HB 808 -- BETTY L. THOMPSON TAX CREDIT SCHOLARSHIPS

SPONSOR:  Bearden

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Urban Education Reform by a vote of 8 to 0.

This bill establishes the Betty L. Thompson Scholarship Program
which authorizes a tax credit beginning with the 2007 tax year
for taxpayers who donate to an educational assistance
organization if the donations are not claimed on the taxpayer's
federal income tax return.  The credit is for 65% of the amount
of the contribution and is nonrefundable 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 may not exceed $5,000, indexed for
inflation.  Thirty-two million dollars will be allotted for tax
credit scholarships and $8 million for public school foundations.

Eligibility standards for students receiving scholarships include
a grade point average of 2.5 or less; residence in the St. Louis
or Kansas City 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 no more than
35% above the qualifying amount for the reduced lunch program.

Educational assistance organizations must meet requirements for
fiscal soundness, percentage of revenues devoted to educational
scholarships, and public reporting.  Private schools will qualify
to accept scholarship students by meeting certain requirements
which include employee background checks and administering state
student assessments, among others.  The bill specifies how
scholarship checks will be distributed.

Scholarships may also be used at public schools outside the
eligible school districts and they will have the right of first
acceptance of scholarship students.  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 bill 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 2008, $84,874 to $41,284,874 in FY 2009, and
$87,083 to $8,126,083 in FY 2010.  No impact on Other State Funds
in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that when public education in an area
becomes an instrument for submitting children to a life of
low-literacy and underachievement, it is time for a change.
Access to quality education should be available to every child,
especially high-risk and under-privileged children.

Testifying for the bill were Representative Bearden; Lieutenant
Governor Peter Kinder; Black Alliance for Educational Options;
National Black United Front-St. Louis Chapter; Brian T. Johnson,
Children's Educational Alliance of Missouri; Veronica O'Brien,
President, St. Louis Board of Education; Missouri Catholic
Conference; and St. Louis Regional Chamber and Growth
Association.

OPPONENTS:  Those who oppose the bill say it should address the
challenges of urban public schools and seek to provide quality
public schools for every child.  The bill will diminish the
state's capacity to fund proven programs that close achievement
gaps and help students succeed.

Testifying against the bill were Kansas City Civic Council;
Missouri National Education Association; Otto Fajen, Education
Roundtable; Missouri School Administrators Coalition; Cooperating
School Districts of Greater St. Louis; Missouri AFL-CIO, Missouri
School Boards' Association; Missouri State Teachers Association;
St. Louis Teachers and School-Related Personnel Union, Local 420;
American Federation of Teachers-Missouri; Greater Kansas City
Chamber of Commerce; and Ray Cummings.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am