Expansion of Missouri Empowerment Scholarship program a failure for public accountability

Gov. Mike Parson delivers his final State of the State address to the Missouri General Assembly on January 24, 2024 at the Missouri State Capitol Building in Jefferson City.
Gov. Mike Parson delivers his final State of the State address to the Missouri General Assembly on January 24, 2024 at the Missouri State Capitol Building in Jefferson City.

“School choice” advocates are celebrating Gov. Parson’s signing of SB 727. But what has been promoted as a win for education freedom is a veiled effort to profit education entrepreneurs at the expense of transparency to Missouri taxpayers. It is true that academic education in Missouri has been in decline for over a decade, but the same Department of Elementary and Secondary Education that has managed that decline will be managing the distribution of public funds to other “choices” to which SB 727 will divert our tax dollars, with fewer tools for local control and taxpayer accountability.

SB 727 increased teacher salaries significantly, about 60% for starting pay, without providing funding. Local government will bear this unfunded state mandate meaning increases in real estate taxes.

SB 727 authorizes DESE, a state department overseen by the Missouri State Board of Education, to make the rules for taxpayer-provided “empowerment scholarships” to private schools. DESE’s record for making policies and accreditation standards for public schools demonstrates its idea of “education” is social reconstruction by shrinking parent authority over children’s education. DESE is the enforcer of the Woke agenda, DEI, SEL and a comprehensive sex education program that imposes dogma and propaganda in matters and topics determined by non-profits and the state, not parents.

SB 727 increases the amount of tax money going into the Empowerment Scholarship Account (ESA) from $50 million per year to $75 million per year. These amounts are funded entirely with taxpayer money through a state-sanctioned money laundering system — that is — donations to the account are given back to the donor with a 100% tax credit. The most likely donors are private businesses that invest in charter schools having no public representation, virtual learning providers and entrepreneurial public school management companies.

Money, stocks, bonds and marketable securities that are “donated” to the ESA are not received by the state treasurer. They are placed by Education Assistance Organizations (private non-profits) with private financial management firm(s). Those “donations” are invested in some undisclosed account determined by the financial manager.

A classroom at Williams Elementary in Springfield.
A classroom at Williams Elementary in Springfield.

Ninety percent of the EARNINGS from the “donations” are paid out in scholarships for students. The actual “donations” (our tax dollars) are NOT paid out in scholarships.

The legislature did not require financial reporting to the public. We The People cannot know who donated and in what amounts to the scholarship account, where the account is invested, how it’s invested, what it earns, fees charged or how much is paid out to students. The Scholarship Act requires reporting on grades and graduation rates, not on how OUR tax money is invested and spent.

SB 727 does not provide choice. It shifts tax money from public schools to private entities under the direction of a department that has overseen the demise of Missouri’s public education. Missouri taxpayers deserve transparency, accountability and authentic education reform starting with reforming the State Board of Education. The legislature should represent the public’s interest and override the Governor’s signing of SB 727 at veto session.

Mary Byrne, Ed.D, lives in Springfield.

This article originally appeared on Springfield News-Leader: Missouri 'school choice' bill is state-sanctioned money laundering