The Scholarship That Wasn’t

Education |
By Susan Pendergrass | Read Time 2 minutes minutes

In addition to the nearly $3 billion in federal relief funding that Missouri received to try to right the public education ship that was knocked of balance by COVID, Governor Parson received $50 million as part of the Governor’s Emergency Education Relief fund. Governors were given wide discretion over how to spend the money, but they had to spend it within one year of receiving it. Governor Parson followed the lead of several other states and created a scholarship program, called Close the Gap, in which low-income families could receive up to $1,500 to purchase tutoring or other education materials that would help combat learning loss.

Although over 21,000 families signed up, the program had problems from the beginning. First, it took the Department of Elementary and Secondary Education (DESE) a full year to figure out how to implement the program. How that impacts the federal regulations is unclear, but families had only a short window after that to spend the money. Families had problems finding what they needed and, ultimately, the program was not as impactful as it might have been.

According to the DESE budget requests, in fiscal year (FY) 2024, $25 million was appropriated to the program, but none was spent. In FY 2025, the other $25 million was appropriated, but just $13,875,123 was spent. It’s too late to spend the money, so what happens to the $36,124,877 that went unspent? Technically, it needs to be returned to the federal government.

What a shame. At the same time, the legislature has created another scholarship program, MO Scholars, aimed at low-income students and students with disabilities, but hasn’t appropriated any money to fund it. The MO Scholars program has structure, scholarship-granting organizations, and thousands of scholarship recipients. Thousands more students across the state would probably love to participate in this program if it were funded.

The logic of helping disadvantaged students find their best educational option is there. The structure of the program is there. Why not the funding?

About the Author

Before joining the Show-Me Institute, Susan Pendergrass was Vice President of Research and Evaluation for the National Alliance for Public Charter Schools, where she oversaw data collection and analysis and carried out a rigorous research program. Susan earned a Bachelor of Science degree in Business, with a concentration in Finance, at the University of Colorado in 1983. She earned her Masters in Business Administration at George Washington University, with a concentration in Finance (1992) and a doctorate in public policy from George Mason University, with a concentration in social policy (2002). Susan began researching charter schools with her dissertation on the competitive effects of Massachusetts charter schools. Since then, she has conducted numerous studies on the fiscal impact of school choice legislation. Susan has also taught quantitative methods courses at the Paul H. Nitze School for Advanced International Studies, at Johns Hopkins University, and at the School of Public Policy at George Mason University. Prior to coming to the National Alliance, Susan was a senior policy advisor at the U.S. Department of Education during the Bush administration and a senior research scientist at the National Center for Education Statistics during the Obama administration.

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