School Choice: Private Choices in Public Education 9:45 – 11 a.m. Room: Roosevelt 3

Spectrum of School Choice Privately Funded Education Options Private schools Private online schools Home education Private scholarship programs Publicly Funded Education Options Neighborhood schools Magnet schools Online schools Open enrollment Charter schools Hybrid Education Options: Public and Private Funding Education Savings Accounts (ESAs) Scholarship tax credit programs Voucher programs Course access programs School choice can start to include MANY different types of programs.

www.ecs.org/school-choice-glossary/

Vouchers What are they? 30 seconds

Vouchers What are they? State-funded scholarships that allow students to attend a private school rather than a public school. All have at least one eligibility requirement: Students with a disability Assigned to a low-performing school or district Income-eligible household Geography

Vouchers State Parent Private School

Vouchers What are they? Many states require participating students to take an assessment. Participating schools must meet minimum standards established in policy. Assessments: Either a state assessment or a nationally-recognized assessment. States that don’t require an assessment still may require schools to provide an academic progress report of some kind to parents each year. Private school standards: may include teacher certifications, particularly programs for students with an IEP. TT: Maine and Vermont have programs specific to school districts that do not operate a public school or offer certain grades. Students may attend a private school, sometimes in another state or country.

Vouchers Who pays? State provides a set amount of money, typically based on the per-pupil amount. Funds usually sent directly to the school. Some states prohibit schools from charging tuition or fees beyond the voucher amount for certain students. Sometimes states provide a voucher amount less than the state’s per-pupil amount. Some argue these programs save taxpayers money, as the state spends less to educate the child. However, some take issue with this claim. There is some evidence that there is a financial impact on public schools when students leave for any reason, including to attend a private school through a voucher program (fixed costs). Some evidence from Milwaukee’s program that even if the program saves money, the tax benefits and burdens are not distributed equally across groups of taxpayers. Is it really a “win” and a good argument to claim we are spending less money to educate some of our most vulnerable children? A few states specify that participating private schools may not charge tuition or fees beyond the voucher amount to participating students. However, most states are silent on this issue, suggesting that they may charge additional tuition and fees to participating students. This may prevent most of the poorest families from participating.

Vouchers Which states have them? 25 programs in 14 states + D.C.

Education Savings Accounts (ESAs) What are they? 30 seconds

Education Savings Accounts (ESAs) What are they? Private accounts funded by the state government, managed by a parent. Reimbursement or bank account. Use funds to purchase education services. Example: private school tuition, online course fees, tutoring services. ESAs: Essentially a voucher program, but structured a little differently. Parents may use funds to purchase a variety of education services for a state-approved “menu” of services. Evidence from Arizona shows most parents still send their children to private school through an ESA program, but not all.

Vouchers State Parent Private School

Education Savings Accounts (ESAs) Private school Private tutoring State Parent Online course fees Special education services Curricular materials

Education Savings Accounts (ESAs) Nevada: Education Savings Account Program Source: http://www.nevadatreasurer.gov/SchoolChoice/Vendors/EntityHome/ Example of approved services from Nevada’s non-functioning program.

Education Savings Accounts (ESAs) Who pays? Publicly funded, typically based on the state’s per-pupil amount. Oversight: Account audits Student testing requirements Accountability is tricky with ESAs. Example, Arizona’s audit. Found that mostly there were good controls, but also found some pretty blatant violations (parents purchasing things with account funds that were clearly not approved services). In short, it is a lot of time and work to provide adequate oversight.

Education Savings Accounts (ESAs) Which states have them? Six states Nevada: program unfunded. Arizona: following a legal challenge, the legislature’s 2017 expansion to universal eligibility will go before voters in 2018 as a ballot measure. 5 states, Nevada’s program is “on the books,” but not funded.

Scholarship Tax Credits What are they? 30 seconds Eligibility requirements: Assigned to a low-performing school. Children of active-duty military. IEP with household income limitations.

Scholarship Tax Credits What are they? Provide tax credits to businesses or individuals for donating to the program. Scholarship granting organizations are nonprofits that manage and distribute funds. Typically restricted to income-eligible students. Eligibility requirements: Assigned to a low-performing school. Children of active-duty military. IEP with household income limitations.

Scholarship Tax Credits Private Schools Eligible students attend Must comply with various state provisions Scholarship Granting Organizations Nonprofit organizations Take applications from eligible students Distribute scholarship money to schools Taxpayers Make contributions to SGOs Tax credit from state Businesses, individuals, both

Scholarship Tax Credits Who pays? Funded through donations. Some states have a limit on donations or tax credits that the state may award. Some states stipulate how much of the contribution is eligible for a tax credit. Scholarship granting organizations maintain a percentage for administrative fees.

Scholarship Tax Credits Which states have them? 23 programs, 18 states

School Choice

Questions and Contact Micah Ann Wixom mwixom@ecs.org 303.299.3673

School Choice: Private Choices in Public Education 9:45 – 11 a.m. Room: Roosevelt 3

Indiana Vouchers (2017-18) Grades 1-8: 90%: $4,818.10 50%: $2,862.02 Eligibility: Eight eligibility tracks. All include income eligibility requirements (150% or 200% of FRPL; one track is 127% of federal poverty guidelines). Amount awarded: $153.9 million Students: 35,458 Scholarship amount: School tuition and fees OR part of the state’s per pupil amount (90% or 50%, based on income guidelines), whichever is less. Average scholarship amount: Kindergarten: 90%: $4,661.58 50%: $2,824.19 Grades 1-8: 90%: $4,818.10 50%: $2,862.02 Grades 9-12: 90%: $5,629.16 50%: $3,017.13

Indiana Scholarship Tax Credits (2016-17) Donors (individuals, corporations) may take up to 50% of their donation as a tax credit. Scholarships granted: 9,349 Amount awarded: about $16.8 million In addition to the state-funded voucher, additional special education funding is available in situations where a parent of a child with an IEP elects to have the eligible Choice school provide the special education services.

Florida Opportunity Scholarship (voucher) (2016-17) Eligibility: Students attending low-performing schools Students: 2,869 McKay Scholarship (voucher) (2016-17) Eligibility: Students with disabilities Students: 31,499 Amount awarded: $220.2 million Average scholarship amount, IEP: $8,021 Average scholarship amount, 504: $4,562

Florida Gardiner Scholarship (ESA) (2017-18) Florida Tax Credit Scholarship Program (2016-17) Amount awarded: $536 million Students: 98,936 Schools: 1,733 Amount per student: $5,886 Donors: Specific corporate donors (insurance premium taxes, oil and gas production taxes, etc.) Tax credits available, statewide: $698 million in 2017-18 FY. Gardiner Scholarship (ESA) (2017-18) Eligibility: Students with disabilities Students: 10,153 Amount awarded: $104.9 million Average scholarship amount: $10,000

Ohio Voucher Programs Fiscal Year 2016 Cleveland Scholarship Autism Scholarship EdChoice Scholarship + Expansion Jon Peterson Special Needs Scholarship Fiscal Year 2016 $263+ million distributed across five vouchers programs.

Your Education Policy Team.

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