Parson signs school choice bill: How big are the scholarships and who is eligible?

School choice groups in Missouri have spent years lobbying for a program that funds private school scholarships for public school students. It was invariably blocked by opposition to any idea that smacked of a voucher system that critics argued would drain money from public education.

But school choice had some success in the General Assembly this spring, boosted in part by parental frustration with public schools during the pandemic, especially remote instruction. Proponents ended up compromising on a smaller program, with a lot of administrative details yet to be worked out. Supporters hope to grow it in the years ahead.

Gov. Mike Parson signed the bill into law Wednesday.

Empowerment Scholarship Accounts will be available starting in the 2022-2023 school year. Here’s what we know about them.

Who is eligible?

Scholarships will be available to low-income students and students with disabilities in urban and suburban areas: Jackson, St. Louis, St. Charles, or Jefferson counties, or any city bigger than 30,000, such as Kansas City, Springfield or Columbia. Students must either have an individualized education plan (IEP) — an instructional blueprint for a special needs student — or be in a family that earns up to twice the income used to calculate eligibility for free or reduced price lunch. In Missouri, that would be about $69,000 a year for a family of four.

Students also must have been enrolled in a public school for at least one semester in the past year, unless they are entering kindergarten.

How large are the scholarships and how can the money be used?

The maximum award will be $6,375, a figure based on the state’s annual per-pupil funding level for public schools. Once a family receives the scholarship, it can apply for a yearly renewal.

But even the maximum scholarship won’t completely cover the cost of most Missouri private schools. A survey of 153 schools by Private School Review found the average 2021 tuition to be $9,971.

The scholarship money can also go toward any private or religious home schools.

It can also be used for a variety of schooling costs: tuition, transportation, curricula and textbooks, special education services from qualified teaching aides, college prep tests, summer or after-school programs, extracurricular activities and virtual learning. One allowable use is fees for the scholarship-giving organization to hire a firm to manage the scholarship account.

The money cannot be used for out-of-state schools or to pay someone related to the student.

Students who receive the scholarship still will have to take state assessment tests in math and English language arts when required.

Who supports this program and who is funding the scholarships?

The program was one of the top priorities for Republican leaders in both chambers of the legislature, including House Speaker Rob Vescovo and Senate Majority Leader Caleb Rowden. School choice proponents, such as the Children’s Education Alliance of Missouri (CEAM), brought parents to the capitol to testify in favor.

While similar to traditional voucher programs that subsidize public school students to attend private school, the scholarships will cost Missouri taxpayers more indirectly.

They will be awarded by nonprofits specifically set up to solicit private donations for the program. Donors will then be able to claim a tax credit.

Those organizations have not yet been created and cannot begin to operate until the state treasurer’s office, which is tasked with oversight of the program, writes regulations. CEAM on Tuesday announced the creation of a website that will track that information.

How many scholarships will be available?

The original proposal called for more than 7,000. But the plan was cut in half as a concession to critics. There will be roughly 3,700 scholarships available in the program’s first year.

Will this reduce funding for Kansas City-area public schools?

That’s possible, and was the main point of contention during for many urban Democrats whose districts cover areas eligible for the program. School administrators and teachers unions were opposed, and the Missouri State Teachers Association asked Parson to veto the legislation.

Statewide it is expected to cost $25 million in its first year. That can grow to $50 million in subsequent years.

But the direct impact on urban school districts would be softened somewhat. The law provides that students who leave will still be counted in district attendance numbers for five years or until they’ve graduated. The state uses attendance to calculate funding for public school systems.

The program is also limited to 10 scholarship-granting nonprofits in any school year. As a way to spread the impact, no more than six can operate in St. Louis City or Jackson, Greene, St. Charles and St. Louis counties.