Reining in Missouri’s Housing Tax Credits
It’s vital for state government to operate in an efficient manner. When the Missouri General Assembly appropriates funds, it’s taxpayer dollars we’re spending — your hard-earned money. Some of that spending is necessary. We have to adequately fund education programs, so that all Missourians have the opportunity to achieve their full potential. We also can’t neglect supporting our veterans and our elders, those men and women who’ve served their time and now deserve our gratitude. But when a certain system isn’t giving us a solid return on our investment, reforming that program isn’t just the smart thing to do — it’s the right thing.
Missouri offers tax credits for low-income housing, but the program isn’t functioning the way it should. Currently, for every dollar the General Assembly spends on these credits, we only see 42 cents going toward actual housing costs, according to state audits. No business would ever be satisfied with this proportion of return. Our government shouldn’t be, either.
That’s why I’m sponsoring Senate Bill 591, a proposal to lower the amount spent on these credits to a more reasonable level. Currently, the General Assembly appropriates approximately $160 million a year for low-income housing tax credits. My bill would cap that at $50 million.
Low-income housing tax credits are a great thing, but there’s little room in our budget for inefficient spending. There are better ways to aid needy Missourians. Lowering the amount spent on these credits would free up funds for other deserving projects, such as health care and infrastructure spending. I believe my bill strikes a responsible balance between these needs.
As always, please feel free to call, email or write with your ideas or concerns. My Capitol office number is (573) 751-1415, my email is dan.hegeman@senate.mo.gov and my mailing address is Room 332, State Capitol Building, Jefferson City, MO 65101.