The Missouri Capitol is seen, Sept. 16, 2022, in Jefferson City, Mo. (AP Photo/Jeff Roberson, File)

Missouri Republicans are set to direct state funding toward a private scholarship program despite slashing revenues through tax cuts.

The Missouri Legislature, which is dominated by Republican supermajorities, passed a budget proposal in May that directs $50 million to help fund MOScholars, a private school scholarship fund. MOScholars was founded in 2021, and it provides 100% tax credits for donations to non-profit educations assistance organizations in the state.

Despite the tax incentive, the program has reportedly struggled to generate funds since its inception. But Republicans increased the funding cap for the program from $25 million to $75 million last year, before approving Gov. Mike Kehoe (R)’s $50 million divestment of state funds last month.

According to the Missouri Independent, state Rep. Betsy Fogle (D-Springfield) criticized Kehoe’s efforts to decrease public education in favor of MOScholars as a way to privatize education.

“The governor made a policy or a budgetary decision to invest in one form of education and not fully invest in the other,” Fogle said. “The $50 million that was put in general revenue was done, in part, because the tax credit program wasn’t very popular, and donors weren’t giving to that. And the governor wanted to figure out another solution to privatizing education.”

Rep. Stephanie Hein (D-Springfield) was also critical of the state being on the hook to pay for MOScholars despite decreased revenue because of Republican tax cuts.

“We are setting a precedent,” she said. “And if we eliminate state income taxes, tax credits go away and we are going to be on the hook with (general revenue) to cover this program.”

Missouri lawmakers sent House Bill 594 to Kehoe’s desk last month, which will eliminate state capital gains taxes and shift more tax burden to the middle class. Republicans also attempted to eliminate state income taxes this session, but those efforts were not included in the final budget before it was approved by the legislature.

Kehoe’s office did not immediately respond to a request to comment on his education funding priorities.

Kehoe is expected to decide what will stay in the budget before he signs it by the end of June. Last Tuesday, Kehoe called a special session to address more items in the budget, including disaster relief and stadium funding for the Kansas City Royals and Kansas City Chiefs.