HCS HB 1783 & 1479 -- BETTY L. THOMPSON STUDENT SUCCESS
SCHOLARSHIPS TAX CREDIT PROGRAM

SPONSOR:  Hoskins (Bearden)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Urban Issues by a vote of 7 to 3.

This substitute establishes the Betty L. Thompson Student Success
Scholarships Tax Credit Program which authorizes a 100% tax
credit beginning with the 2006 tax year for taxpayers who donate
to a scholarship-granting organization if the donations are not
claimed on the taxpayer's federal income tax return.  The credit
is non-refundable but may be carried forward for three years or
transferred.  The cumulative amount of tax credits cannot exceed
$40 million annually, indexed for inflation.  Scholarships must
average $5,000, indexed for inflation.

Eligibility standards for students receiving scholarships include
a grade point average of 2.5 or less; residence in the St. Louis,
Kansas City, or Wellston School District; attendance at a public
school for the semester before a scholarship is granted or
starting school in the state for the first time; and a family
income of 135% of the level which qualifies the student for the
reduced lunch program.  Scholarship-granting organizations must
meet requirements for fiscal soundness, percentage of revenues
devoted to educational scholarships, and public reporting.
Private schools qualify to accept scholarship students by meeting
requirements which include employee background checks and student
assessments, among others.  The substitute specifies how
scholarship checks will be distributed.

Scholarships may also be used at public schools outside the
eligible school districts.  If the scholarship student attends
another public school, the accepting school must take the
educational scholarship funds instead of state funds owed to the
accepting district.

The Joint Committee on Legislative Research will contract a study
to measure student achievement, satisfaction with the program,
and its impact on public and private schools.

The provisions of the substitute will expire six years from the
effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $75,918
to $40,075,918 in FY 2007, $84,874 to $41,284,874 in FY 2008,
$87,083 to $20,187,083 in FY 2009.  No impact on Other State
Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that they are concerned that many
children from these areas are unable to read, write, add, and
subtract.  Students have different learning styles, and this
requires different environments that support them.  Access to
quality education should be available to ever child, especially
high-risk and under-privileged children.  The bill will address
the great need for more opportunities for a good fit between a
child and a school and will be well-received by parents and
private schools.

Testifying for the bill were Representative Bearden; Lieutenant
Governor; Dr. Greg Forester, Friedman Foundation; Columbia School
District; Shawna and Cinnamon Sharp Holts; St. Louis Regional
Chamber and Growth Association; Dr. Sarita Kazu; Danielle
Whitmore Smith; Juanita Martinez, Central City School Fund; Paul
Danauer; Missouri Chamber of Commerce and Industry; Missouri
Catholic Conference; Rodney Boyd for St. Louis Mayor Slay;
Children's Scholarship Fund of Kansas City; and Daniel Herbster,
Tri-City Christian Schools.

OPPONENTS:  Those who oppose the bill say that it will eventually
decrease funding for the districts and there will be less money
for those students remaining in the districts.  Schools receiving
the students and funding will not be held to the same level of
scrutiny, testing, and standards as other schools.  There is the
potential of skimming off the better students in the district as
has happened in the desegregation program in St. Louis.

Testifying against the bill were Senators Days, Coleman, and
Wilson; Kansas City Civic Council; Greater Kansas City Chamber of
Commerce; St. Louis Public Schools; Kansas City Missouri School
District; Mary Armstrong, St. Louis Teachers Local 420; Missouri
School Boards' Association; Missouri Parent Teachers
Association/Education Roundtable; Missouri State Teachers
Association; Missouri National Education Association; Cooperating
School Districts of Greater Kansas City; Cooperating School
Districts of Greater St. Louis; Missouri School Administrators
Coalition; Missouri Association of School Business Officials;
AFL-CIO; Ron Berry, Missouri Citizen Education Fund; and Dale
Kinder.

Robert Triplett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am