Weekly Update

May 3, 2024

Some classrooms sit empty because childcare providers lack adequate staff, while parents face year-long waitlists for seats at other centers.

Parents can't afford to wait on childcare solution

The Goddard School of Saint Charles, a franchise and part of a national network of schools, offers high-quality childcare for infants through Preschoolers. Full-time tuition for an infant costs families $25,200 annually. The next open infant slot will be available in mid-2025, so the center's director, Ciara, recommends signing up the minute you learn you are pregnant.

In St. Charles County, the median household pre-tax income stands at $99,596. However, with an average tax rate of 26.8%, the net pay is reduced to around $72,503. This means that a typical family with two working parents can expect to spend a staggering 34% of their income on childcare for just one child. These figures highlight the significant financial burden the current childcare crisis is placing on families in our community.

Four miles down the road from The Goddard School is the former home of Waverly Forest Academy, a childcare center that abruptly closed in February due to staffing shortages. Waverly parents paid up to $18,000 a year for childcare. The closure underscores the challenges faced by childcare centers in recruiting and retaining qualified staff.

The average salary for a childcare worker in St. Charles is $32,127, or about $15 per hour. A living wage in Missouri for a single adult with no children is $20.20 per hour. So, it should come as no surprise that centers find recruiting qualified workers challenging. It also explains why non-college-educated women with less purchasing power often quit their jobs to stay home with the kids—an acceptable choice if another household member has a steady income. However, for single moms, the options are extremely limited.

In response to the childcare crisis in Missouri, over 75 organizations and hundreds of individuals have signed a petition circulated by the Missouri Chamber of Commerce. This petition urges lawmakers to address the crisis by passing HB 1488 (Shields) and SB 742 (Arthur). If enacted, these bills would create three tax credit programs to incentivize support for childcare centers that would enable them to invest in their workforce and increase the supply for families, thereby alleviating the current crisis.

Opponents will argue that the tax credits create a "cradle to grave" continuum of government dependency. However, this legislation is not about fostering dependency; it's about catalyzing self-sufficiency and economic mobility. It's about laying the foundation for a more equitable and prosperous society by increasing workforce participation and productivity.

As we approach the final two weeks of the session, the situation regarding the childcare tax credit package appears bleak. However, what is even more alarming is the potential consequences of inaction. The actual cost of this inaction will be a further depletion of the already strained childcare supply and fewer opportunities for working mothers striving to build strong and healthy families.

This crisis is not just a matter of individual families but a significant threat to our community's ability to thrive. We strongly urge the Senate to take up and pass HB 1488.

About Aligned

Aligned is the only state-wide non-profit, nonpartisan business group working in Kansas and Missouri on educational issues impacting the full development of our children, from supporting high-quality early learning to solid secondary programs that provide rigorous academic programs and real-world learning opportunities.

Our vision is that our public education systems in Kansas and Missouri have the resources and flexibility to prepare students to pursue the future of their choice.

We are currently focused on education policies that will strengthen early childhood education, teacher recruitment and retention, and school finance reform.

Learn more about our work.

Click here to tell the State of Missouri to invest in kids.

See the 2025 - 2027 Child Care Development Fund State Plan Draft.

Missouri News

Senate cabal sucks precious time as session end looms near

While the Senate burned the midnight oil for two consecutive nights (details below), the House appeared oblivious to the fact that there were merely three weeks left in the Session. They charged forward as if it were just another February, perfecting and giving third readings to their bills. While it's undoubtedly satisfying to see your bill pass through the House, at this juncture, its chances of progressing further are slim to none.

House Floor Activity

Cardiac Emergency Response Plan - On Monday, the House third read and passed HB 1991 (Gallick), which requires school districts in the state to implement Cardiac Emergency Response Plans (CERPs) and have on-site a working AED and protocols for proper use in a cardiac emergency, by a vote of 151-0.

Dental Hygiene Compact - On Tuesday, the House Perfected HB 2075 (Coleman), which allows Missouri to opt-in to a Compact with other states to share licensure and certification requirements for the practice of dentistry and dental hygiene. During Perfection, the bill was amended to include a requirement for health carriers to submit payment for dental services within a timeframe as outlined in their contract with providers. On Thursday, the House Third Read and Passed the bill 138-8.

Eminent Domain—On Tuesday, the House Perfected HB 1750 (Haffner), which prohibits the use of eminent domain by electrical corporations for the construction or erection of any plant, tower, panel, or facility used for wind and solar farms owned by public utilities. On Thursday, the House Third-Read and Passed the bill by a vote of 115-27.

Department of Revenue Mail—On Wednesday, the House Perfected HB 1484 (Griffith), which allows corporations and LLCs in the state to opt-in to receiving communication by electronic or postal means. After a brief debate, the House Third-Read and Passed the bill by Consent 142-0.

House Committee Activity

School Health Professionals - On Tuesday, the House Special Committee on Public Policy passed HB 2858 (Young), which establishes a state supplemental fund for high-needs school districts to match funding for the hiring of health and mental health professionals by a vote of 6-0.

Senate Floor Activity

The Senate returned on Monday expecting a battle over the Third Reading of SB 751 (Brown) but passed the bill without incident. However, Tuesday's business of renewing the Federal Reimbursement Allowance (FRA), which accounts for nearly $4.5 billion of the state budget, set off a 41-hour marathon filibuster by members of the Freedom Caucus, who wanted to beat the previous record filibuster of 39 hours set by Democrats stalling passage of an anti-LGBT rights bill. More on that below in our budget section.

Gold and Silver—On Monday, in an attempt to placate Sen. Bill Eigel, Senate leadership brought his bill, SB 735, to the floor for consideration. The bill specifies that gold, silver, or other electronic tender may be received as payment for debts to the state. With no discussion, the bill was Third Read and Passed by a vote of 21-10.

Missing and Murdered African American Women - On Monday, the Senate Third Read and Passed SB 890 (Mosley), establishing the "Missing and Murdered African American Women Task Force" and directing the Department of Public Safety, in consultation with the task force, to develop model policies and processes to address violence against African American women and girls, by a vote of 31-0.

Pharmacy Benefits - As mentioned, on Monday, the Senate Third Read and Passed SB 751 (Brown-16), which modifies provisions known as 340B governing the purchase and dispensing of pharmacy products in rural and underserved hospitals, by a vote of 28-3.

FRA Renewal - The Senate Perfected SB 748 (Hough), which extends the sunset on the Federal Reimbursement Allowance (FRA) until 2029 before adjourning for the week. The Chamber will need to Third-Read and Pass the bill next week for consideration by the House before the Legislature adjourns sine die at 6 p.m. on May 17.

Senate Committee Activity

Antibullying Policies - On Tuesday, the Senate Select Committee on Empowering Missouri Parents and Children heard and passed HB 1715 (Byrnes), which requires DESE to develop a model policy to address bullying and school discipline, requires school districts to implement bullying-response and discipline protocols in a way which restricts punishment as a result of zero tolerance policies for victims of or defendants of victims of bullying and implements programs which educate students on strategies to overcome the negative effects of bullying, helps students develop social skills, cultivates a student's self-worth and self-esteem, and teaches the student assertive and effective self-defense by a vote of 9-0.

Career & Educational Experience Externships - On Tuesday, the Senate Select Committee on Empowering Missouri Parents and Children heard and passed HB 1945 (Shields), which removes the expiration on a voluntary vocational, career and technical externship program for professional educators to experience, participate in, and gain knowledge of the available career pathways, educational requirements, and emerging fields of study available to high school students entering college or the workforce in Missouri, by a vote of 10-0.

Prohibited Diversity Statements - On Tuesday the Senate Select Committee on Empowering Missouri Parents and Children passed SB 1125 (Brown-26), which prohibits public institutions of postsecondary education in the state from requiring any applicant, student, employee, or contractor to submit a diversity, equity, and inclusion statement or from giving preferential consideration in admissions or employment on the basis of an individual's or entity's submission of any statement relating to a discriminatory ideology, including any ideology that promotes the differential treatment of an individual or group of individuals based on race, color, religion, sex, gender, ethnicity, national origin, or ancestry, and outlines certain disciplinary protocols for an individual or institution in violation of the act by a vote of 8-2.

St. Louis County Early Childhood Tax - On Tuesday, the Senate Select Committee on Empowering Missouri Parents and Children passed SB 1447 (Williams), which authorizes St. Louis County to impose a retail sales tax of up to .25% for the purpose of funding early childhood education, subject to voter approval, by a vote of 6-4.

Standings So Far

House Third Read Bills: 12o (including 18 Budget bills)
Senate Third Read Bills: 44
Truly Agreed: 5
Signed by Governor: 0

Reports

Read our full, unabridged legislative report here.

See all tracked legislation here.

Budget Update

Cesar Cielo, a Brazilian competitive swimmer and Olympic champion who broke two world records in his career, said, "The most important thing is winning, not breaking the world record."

In the Senate this week, a handful of lawmakers known as the Freedom Caucus attempted to break the filibuster record by holding the floor and blocking action on SB 748, a bill to renew a voluntary tax paid by participating hospitals, nursing homes, ambulance services, and pharmacies, for 41 hours before sitting down at 3:30 a.m. on Thursday. The tax, known as the Federal Reimbursement Allowance (FRA), funds much of the state's Medicaid program and accounts for nearly $4.5 billion of the state budget when combined with federal matching funds. While there may be a new Senate filibuster record, it's unclear if a winner emerged.

What was the fuss about?

The Freedom Caucus wanted the Governor to sign the bill to "defund Planned Parenthood" (HB 2634) and take up the resolution (SJR 74) that would put a question on the ballot to modify the initiative petition process. Neither of those actions occurred.

Where things stand:

Looking ahead, the Senate has perfected SB 748, the first of two votes needed before the bill can move on to the House. This action paves the way for Senator Lincoln Hough, the appropriations chair, to address the budget, with the aim of meeting the Constitutional Deadline of May 10th. However, if time runs out, the Governor will be forced to call a special session, restarting the entire budget process.

Because of the tight timeline, Senator Hough and Representative Cody Smith (House Budget Chair) will meet over the weekend to work out any differences between House and Senate positions and minimize the need to go to conferences on individual budget bills.

However, there are no guarantees that the Missouri General Assembly is poised to meet its deadline. Freedom Caucus members have been promising scrutiny of the budget for months now and even highlighted some of their grievances during their 41-hour filibuster.

In other news

Aligned Priority Bills Report for Missouri

With only two weeks remaining in session, most of the bills we have been tracking are likely not going to move any further. We will provide a full report after the session.

Here is a brief synopsis of where things stand at this juncture.

SB 727 (Koenig) contains our two big priorities (early childhood education and teacher recruitment and retention) and awaits the governor's signature.

Early Childhood Education and Childcare

SB 727 (Koenig), which the General Assembly sent to the governor on 4/24/24, includes provisions to increase funding for Pre-K. That language would increase the amount that public districts and charter schools can access for state aid from 4% to 8% of their overall free and reduced-lunch population, essentially doubling state investment in early childhood education.

The childcare tax credit package, HB 1488 (Shields), remains on the Senate Informal Calendar. It's unlikely, but not impossible that the Senate will take up and pass this legislation.

Teacher Recruitment and Retention

SB 727 includes the differentiated pay and teacher scholarship program provisions from HB 1447 (Lewis).

School Finance Reform

Alternative Poverty Metric - SB 1080 (Arthur) is dead.*

Other education legislation

Open Enrollment - HB 1989 (Pollitt) - likely dead.*

Accountability Measures - HB 2184 (Haffner) - likely dead.*

*Nothing is truly dead until 6:00 p.m. on the final day of session (May 17th).

See the status of all Aligned priority bills here.

Kansas Senate President Ty Masterson, R-Andover, argues in favor of Governor Kelly's veto. PHOTO CREDIT: John Hanna, Associated Press.

Kansas News

Kansas legislative session wraps, special session looms ahead

The 2024 Kansas Legislative Session concluded after a three-day veto session, with lawmakers overriding some of Governor Laura Kelly's vetoes, passing the omnibus budget, and giving farewell speeches. Some legislators won't seek reelection, while others aim for Senate seats. Despite the session's end on day 89, the Governor plans to veto the latest income tax cut bill, prompting a potential special session in the near future.

Battle Over Tax Cuts Continues

Last Friday, the House overturned Governor Kelly's veto of the mega income tax cut bill. However, the Senate fell short by one vote on Monday, with a vote of 26-14, as all Democrats and three Republicans opted to sustain the veto, citing concerns about the long-term financial impact.

On Tuesday, the House and Senate Tax Conference Committee swiftly crafted Senate Bill 37, altering the tax brackets slightly and increasing standard deductions. Although some provisions align with the Governor's preferences, including eliminating taxes on social security income and property tax relief, she still intends to veto SB 37, prompting frustration among lawmakers who now face the prospect of a special session to address the issue.

Legislature Overrides Ten Vetoes

Out of 14 veto override votes, the legislature secured a two-thirds majority on 10. Notably, House Bill 2648 and House Bill 2098 are now law. HB 2648, modeled after Wisconsin's REINS Act, enhances legislative oversight on executive branch regulations, particularly those with significant cost implications. Meanwhile, HB 2098 grants various sales tax exemptions and deductions, benefiting disabled veterans, telecommunications, custom meat processing services, and select non-profit entities in Kansas.

Other Bills Heading to Governor

Below are a few of the other education-related conference committee reports that passed this week and are heading to the Governor's desk:

Senate Bill 387 – Education Budget

The Education budget approved allocates $6.6 billion for public education, including $4.9 billion from the state general fund. The budget includes $75 million for special education and $303 million in new money for schools. The bill amends the law governing school district state aid and the local option budget to require school districts to transfer a portion of their local option budget fund to the district's special education fund. The amount would be proportionally equal to the amount of the school district's total foundation aid that is attributable to the special education weighting.

Bills Not Advancing

Back-to-school sales tax holiday: Unfortunately, this initiative failed to gain traction. Proposed as a provision in a Senate bill, it aimed to create a back-to-school sales tax holiday akin to those in Missouri and Oklahoma. However, hope remains as the bill could resurface if the tax conference reconvenes during the wrap-up session.

Cellphones in school: Another proposal that failed to progress was the bill considering a ban on cellphone use during school hours. Despite a hearing, the bill only advanced up to the Education Committee.

Early childhood office: Despite strong support in the House, the establishment of the Kansas Office of Early Childhood fell short. The office, intended to provide comprehensive services for children and families, needed more Senate action before the session concluded.

Education budget: On a positive note, the legislature approved a significant budget allocation of $6.6 billion for public education. The budget includes $75 million for special education and $303 million in new school funding, marking a substantial investment in the state's education system.

Enrollment and school funding: A compromise plan was enacted to adjust school funding formulas, benefiting growing districts without disadvantaging those with declining enrollments. This measure received strong bipartisan support in both chambers and was promptly signed by the governor.

School choice: Despite some momentum, bills promoting school choice, including tax credits for private school attendance and education savings accounts, failed to pass this session. These proposals aimed to give parents more options in their children's education but faced challenges in gaining sufficient support.

Read our full legislative report.

In other news

Katherine Marshall and Tom Jones attend the Kansas Chamber annual dinner.

Aligned represents at annual chamber dinner

This week, the Kansas Chamber of Commerce held its annual dinner at the Stormont Vail Events Center in Topeka. Former Attorney General Bill Barr served as the keynote speaker. The event centered around the theme "Focused on the Future - Ready for the Challenge" and boasted a sold-out attendance of 800 individuals.

Aligned's Development Director Tom Jones and Katherine Marshall, VP of Investor Relations at Prairie Hill Holdings and a member of our KC Advisory Board, were in attendance and remarked that the highlight of the evening was the presentation of the "Ad Astra" (to the stars) award to Justin Hill of the Lawrence Paper Company.

During the event, the Kansas Chamber unveiled its Vision 2025, which encompasses goals such as expanding talent supply, enhancing competitiveness, fostering innovation and entrepreneurship, and upgrading business infrastructure.

On another note, the World Beer Cup 2024 results are in. Bringing home the gold are two breweries close to home:

River Bluff Brewing in Saint Joseph, Missouri, for its Sandy Dunes brew in the American-Belgo Style Ale category and
Blind Tiger Brewery & Restaurant in Topeka, Kansas, for its Munich Dunkles in the Munich-Style Dunkel category.

See all winners here.

And give a cheer to the folks who brew the beer...

Happy weekend!