JEFFERSON CITY — School choice advocates in the Missouri Legislature will look to fund private school tuition through the state budget as the eligibility for vouchers expands to students statewide.
The MOScholars voucher program created in 2021 allows corporate and individual donors to direct tax credits to scholarships for private school tuition and homeschool expenses. Donors can divert half of their state tax bill to six religious groups called educational assistance organizations which distribute the funds to qualifying families.
When first approved, MOScholars was limited to larger cities and counties as a concession to rural lawmakers. But the expansion Gov. Mike Parson signed into law in May takes the program statewide and raises current household income limits on participation starting in the 2025-2026 school year. Under the law, the $6,375 value of each voucher increases to as high as $12,000 for English language learners, low-income students and those with learning disabilities.
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The law caps tax credits for MOScholars at $75 million, a far cry from the $16.6 million raised last year for about 1,500 vouchers. With expanded eligibility, Missouri leaders say they are likely to seek additional revenue through the state’s general fund.
“I think the number of families looking for education opportunities that best fit their students will grow exponentially,†said Senate Majority Leader Cindy O’Laughlin, R-Shelbina. “I can’t predict if the funding mechanism will be adequate for demand, but we likely will follow such states as Iowa that have the tax dollars follow the student. This is the logical next step.â€
The Missouri Constitution bars public funding for religious schools, but the U.S. Supreme Court in 2022 struck down a similar law in Maine that excluded most religious schools from that state’s voucher program.
Next year, the MOScholars law will increase the qualifying income level from 200% of the household income limit for free and reduced lunch to 300% — or $166,500 for a family of four.
Critics say voucher programs in several Republican-led states like Iowa serve as private school coupons for some wealthier families.
“It busts the budget because it’s taking on as a public expense what’s previously been a private cost,†said Josh Cowen, an education policy professor at Michigan State University and author of “The Privateers: How Billionaires Created a Culture War and Sold School Vouchers.â€
So far this year, fewer than 400 vouchers have been funded through $2.6 million in tax credits raised by the religious organizations, according to records provided by the treasurer’s office. The largest recipient is Torah Prep School in University City, where 95 students received vouchers worth a total of about $636,500.
The funding mechanism for MOScholars presents a challenge because the bulk of the tax donations come in November and December, months after the start of the school year. The third-party facilitators pay tuition upfront while seeking donations for reimbursement.
For example, 615 students are attending 100 private schools in the St. Louis region this year through the MOScholars fund at the Today and Tomorrow Educational Foundation of the Archdiocese of St. Louis. The group plans to raise $4 million in 2024 tax credit donations by the end of the year, said Pete Cerone, acting executive director.
“There is a pretty active effort to make sure those donations are coming in at a steady rate so we can help as many children as possible,†said Kern Chhikara, spokesman for Missouri Treasurer Vivek Malek. “The treasurer is going to see through to the best of his abilities to make sure this program succeeds with what we’ve been given through law.â€
The Associated Press contributed to this report.