HB 2207 -- HCH Scholarship Program

Sponsor:  Hoskins

This bill establishes the HCH Scholarship Program within the
Department of Economic Development which authorizes a tax credit
beginning January 1, 2009, for taxpayers who contribute to an
educational assistance organization if the donations are not
claimed on the taxpayer's federal income tax return.  The credit
will be 50% of the amount of the contribution and is
nonrefundable but may be carried forward for three years.  The
cumulative amount of tax credits cannot exceed $20 million
annually, indexed for inflation; and scholarships may not exceed
an average of $5,000, indexed for inflation.  Eighty percent of
the scholarships must go to students from households that have an
income no higher than 135% of the level needed to qualify for a
reduced price lunch, while the remaining 20% will be divided
equally between students in the St. Louis City and Kansas City
school districts without regard to parental income.

Eligibility criteria for students receiving scholarships include
enrollment in any grade from kindergarten to grade six; residence
in the St. Louis or Kansas City school district; and eligibility
to attend a public school for the semester before a scholarship
is granted or starting school in the state for the first time.
Home schooled children are also eligible for a scholarship up to
the amount of educational expenses, which will not include any
payment for the parent's instructional services.

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.

The Department of Elementary and Secondary Education will
contract for 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 December 31 six years from
the effective date.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm