HCS#2 HB 1886 -- SPECIAL NEEDS SCHOLARSHIP TAX CREDITS

SPONSOR:  Scharnhorst

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Student Achievement by a vote of 6 to 2.

Beginning January 1, 2008, this substitute establishes Bryce's
Law which authorizes a tax credit for an individual who donates
to a scholarship-granting organization if the donation is not
claimed on the taxpayer's federal income tax return.  The tax
credit may be taken against income tax, corporate franchise tax,
insurance premium tax, financial institutions tax, and express
company tax liability.  The credit will be for 80% of the amount
of the contribution but cannot exceed 50% of the taxpayer's state
tax liability, up to $800,000 per year, and is nonrefundable but
may be carried forward for four years or transferred or sold for
between 75% and 100% of its par value.

Eligibility standards for students receiving scholarships are
attendance at a public school with an individualized education
plan (IEP) or until enrollment in a Missouri school.  Up to 10%
of students with an IEP may receive a scholarship each year.
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 specified requirements
including employee background checks and providing data as
requested, among others.  Scholarships may also be used at a
public school outside the student's resident school district.
The substitute specifies how scholarship checks will be
distributed.

The Department of Economic Development must conduct a study to
measure student achievement, satisfaction with the program, and
its fiscal impact on the state and public schools and provide the
General Assembly with a final copy of the evaluation by
December 31, 2013.  The department cannot use public money for
the study and may contract with one or more qualified researchers
who have previous experience evaluating similar programs.

The provisions of the substitute will expire December 31 six
years from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown -
expected to exceed $100,000 in FY 2009, FY 2010, and FY 2011.  No
impact on Other State Funds in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that early intervention is the key to
successful treatment for autistic children, but under the current
system, children have to fail in public programs before they are
placed at private schools that specialize in autism.  Public
schools don't like to admit that they're not helping a child as
much as a private facility might.  A scholarship will let parents
place their child in a private school more quickly and could
potentially save the state money later on.

Testifying for the bill were Representative Scharnhorst; Shari
Kaminsky; Dr. James Bubenik; Stacey Bowlen, Judevine Center for
Autism; Trisha Buerge; Catherine Holloway, Giant Steps; Deborah
Creswell; Ryan Scharnhorst; Beverly Trinidad; Betty Berger, Giant
Steps; Sara Ann Denson; Nora Kelleher, Giant Steps; Robert
Castle; Maxine Johnson; Missouri Catholic Conference; and Dawn
Casey, Howard Park Center.

OPPONENTS:  Those who oppose the bill say that a scholarship is a
band-aid approach, because it won't be effective for children in
areas that lack facilities.  A comprehensive statewide autism
program is a better option.

Testifying against the bill were Dr. Sheryl Davenport, St. Louis
Public Schools; Dr. Kenneth Eigenberg; Kelly Park; Cooperating
School Districts of Greater St. Louis; Mary Armstrong, Local 420,
American Federation of Teachers-St. Louis; Missouri State
Teachers Association; Joan Zavitsky, Special School District of
St. Louis; Missouri Council of School Administrators; and
Missouri National Education Association.

OTHERS:  Others testifying on the bill say that tax credits are
not vouchers and the provisions of the bill meet constitutional
requirements.  The effect of the scholarship on a child's rights
under the federal Individuals with Disabilities Education Act
will be no different from any other child who transferred from a
public to a private school.

Testifying on the bill were Larry Opinski; and David Roland.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm