The importance of protecting social service tax credits

By Molly A. Strickland

As the Cape Girardeau director of Lutheran Family and Children's Services who uses social services tax credits, I cannot tell you how valuable they are to those we serve. Tax credits have been a hot issue in the Capitol for several years and for good reason. While the state's budget has been steadily declining and important services have been cut time and time again, Missouri's tax credits have not been touched.

I think we can all agree that it is ludicrous to be shelling out $100 million annually for historical preservation while simultaneously cutting money for schools, roads and other critical services; however, we shouldn't overlook the various types of tax credits. Social Service tax credits are used primarily by not-for-profit organizations to fund food pantries, school mentoring programs, services for pregnant women, domestic violence shelters, etc.

Social service tax credits account for less than 5 percent of all tax credits. They have not created the major spending increases in tax credits; in fact they have developed in response to significant cuts to core services in the same area (at the state and federal level).

Not only are the costs to the state minimal for these tax credits, they save the state additional money through increased donations and preventive costs.

Social service tax credits like NAP and YOP make it possible for agencies like LFCS to raise additional private contributions -- last year we leveraged $500,000 of private donations to match the $500,000 we received in the form of tax credits.

Likewise, programs that receive Social Service tax credits are aimed at prevention and help reduce more costly public expenses. Consider teen pregnancy as just one example: Over a year, children born to teen mothers are estimated to cost Missouri $48 million for health care and $37 million for increased rates of incarceration.

If anyone questions the social impact or financial benefits of social service tax credits, contact any of your local social service agencies. We would all be happy to tell you exactly how important they are and why we need to protect them.

Molly A. Strickland is the director at the Southeast Missouri office for Lutheran Family and Children's Services of Missouri.