So, what exactly is the “Close the Gap Grant”?

Close the Gap is a one-time grant paid to families with students enrolled in Missouri public schools—those in private school or homeschool are not eligible to receive these funds. With these tax-exempt funds, parents can pay for:

• Tutoring services
• Academic/summer camps
• Educational materials
• Computer equipment
• Internet connectivity
• Learning-relating subscriptions
• Software to support educational activities
• Before- and after-school programs
• Study skills services
• Costs associated with college credit for AP, dual credit, dual enrollment, ITV (instructional television), and international baccalaureate
• Art enrichment lessons (such as piano, singing, or dancing lessons)

Additionally, because this program was supposed to be up and running last year, parents can also request reimbursement for an allowable service or product they purchased since July 1, 2022.

After all the applications are received, grant awards will be divvied out to families below 185 percent of the federal poverty level. If there are surplus funds still available (which there could be from the $75 million budget), applicants above the stated poverty level will receive grant awards. Parents will be notified regarding the amount of their grant reward starting on November 1st. For the awardees, grant funds do not roll over and must be used by June 1, 2024. These funds are a one-time payment; these payments are not recurring and are only available for this year. Unless Missouri finds a way to carve out new funding to continue this program, there will be no grant in 2024–2025—this grant comes from emergency federal COVID relief funds in 2022.

Who is administering this program?

An organization called Odyssey will be administrating the program. The founder of Odyssey previously founded SchoolHouse, an at home micro-school company. Odyssey is a startup that manages education scholarship accounts (ESAs) and microgrant programs. Odyssey will handle basically everything required for the Close the Gap grants: all application management, marketing and outreach, marketplace creation, payments, and customer support.

Odyssey will have an online marketplace with listed vendors where individuals can see all allowable education services and products. Along with a marketplace, the Odyssey Parent Portal will also have a tab to upload receipts for reimbursement.

With the deadline quickly approaching, make sure to sign up and get your grant award now.

The post Application Deadline for Close the Gap Grant is Almost Here appeared first on Show-Me Institute.

What we know:

• Medicaid eligibility criteria in Missouri are far more lenient for children than for adults – Individuals under eighteen years old qualify for Medicaid based on their family’s total income. Those whose parents make less than 150 percent ($38,625 for a family of four) of the federal poverty level (FPL) can enroll in the traditional Medicaid program. And those whose families earn between 150 and 300 percent ($38,625–$77,250 for a family of four) of the FPL can enroll in the Children’s Health Insurance Program (CHIP). The care available to individuals in both groups is identical, but those who are in the first receive the coverage free while those in the second group are asked to pay a monthly premium. While CHIP and Medicaid are separate programs, both groups are typically included in total Medicaid enrollment numbers.
• Federal law requires at least yearly income verification for Medicaid enrollees – Since people qualify for the program based on income, the federal government requires states to check whether enrollees are still eligible to receive services at least once per year. Nearly six months ago, it was revealed that Missouri’s Medicaid agency had stopped performing annual income verifications from 2014 through 2017. Missouri resumed verification at the beginning of 2018. However, some claim that the administrative burden required to verify eligibility is too high.
• The drop in enrollment is concentrated among Missouri’s children – Today, there are roughly 520,000 children enrolled in Missouri’s Medicaid program, but only about 25,000 of them are enrolled in CHIP. The majority of the enrollment drop has been among children in families making less than 150 percent of the FPL, but there has been a slight increase in CHIP enrollment. There are limitations to what net enrollment figures can tell us. The enrollment figures do not show how many people came off the rolls, how many came on, or why anyone’s enrollment status changed.

What we don’t know:

• Whether the state adequately advises eligible beneficiaries on how to maintain their coverage – The decline in enrollment began once Missouri’s Medicaid agency restarted its annual verifications at the beginning of 2018 with the help of a new automated system. With the rollout of the new system, Medicaid recipients began receiving letters in the mail informing them they would need to verify their incomes and the process required to do so. Some contend that the state did not do enough to ensure each recipient received and understood the letter. Nonetheless, coverage may be canceled within 30 days absent verification in order to remain compliant with federal law.
• How many children would still be eligible for the Medicaid program they were previously enrolled in – Some claim that many of the children removed from the Medicaid rolls were probably still eligible for coverage. The key distinction is that many might be eligible for coverage, but likely only eligible for CHIP. As mentioned previously, CHIP requires monthly premiums; traditional Medicaid is free. Without hearing from parents, should the state really enroll people who were previously receiving free coverage into a plan that requires monthly payments? The reality is that we do not know how many children removed from the rolls could have remained in the traditional Medicaid program.
• Why the children have not re-enrolled – Eventually, some parents of kids who lost coverage must have realized their kids were still eligible. So why didn’t these parents re-enroll their children? It seems the most likely answer is that many found out their children were now only eligible for CHIP instead of Medicaid, and simply chose another option instead of enrolling in CHIP. If parents find out they must pay a premium for coverage, and they are eligible for private insurance through the individual marketplace or through their employer, it would make sense that they might not opt for Medicaid coverage.

Falling Medicaid enrollment in Missouri is certainly an important topic, but it is also a complicated one. The issue isn’t whether children should have health coverage or not, but rather how the state should administer its Medicaid program to ensure optimal care for recipients while making the best use of taxpayer dollars. Policymakers should be sure they have all the facts before acting.

The post What’s Really Happening with Medicaid Enrollment? appeared first on Show-Me Institute.

Some 38 million people, nearly one in eight, live in poverty in today’s America as liberals and conservatives spar predictably over solutions – government assistance versus pulling yourself up by your bootstraps. Researcher and writer Michael Tanner wants to draw from both sides.

Tanner, a senior fellow at the libertarian Cato Institute and a National Review online columnist, explores the issue in a discussion of his book The Inclusive Economy. His remedy is not more government intervention in spending or redistribution but rather a series of actions that address the racism, gender discrimination, and economic dislocation feeding poverty. They range from criminal justice reform to greater educational flexibility and the elimination of savings barriers for the poor.

We’re hosting this event in both St. Louis and Kansas City.

To RSVP for St. Louis, click here

To RSVP for Kansas City, click here

The post Free Lecture: Cato Institute’s Michael Tanner on How to Bring Wealth to America’s Poor appeared first on Show-Me Institute.

The post Intergenerational Poverty and Pathways to Self-Sufficiency appeared first on Show-Me Institute.

Would that be a fair game, or even fun? Of course not. But this version of Life is reality for many Americans. Where people grow up—their zip code or place on the game board—significantly affects their chances to succeed as adults.

Without a doubt Americans, rich and poor, are much better off now than they were a hundred years ago thanks to unprecedented economic growth made possible by the free enterprise of individuals and pro-market political institutions. Nevertheless, economic mobility, or the ability to move up the income ladder, varies for children depending on where they live, and these disparities have consequences—both for children growing up in low-income families and for the rest of the state.

A recent pair of essays from the Show-Me Institute digs deeper into the data on poverty and upward mobility in Missouri and asks what, if anything, can be done to break cycles of poverty. The solution is not simply to expand entitlement spending; America has been increasing welfare benefits for over 50 years, and it’s time to change our approach.

While child poverty is decreasing in Missouri—the percentage of children in poverty dropped from 22.6 percent in 2012 to 18.6 percent in 2017—child poverty rates in Missouri range from single digits, as in St. Charles County, to over 40 percent in St. Louis City. Moreover, data on economic mobility suggest that about one-third of children born into low-income homes in the areas surrounding Cape Girardeau, Poplar Bluff, Kansas City, and St. Louis will remain in poverty as adults.

Searching for solutions to this problem is important primarily so children in poverty have more opportunities for a better future; but Missourians should also be aware of the economic impact of lifelong poverty on the state and taxpayers. Based on economic mobility data for Missouri, roughly 77,800 people who were poor as children in the late 1980s will remain poor throughout their adult lives and will collect a conservatively estimated $15 billion in lifetime welfare benefits as a group.

Having a safety net is important, but could Missouri find a better way to invest these public dollars to help people move up and out of poverty? One promising possibility is the improvement of our education system through competition and innovation to better meet the needs of low-income students.

Data show significant gaps in test scores between low-income students and their peers on the National Assessment of Education Progress (NAEP) and the ACT college entrance exam in Missouri. While quality education cannot be measured by standardized test scores alone, these results do tell us that low-income students are less likely than their peers to have mastered the basic academic skills that will enable them to be successful in college or their chosen career.

Thankfully, Missourians can look to other states for examples of programs that help students from low-income families be successful, including specialized vocational high schools and emergency grants to help low-income college students stay enrolled. Whether by helping low-income kids to get a jump-start on a career of their choice or by better ensuring that they can get through college, Missouri should move toward an education system that meets the diverse needs and interests of these students though innovative schools and programs.

No single reform to education or any other policy area will end cyclical poverty. State leaders and policymakers do have the opportunity, however, to prioritize free-market solutions that enable people to provide for themselves and their families and help create surer pathways to prosperity.

The post Cyclical Poverty Is a Problem in Missouri-What Can Be Done About It? appeared first on Show-Me Institute.

About 1,500 children and 3,800 people total live in poverty in Mississippi County, and it has Missouri’s highest overall poverty rate at 31.7 percent. In other words, one of every two kids and one of every three people in this county are living below the federal poverty line, which was $24,600 in annual income for a family of four in 2017.

Even if you take into account the large (±9.1 percentage points) margin of error for Mississippi County’s child poverty rate, in the best-case scenario it would have a child poverty rate of 41.8 percent—which would still be the second highest child poverty rate in the state. If you want to see the latest data on the rest of the state, check out these interactive maps.

While the state’s overall poverty rate is decreasing, pockets of poverty like Mississippi County should not be ignored. In a pair of forthcoming essays, I explore the consequences for the rest of the state of having such areas of poverty. For now, Missourians should at least be aware that some parts of the state are faring much worse than others.

The post The Child Poverty Rate in Mississippi County Is How High? appeared first on Show-Me Institute.

So how are Missouri’s counties faring? Below are four interactive maps that provide some information about the disparities between counties in Missouri with regard to the poverty rate and the child poverty rate. For reference, the federal poverty line for a family of four in 2017 was $24,600 and the child poverty rate is the percentage of children under the age of 18 whose family’s income falls below the federal poverty line. 

Here is the poverty rate for each county according to the 2013–2017 5-year estimate:

And here is the child (under age 18) poverty rate for each county according to the 2013–2017 5-year estimate:

The next maps show the percentage-point change from the 2008–2012 5-year estimate to the 2013–2017 5-year estimate. It should be noted that even with this data set, there are fairly large margins of error; still, these numbers give us an idea of the direction in which a particular county is headed.

This is the percentage-point change in the overall poverty rate between the 2008–2012 and 2013–2017 5-year estimates:

And here is the percentage-point change in the child poverty rate:

Poverty is decreasing in Missouri overall, but it appears that some parts of the state are faring better than others. 

The post Here Are the Latest Census Data on Poverty in Missouri appeared first on Show-Me Institute.

To understand, we need clear definitions of our terms. The federal poverty rate is based on pre-tax income of a household and is adjusted for inflation and family size. In 2017, the poverty threshold for one person was $12,060 and increased by about $4,000 for each additional household member. The consumption poverty rate, on the other hand, measures what “families are able to purchase in terms of food, housing, transportation, and other goods and services” and includes savings, access to credit, and welfare benefits, according to the authors of a recent report from the American Enterprise Institute (AEI).

The authors of the report explain that when measured based on consumption and standard of living for the poor, the poverty rate has been steadily declining since 1980 and was 2.8 percent in 2017. The fact that the consumption poverty rate has fallen relative to the federal poverty rate is a positive development. It means that a growing percentage of people whose income place them below the federal poverty line are materially better off—that is, able to consume at a higher rate—than those who were in poverty in 1980. This improvement in standard of living for those with low incomes is due in large part to public assistance programs.

While we should not declare we are “solving” poverty through the provision of welfare benefits, we should recognize that public assistance has played a role in significant progress in alleviating the effects of poverty by providing things like food and housing assistance. The ultimate goal, however, is to help move people who currently depend on welfare for a decent standard of living toward economic independence.

It is critical that Missouri identify and then pursue policies that help people out of poverty and equip them to support themselves and their families without government assistance. Breaking cycles of poverty would allow the state to focus efforts and resources on the 2.8 percent of people at the very bottom of the economic ladder while reducing welfare expenditures overall and saving tax dollars in the long run.

The post There Is More Than One Way to Measure Poverty appeared first on Show-Me Institute.

• St. Louis Post-Dispatch: Childhood Poverty is Indeed a Problem in Missouri, but Big Government Programs Aren’t the Way to Solve it (Michael Rathbone)
• St. Louis Beacon: High College Costs are Hard to Solve (R.W. Hafer)
• Tony’s Kansas City: City Leaders Shouldn’t Duplicate Cincinnati’s Mistakes when Renovating KCI (Patrick Tuohey)
• KTRS’s McGraw Milhaven: Analysis of the Recently Completed Legislative Session (David Stokes)

New this week:

• Video: Michelle Rhee: Radical: Fighting to put Students First
• Testimony: Warren County Should Not Institute An Enhanced Enterprise Zone (David Stokes)

And much more from the Show-Me Institute on our Show-Me Daily blog.

The post Show-Me Hits (May 25) appeared first on Show-Me Institute.

This population extends into Missouri. According to data collected from food stamp programs, the number of food stamp recipients in Missouri with no other cash income rose from 139,418 in June 2007 to 165,903 in June 2009. This represents an increase of 19 percent.

The post 165,903 Missourians Report No Income but Food Stamps appeared first on Show-Me Institute.