Missouri Independent: Missouri Senators propose tax credit for homeschool and private school families

Missouri Senators propose tax credit for homeschool and private school families

by Annelise Hanshaw, Missouri Independent
February 18, 2025

Missouri’s homeschool families and those enrolled in private schools could receive a tax credit for their educational expenses under legislation debated Tuesday by the Senate Education Committee.

The credit would be capped at the annual state adequacy target, a number determined by the per-pupil expenditure of the highest performing school districts in the state. 

Currently, that amount is $7,145.

The credit would be administered by the Missouri Department of Revenue. There is currently a tax-credit scholarship program overseen by the State Treasurer’s Office, called MOScholars, which provides a credit for donations to certain nonprofits that then disperse the money to families enrolling in private schools. 

The proposals debated on Tuesday, in contrast, would allow families to directly get a refund for expenses related to educating their children.

State Sen. Rick Brattin, a Republican from Harrisonville and one of the bill’s sponsors, compared the structure to the gas tax refund, in which drivers can submit gas receipts to the state for reimbursement.

The tax credit program would be a path for families to escape underperforming schools, said state Sen. Nick Schroer, a Republican from Defiance sponsoring a similar bill.

“For decades, Missouri dramatically increased education spending, yet student outcomes continue to decline,” he said. “More money has not solved the problem in the state of Missouri, and it’s clear that a one-size-fits-all system for educating our youth is failing to educate many of our children.”

Budget battle brewing over Missouri Gov. Mike Kehoe’s school funding proposal

While the state education budget is due for an increase in the hundreds of millions this year, the formula that funds public schools has been relatively stagnant for over a decade with inflation outpacing any increases.

Gov. Mike Kehoe, lawmakers and the State Board of Education have all called for an examination of the formula.

Schroer began considering a homeschool tax credit when he was a state representative after hearing from homeschooling families about other states’ policies.

“There are many individuals, whether it’s private school, homeschool or hybrid, who’ve indicated that they would like to at least recoup some of those expenses since they’re not utilizing the public school system,” he said.

Brattin said his office received “an influx of opposition,” referring to homeschooling families worried about alterations to the state’s homeschool protections. Home educators have opposed tax credits and other public programs in recent years, saying they are worried about governmental oversight.

Brattin said the idea that it would impose restrictions on homeschooling families is a “myth.”

“Nothing in this bill is a requirement. Nothing in this bill is a database. Nothing in this bill is a list to take away rights, freedoms and liberties of individuals,” he said. “In fact, this only bolsters that and gives the full capability and freedom and liberty for families that want different options.”

Despite his reassurance, the first person in opposition represented home educators.

David Klarich, a lobbyist for the homeschooling group Family Covenant Ministries, said Missouri has “the best home education statute in the United States.” He asked for the bill to only apply to a separate category of home educators created last year in a large education package.

“Those parents who want to participate in public schools or take public dollars may then do so, and there would be no concern about governmental intrusion because then those parents and students go wide-eyed into the governmental system and they can still participate,” Klarich said.

He feared there would be “strings attached,” leading to curriculum oversight.

State Sen. David Gregory, a Republican from Chesterfield, said he is “not seeing where the strings are attached.”

Public education groups also had concerns.

Otto Fajen, lobbyist for teachers’ union Missouri National Education Association, told committee members that the legislation could further restrict the amount of the state’s general revenue available for public education.

“(This bill) is on its own, without connecting with what’s going on with the (public school funding) formula, what’s going on with minimum salaries, and kicks in quickly to offer this tax benefit for supporting educational expenditures and significantly affects state general revenues,” he said.

A large education package passed a year ago has raised teacher salaries statewide with the help of general revenue and created a funding obligation of $200 million this year with all its provisions.

Kehoe has also indicated he will push to eliminate the state’s income tax. If the governor’s plan succeeds, Fajen said, there will be no money available for the rebate.

“It creates a lot of problems that you all will have to deal with through the budgeting process,” he said, “and that schools will have to deal with going forward.” 

The committee, which is chaired by Brattin, did not take action on the legislation Tuesday.

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