Jokes aside, I came across a recent poll from the yes. every kid. foundation that reminded me of a vital pairing for holding education systems accountable: understandable information and comparable information.

The poll is nationwide, but the results apply to Missouri. Parents want to hold schools accountable, but they need high-quality information to engage.

Our annual Blueprint has consistently emphasized the importance of building informational resources that are both understandable and comparable. Missouri provides some data, but there is no central, user-friendly landing place where parents can easily access and evaluate information about the quality of their children’s schools.

For instance, this data dashboard from DESE reports a number of understandable statistics for the year, but you cannot compare districts to each other. Some DESE sources are difficult to decipher and navigate altogether. And if a parent truly wants to compare districts and years, they will need to break out their Microsoft Excel skills.

Using DESE’s dashboard, a parent can see that 58 percent of Parkway C-2 students scored proficient or advanced in mathematics on the Missouri Assessment Program. But is that good? Isn’t 70 percent usually a passing score? How does it compare to last year? How does it compare to other districts across the state? Should a parent be concerned, or encouraged?

These are all important questions, and sadly, the answers require a lot of digging.

Thankfully, parents can find the answers to these questions on our own website, MOSchoolRankings.org.

There, Parkway C-2 is ranked as one of the better districts in our state: 133 out of 551 overall. In fact, its math score is the 37th best in the state. But it’s not all peachy in Parkway, as its low-income math scores ranked 378th in the state, and the overall mathematics score declined from the prior year. These statistics give meaningful context for parents to more accurately hold schools accountable.

Our website serves as a valuable resource for the state, but DESE ought to provide a similar tool—one that is even more comprehensive and accessible—using the state’s greater manpower and authority.

Taken together, survey data and practical experience point to the same conclusion: Missouri’s education system needs to be more accountable to parents. Achieving that goal requires creating resources that are both understandable and comparable.

The post Accountable, Understandable, and Comparable appeared first on Show-Me Institute.

Missouri’s budget is growing faster than the state’s economy, and if this troubling trend continues it could soon prove disastrous for state taxpayers.

The Solution

Limit spending growth, increase accountability, and improve budget resilience through reforms that prioritize Missouri’s long-term financial health.

Key Facts

• Missouri’s government is growing faster than inflation, wages, and the state’s population.

• Currently, state budgeting practices actually encourage greater spending.

• Most state budget documents aren’t easy for citizens to find, nor are they available in a form that is easy to use.

• Missouri awards nearly $1 billion each year in tax credits, which are the fiscal equivalent of state spending, completely outside of the normal budgeting process.

• According to Moody’s Analytics, Missouri is one of the least-prepared states in the nation for an economic downturn.

Spending at Record Levels

Missouri’s budget has been growing unsustainably for years, and may finally be reaching a fiscal cliff. After a year when a reduction in spending was promised but not delivered, our state is facing a one-billion-dollar shortfall. Missouri’s Hancock Amendment, which was once thought to provide protections against unchecked government growth, has proved incapable of meaningfully constraining spending. In fact, if Missouri’s budget growth hadn’t drastically outstripped both inflation and population growth over the past five years, the current fiscal crisis could have been avoided entirely.

Current Practices Encourage More and More Spending

Missouri currently uses what is called an “incremental” approach to budgeting, which means that budget items from one year automatically roll over into the next and establish the new baseline for state spending. This practice makes budgeting easier for legislators because it allows them to focus attention on new funding requests, but it also allows many old programs and spending items to escape annual scrutiny. The result is snowballing government growth. Missouri should require legislators to evaluate program effectiveness through performance audits and to regularly use “zero-based budgeting,” meaning that lawmakers must build the state’s budget from square one each year.

You Can’t Fix What You Can’t See

Currently, most state budget documents are difficult to find, hard to interpret, and in a form that requires citizens to manually transcribe the data to be studied. Such hurdles mean that lawmakers and state bureaucrats can act with greater impunity and less oversight. There is no good reason why the documents that detail where taxpayer money is going should not be easy for any citizen to access and understand.

Additionally, Missouri leads much of the nation in the subsidization of private entities with state tax dollars, yet there’s little to no mention of these subsidies in the yearly budget. Last year, Missouri awarded nearly $1 billion in various tax-credit programs with little to show for it. These tax credits are the fiscal equivalent of state expenditures, but because the state forgoes revenue instead of spending it, the credits are allocated completely outside the state’s normal budgeting process. The exclusion of tax credits from yearly scrutiny also removes them from the calculations lawmakers must make when tasked with balancing the state’s budget. A truthful accounting of all tax obligations is required if Missouri is to right its fiscal ship.

Missouri Isn’t Ready for the Next Recession

The boom-bust cycles of state finances create budgetary chaos. Each economic downturn forces elected officials to make difficult spending decisions that can be at odds with the state’s long-term funding priorities. As a result of the 2007-2009 Great Recession, general revenues fell by over $1.2 billion, leading to abrupt cuts in education, corrections, and other spending that lasted for several years after the recession. Almost every other state in the country has a rainy-day fund to help weather these situations, but Missouri’s Budget Reserve Fund is too small and too hamstrung by restrictions to be used in a downturn. In fact, it’s never once been used for this purpose.

Policy Recommendations

• Establish clear and meaningful state program performance metrics that allow for objective assessments.

• Implement zero-based budgeting.

• Make all state budget documents available in easily accessible, machine-readable formats (e.g., in Excel or CSV format).

• Include all tax credits, or tax expenditures, in the state’s yearly budgeting process.

• Create a separate budget stabilization fund with the sole task of stabilizing revenues in the event of an economic downturn. The fund should be large enough to fully replace state revenues during a crisis comparable in magnitude to the Great Recession with strong protections against improper use. Repayment to the fund also should be dependent on the pace of economic recovery.

FY 2026 Operating Budget

With approximately 58% of all state spending devoted to education and healthcare, continued budgetary growth puts enormous pressure on every other state spending priority.

Budgetary Growth: Fy 2016-2025

Missouri’s state spending has grown by more than 58% over the past decade.

The post Budgetary Reform appeared first on Show-Me Institute.

I decided to try the same thing out at the flagship hospital for four of St. Louis’s major hospital systems. I found that the price without insurance for a knee replacement was $26,122 at Barnes Jewish and $18,766 at St. Luke’s. Using that search term in the pricing websites for both Mercy St. Louis and SSM Saint Louis University turned up no matches. I then decided to broaden my search to every hospital in Missouri.

I used the rules outlined by the Centers for Medicare and Medicaid Services (CMS) to evaluate how “transparent” each hospital’s pricing was. The rules state that each hospital needs to have a consumer-friendly way to shop for common services, as well as a comprehensive list of all services and charges in a digital file. I found that of Missouri’s 164 hospitals, only 47 fulfilled both requirements. That is a compliance rate of just 29%, which, considering the federal rule is a year and a half old, is pretty terrible.

Many of the 47 “compliant” hospitals, such as Mercy, had some sort of online form to estimate prices but, in my opinion, did not make the system all that easy or intuitive to use. Many of these sites would not accept a general term for a procedure, like “knee replacement”, but instead required a technical procedure name or hospital code. Requiring the average patient to have such specific information is not “user friendly.” Likewise, the digital files many hospitals provided are difficult to read unless you have extensive computer software and coding knowledge. The digital file Mercy provided was one of these difficult file types. After spending approximately 45 minutes using code to read Mercy’s file, I found that it was still missing key information CMS requires about negotiated rates between the hospital and insurers.

The bottom line is that Missouri hospitals, by and large, are not following the plain intent of the rules, which makes it difficult for patients to know how much their care will cost and to effectively compare prices. If you would like to try to research the prices of procedures for yourself, I have included an Excel file at the bottom of this post that has URLs for every hospital’s pricing information.

The post Health Care Price Transparency in Missouri: Part Two appeared first on Show-Me Institute.

“We don’t have any of our records on electronic format,” the email read. “Everything is done by hand on paper.” I typed up my standard response to this type of email, asking Linneus’s clerk to copy and mail the city’s expense records if she could, and to inform us what she thought the copies, work, and postal service fees would cost so we could make a budget decision before she started working. I assumed that, like several other small towns before, Linneus would send an estimate, I would note it in an ever-expanding spreadsheet, and the case would be left alone until the municipal checkbook team could decide whether we would fund the inquiry.

Linneus’s city clerk, Patricia Brandes, had a different idea. After telling me she didn’t know what the cost for over 100 copies would be at the Linneus courthouse, she sent me one of my favorite emails of the entire municipal checkbook project.

“Maybe I could try taking pictures of them with my phone and email them to you. Would that work?”

That did work. Patricia sent me the cellphone photos later that day, and you can see all 64 of them for yourself in Linneus’s folder on our online drive. Although they may not be as instantly readable as the Excel sheets and PDFs sent in by some of our state’s municipalities, the images still reveal Linneus’s dedication to transparency. Patricia turned in every page of the city’s pen-and-paper operating expense record from July 2021 to July 2022, including amounts paid and names of vendors. What’s more, she was willing to take time to think of a creative, free solution that fulfilled our request, despite the limited resources of a city as small as Linneus. That’s a clear demonstration of the culture of transparency our project hopes to find in all of Missouri’s municipalities, and reflects well on  Linneus’s city government’s commitment to serving the public.

The post Clerk with a Camera: Municipal Checkbook Hall of Fame appeared first on Show-Me Institute.

And guess who also eschews letter grades for schools? Missouri. The Missouri Department of Elementary and Secondary Education (DESE) recently released the list of Targeted Schools (pretty bad) and Comprehensive Schools (the worst of the worst). Seemingly, this is to be compliant with the federal law to release the list of the lowest five percent of schools in the state in terms of performance, although neither list quite matched that mandate in numbers.

As I converted the PDF lists of Targeted and Comprehensive Schools to an Excel file that I could use (meaning merged with performance and demographic data), I kept having to remind myself which list had 64 schools and which had 323. Targeted and Comprehensive don’t carry much meaning to me. At least these 387 schools got some sort of label. The other 2,200 or so purposefully aren’t “labeled.” Rather, they get a score between 0 and 100 that reflects the number of possible points that a school received (with tons of extra credit points available) divided by their possible points. Parents in the state have been trained to look for the number 70, because that’s the threshold for accreditation.

So, which Missouri schools are doing well and which are doing poorly? Maybe ask your neighbor or the parents on the sideline at this weekend’s soccer game. They probably have some sense of what “most” people think are the “good” schools and which ones to avoid. They may be right, they may be wrong. I don’t recommend turning to DESE to figure it out.   

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Those decisions are newsworthy on their own, but there was an interesting quote from a Columbia council member regarding the failed proposals. Councilman Matt Pitzer said voters have a natural tendency to reject use-tax measures because voters don’t trust government to spend their tax dollars responsibly. How might trust be restored? According to Pitzer,

We do that by making smart financial and fiscal decisions . . . and being open and transparent in our spending and where the citizens’ tax dollars are going.

I could not agree more, which is why we started the Checkbook Project, which is intended to track the expenditures of each Missouri municipality over the past five years. Notably, when we requested data for the project from Columbia, the city was more than accommodating in providing the data we requested. At no cost to us, we got the information in an easily searchable Excel file. Also notable is that when we made the request of Ashland, the city was going to charge $20.00 for their records—still a pretty reasonable figure, in stark contrast to some of the responses from other municipalities we’ve received to date. (More on those interactions in a later blog post.)

When government asks for more money out of our pockets, we have every right to know what that money will be spent on. Even when policymakers are conscientious in their management of tax dollars, we should remember (per H.L. Mencken) that conscience is merely “the inner voice that warns us that someone might be looking.” When municipalities commit to transparency, they introduce that very possibility, and the expectation of public scrutiny should result in better policy. 

The post Restoring Trust through Transparency appeared first on Show-Me Institute.

Let me re-set the stage. Missouri’s Sunshine Law (RSMo 610) requires municipalities and other public bodies to provide records of public interest, with some exceptions. It also states that if there is a charge billed to the requester, the municipality fulfilling the request should use employees of the public body that will result in the lowest amount of charges for search, research, and copying time.

Obtaining records of city expenses over the last five years is central to our project, and because there are so many cities in Missouri, it has been interesting to see the wide variety of reactions we have received from our uniform request (available below). As my colleague Scott Tuttle has noted before, responses to our inquiries have been uneven, with many cities promptly providing us the information we requested for reasonable fees, while others were less responsive and charged more.

For instance, the city of Festus took several days, waived their fees (as they are allowed to do) and gave a detailed Excel spreadsheet of their spending, which can be filtered and easily searched. Smithville took one day to fulfill the request and charged $20.00 for its records in PDF form. Meanwhile, Manchester—which to be fair is a city larger (population ~18,000) than either Festus (~12,000) or Smithville (~9,500)—told us it would cost approximately $1,200 and take up to four weeks for its staff to complete the response to my request.

Why the huge discrepancy in cost? The law does not specify the format in which information should be kept, or what a reasonable fee to charge is. To some degree this ambiguity makes sense, because the law has to be flexible enough to address situations and requests not considered when the statute was written. But should that gray area allow locales to drag their feet or (arguably) overcharge for documents that should be easy to access, while nonetheless complying with the law?

Although the responses from these three cities fulfilled statutory obligations, Festus and Smithville’s responses seemed to be most faithful not only to the law, but also to its spirit. As for Manchester’s response, you can judge for yourself.

It is puzzling with the technology available today why our cities and counties don’t simply publish their “checkbook” information online. There are plenty of free or low-cost platforms to keep these records up-to-date and accessible (look at what Manchester’s neighbor Ballwin is doing), and given the taxpayer interest and treasure involved, why should obstacles get in the way of accessing that information?

Click on the link below to see the request we sent out

The post How Easy Is It to Get a Sunshine Request Fulfilled? It Depends. appeared first on Show-Me Institute.

Using the IDEAS web tool, I restricted the selective tax rates on alcoholic beverages for Missouri and Kansas over time, and then exported this information to Excel to produce the following graphs:

Click graphs to enlarge.

Generally, residents of Missouri are taxed less on alcoholic beverages than residents of Kansas are taxed. Specifically, Missouri assesses lower tax rates on beer and spirits, but as of 2005, the state has higher tax rate on wine.

In an effort to encourage or to protest their economic and social situation, people tend to vote with their feet. This is why I included domestic net migration data for Kansas and Missouri in the second graph. The data show that Kansas has experienced negative net migration every year in the last decade (i.e., people are moving out of the state). Missouri experienced positive net migration during this period, except for 2008 (i.e., people are moving into the state).

Although these trends can be attributed to a combination of factors, it may be possible that the higher taxes on alcohol in Kansas influenced some marginal number of people to move out of the state, and the low taxes on alcohol in Missouri influenced people to move into the state.

I encourage our blog readers to play with the IDEAS web tool and determine to which states they would consider domestically migrating.

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The Political Fix blog initially titled its article “Missouri state agencies fact check blogger,” later changing it to “Credit check: State agencies dispute Show-Me Institute figures.” Both titles misrepresent the truth. The numbers that I reported were produced by Missouri government agencies, not by the Show-Me Institute or myself. The data in the “Show Me: The Spending” web tool comes directly from the Missouri Accountability Portal, which contains information reported and distributed by the state of Missouri.

I spoke with Lorna Domke, outreach and education chief for the Missouri Department of Conservation, who checked with her accounting office and discovered that funds had been misallocated. In an email, she provided the following clarification to me:

Our contracting services for our Permits sales system (“POS system”) should have been through an object code #2496, “other business services.” That category should have had $1.789 million put in it instead of in the object code #2487, “credit card fees.”

Her numbers check out. I isolated these numbers in the Show-Me: The Spending web tool, and then I exported the relevant data to Excel to combine into the following graph. In 2009, the department’s expenditures on credit card fees increased by about $1.7 million and its expenditures on “other business services” decreased by the same amount.

According to her email, the correct FY09 credit card fees total should have been $31,616 and the correct FY08 credit card fees should have been $32,439.

I also asked Ms. Damke if she could define this category for me, because some of our blog readers raised questions about which types of fees it might contain. In the email, she provided the following clarification:

“Expenditures for the fees incurred when accepting payment by credit card.”

Credit card companies will charge the vendor (our Nature Shops in our case ) a fee of a few% of purchase plus 20 or 30 cents per transaction for each purchase, depending on the agreement. So our credit card fees are only for paying the credit card company for being able to accept credit cards for payments. They do not include any interest, late fees, etc.<just the regular fees for accepting credit cards.

At the Show-Me Institute, we’re glad to see that the Department of Conservation admitted that it made a mistake in coding its expenditures. It would be nice if they could get it right the first time. It would also be nice if other departments would also check their numbers. As reported on the Political Fix blog:

Department of Public Safety officials said the figure is misleading, and does not represent late payments from the department.

The Department of Public Safety should check with its own accounting office, because that’s the origin of the numbers that I reported.

The post Missouri State Agencies Fact-Check Themselves appeared first on Show-Me Institute.

BTW, I would like to point out that I linked to Rosenbaum’s article on this subject and excluded others because he embraced new media technology in his blog entry — which, in turn, gave the most authentic and unbiased report. Good to have you back, Jason.

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