Attorneys for Missouri’s largest teacher’s union are hoping to stop tax dollars from pouring into the state’s voucher program, arguing in Cole County Circuit Court Thursday that payments should be paused until a judge rules on the legality of the program’s funding.
The State Treasurer’s Office has already begun dipping into a $51 million appropriation of general revenue to award private-school scholarships under the MOScholars program, state attorneys said Thursday. Over 6,100 students have been promised scholarships, and any delay would be a “massive disruption to the MOScholars program,” William Seidleck, principal deputy solicitor general, told the judge.
But Loretta Haggard, attorney for the Missouri branch of the Missouri National Education Association, argued Thursday that MOScholars lacks authority to pull directly from general revenue, and taxpayers would be harmed by the illegal use of funds.
MNEA filed requests at the end of June for a temporary restraining order to block the flow of funds until trial and a permanent injunction. But the attorney general’s office asked the judge to reject MNEA’s request for an expedited timeline, citing the recent departure of two top attorneys.
The delay pushed the hearing on the injunction past the start of the school year.
“You can’t just turn on a hose of $51 million in general revenue and force it through the tax credit framework,” Haggard said. “There are gaps in that framework.”
MOScholars was created in a 2021 law which set up the program to work through educational nonprofits approved by the state treasurer. Funding is initiated by donations, which taxpayers are able to receive back as a tax credit equal to 100% of their contribution.
The law set up a fund, the Missouri Empowerment Scholarship Accounts fund, “to be used by the state treasurer for marketing and administrative expenses or the costs incurred in administering the scholarship program, whichever is less.”
But last month, that account received a $48 million infusion, which the treasurer’s office is using to pay for student scholarships.
Haggard argues that using the fund this way is “inconsistent” with the 2021 law, telling the judge to block the outflow of funds before it is too late.
“The money will be gone (if the court doesn’t pause payments),” she said. “Nobody seriously thinks that this court will be able to order the families or the schools to discard the money. That will be gone.”
Seidleck argued that although state law doesn’t explicitly allow for the direct spending of general revenue, there are no provisions that directly forbid it. “Statutory silence,” he said, is not enough.
When deciding whether to issue a temporary restraining order, Circuit Court Judge Brian Stumpe must consider the potential harm to affected parties against the public interest. This piece was a large part of the state’s and intervenor EdChoice’s arguments.
EdChoice Legal Advocates joined the case earlier this month, representing three parents who say the influx of state funding will expand their access to scholarships.
Prior to the $51 million appropriation, MOScholars had a growing waitlist, said EdChoice attorney Bryan Cleveland. With the added funding, the program is now more reliable for those who were previously awarded scholarships, and parents are hopeful to get their other children access as well.
“The plaintiffs have asserted taxpayer standing but they haven’t stated any personal harm,” he said. “In contrast, the families have demonstrated irreparable harm because they need the scholarships to pay not just for tuition but also to pay for reading tutors.”
Seidleck emphasized that the program prioritizes students with an individualized education plan, which serves students with learning and physical disabilities.
MNEA, which is a union of public-school teachers, won’t be harmed by the vouchers, he argued, saying it might help public schools by “facilitating smaller class sizes.” MNEA President Rebeka McIntosh, who was watching the arguments, chuckled at his argument.
Stumpe had few questions Thursday, apart from asking Cleveland how the intervening families would be harmed. He told attorneys he plans on ruling by the end of the day Friday.
This story was originally published by the Missouri Independent.
