Do tax-credit scholarship programs drain money from district schools?

November 15, 2016

(Guest Post by Marty Lueken)

Perhaps the most-cited criticism of educational choice policies is that they “siphon” resources from district schools. High-quality research reveals numerous benefits stemming from educational choice, including benefits for participants, positive competitive effects, and fostering civic values. Policymakers, however, are concerned about the fiscal impact on district schools. A new report, The Tax-Credit Scholarship Audit, finds that such claims about “siphoning” are unfounded.

This report follows up on an earlier report, The School Voucher Audit, which examined the fiscal impact of school voucher programs. In the report, I estimated the fiscal impact of 10 tax-credit scholarship programs in seven states (AZ, FL, GA, IA, IN, PA, and RI) on state governments, state and local taxpayers, and school districts combined. There are currently 21 tax-credit scholarship programs operating in 17 states. Programs with less than three years of data were not included in the analysis. This sample includes the largest tax-credit scholarship programs in the country. These programs accounted for 93 percent of all scholarships awarded in 2013-14, the final year included in the analysis.

Here’s a summary of the results:

Participation

Since the first tax-credit scholarship program was established in 1997, more than 1.2 million scholarships were awarded to students through 2014. Participation in tax-credit scholarship programs has grown every year since 1997. Participation in these programs grew, on average, by 20 percent each year since 2000.

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Tax-credit scholarship programs require time to establish. Looking at the programs by year in operation, the number of scholarships awarded more than tripled after their fifth year in operation, from 28,000 to more than 95,000.

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Educational choice programs are popular and continue to expand, though not to the detriment of the current district school system, as critics argue. Even in states where eligibility for school choice programs is expansive, we haven’t seen a mass exodus of students from district schools. Moreover, the best evidence on the effects of school choice on district schools shows that district schools improve in response to competition.

Fiscal Impact

Depending on assumptions about the number of students switching from district or charter schools to private schools and the share of students who receive multiple scholarships, I estimated that these 10 tax-credit scholarship programs saved taxpayers between $1.7 billion and $3.4 billion since Arizona enacted the first such program in 1997. That equates to between $1,650 and $3,000 in savings for each scholarship recipient.

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This paints a starkly different picture from the “siphoning” argument that school choice critics like to make. Context is useful when discussing the fiscal impacts of these programs. For all the controversy that sometimes surrounds school choice programs, the fact is that these programs make up a very small share of states’ K-12 revenues. The cost of the taxpayer subsidies for the programs covered in the report range from 0.1 percent each for Rhode Island and Indiana’s programs to 1.5 percent for Arizona’s four programs.

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When critics claim these programs are costly or drain funds, they usually focus on just the cost of the taxpayer subsidy without giving any consideration to savings. But that tells only one part of the story. It’s also true that districts are no longer responsible for educating students that leave via these programs. In the short-run, they incur variable cost savings. My analysis accounts for this and even takes a more conservative approach to estimating variable costs than in other work by economists.

These savings don’t usually show up in budget reports, however, though public officials make choices—whether implicitly or explicitly—about what they do with the savings. As I note in the report:

“When school choice programs are enacted, however, it is usually the case that savings do not automatically materialize as reductions in K–12 expenditures because public officials must actively make decisions to reduce such expenditures. When students leave public schools, officials have more room in their budgets to allocate resources for educating students that remain in those schools.” (pp. 15-16)

Government officials have many options regarding what to do with these savings. They can reinvest them in district schools, which means more resources for the fewer number of students who remain in them, or they can also reallocate those savings to other public services. They can also choose to hold all or some of the funds rather than spend them. They can subsequently lower property taxes or save and invest these funds. Typically, however, it’s not clear how these freed-up resources are used.

It is a worthwhile policy goal to provide and expand quality educational options so that parents can match their children to the education provider that works best for them. Tax-credit scholarship programs offer one way to help achieve this goal by providing avenues for states to attract capital and invest in their state’s education system without harming taxpayers or students.

 

Martin F. Lueken, Ph.D. is the Director of Fiscal Policy and Analysis at EdChoice.


The Legal Battle for Choice in Georgia

November 4, 2016

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(Guest Post by Jason Bedrick)

Georgia’s tax-credit scholarship helps more than 12,000 students attend schools of their choice rather than their assigned district school. Predictably, defenders of the government education establishment sued to block parents from exercising educational choice. Thanks to the efforts of the state attorneys and the Institute for Justice, which intervened in the case on behalf of several parents of scholarship students, a lower court ruled against the challengers earlier this year. However, the challengers appealed and the case is now before the state supreme court.

Yesterday, the Cato Institute filed an amicus brief in the case urging the Georgia Supreme Court to uphold the constitutionality of the tax-credit scholarships. Cato’s legal eagle, Ilya Shapiro, has more at the Cato-at-Liberty blog:

We urge the court to affirm the determination that the tax-credit program does not violate the state constitution, focusing on the fact that it does not involve spending public funds for any sectarian purpose. Because the program makes no expenditures from the public fisc, it cannot violate the No-Aid Clause. Taxpayers choose to donate voluntarily using their own private funds and receive a tax credit for the amount of the donation; no money ever enters or leaves the treasury.

The challengers attempt to get around this fact by claiming that the credits constitute anindirect public expenditure, but this argument relies on a budgetary theory known as “tax expenditure analysis” that finds no support as a legitimate means of constitutional interpretation under Georgia (or federal, or any other state) law. Indeed, the U.S. Supreme Court rejected this type of reasoning in Arizona Christian School Tuition Organization v. Winn (2011).

The argument that the program constitutes an unconstitutional gratuity is likewise incorrect because the tax credits are not public funds, and the government cannot give away that which it does not own. Even if Georgia were giving up something of value, it would not be a “gratuity” because the state receives a substantial benefit in return: increased educational attainment, plus the secondary effects that increased competition and a more educated citizenry create.

The Georgia Supreme Court should affirm the lower court’s decision and uphold the state’s Qualified Educational Tax Credit Program—ensuring educational choice for Georgia families, regardless of how much money they make.

 

 

 


Setting the Record Straight on Florida’s Tax-Credit Scholarships

August 30, 2016

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(Guest Post by Jason Bedrick)

Opponents of school choice spend a great deal of time and energy perpetuating all sorts of easily debunked myths about choice programs. In Florida, the state teachers’ union has worked very hard to spread two such myths about the state’s tax-credit scholarship program, which Mark Pudlow of the Florida Education Association calls a “scheme”:

“It’s a scheme because this tax credit voucher [sic] was enacted by the Legislature to circumvent a previous state Supreme Court ruling saying that public money could not go to fund vouchers,” he said. “So the Legislature set up a scheme that would allow certain types of taxes to be ‘donated’ to the groups administering the voucher program. So instead of paying taxes to the state, they were forgiven their tax obligation if they donated the exact same amount of money to the voucher administrators.”

Fortunately, the Daily Commercial gave Ron Matus of Step Up for Students, Florida’s largest scholarship organization, the opportunity to set the record straight:

“The union kept saying the tax credit scholarships were done to circumvent the ruling,” he said. “Their timeline is off. The fact of the matter is the tax credit scholarship program was passed by the legislature and signed into law in 2001, five years before the Supreme Court ruling. The opponent keeps arguing the program drains money from public schools. Every single study that has been done over many years by multiple different parties that has looked at the fiscal impact says it does not harm public schools or drain money from public schools.”

The Office of Program Policy Analysis and Government Accountability estimated the Florida Tax Credit Scholarship Program saved the state $36.2 million in 2008.

Government Accountability stated that while the program “reduces the amount of tax revenues received by the state, it produces a net fiscal benefit.”

This academic year, Step Up for Students will provide more than 90,000 tax-credit scholarships to students so that they can attend the school of their choice. Additionally, they will administer nearly 6,000 education savings accounts. Florida also has a second scholarship organization, AAA Scholarship Foundation, so it’s likely that more than 100,000 Florida students will receive tax-credit scholarships this year.

As Step Up demonstrates, scholarship organizations do much more than just cut checks. They also can provide parents with vital information about their educational options, help connect parents and schools, and–when necessary–they can organize to defend the scholarships from outside attacks. As Jay noted in a recent post, politically viable policies require “constituents who can then be mobilized to protect and expand” them. School choice policies generate those constituents, and as Step Up has amply demonstrated, scholarship organizations can mobilize them.


Case Dismissed: Victory for School Choice in Florida

May 24, 2016

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(Guest Post by Jason Bedrick)

The legal attacks on school choice programs are dropping like characters in a George R.R. Martin novel. Last week, a Nevada judge dismissed a case against the state’s education savings account program. Today, a Florida judge dismissed a case against several of the state’s school choice programs.

The Florida lawsuit originally concerned whether the state was adequately funding public education, but in 2014 the plaintiffs amended their suit to challenge a wide range of policies, including state accountability statutes, charter schools, tax-credit scholarships, and the McKay Scholarship Program for Students with Disabilities. Last year, a judge ruled that the plaintiffs did not have standing to challenge the private school choice programs, but this ruling also rejects their substantive claims that the choice programs somehow harm the traditional district school system:

[T]he Court finds no negative effect on the uniformity or efficiency of the State system of public schools due to these choice programs, and indeed, evidence was presented that these school-choice programs are reasonably likely to improve the quality and efficiency of the entire system. […]

Plaintiffs’ specific allegations regarding the constitutional implications of three of Florida’s choice programs- charter schools, the FTC Program, and the McKay Program- are similarly unsupported by the weight of the evidence. […]

The Court has already held that Plaintiffs lack standing to challenge the FTC Program, and the Court further concludes that the weight of the evidence does not support their speculative allegations that the FTC Program diverts state funding or has any material, detrimental effect on Florida’s system of public schools.

The weight of the evidence similarly does not support Plaintiffs’ allegations about the McKay Program, which is limited to “Students with Disabilities” and requires eligible students to have an individual educational or accommodation plan under federal law. […] As indicated by the Florida Supreme Court, parental decisions to send individual children with special needs to private school do not implicate the uniformity of the broader public school system- regardless of whether some of those parents accept scholarship funds from the State.

BOOOOOOOOOOOOOOOOOOM!!!!!!!

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This decision constitutes one more legal stake in the heart of the canard that educational choice programs harm students attending traditional district schools. As Jon East pointed out at RedefinED yesterday, judges presiding over a separate anti-choice lawsuit in Florida cast a gimlet eye on similar claims during oral arguments last week:

[Florida Education Association] attorney Lynn Hearn: “The loss of $300 million at a minimum to the Florida public school system … is absolutely a fact.”

Presiding Judge Lori S. Rowe: “In your complaint, you haven’t actually alleged that there is a $300 million loss to the Florida education budget, have you?… In fact, the $300 million you’re referring to are the funds that flow into the scholarship program, correct?”

Attorney Hearn: “Well, that’s where the number arrives from, your honor. But we absolutely do allege that that amount has left the public schools in favor of the scholarship program. That’s because of the way the Florida schools are funded. They are funded on a per-student basis. So, during that year, 2013-14, there were 60,000 students who left the Florida public school system.”

Judge Ross L. Bilbrey: “But doesn’t that mean there are 60,000 fewer students that the state has to pay to educate?”

Attorney Hearn: “It does your honor. But the funding of students in our public schools is, uh, we’re not funding widgets, the funding formula for students is not a perfect correlation to the variable cost of funding that student.”

Judge Rowe: “But exactly what is the special injury you are articulating here? You haven’t alleged that any individual student is suffering. You haven’t alleged that per-student funding has been reduced. You haven’t even alleged that the education budget has been reduced.”

Essentially, the union wants to argue the district school system has some special claim on students–and therefore the public funds attached to those students–without openly making that claim. After all, the district school system can’t suffer a “loss” unless they somehow owned those funds to begin with, but parents have no such obligation to enroll their children at their zoned district school, or any district school for that matter. They feel entitled to those children and the corresponding funding, but they know they can’t make that claim explicitly because, well, it’s ludicrous. That’s why the union is having such a hard time articulating any special injury–and why they’re likely to lose that lawsuit as well.

For more information on today’s decision, see Travis Pillow’s write up at RedefinED.

*****

UPDATE: Supplementing his opinion, the judge issued a 179-page Appendix for Findings of Fact which, among many other things, explains that Florida’s tax-credit scholarship program relies on private (not public) funding and explains that the plaintiffs failed to demonstrate any injury resulting from the program:

The Florida Tax Credit Scholarship Program (the ―FTC Program‖) allows Florida taxpayers to apply for tax credits ―to make private, voluntary contributions‖ to fund scholarships for children attending eligible K–12 private schools.767 Plaintiffs allege that the FTC Program violates the uniformity and efficiency requirements of Article IX, Section 1(a) by diverting public funds to private schools that are not subject to the same requirements as schools within the State‘s system of free public schools.

The Court has previously found that the FTC Program, which allows third parties to obtain tax credits for making private donations, does not involve public funds, legislative appropriations, or the State‘s ―provision‖ for a ―system of free public schools‖ under Article IX. Because the private donations that fund the FTC Program are not legislative appropriations, the Court has previously determined that Plaintiffs lack taxpayer standing to assert a challenge to this program under Florida law.

Plaintiffs have also failed to prove any special injury that would allow them to challenge the FTC Program. […]

[A]ny connection between the FTC Program and appropriations to support Florida‘s system of free public schools—not to mention the overall quality of that system—is purely speculative. There was no persuasive evidence presented that the FTC Program has any direct or indirect impact on public-school funding or on the uniformity, efficiency, safety, security, or quality of Florida‘s public schools. […]

Even if tax credits resulted in a decrease in the number of students attending the public schools, local school districts are not responsible for educating students who attend private schools.

The appendix is also is chock-full of citations of some dude named Jay Greene. Here’s a taste:

3rd Grade Retention Policy

Florida‘s third-grade retention policy also is supported by academic research. Dr. Jay Greene, a professor of education and head of the Department of Education Reform at the University of Arkansas, has extensively studied the effect of Florida‘s policy. Dr. Greene‘s studies, which are published in a peer-reviewed journal, concluded that Florida‘s test-based retention policy significantly improves the academic achievement of students who are retained.239 Plaintiffs did not present any evidence countering Dr. Greene‘s findings.

Resources & Results

Plaintiffs allege that the overall level of funding in Florida is not sufficient to provide a uniform, efficient, safe, secure and high quality system of public education.784 Plaintiffs assert that the performance outcomes for certain groups of students indicate that school funding is insufficient.

Plaintiffs, however, have not met their burden of proving a causal relationship between the level of resources available to schools in Florida and student outcomes. Indeed, as described below, the weight of the evidence presented on that issue establishes a lack of any causal relationship between additional financial resources and improved student outcomes. […]

In addition to Dr. Hanushek, Defendants presented findings of Dr. Jay Greene, a professor of education and head of the Department of Education Reform at the University of Arkansas. Dr. Greene statistically analyzed school district-level variables throughout the state of Florida, including per-pupil spending, teacher characteristics, and discipline rates, and found no relationship between these variables and student outcomes.

Specifically, Dr. Greene examined school district per-pupil expenditures and percentages of students proficient on the Florida Comprehensive Assessment Test (―FCAT‖)797 for grades 3 through 10 in reading and math; grades 5, 8, and 11 in science; as well as highschool graduation rates, for school years 2007–08 to 2012–13. The analysis revealed no connection between higher amounts of funding available in school districts and better student performance.

Dr. Greene also conducted regression analyses of spending and performance data, controlling for student demographic differences and prior levels of achievement across school districts. The demographic characteristics that were controlled included the proportion of minority students, proportion of students receiving free or reduced price lunch, the proportion of students classified as English language learners (―ELL‖), and the proportion of students with a disability who had an individual educational plan (―IEP‖), as well as academic outcomes in the prior year. The purpose of these analyses was to examine whether school districts would have better student outcomes if they had more resources, assuming school districts had the same demographic composition and prior year‘s academic outcomes. Dr. Greene‘s regression analyses revealed that there is no pattern between the level of spending in Florida school districts and student performance on the FCAT or high school graduation rates.

Teacher Experience

In addition, Dr. Greene evaluated the assertion by Plaintiffs that teacher qualifications and experience characteristics impact student performance, and that districts with high-minority and low-income student populations have a lower percentage of qualified, experienced teachers. Consistent with his other findings, Dr. Greene found no statistical relationship between the proportion of novice (first-year teachers) or ―highly qualified teachers, as defined by the Florida Department of Education, and student performance on the FCAT or high school graduation rates. Likewise, Dr. Greene found no statistical relationship between the percentage of minority and low-income students in a district and the proportion of novice or highly qualified teachers.

Suspension Rates

Dr. Greene also addressed Plaintiffs‘ assertion that high suspension rates are attributable to a lack of school district resources and lead to lower student performance outcomes. As above, Dr. Greene conducted regression analyses that controlled for student demographic characteristics and prior student outcomes. Dr. Greene found no relationship between the rate at which students are given out-of-school suspensions in Florida school districts and FCAT reading, math, or science proficiency, or graduation rates.

Court’s Conclusion re: the Evidence

The Court accepts Dr. Greene‘s conclusions and finds that they corroborate other evidence in the case showing the lack of causal relationship between the level of resources available in Florida schools and student outcomes, as well as evidence showing that the level of resources available is sufficient for a high quality system.

Although Plaintiffs bear the burden of proof in this case, neither Plaintiffs‘ expert witnesses nor their school-district witnesses presented analyses or studies rebutting the work of Drs. Hanushek and Greene. In fact, the weight of the evidence shows that despite budget cutbacks associated with the Great Recession, student performance continued to improve in the period 2007–08 to 2014–15.

 


The Three Bees release New Study on Tax Credit Funded ESAs

January 21, 2016

(Guest Post by Matthew Ladner)

Jason may have not yet developed the shameless self-promotion bug that afflict the rest of us here at JGPB, so I’ll mention for him that he has a new study out along with Jonathan Butcher and Justice Bolick (ah….I just love the sound of that…) on tax-credit ESAs.

The Three Bs make a strong case on the desirability of converting existing tax credit programs over to multiple uses, and also correctly note possible constitutional advantages under some state constitutions for a tax credit approach. The technology for allowing multiple uses for funds looks to be better and cheaper than one might expect (account management/oversight technology is fairly advanced) which may allow for oversight within the admin fees typically allowed by scholarship tax credit programs.

The Three Bs did not directly address the topic of scale. The mighty Florida tax credit program currently looks likely to reach the practical limits of its ability to scholarship children somewhere below 100,000 out of Florida’s 2,500,000 students. This might change if new taxes can be added to credit, but the mechanics of creating a credit against some taxes seems somewhere on the speculative to work-in-progress spectrum at present.

Thus I enthusiastically support conversion of existing tax credit programs to multiple uses, and under some state constitutions, it might be a very good idea to choose this option over a state funded model. Outside of those circumstances, I’d recommend taking your chances with a state funded model if aiming for more than a pilot project.


Kansas Lawmakers Create Scholarship Tax Credit Program

April 7, 2014

(Guest Post by Matthew Ladner)

HB 2506 made it through the Kansas House and Senate last night and contains some significant education reforms, including a scholarship tax credit program, curbs on teacher tenure abuse and alternative teacher certification.  Congratulations to Kansas lawmakers and education reformers.  The “never say die” crew at the Kansas Policy Institute Dave Trabert and James Franko have earned a:

BOOOOOOOOOOOOOOOOOOOOOOM!!!!!!!!!!

for their dedicated, determinedly fact-based efforts to improve Kansas education outcomes.


Arizonapocalypse

November 19, 2013

(Guest Post by Matthew Ladner)

Last week the Arizona Board of Regents released a report detailing the catastrophic failure of Arizona high-schools in preparing students for higher education.  Specifically the report traced the high school class of 2006, finding that half of the high-schools had five percent or less of students finishing higher education degrees or certificates within six years.  A mere 40 of the almost 460 schools produced 61% of Bachelor degrees in the AZ Class of 2006.

So, the news could have been much better. Here is the next shoe to drop- things are going to be getting increasingly more difficult in the years ahead.

The United States Census has produced population projections by state. Let’s see what the future has in store for Arizona. First a little context. Arizona’s current population is was about 6.5 million in 2012.

First challenge- a very large increase in the youth population.

Arizona Under 18

The Census Bureau projects a large year by year increase in young people.  The Census has projections for the 18 and under population, and also for the 5-17 population.  The 0-3 population is generally outside of the pre-school and K-12 system, meaning that the 18 and under population overstates the impact that the increase in the youth population will have on the state budget in 2030.  The 5-17 year old figure understates the situation due to 4 and 18-year-old students who will receive either preschool or K-12 assistance.

The next chart uses the Census Bureau’s projection for the increase in the 5-17 year old Arizona population, and puts it into context by comparing it to the size of the charter school and private choice populations of Arizona.  Arizona’s charter school law passed in 1994, and the scholarship tax credit program passed in 1997. The time between then and now is roughly comparable with the time span between now and 2030.

Arizona 5-17

Arizona school district enrollment is set to expand regardless of what we do on the parental choice front, just as it has for the last two decades. In the last two decades, the charter school law has produced a large number of those 40 schools that produced 61% of the BA degrees. In combination with the scholarship tax credit programs and the still nascent ESA program, they have taken the edge off of district enrollment growth in the aggregate.

Arizona does have high-quality charter operators who will continue to slowly but sure increase the islands of quality.  If the ESA program survives court challenge it may allow for a quicker pace of private choice expansion than the tax credit program. Creative destruction of the sort that might actually close dysfunctional schools, other than charters that fail to launch, is simply not in the cards.  The districts full of those 5% and under high schools will be going into the debt markets to build more dropout factories.

Or perhaps they will be running double shifts at the current dropout factories, as it will become increasingly difficult to finance new construction.

At precisely the same time Arizona will be dealing with a surge in the youth population, an even larger problem looms the growth in the elderly population. Again from the Census projections:

Arizona Elderly

For those of you squinting to read the numbers, that is an increase from 922,000 65+ year olds in 2010 to almost 2.4 million in 2030.

So let’s sum up the story so far- Arizona’s K-12 system currently does a very poor job in educating anything more than a thin slice of students.  Arizona has a vast increase in students on the way to coincide with an even larger increase in the elderly population.  Still with me? Okay, let’s keep going.

Demographers calculate age dependency ratios, and economists have found that they predict rates of economic growth. An age dependency ratio essentially compares the number of young and elderly people in a population to the number of working age residents. The logic behind the notion is that young people require a heavy investment in social services (primarily education) while the old also require a heavy investment (primarily in the form of health care and social insurance retirement benefits).  From the perspective of a state budgeting agency, young people don’t work, don’t pay taxes, and go to school. Older people are out of the prime earning years, often heavily use Medicaid. An age dependency ratio basically tells reveals the number of people in the young/old categories compared the number of people in neither category (i.e. people of typical working age).

The United States Census Bureau calculates an Age Dependency Ratio by adding the number of people aged 18 and under to the number of 65 and older and dividing it by the number of people aged 19 to 64. They then multiply the figure by 100 just to make things tidy. The formula looks like:

Age Dependency Ratio = ((Young + Old)/(Working Age)) * 100

Many people continue to work and pay taxes past the age of 65, making it inappropriate to view them as “dependent.” It is also the case however that many people above the age of 19 are still in school and thus are not yet working and/or paying much in the way of taxes. We all probably know hyper-productive 70 year olds and people in their 20s engaged in a six-year taxpayer subsidized odyssey of self-discovery that will not number “graduation” among an otherwise wonderful set of experiences. During periods of prolonged economic difficulties, moreover, it is obviously the case that lower rates of working age people will in fact be working, and thus making taxes.

Notwithstanding these important caveats, the broad idea behind age dependency ratios is to roughly assess the number of people riding in the cart compared to the number pulling the cart at any given time. People of course both benefit and pay into these programs at different stages of life, but the current ratios serve as a measure of societal strain.  What does the age dependency ratio for Arizona look like?

Arizona Age Dependency Ratio

Note that Arizona’s age dependency ratio in 2010 was already among the highest in the country. A social welfare state with 86 people riding in the cart for every 100 pushing it will not compute. In 2030, the Class of 2006 will be squarely among those expected to push the cart of the Arizona social welfare state.  How alarming and unfortunate then that many of them dropped out of high-school, and many more of them dropped out of college. The most immediate way Arizona can help address the looming crisis of 2030 is to get more students educated now.

I’m not sure how this plays out. I am certain that we have been thinking too small given the size of our challenges.

 


Arizona Lawmakers Pass Bills to Expand ESA and Tax Credit Programs

June 14, 2013

(Guest Post by Matthew Ladner)

Arizona lawmakers ended an incredibly difficult legislative session last night by expanding school choice.  The Empowerment Scholarship Accounts program made kindergarten students otherwise eligible to participate (children with a disability, living in a D or F rated school or district boundary, foster care or the child of an active duty military) eligible to participate without prior public school attendance. The new law also shifts the funding for the program to the charter school formula, which will increase the minimum funding received and should make participation more feasible for students attending D and F schools and children with disabilities funded at the lower levels under the Arizona formula more feasible.  A separate tax credit bill expands the types of corporations allowed to participate in the corporate scholarship tax credit program. Both measures are on their way to Governor Jan Brewer’s desk.