Lawmakers gave final approval Thursday to the creation of Education Savings Accounts in Missouri, a major success for Republican leaders who had made doing so one of their top priorities.

The bill barely made it out of the House earlier this year but ran into little resistance in the Senate. It now goes to Gov. Mike Parson for his signature.

House Bill 349 — sponsored by Rep. Phil Christofanelli, R-St. Peters — allows families to apply for a state-supported scholarship, known as an Education Savings Account, to send their children to private school or cover other educational expenses.

The proposal to establish the “Missouri Empowerment Scholarships Account Program” is part of an effort to enact so-called school choice legislation in Missouri, a push which also includes legislation to expand charter schools beyond St. Louis and Kansas City.

“In other states, ESAs have started small but are later expanded to include all students, including rural students,” Mexico School District superintendent Dr. Tammy Lupardus observed. “Those who claim HB 349 will not hurt rural communities are wrong.”

While Republican leadership, including Sen. Caleb Rowden, R-Columbia, has made such legislation a priority, some Republicans have opposed these measures because the school districts in their areas are concerned about the potential loss of students and the financial impact.

And Lupardus warns that concerns are particularly strong in rural districts.

“For-profit virtual school vendors will heavily market to parents and students to receive these scholarship funds,” she observed. “These companies will then use their profits to market to rural students through the MOCAP program, luring students away from public schools and forcing rural districts to pay tuition for rural students to attend subpar virtual courses.”

MOCAP, or the Missouri Course Access and Virtual School Program, allows students to take a range of virtual course offerings through a list of private companies and organizations. The school district, however, remains responsible for keeping track of student progress, all state assessments and billing.

The program, which was put in place in 2018, is administered by the Missouri Department of Elementary and Secondary Education.

Rowden has been a strong proponent of such legislation for years.

“I think at the end of the day it gives parents more choices, gives kids more opportunities that for the history of our state they’ve never had,” Rowden said. “That’s what we were always trying to do. And then I think the notion that this was anti-public education or anything else was always flawed. It’s a good talking point for the other side to use, it’s just not right.”

Under the new legislation, a taxpayer can make a contribution to nonprofits tasked with managing Education Savings Accounts. The contributor will receive a tax credit equal to 50 percent of the donation, which then can be deducted from their tax liability for that year. The total amount of tax credits distributed to donors would not exceed $50 million in the first year, with a hard cap of $75 million.

Critics said the bill would pull funding away from other programs. A fiscal analysis estimates that the program would cost $50 million in general revenue in its first year, mirroring the amount of tax credits that can be issued.

“ESA vouchers will drain state funds that rural districts need,” Lupardus said. Meanwhile many rural schools have yet to receive full funding for student transportation.

Lupardus points out that the bill forces rural residents to shoulder the cost of a program that for the present covers only students in urban areas. And she references other flaws.

“Rural taxpayers will be paying for unregulated education programs for city students to attend, with no guarantee that the students are educated in a safe environment or receive a quality education,” she said.
Rep. Crystal Quade, the House minority leader, has consistently opposed the legislation.

“I always vote against anything that pulls taxpayer dollars away from public institutions to private individuals,” Quade said.

Ledger Editor Dave Faries contributed to this story.