Lawmakers heard mixed opinions on the CHOOSE Act, which would create education savings accounts through a tax credit program that parents can use to educate their children outside their district.
Senate Bill 61 provides for up to $7,000 in qualifying costs to be paid to participating schools, organizations, and education service providers, including vendors. Participating schools are defined as accredited K-12 public schools or accredited private schools, including church, parochial, or religious schools.
Nick Moore, the governor's education policy advisor, said that as an example of the use of tax credits for public schools, if a public school admits out-of-district students, the credits could be used to pay for out-of-district tuition. He said there is. Educational service providers must agree not to refund, rebate, or share any portion of the funds with parents or students. Funds can only be used for eligible expenses.
For homeschoolers, the tax credit is limited to $2,000 per student and $4,000 per family.
For the first two years of the program, there is an income eligibility requirement for households whose adjusted gross income does not exceed 300 percent of the federal poverty line. For a family of four, the maximum income is approximately $90,000.
All students are eligible during their third year.
The bill also provides for the creation of the CHOOSE Act Fund in the Treasury. Each year, the Alabama Department of Revenue gives priority to students already in the program and their siblings. The ministry will also prioritize family income. Her first 500 tax credits will be reserved for students with special needs.
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Terry Lathan was a former teacher. She spoke in support of the bill during the hearing.
“It's a parent's choice that we all spend money on. The government doesn't make money, it spreads money around,” Lathan said.
Others believe the CHOOSE Act will have a positive impact on public school performance.
“There is compelling evidence that public school students experience modest benefits after private school choice programs are introduced or expanded,” said Nathan Saunders of Ed Choice. Of these, 26 showed positive effects.”
Several education groups noted that this ESA proposal is an improvement over previous proposals. There remained concerns about academic accountability, including not requiring participating students to take state assessments that public school students must take.
“How can we compete if we don't have a metric that officially reports, or at least publishes the scores? If competition creates improvement, then that's what we need to do.” [report] If we are in a direct confrontation. what does it look like? We can’t do that without knowing their scores and without like-minded tests,” said Ashley McClain with the School Superintendents Association.
Participating students must take an assessment that aligns with their school's curriculum or a nationally recognized test. There is no provision in Senate Bill 61 that would require these scores to be reported to the state.
The program's $100 million minimum price tag is one sticking point for House Democrats in terms of its impact on future grocery tax cuts.
Another penny cut this year is unlikely due to the low estimated growth rate of the Education Trust Fund (ETF).
“The governor's proposed school vouchers would also come from the Education Trust Fund, which would make further grocery tax cuts nearly impossible,” said Rep. Barbara Boyd.
Moore said no money will come out of the ETF, and money from sales and use taxes will be distributed directly from the top to the CHOOSE Act Fund.
Opponents argue that money would still have flowed into ETFs.
Another point of contention is the program's funding cap.
The bill's sponsor, Sen. Arthur Orr, plans to introduce a replacement bill that would provide a cap and trigger mechanism for future increases in the CHOOSE Act Fund.
No action was taken on the bill during the committee meeting.
