is pinging parts of our brains that we should not. I get wrapped up in it too. “My God, I cannot believe that is happening.” Then you take 10 seconds and you are like, “Wait, why am I fired up about this road rage incident in South Carolina?” Someone cut somebody off on the highway. Who cares? I am not there. It is not my deal.

I think this “slop” stuff is also something we are going to have to be really cautious about and thoughtful about, because it could cause lots of problems.

Susan Pendergrass (29:35)
Yeah, but then people are like, “I am not going to allow AI, I am going to check it.” I think AI, we are going to have to accept, right? We have to live with it.

Mike McShane (29:41)
Yeah, we are going to have to realize this is just part of it. There will be so many great things that come out of it, the creativity it will unleash.

In our own Substack, a bunch of the graphics we do are AI generated. I could not, I laugh, I have young kids, they are better drawers, I am horrible at it, but I can do this stuff with a couple of prompts in ChatGPT. “Hey, make me…” and they can be funny. You can do someone in the style of a famous painter and suddenly it is a Renaissance painting of me.

That is incredible productivity. The fact that I do not have to have a graphic designer, I can basically do it myself and put out essentially a small newspaper with some contributors and a bit of AI. That is an insane productivity increase, and it is incredible, but we have to be cautious of the downsides.

Susan Pendergrass (30:48)
Finally, your last word, “supply side.” In Missouri, folks will say, “Well, we do not need private school choice in our rural areas, there are no private schools,” as though the supply of private schools is fixed. It is treated like a natural result of how much interest there is, the kind of people who live in the community, and what is there is there, without thinking that if parents suddenly had $7,000 or $8,000 to spend, maybe somebody would open a new school.

Or not even a new school. Maybe somebody would open a visual arts business, or a soccer academy, tutoring, dyslexia therapy, whatever it is they think parents want or need. You would be free to be an entrepreneur in that space. That piece is largely overlooked, because it is like, “We have this many private schools with this many seats, so we can only have this many scholarships.” It is like, no, that is not fixed. Do you think we are going to see a lot of changes in that area?

Mike McShane (32:00)
Yeah, because another dimension where people think things are fixed is not only the number and locations, but the shape of what schools look like. “We are not going to have a private school in this small area because we cannot have a brick-and-mortar building with 30 rooms and 250 kids.” That is not what we are talking about.

If you can get 10 kids together at $8,000 apiece…

Susan Pendergrass (32:26)
There are no buildings.

Mike McShane (32:36)
…you can do a lot of interesting stuff. Especially if you can get space donated, leverage resources in the community, maybe some online stuff, and a local teacher. You could put together a heck of an education on $80,000 or $100,000.

It is happening. What makes it challenging to talk about is that it is happening across different dimensions. At the same time we are talking about Catholic schools growing and starting new schools in a traditional sense, two blocks away in some rented bungalow people are creating a Montessori micro school.

Because these things get spoken about in national terms and in a thousand-word news story, we struggle to discuss multiple dimensions. Existing schools are growing, new schools are emerging, and those new schools are going to look different. Some will grow, some will shrink, all these things can be happening at once.

Our job as researchers and observers is to do a lot of descriptive work, describe what is happening. There has been a push in earlier generations of school choice research toward causal results, horse-race comparisons, “Are they better than public schools?” “Is this type of private school better than that type?” But the only reason we were able to do that in 1998 is because, for a hundred years before, people did descriptive work to know, how many schools, what are they doing? Then you can talk about who is doing better, because you have to decide what they are doing, where they are, who is attending, are there differences.

It is almost like we are starting over.

Susan Pendergrass (34:39)
Yeah.

Mike McShane (35:01)
…doing that basic descriptive work. What is actually happening? What are people doing?

Susan Pendergrass (35:08)
Yeah, I know somebody who started a school in a barn on their property, and the parents came and converted the empty barn to a school. I know somebody who started a mobile school, basically in a big van, so that the school came to their house one day a week. And I know someone who started one in a high-rise in Queens. It is only limited by people’s imagination, basically, right?

And a like-minded group of parents. There are more people homeschooling now than used to be, so you could do this individually, but there are many more opportunities to do it. Parents, what emerged from the pandemic, at least, is they want their kids home maybe two days or three days. That is popular, and people are finding that two days out of the house creates unique opportunities in that space.

I think it is limited by people’s imagination, and some curriculum standards, and perhaps some accountability. But if you can meet those, I think we are seeing this idea.

I am not trying to be anti-traditional public school, but I butted up against this when my kids were little. “We are the only ones who know how to do this, so you have to accept our way of doing it because it is tried and tested and comes out of our schools of education at the universities.” This is the one and only way you have to teach the number line in third grade. “This is how it has to be, we cannot vary it because we are the great equalizer of civic society in the United States.”

Your boss, Rob Enlow, really shut me down on this. It has not panned out. We only read and do math less well each year.

I cannot imagine that letting all these flowers bloom is going to have a worse result. If we fast forward 20 years and look at median earnings and educational attainment rates, and we let this thrive, I think the outcome would improve. I do not see how it goes down.

Mike McShane (37:23)
That is the thing. You mentioned the interesting times we are living in now. So many of the “parade of horribles” choice opponents talked about forever, polarization, balkanization, people retreating to silos, it is like, hey guys, that already happened without choice. You cannot blame choice, because choice did not exist yet for that to happen.

Lots of people pushing each other in the streets went to public schools. Statistically, these are public school graduates having large problems with one another.

The conservative in me says things can always get worse. The fundamental progressive view is things can always get better, and the fundamental conservative view is things could always get worse. That strand in me says, yes, things could get worse. But across a lot of these dimensions, academic outcomes, civic outcomes, there is a lot of room for growth, and not nearly as much bottom end to fall out. So the risks associated with giving people more choices are not nearly as severe as proponents of the traditional public schooling system make it out to be.

Susan Pendergrass (38:58)
Yeah. Well, in Missouri, 40 percent of our fourth graders are below the basic level in reading, which means they cannot read at all. They cannot read. They are illiterate.

Would 40 percent of parents, if given the money to spend on their child’s education, have a nine-year-old and say, “Turns out they cannot read. I tried and tried, we just did not get there. They just cannot read.” I do not think so.

I know this is not the perfect solution, that accountability through parental choice is the answer. I am not saying that. But I do not think that if parents were truly put in charge, four out of 10 would just say, “Gosh darn it, this kid is never going to read, there is probably a lot of opportunity in the service industry.” I do not think so. I think that would be a much better check on the system.

Interesting stuff. Thanks so much for joining us. I really appreciate it, always.

Mike McShane (39:42)
Yep. Yeah. I agree with you. Agreed, 100 percent.

Susan Pendergrass (39:59)
So great to talk to you. What is your Substack called?

Mike McShane (40:02)
Informed Choice, so people can check that out. Informed Choice on Substack. Subscribe, it would be great.

Susan Pendergrass (40:05)
Yeah, it is really interesting. Great. Thanks so much.

Mike McShane (40:10)
Thanks for having me.

Produced by Show-Me Opportunity

The post The Six Words Driving the Education Debate in 2026 With Mike McShane appeared first on Show-Me Institute.

Governor Kehoe reinforced his support for MOScholars in his recent State of the State address. Building on the $50 million state investment approved during the 2025 legislative session, the governor is calling for an additional $10 million this year, bringing total funding to $60 million. These public funds will be combined with contributions generated through state tax credits to expand school choice opportunities for families across Missouri. Although MOScholars remains small relative to the size of Missouri’s K–12 student population, this proposed increase is a clear positive step toward a richer and more robust school choice landscape.

The governor also announced that Missouri will opt into a new federal tax credit program designed to operate much like MOScholars, but funded through federal tax credits. Under this program, taxpayers may redirect up to $1,700 of their federal tax liability to support school choice in Missouri. If widely used, the federal credit could significantly expand the pool of available funding—possibly enough to generate meaningful competition within the state’s education system.

These developments provide real cause for optimism about the future direction of education policy in Missouri.

The post Kehoe Continues to Prioritize MOScholars in his State of the State Address appeared first on Show-Me Institute.

MOScholars is Missouri’s education savings account (ESA) program. It provides scholarships to eligible families to use on a variety of educational expenses: tuition, tutoring, lessons, and more. The decision by Hallsville and Atlanta to join the program is noteworthy because MOScholars is viewed primarily as a vehicle for private school tuition. Their participation is a reminder that these scholarships can also enable nonresident students to attend public schools outside of their assigned districts.

The move is significant for two reasons. First, it signals a willingness among public schools to compete for students within a choice-driven landscape. Contrary to the notion that public schools wilt under competition, districts like Hallsville and Atlanta are demonstrating initiative. As Patrick Wolf, Distinguished Professor of Education Policy at the University of Arkansas, explains, “this idea that public schools are a fragile ecosystem, and they can only serve students if they have no competition . . . that claim has been completely debunked.”

Second, the move effectively serves as a workaround to Missouri’s lack of statewide interdistrict open enrollment. Students in Missouri typically cannot attend a public school outside their residential district. By participating in MOScholars, Hallsville and Atlanta are using the program to facilitate student transfers across district lines, with the scholarship serving as the funding mechanism rather than state formula dollars.

Given the limited size and scope of the MOScholars program as currently funded, it is unlikely that there will be significant enrollment shifts in these districts due to their participation. Still, their decision points to underlying demand for more school choice and is another step toward a more flexible and responsive public education system in Missouri.

The post Two Missouri Public School Districts Opt into MOScholars appeared first on Show-Me Institute.

The largest of these, the Independence School District near Kansas City, will soon hold a public vote on whether to retain its four-day schedule after a judge ruled that the voter-approval requirement in state law is constitutional and must be enforced.

As for the upcoming vote, I expect the 4dsw to be approved. Crystal City recently saw its citizens vote 86.7% in favor of keeping their 4dsw—a result that makes sense, as those who already use the model are typically its strongest supporters. However, the strongest opponents of the 4dsw are those who do not believe that they can provide childcare on the fifth weekday. Even in districts that overwhelmingly vote in favor of a 4dsw, individual families may face real difficulties adjusting.

I believe recent events highlight a broader point: school choice could help relieve some of the tension surrounding the 4dsw by giving parents more options.

Senate Bill 727 and the Four-Day School Week

Senate Bill 727 was an omnibus education bill passed in 2024. One of its provisions requires that districts located wholly or partially in a county with a charter form of government or in a city with more than 30,000 inhabitants hold a public vote for adopting or retaining a 4dsw. As Independence’s recent lawsuit indicated, this only applies to 87 Missouri school districts.

If the goal of this provision was to give Missouri parents a voice on a significant decision, it was fair to ask why the 4dsw would be put to vote in some districts but not others. The recent court ruling clarified that lawmakers had a rational basis for the distinction, citing evidence that suburban and urban districts are more likely to experience negative effects on academics, crime, and childcare access than rural districts. Nevertheless, there remains a need to address the problems that arise when a family’s schedule no longer aligns with its school.

School Choice Can Help

Expanding open enrollment and Missouri’s Education Savings Account (ESA) program could give families the flexibility they need. Open enrollment would allow families to transfer students to districts that best fit their needs, whether that’s a 4dsw district or one with a traditional five-day school week.

This approach enjoys broad support. In 2023, the Show-Me Institute surveyed 1,200 Missouri parents statewide and asked what options should be available if a district moves from a five-day to a four-day schedule. Two thirds of parents supported allowing transfers to another district, while majorities also favored providing vouchers for private school attendance.

Figure 1: Policy Options for Students in 4dsw Districts

“If a school district moves from a five-day to a four-day school week, parents should be given the option to . . . (1) transfer their children to another school district . . . (2) use a voucher for their children to attend private school.”

Support for both options crossed party lines. Among self-identified Republicans, 67 percent supported interdistrict choice and 57 percent supported vouchers. Among self-identified Democrats, 71 percent supported interdistrict choice and 62 percent supported vouchers.

As Missouri continues to debate the 4dsw and how to manage its use, expanding school choice remains the best way to reduce tension and ensure every family has workable options.

Want to Learn More?

My colleague James Shuls and I wrote a series of papers that tackle different questions relating to the 4dsw.

Evidence Based? A Systematic Literature Review of the Four-Day School Week?

Five for Me: A Survey of Missourians Regarding the Four-Day School Week

Longer Days and Fewer Total Hours: Examining the Four-Day School Week in Missouri

The post Four-Day School Week Votes and School Choice in Missouri appeared first on Show-Me Institute.

What Is Off Limits?

As Show-Me Institute analysts have written about extensively, Missouri parents have fewer public schooling options than families in many other states, including many of our bordering states. First, Missouri does not have a cross-district open enrollment program. This means that the man I spoke with cannot have his son attend a public school outside of his zoned district unless another district chooses to accept him and he pays the tuition set by the new district.

Next, since he is zoned to attend a school district in western St. Louis County, charter schools are also off limits. Charter schools currently only exist in the City of St. Louis, Kansas City, and Normandy. Why is this the case? Charter schools require sponsors, and for accredited districts, the local school board must approve the charter school to operate. This has never happened in Missouri—the requirement of local school board sponsorship has essentially acted as a ban on charter operations in most of Missouri. And without open enrollment, no one outside of a charter school’s local district can enroll. In other states, schools like the Arizona Autism Charter School attract parents from far and wide.

The Good News

After these options were crossed off, the family is left with the options of the local public school district, a private school, or homeschool.

Private schools charge tuition, but thankfully, Missouri has an education savings account (ESA) program—MOScholars—that can help meet some of those costs for interested families. If the student has an Individualized Education Program (IEP), or if the student’s family household income is less than 300% of the federal poverty level, the student is eligible for a scholarship that can be used for private school tuition. However, the program is capped at $75 million in total funding. That means that even if a student qualifies, there may not be enough money for every eligible applicant to actually receive a scholarship. (If you are interested in MOScholars, you can learn more here.)

Unfortunately, there are not many choices available to the parent who reached out to me, and there is no choice at all when it comes to public schools. This is true for most Missourians. The Show-Me State needs more public options for our students and families. Next year, when someone asks me a similar question, I want to have a better answer.

The post What Are My Schooling Options as a Missouri Parent? appeared first on Show-Me Institute.

Susan Pendergrass is joined again by Elias Tsapelas, director of state budget and fiscal policy at the Show-Me Institute, for Part II of their conversation on the sweeping federal legislation known as the “One Big Beautiful Bill.” They unpack what the bill means for Missouri taxpayers, including changes to the standard deduction, tips and overtime, education savings accounts, and higher education policy. They also dig into the bill’s broader fiscal impact, from the growing federal deficit to the implementation challenges facing state governments.

Listen on Spotify

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Timestamps

00:00 Exploring the One Big Beautiful Bill
04:58 Tax Implications for Missourians
10:20 New Savings Accounts for Children
12:07 Changes in Higher Education
18:09 Federal Deficit and Debt Concerns

Listen to Part I Here

Episode Transcript: One Big Beautiful Bill Breakdown, Part II with Elias Tsapelas 

(Download Here)

Susan Pendergrass (00:00)
So I guess it turns out that the One Big Beautiful Bill was too big for us to talk about in one podcast. Elias, thanks for coming back. I realized after we stopped recording that there’s so much in there we didn’t even discuss. We barely even really got into it. So let’s talk about more of the One Big Beautiful Bill because it’s huge—hundreds, at least hundreds of pages long. And I can’t believe the people who voted on it read it through carefully. Now, as you’re going through it and learning things, I’d love for you to explain some of it to me.

Starting with—how does the no tax on tips and overtime work? I’ve heard a lot about this. I know it was a campaign promise. So is it true that if you’re waiting tables now and you get a few hundred bucks a night in tips, you don’t have to pay tax on it now?

Elias Tsapelas (00:51)
In theory, yes. Now, it’s not clear if it’s going to be something that impacts Missouri tax liability. It sort of impacts the federal tax code a little differently than the increased standard deduction and some of the other changes. So it might change some federal tax liability, but unless Missouri’s legislature changes some stuff, it’s not going to immediately impact Missouri taxes.

Susan Pendergrass (01:16)
But why—do you have to itemize to do it?

Elias Tsapelas (01:19)
No. Basically, Missouri has rolling conformity with the federal government. Missouri takes its gross income from the federal government, and the tax on tips and overtime piece isn’t going to impact the gross income calculation. So it may or may not become an issue in Missouri.

There’s also a big open question here about how much income tip workers are actually claiming, and how much that will change if you say it’s not taxed—because if they weren’t declaring it before, we don’t really know what the change will be.

Susan Pendergrass (02:05)
Yeah, so if you walk home with a wad of cash, you’re not necessarily going to add it up and write it down and claim it.

Elias Tsapelas (02:09)
It still might not be worth declaring all of it. But if Missouri brings it into the state income tax code, it could cost quite a bit of money. There are quite a few tax provisions here—especially on corporate tax—where we really don’t know how much it’s going to cost, but it’s probably going to be significant. There’s full expensing, depreciation, all kinds of things that are going to change both federal and Missouri tax liability. And then there was the standard deduction change we mentioned last time.

Susan Pendergrass (02:47)
Okay. So one thing that does impact Missourians is our tax credit scholarship program, where you can donate to a scholarship-granting organization like the Archdiocese of St. Louis, and they give out scholarships. Right now, you can get a Missouri state income tax credit for that—up to half of how much you owe the state. And now there’s a new program where you can take a federal credit of up to $1,700 for donating to these organizations.

You can’t get credits for both on the same donation, but you could donate up to half your tax liability and get the Missouri credit, and then separately donate $1,700 and get the federal credit. I know there’s a lot of rulemaking still to come, and I also know this program doesn’t start until January 2027. So it won’t affect people’s returns until April 2028. But—how do you think that’s going to work? Do you have any idea based on what you’ve read?

Elias Tsapelas (03:54)
Well, Missouri has to opt in first, right? I think the first step is getting the rules out and seeing which states opt in. I would assume Missouri will. The hope is that this becomes something more people understand and take advantage of.

In Missouri, even though we have tons of tax credits that people do use, it takes a while to build it into tax preparation tools like TurboTax. So you kind of have to know what’s going on. Maybe once the federal piece is in place—and there are also changes to the child tax credit—that’ll help.

Susan Pendergrass (04:24)
Spread the word. How’s that changing?

Elias Tsapelas (04:51)
Some of the temporary provisions from the 2017 bill are now made permanent. One of the things the One Big Beautiful Bill does is take temporary changes and make them permanent. We’ll see in a few years how many of these stay.

Susan Pendergrass (05:10)
So the child tax credit is now permanent?

Elias Tsapelas (05:13)
Yes. The changes made in 2017 are now permanent. It’s higher now, and there’s more of it that’s refundable. There’s still an income threshold to get the maximum amount. I think there are going to be a lot of tax credit changes. The bill also got rid of a lot of renewable tax credits. So there are a lot of changes to tax policy for both businesses and individuals. I think people will need to start thinking about their Missouri taxes a little differently, at least for the next few years.

Susan Pendergrass (05:59)
Another piece is the savings accounts for children—kind of like IRAs for kids. I’ve read that anyone born after January 1, 2024, or maybe anyone currently under age 18, is eligible. The IRS has to open the accounts, and you need a Social Security number. For kids born between January 1, 2024, and 2026, the government deposits the first $1,000.

Elias Tsapelas (06:52)
Yeah. What I was trying to figure out is how these differ from 529 plans. I think these will be harder to withdraw from. They do come with tax benefits for employers and others contributing, but taxes will have to be paid when the money comes out.

Susan Pendergrass (07:25)
Yes—capital gains. With 529s, the money goes in pre-tax and comes out tax-free if used for education. These accounts are less flexible. You can take money out for education, a house, or a business, but otherwise there’s an early withdrawal penalty plus capital gains. It feels gimmicky, since the government only deposits $1,000 until 2028 when the program expires.

But for many low-income kids, this could be their only savings. It’s meant to help those who wouldn’t have a 529. They were originally going to be called “Invest in America Accounts,” but they’re now called “Trump Accounts.”

Elias Tsapelas (08:50)
I’m curious to see if the $1,000 is the only money ever deposited into these accounts for most people. It may not be worth putting in more, but even with tax obligations, it’s still free money.

Susan Pendergrass (09:27)
Right. You turn 18 and have $10,000—it’s not nothing. But some worry that a future Democratic president with control of Congress could expand the program—like depositing $500 annually for anyone under 18. It starts to look like a form of universal basic income. But I suspect it’ll go away—it feels gimmicky.

Elias Tsapelas (10:16)
I’m curious if the government will make it easier to use for college or similar expenses. There are a lot of higher education changes in the bill too. As someone with student loans, I’m getting emails every day about them.

Susan Pendergrass (10:33)
Yeah. So tell me—what are the changes to higher ed?

Elias Tsapelas (10:43)
Well…

Susan Pendergrass (10:46)
I’ve heard it might hurt community colleges, but I don’t know why. Do you?

Elias Tsapelas (10:49)
There are new caps on loan amounts and some income-based repayment plans are being eliminated. For example, the SAVE repayment plan created by the Biden administration has been tied up in court. Interest collection is resuming, but payments aren’t due yet. Borrowers need to switch plans, but the old ones are gone. The new plan tries to prevent negative amortization, but it’s still unclear how well that will work.

Grad students will be able to borrow less. The government wants loans repaid more quickly. After five years of paused payments, there’s a huge administrative burden now to unwind all of this.

Susan Pendergrass (12:11)
I know—since the pandemic.

Elias Tsapelas (12:17)
Exactly. There’s going to be a big process for certifying income and re-establishing payments. Colleges are nervous—lower borrowing limits could change students’ decisions. And I don’t know if the federal government is prepared to roll all of this out smoothly. I still need to re-set my auto-withdrawal.

Susan Pendergrass (12:56)
Yeah. It feels like we have to wait six months or a year to see what actually happens. Even the work requirements for SNAP and Medicaid were pushed out beyond the midterms. So while people are celebrating or panicking, a lot of this is still TBD.

Elias Tsapelas (13:26)
Yeah. And when people talk about “cuts,” especially to Medicaid, they’re mostly referring to ten-year projections. But a lot of the actual cuts are back-loaded. The benefits hit first—then the cuts. And some of those cuts may never happen. There’s also a big expansion of health savings accounts. People with bronze marketplace plans or direct primary care arrangements could use them, but rules still need to be written.

Susan Pendergrass (14:38)
I read there might be fewer subsidies, maybe higher premiums?

Elias Tsapelas (14:44)
Depends. There’s going to be a bill later this year to debate extending the enhanced COVID-era subsidies. But those subsidies created a kind of shadow market—shady dealers signing people up for plans they didn’t even know they had. About 2 million people were enrolled in multiple subsidized marketplace plans last year. So now there’s a push to reintroduce some “skin in the game.” But we’ll see what ends up mattering or going into effect.

Susan Pendergrass (16:04)
And our senator is already trying to undo parts of the bill he voted for.

Elias Tsapelas (16:08)
Yeah, especially the provider tax piece. That would help rein in spending, but the cuts don’t go into effect for several years—giving time for backtracking. If none of the pay-fors happen and only the expensive parts do, this bill just becomes even more costly.

Susan Pendergrass (17:08)
What does this bill, even optimistically, do to the federal deficit?

Elias Tsapelas (17:15)
I still need to see estimates, but we’re looking at adding at least $4 trillion to the deficit. Possibly more, depending on what’s made permanent.

Susan Pendergrass (17:53)
I thought Republicans cared about balanced budgets. This feels irresponsible. What do you think?

Elias Tsapelas (18:08)
It’s a lot easier to say you’re for fiscal responsibility than to actually do it. With Medicaid, people say cut waste—but cutting funding means cutting payments to hospitals, doctors, and nurses. And those tax cuts were always going to be extended. Every person taking the standard deduction is getting a bigger deduction. That costs money.

The real long-term budget problems are in Medicare, Medicaid, and Social Security—none of which were addressed. So someone will have to get back to those eventually.

Susan Pendergrass (19:48)
Yeah. Social Security’s trust fund is going to run dry soon—maybe within 10 years. The numbers are so big, it starts to feel imaginary. People can’t wrap their heads around what it would take to have a balanced budget. Both parties just keep giving stuff away, so you’d be foolish to sit on the sidelines.

Elias Tsapelas (20:24)
Yeah—it’s just different groups they’re giving to. This bill was very expensive. And I think future efforts will make it even more so by eliminating what little cost savings exist.

Susan Pendergrass (21:03)
The SALT deduction, for example—capped at $10,000 in 2017, now up to $40,000. That’s a $30,000 swing. For Californians, that’s huge.

Elias Tsapelas (21:27)
Yeah, and the benefit mostly goes to higher-income people. Even in Missouri, some homeowners might benefit—but it mostly helps the coasts. And it gives high-tax states more room to raise taxes, since the federal deduction cushions the blow.

Susan Pendergrass (22:19)
Exactly. Crazy stuff. Well, I think we’ve covered a lot. I won’t make you come back again, but there’s so much detail—it’s not really what either side thinks it is.

Elias Tsapelas (22:45)
I agree. Especially with Medicaid and SNAP. And states will carry a big burden implementing this. Some will do it well, some will fight every piece. There’s going to be a lot of news as this all rolls out.

Susan Pendergrass (23:46)
Totally. Not directly related, but recently I’ve met people surprised by the real ID requirement. It’s been around for 10–15 years, and Missouri resisted it. Some states just don’t want to jump into federal programs.

Elias Tsapelas (24:04)
Yeah—I’ve seen signs about it at TSA forever. Always “effective in 3 months,” then postponed. But it finally happened.

Susan Pendergrass (24:11)
Right. And this summer, people are finally getting real IDs. Missouri was one of the last to implement it. So I don’t expect the state to jump on many of these changes either. But there’s still plenty of time to talk about it all again.

Elias Tsapelas (24:28)
Yes.

Produced by Show-Me Opportunity

The post One Big Beautiful Bill Breakdown, Part II with Elias Tsapelas appeared first on Show-Me Institute.

Florida’s embrace of educational freedom is no accident. It reflects decades of policy decisions prioritizing parental choice and innovation. From robust charter school laws to universal education savings accounts, Florida has created an ecosystem that empowers families to choose what works best for their children. It’s no wonder it tops the list.

Missouri ranked fairly well at 14th overall. The Show-Me State was bolstered by its strong showing in homeschooling (tied for first) and virtual education (tied for third). These are bright spots worth celebrating. However, Missouri was dragged down by an F grade in open enrollment laws. While some districts allow students to cross attendance boundaries, there is no statewide policy ensuring families have this option.

This is a missed opportunity. Open enrollment doesn’t just give families more flexibility; it also encourages schools to improve by fostering healthy competition. States like Florida understand this, and their success is a model worth following.

As a longtime advocate for school choice, I’ve been skeptical of Missouri’s new Department of Secondary and Elementary Education (DESE) commissioner, Karla Eslinger. Her record as a member of the legislature and her statements since taking the helm haven’t exactly signaled a bold embrace of educational freedom. However, she has an opportunity to change that perception.

If Commissioner Eslinger wants to demonstrate that she’s serious about putting students first, she should champion policies that expand educational freedom—especially open enrollment. By working to eliminate the barriers that restrict families to specific districts, she could transform Missouri’s education system and move the state up the rankings.

Florida’s celebration of its success on the ALEC Index shows the power of leadership and vision. Missouri should take note. If we want to improve outcomes for students, we must stop clinging to the status quo and embrace educational freedom. Let’s aim for the top of the list and ensure every child in Missouri has access to the education they deserve.

The post Celebrate Educational Freedom: A Lesson from Florida appeared first on Show-Me Institute.

The post The ESA Experience with Jenny Clark appeared first on Show-Me Institute.

Markets offer three mechanisms that facilitate school choice. First, they allow for a level of diversity in school offerings that traditional, centrally managed school systems are not able to. Second, they encourage competition between providers, improving the quality of school options for students and families. Third, markets are incredible information gathering institutions, and a more market-driven system can help bring attention to better educational practices and ways to meet family needs that can then be copied by other schools.

When I think about policies that increase the diversity of options, encourage competition, and spur innovation, open enrollment and education savings account (ESA) programs come to mind.

Open enrollment allows students to attend any public school district. In Missouri, a voluntary open enrollment policy has been discussed but never implemented. Open enrollment legislation has passed through the House for four consecutive years but has not had enough momentum to push through the Senate. Open enrollment empowers parents to choose the district and school that best suits their children and strengthens school districts by forcing them to compete for students. Through the addition of open enrollment, competition and increased feedback could spur needed innovation and growth, while at the same time matching families with districts that best suit their needs.

While Senate Bill (SB) 727 expanded Missouri’s ESA program (MOScholars), there are issues with financing. MOScholars is still not publicly funded, as robust ESA programs in other states are. Due to this, many families are left out of the program. A stronger ESA program would give more parents the ability to vote with their feet to support schools with beneficial education practices.

Education cannot be forgotten—our state is experiencing chronic absenteeism and lower academic scores. On the Missouri Assessment Program (MAP), Missouri students have failed to bounce back from the pandemic drop. In English/language arts (ELA), no grade-level cohort has matched or surpassed its pre-pandemic levels. Almost all ELA scores today are actually lower than they were in the first post-COVID year (2020–2021), with 5th graders being the only exception. Sixth graders have fared the worst of all grade levels—in 2018-2019, 46 percent scored proficient or advanced in ELA. In 2021–2022, that number dropped to 43 percent, and by 2023–2024, it sunk to 38 percent.

Hopefully, SB 727 will not be the end of the road for needed change. Markets do matter in education, and school choice policies can greatly benefit our state.

The post Missouri Needs More Market Forces in Education appeared first on Show-Me Institute.

The single program started in Wisconsin in 1996 has grown to 75 school choice programs in 33 states, plus Washington, D.C., and Puerto Rico. And in just the last few years, 10 states have implemented universal school choice programs in which all or nearly all children in the state are eligible. These states are Arizona, Arkansas, Florida, Indiana, Iowa, North Carolina, Ohio, Oklahoma, Utah and West Virginia. Alabama and Louisiana will be joining the list next year.

When the one million private school choice students are added to the 3.7 million charter school students the result is that one in five children in the United States is receiving a publicly funded education outside of traditional public schools. What was once considered controversial has become mainstream.

The post A Milestone Reached appeared first on Show-Me Institute.

But first, a refresher. How exactly did SB 727 target the 4dsw?

The first change mandates that larger districts must allow citizens to vote on whether or not they use a 4dsw for the 2026–2027 school year and later. This applies to school districts located wholly or partially in a charter county (currently St. Louis, St. Charles, Jefferson, Clay, and Jackson counties), or those wholly or partially located in a city with more than 30,000 inhabitants. According to my own analysis, this would apply to only 100 school districts and charters (about 20% of the statewide total). Of those 100, so far, only five are currently operating on a 4dsw—meaning the other 168 4dsw districts will be able to continue to operate without a vote from citizens.

The second provision is as follows:

Any district that goes to school 169 days or more will be given an aid bonus equivalent to 1% of their state entitlement (which grows to 2% by 2028).

If you operate on a 4dsw, you will not have more than 169 school days. Therefore, a district must move to a five-day schedule in order to receive this bonus.

Back in March, I argued, “It does not appear that SB 727 creates any significant incentive to buck that [4dsw] trend.” Particularly on the aid bonus, I said,

If the goal of this part of the bill is to begin moving the 173 4dsw districts back to a 5dsw, this provision will probably be ineffective. It is too little money for too big a change, and many districts may argue that the savings they receive from using a 4dsw is higher than the aid they could receive.

Fast forward to this past week, and we see that exact argument in action. The large Independence 30 School District is holding a vote to determine if it will remain a 4dsw district. The district’s superintendent said the bonus aid for moving away from a 4dsw would net out to about $500 per teacher—which he claimed is not significant: “The financial incentive is so small that it’s not going to keep a particular teacher in the profession.”

The fiscal note for this bill estimates that the state could end up paying districts $75 million per year via these bonuses. The Independence story makes it seem unlikely that the state will end up paying out anything close to that, but it’s still money that could have been better spent on something else, such as increasing funding for the education savings account program. Regardless, as 2024–2025 schedules are being released statewide, it will be interesting to see how resilient the 4dsw is.

The post The Four-Day School Week Won’t Quit appeared first on Show-Me Institute.

For students, this bill expands access to Missouri’s education savings account (ESA) program, provides a new pathway to creating a charter school in Columbia, and creates a new evidence-based home reading program.

SB 727 provides students increased access to schools that better suit their needs. We tell children all the time to dream big, and this will give many students additional opportunities to attend a school of their dreams—not just of their address.

Parents also receive an additional benefit from this bill. In larger communities (of more than 30,000 or in/partially in a charter county), districts now must win parental approval by vote in order to move to a four-day school week.

For teachers, increased salaries and scholarships are on the way. Minimum starting salaries will be raised from $25,000 to $40,000. Additionally, salaries for teachers with a master’s degree and ten years of experience will be raised from $33,000 to $46,000 (and then to $48,000 by 2027–2028).

For teachers in hard-to-staff subjects, districts will have the option to provide them differentiated compensation through higher placement on the teacher salary schedule. Additionally, teachers who work in hard-to-staff schools can be granted differentiated pay from the district. A scholarship program will also be created for individuals who agree to teach in hard-to-staff subject areas and schools in Missouri following their graduation. For a state that does not have a general shortage of teachers, but a shortage in specific areas, this is a step toward retaining and recruiting these high-need teachers.

While there are other policies that I hope can be implemented to strengthen SB 727, such as open enrollment for all, I will save those discussions for another day. Today, I am just glad for the progress that has been made.

The post Missouri Sparks a Brighter Future for Students, Parents, and Teachers appeared first on Show-Me Institute.

This bill proposes some needed reforms that will improve the educational landscape for our students, families, and teachers. Students and families would have greater access to the schools that best suit their needs.

However, there are still a number of changes that could make SB 727 stronger. Below are links and summaries to three detailed breakdowns of different policies contained in the bill.

The Missouri Senate Moves on Education Choice

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• Eligibility for the MO Scholars program is dramatically expanded with SB 727.
  • Eligibility for MO Scholars is expanded outside Missouri’s 10 largest communities.
  • The low-income restriction line has been raised from 200% of the free or reduced-price lunch boundary to 300% (a yearly income of roughly $166,000 for a family of four).
• However, unlike the other states that have passed similar legislation, Missouri still would not provide any public funding for the scholarships under SB 727.
  • Funds still must be raised from scholarships through donations by individuals or corporations.
  • Missouri should provide public funding for the MO Scholars program
• Charter school expansion to Columbia is a good start, and hopefully more cities will be eligible in later years.

Now Is Not the Time to Tinker

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• Missouri does not need to tinker around the margins of the current state foundation formula—we need to build a new one.
• SB 727 changes how students are counted for the state aid formula, from all attendance to half attendance and half enrollment. The bill acknowledges the chronic absenteeism crisis, but waters down the incentive to fix it.
• Even with the change, districts can still use the highest number of students from the past three .
• Missouri cannot redeem this funding formula with tinkering—we need to go back to the drawing board and mimic a student-oriented system like the system in Tennessee.

How Will the Four-Day School Week Progress in Light of SB 727

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• SB 727 creates a new voting procedure for parents to have a say in switching to a four-day school week (4dsw), but this only applies to the largest Missouri communities.
  • Only around 100 of the 553 school districts and charters will be subject to this new voting process. Smaller communities are excluded—they should not be.
  • Without open enrollment or greater educational choice policies, there will still be numerous families trapped in a 4dsw district despite preferring a different schedule.
• SB 727 re-establishes instructional day minimums in Missouri, but again, this only applies to the largest Missouri communities.
  • Large school districts will be required to have 169 instructional days if they operate on a five-day school week, and 142 days if they use a four-day school week.
  • Most districts and charters in the state—80 percent—are not subject to this requirement.
  • The threshold for this requirement is still rather low; most states require 180 instructional days.
• An aid bonus is provided for districts that have 169 instructional days. This provision appears to be an attempt to diminish the use of a 4dsw. However, this would probably be unsuccessful.
• A 1% aid bonus would equate to an average of $24,000 for districts that used a 4dsw in 2022–2023; a 2% bonus equals an average of $48,000.
  • This would be equivalent to around 0.6% of a 4dsw district’s total expenses, which is not a huge sum to incentivize a major schedule change.
• If the goal of this provision is to diminish the use of the 4dsw, it will probably be ineffective. Could money instead be spent on another program, such as providing public funding for the ESA program?
• For many small school districts in Missouri, it does not appear that SB 727 would create any significant incentive to reverse the trend of moving to a 4dsw.

The suggested changes outlined above could serve to make SB 727 stronger and improve the educational environment for students, parents, and teachers in Missouri.

The post Our Thoughts on SB 727 appeared first on Show-Me Institute.

This argument rests on two assumptions. First, it assumes that the beneficiaries of private school scholarship programs (ESAs and vouchers) tend to be those already in private schools. Second, this argument assumes those in private schools are “the rich.” Thus, by creating programs that use direct government subsidies or are funded by tax credits, school choice programs are “welfare for the rich.”

This is an incredibly disingenuous argument. Indeed, the argument is nothing more than a red herring.

As everyone is aware, “the rich” are allowed to send their children to public schools. They can do so without facing any financial penalties. The United States Census Bureau calculates Small Area Income & Poverty Estimates (SAIPE) for each school district. This calculation estimates the number of students in each school district who fall below the poverty line. According to these SAIPE estimates, the Clayton, Kirkwood, Ladue, and Rockwood School Districts in Saint Louis County all have poverty estimates below three percent. Meanwhile, the nearby school districts of Riverview Gardens and Normandy have estimates above 35 percent. Yet, no one attempts to keep these wealthier school districts from receiving education funding because it is “welfare for the rich.”

A student from a rich family can attend any school district in Missouri and the district will receive funding for that student. But, if a parent, rich or poor, chooses to send their child to a private school, they lose that benefit. The issue is not that the family is rich, but that they have the audacity to choose a non-governmental school.

This is what makes the argument a red herring. It is a distraction from the real question—should families be denied educational benefits when they choose a non-public school?

Writing on this very issue in 1958, Father Virgil Blum lays the point out clearly: “It is fundamental that the state’s educational obligations are not to institutions and systems; its obligations are to children—the individual children of the state. Educational institutions and systems are but means to help the state carry out its educational obligations.”

Opponents of school choice will make any argument that seems to gain traction. Their fundamental objection, however, is against educational freedom. They simply do not believe individuals should be allowed to take their education dollars with them to the school of their choice.

The post Is School Choice “Welfare for the Rich”? appeared first on Show-Me Institute.

Senate Bill 727, which passed out of the Senate last week by a vote of 19 to 10, dramatically increases the number of children eligible to receive a scholarship under MO Scholars, an education savings account program established two years ago. Gone are the restrictions that scholarships can only go to students in Missouri’s 10 largest communities. And the low-income restriction line has been raised from 200 percent of the free or reduced-price lunch boundary to 300 percent (a yearly income of roughly $166,000 for a family of four).

The reason I can only describe the expansion as “somewhat” is because, unlike the raft of states that have passed similar school choice legislation in the last few years, the bill doesn’t provide any public funding for the scholarships. The six approved scholarship-granting organizations (SGOs) must still raise the funds for the scholarships through donations from individuals or corporations.

The bill also—finally—allows charter schools to open outside of St. Louis and Kansas City, a policy goal that Show-Me Institute analysts have been talking about for years. Granted,  only Boone County was added to the list, bringing in Columbia, but it’s a start. It may take years for a charter school to actually materialize in Boone County, but at least it may soon be possible.

As I anticipated, getting this bill through the Senate required some sweeteners for school choice opponents. These included raising minimum teacher salaries and changing how we count students for the foundation formula (more on that in a coming post). Too bad the negotiators didn’t get public funding for the scholarships with this trade-off. For now, we’ll wait to see what happens to the bill as it moves through the House.

The post The Missouri Senate Moves on Education Choice appeared first on Show-Me Institute.

Next year, Alabama families making up to 250 percent of the federal poverty line ($78,000 for a family of four) will qualify to receive $7,000 in state dollars to customize their children’s education. By the 2027–28 school year, the scholarships will be available to every family in the state. Homeschoolers can receive up to $2,000. The money can be used for private school tuition or other educational expenses.

Like Missouri, Alabama’s scores on the National Assessment of Educational Progress (NAEP) have been poor for the last couple of decades. Like Missouri, Alabama has wide gaps in achievement between low-income and non-low-income students. Like Missouri, Alabama families whose children are struggling in their assigned public schools want (and need) an alternative. Alabama families now have that. What about Missouri families?

The post Add Alabama to the List appeared first on Show-Me Institute.

Elsewhere, Tennessee has been lauded for completely overhauling its funding formula so that it is responsive, accountable, and student centered. Public funding is sent to where students attend school and not to where they attended school three years ago, as in Missouri. In the process of this redesign, Tennessee also raised teacher salaries and encouraged flexibility in teacher pay over the old step-and-ladder systems. Again, there’s nothing wrong with raising teacher salaries in the process of crafting good policy.

Currently, the Missouri Legislature is considering a bill that addresses a range of education issue, perhaps with the idea that if some groups like one part and others like another part, it may pass. That makes sense. The legislative sausage machine requires negotiation. But let’s look at this bill closely to see how much Missouri families might actually benefit.

The bill greatly expands eligibility for the existing MO Scholars education savings account (ESA) program. That could be a win for families. Almost every student in the state would qualify to receive a scholarship, because the income limit would be raised to four times the federal poverty line, or $120,000 for a family of four. The bill also eliminates the current geographic restriction on which students are eligible to receive scholarships—a much-needed change.

There’s just one problem with the ESA expansion proposed in this bill. Unlike Arkansas (or Iowa, Arizona, Utah, West Virginia, New Hampshire, North Carolina, and Florida), Missouri isn’t willing to provide the scholarships. Sure, Missouri is willing raise the cap on the amount of money that the existing six approved scholarship organizations can fundraise in order to pass out scholarships. But that’s as far as the bill goes—no public funding at all.

There is a distinct possibility that, to get this passed, Senate Bill (SB) 727 (or actually its committee substitute) will be amended to provide state funds to raise minimum teacher pay in the state from $25,000 to $38,000 with a provision that school districts can request reimbursement for any mandatory salary increases from a new Teacher Salary Baseline Grant Fund.

A gap seems to exist between those who believe in school choice and those who support public education. I’m for both, but I’m just one voice. I think it’s fine to try to bridge that gap by offering concessions to both sides. But let’s make sure they carry equal weight. If one comes with public funding and the other comes with “good luck getting the money together,” then they’re not really equal. Maybe it’s time to go back to the drawing board.

The post This Is a Compromise? appeared first on Show-Me Institute.

The impact and effectiveness of school choice programs and policies vary based on multiple factors. What does a theoretical “good version” of legislation related to school choice look like? Are there specific examples you can point to?

Well, if you listened to my opening remarks, it may not be hard to guess what I am going to suggest. Choice is good and we need more of it.

After more than two decades, we don’t have charter schools outside of St. Louis and Kansas City. Why is that? Because our current policy requires charters to seek school district approval if they want to open in a district that is fully accredited. This is like allowing Wal-Mart to decide whether a Dierbergs or a Schnucks can open in its town. When it comes to charter school policy, we must, first off, allow charters to open throughout the state under the sponsorship of a university or the State Charter Commission.

Second, we must allow charter schools to enroll students across district boundaries. The average school district in Missouri has something like 1,500 kids. Part of the challenge with opening a new charter school is attracting students—this is particularly challenging when you are limited to a pool of 1,500. Students should be allowed to move across district lines to attend a charter school.

In fact, all kids should be allowed to move across district lines to attend another public school. This is especially true if your local school district moves to a four-day school week. Did you know that roughly a third of all Missouri school districts are now four-day districts? We have some new research coming out at the Show-Me Institute that you might be interested in. We surveyed 1,200 Missouri parents. You know which group was the most opposed to the four-day school week? Parents who cannot provide reliable childcare for their children—the people who will be most impacted by these decisions. I suggest full open enrollment, but at the very least, moving to a four-day school week should be an automatic trigger for open enrollment.

Close to 70% of Republicans and Democrats alike supported the idea of giving parents the right to transfer to another school district if their school moves to a four-day week. More than 60% supported offering a private school voucher.

When it comes to private school choice, again, we need more of it. Our current tax credit education savings account (ESA) program should be expanded. Now, I’m in favor of the state funding these accounts and providing every family with access to at least the state adequacy amount. We can look to Arizona and Florida as models. But I understand expansion is often incremental and there are incremental changes we can make with our current program. Here, the state needs to do three things:

First, remove all geographic limitations. There is no reason a student should be denied access to a scholarship account because they live just over a county line.

Second, increase eligibility. The program should be as near to universal as possible. Every parent should have the ability to send their children to the school of their choice.

I suppose those first two are really the same thing—increase access.

Third, we should increase the average scholarship amount. Opponents of school choice are funny in this regard. They remind me of that old quote by Woody Allen, “The food is bad and the portions are small.” They say “vouchers are bad . . . and the voucher amounts are too small.” Well, I may not be able to change their opinion on vouchers, but we can work to increase the amount!

Currently, we peg the scholarship amount to the state adequacy target, which is approaching $7,000. Yet, in public schools we weight the funding formula. We provide additional funds for special needs students, students with Individualized Education Programs (IEPs), and students who qualify for free or reduced-price lunches. We even weight the formula for places with higher cost of living. The ESA program should be allowed to do the same thing. A student with special needs or a student from a poor family should be eligible for more funds in this program, just as they are in public schools.

The bottom line is this—we should continue to push for expansion of school choice programs until every child in this state has multiple educational options. No child should have to attend their local public school because they cannot access another school. They should attend their local public school only if it is the right choice for them.

The post School Choice is Good – Part 2   appeared first on Show-Me Institute.

In the April 23, 1960, editorial “Twin Principles,” the paper declared, “There cannot be any real question that payment of tax funds directly or indirectly to support private church schools would violate the principle of separation between church and state.”

Responding via a letter to the editor five days later, James Bick, the president of Citizens for Educational Freedom, noted the error in this claim. He wrote:

When tax-provided educational benefits are given to all children for the non-religious elements of their education there is no violation of the separation of Church and state principle. Aid is given to the parent and child. The parent has the freedom to expend his benefits at the school of his choice. This is the principle under which tuition grants were made under the “G.I. Bill.” The United States Supreme Court used the same principle in deciding the Everson vs. Board of Education Case (1947) concerning school bus transportation.

It took more than 40 years, but the U.S. Supreme Court used exactly the logic laid out by Bick when deciding the Ohio voucher case of Zelman v. Simmons-Harris. There is no violation of the separation of church and state when parents are provided the opportunity to choose their children’s school, even if it is a religious school.

In a recent Post-Dispatch article, you’ll find another mistake. The reporters writing the article label the MoScholars program a “voucher.” Undoubtedly, they know this is the language used by those who stand against school choice. A voucher implies that the state is giving direct aid, in the form of a voucher, to pay for private school. This is not the way the MoScholars program works. It is supported by donations, and those making the donations are then eligible for a state tax credit. These donations provide education savings accounts to parents who may choose to use them at private schools—but parents can also use the money for a variety of other purposes, such as tutoring, online classes, or special education services, to name a few.

To find out more about the MoScholars program and how you can make a tax credit donation or apply for a scholarship, visit the Missouri State Treasurer’s website.

The post Wrong Then, Wrong Now—the Post-Dispatch and School Choice appeared first on Show-Me Institute.