Category: state funding

  • Nearly All State Funding for Missouri School Vouchers Used for Religious Schools – The 74

    Nearly All State Funding for Missouri School Vouchers Used for Religious Schools – The 74


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    State funding of private-school vouchers is primarily being used for students attending religious institutions, with nearly 98% of funding going toward Catholic, Christian, Jewish and Islamic schools.

    This year, state lawmakers passed a budget that included a request from Gov. Mike Kehoe to supply the state-run K-12 scholarship program, MOScholars, with $50 million of general revenue. Previously, the impact to the state’s bottom line was indirect, with 100% tax-deductible donations fueling the program.

    Donations are still part of MOScholars’ funding, but the state appropriation has more than doubled the number of scholarships available.

    During the 2024-25 school year, MOScholars awarded $15.2 million in scholarships.

    In August alone, the State Treasurer’s Office received invoices for scholarships totaling $15.6 million, according to documents obtained by The Independent under Missouri’s open records laws.

    The invoice process is unique to the direct state funding of the program. The nonprofits that administer scholarships, called educational assistance organizations, were the sole keepers of scholarship funds. But now, the State Treasurer’s Office holds scholarship money derived from general revenue in an account previously only used for program marketing and administration.

    The invoices contained data on which schools MOScholars students are attending and the scholarship amount.

    Of the 2,329 scholarships awarded in August, only 59 went to students in nonreligious schools.

    This number did not surprise Democratic lawmakers, who for years have warned that state revenue was going to be siphoned into religious schools.

    “We are simply subsidizing, with tax dollars, parents who would already choose to send their kids to a private school,” state Sen. Maggie Nurrenbern, a Kansas City Democrat, told The Independent. “And now we are using public dollars to pay for schools that are not transparent whatsoever in choosing who to educate and who not.”

    Some schools have been criticized for admission requirements that push a moral standard.

    Christian Fellowship School in Columbia, which received scholarships for 63 MOScholars students in August, requires “at least one parent of enrolled students professes faith in Christ and agrees with the admission policies and the philosophy and doctrinal statements of the school,” according to its handbook. 

    These statements include disapproval of homosexuality.

    “The school reserves the right, within its sole discretion, to refuse admission of an applicant or to discontinue enrollment of a student,” the handbook continues.

    With around 430 K-12 students enrolled at Christian Fellowship School, according to National Center for Educational Statistics survey data, MOScholars makes up a sizable portion of its funding. But it is not the only school with a large number of scholarship recipients.

    Torah Prep School in St. Louis had 229 K-12 students during the 2023-24 school year. And in August, 197 MOScholars students received funding to attend the school. Torah Prep did not respond to a request for comment.

    The high number of students attending religious schools with MOScholars funding is somewhat incidental, somewhat by design.

    The MOScholars program allows its six educational assistance organizations to choose what scholarships they are willing to support. 

    Religious organizations stepped into the role to help connect congregants with affiliated schools. Only two of the six educational assistance organizations partner with schools unaffiliated with religion.

    The Catholic dioceses of Kansas City-St. Joseph and Springfield-Cape Girardeau run the educational assistance organization Bright Futures Fund, which administered nearly half of the scholarships awarded in August.

    The educational assistance organization Agudath Israel of Missouri focuses on Jewish education, partnering with four Jewish day schools.

    The organization’s director Hillel Anton told The Independent that students are attracted to the program for more than just religious reasons.

    “(Parents’) first and foremost concern is where their child is going to be able to be in the best learning environment,” Anton said. “And you may have a faith-based school that is fantastic and is able to provide that.”

    The demand for the program has long exceeded funding availability. Going into August, organizations had waitlists of students eligible for a scholarship but without funding secured.

    Agudath Israel of Missouri couldn’t guarantee scholarships for all of the returning students, Anton said, until the state funding was official.

    “Because a lot of the funding is done towards the end of the year… we had everyone on a wait list,” he said. “Because we didn’t know necessarily how much funding we were going to have, we weren’t awarding anyone (the funding).”

    Because the program was previously powered by 100% tax-deductible donations, the majority of funds poured in around December. But families need the money months sooner, with tuition due at the start of the school year.

    Some educational assistance organizations prefunded scholarships, dipping into their savings to front expenses in the fall. Others had schools that would accept students and wait for payment.

    The funding from the state, though, has resolved the backlog and allowed organizations to give scholarships to everyone on their wait list.

    “Everyone who qualified for a scholarship this year received one,” Ashlie Hand, Bright Futures Fund’s director of communications, told The Independent.

    Bright Futures Fund nearly doubled the number of students it serves, from 1,050 to 1,909.

    Agudath Israel of Missouri is growing, too. The new funding helped the organization expand from 175 scholarships last year to 277 this year.

    Some expect the state funding to continue next year to support this year’s windfall of scholarships. State Treasurer Vivek Malek told The Independent in May that if donations fall short, he will request state funds to support the new students through graduation.

    Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: [email protected].


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  • Flat Federal Funding Stymies Head Start as State Child Care Resources Diminish – The 74

    Flat Federal Funding Stymies Head Start as State Child Care Resources Diminish – The 74


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    Despite having some of the most resources and economic support, a recent national study ranked Indiana’s early education system 42nd in the country — and second-to-last when it came to accessibility.

    The WalletHub story, shared earlier this week, is simply the latest confirmation for Hoosier parents that Indiana’s child care market is struggling. Experts, business leaders and politicians agree that Indiana needs more child care, but can’t seem to agree on the best way to meet the moment.

    Facing budgetary pressures and depressed revenue forecasts, state leaders opted to trim funding and narrow eligibility for early learning and child care resources earlier this year. Seats for state-funded preschool, known as On My Way Pre-K, have been halved while vouchers for subsidized child care have more 21,000 children on a waitlist.

    One federal program, Head Start Indiana, hopes to help close the gap left by vanishing state funding, but faces its own challenges with flat federal funding.

    “We are the quietest, most successful 60-year old program in the federal government’s history,” boasted Rhett Cecil, the organization’s executive director. “… (our programs) are going to support their families and children. They’re allowing families to work or get job training or further education. And our services — that child care and early education — are free for those families.”

    Just under 13,000 families in all 92 counties utilize the program, which receives roughly $181 million in federal funding annually. That budget line was briefly threatened by the Trump administration, which walked back proposed cuts in favor of flat funding — which does mean services will be lost as inflation and other costs eat into the bottom line.

    The second-term president also eliminated the federal Head Start office covering Indiana back in April — though the federal Administration for Children and Families announced it would dedicate one-time funding to Head Start locations earlier this week explicitly for nutrition, but not for other programming costs.

    Additional federal support could allow it to expand to meet the need following state cuts, leaders hope, and continue employing almost 4,000 Hoosiers.

    “Let’s say, hypothetically, we get $100 million more dollars. How many more teachers and classrooms could be opened?” Cecil mused. “How many kids could we serve off that waitlist?”

    Importance of child care

    Participating in and access to child care resources reaps benefits for young Hoosiers, such as better school readiness skills. Some national research has found that early education may also decrease future crime and could generate $7.30 for every one dollar invested.

    In Indiana, the shortage of child care options costs the state an estimated $4.2 billion annually, over a quarter of which is linked to annual tax revenue lost.

    The 2024 study from the Indiana Chamber of Commerce emphasized the need to free up parents, mostly women, who’ve left the workforce “as a direct result of childcare-related issues.”

    “There’s some data out there that one in four Hoosier parents leave their job over child care gaps, and it really impacts talent and workforce,” said David Ober, the chamber’s vice president of taxation and public finance. “It’s hindering economic momentum in the state and so it is a huge deal for us.”

    For the last few years, tackling the state’s child care crisis has been a top legislative priority for the organization, which represents the interests of thousands of Hoosier employers. Ober said the chamber is working to plan a child care summit later this year to identify potential solutions.

    According to Brighter Futures Indiana, average full-time weekly care costs families $181 per week — with even higher prices for infants and toddlers. That doesn’t factor in type of care or quality, and prices vary by community.

    Families can spend more on their young children’s care than on a college education — if it’s even available in their communities. Rather than pay the price, many Hoosier parents simply drop out of the workforce at the same time that employers are scrambling to hire talent.

    Ober highlighted recent legislative efforts to expand child care, including one that expanded a tax credit for employers directly providing their employees with child care resources. Other bills have tweaked staffing ratios and created a pilot program for so-called microcenters.

    But workforce remains a challenge, even for Head Start centers, earning its own legislative study carveout. Over 20% of Indiana’s child care workers left the field during the pandemic — a shock that “has not really fully healed,” Ober said.

    “If you ask any provider in the state, workforce is the hardest problem,” Ober said. “… How do you get educators and keep them? There’s so much more work to be done there and it’s challenging.”

    Traditional market forces struggle to balance affordability for parents against costs for child care, a gap sometimes covered by government subsidies.

    But Ober insisted that “child care is infrastructure,” especially for the businesses reliant upon employees who are parents. Changing funding is “going to just exacerbate underlying problems,” he added.

    “Those numbers are pretty stark,” Ober said. “And then when you add in changes at the state and the federal level, it creates new problems that we all have to come together and work on,” he concluded.

    Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: [email protected].


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