Indiana HEA 1003 Parental Choice Legislation & HEA 1341 Special Education Grants An Overview and the Implications Voucher New School Opportunities $$$$$ $$$$$$ $$ SGO Choice

HEA 1341 Special Education Grants Special Education Funding –Services provided by Public School Corporation Funded by Federal (IDEA) Dollars Funded by State Dollars (Special Education Grants) –HEA 1341 addresses State Special Education Dollars

HEA 1341 Summary Requires that state dollars generated by the count of identified non-public schools special needs students be spent on the “pool” of those identified non-public school students. Requires that school corporations report how the dollars have been spent. Dollars can be spent on services, child find (testing and identification), and transportation. Non-public school students receive services. The school does not special ed. dollars.

Page 4  Creates a Choice Scholarship (Voucher) Program that provides state tuition support for eligible students/families transferring from a public to an eligible non-public school.  Makes limited improvements to the Scholarship Tax Credit legislation.  Creates a tax deduction for current non-public school families. Highlights of House Education Act (HEA) 1003.

Choice Program Basics Choice programs empower families to choose the best educational options for their children. Scholarship Tax Credit Programs and Voucher Programs are two of the most popular forms of school choice Scholarship Tax Credit Programs provide a tax credit incentive for private giving to non-profit scholarship organizations (or SGOs) Voucher Programs utilize state funds for scholarships Page 5

HEA 1003 Specifics Scholarship Tax Credit –SGOs can now serve 2 or more schools –Statewide tax credit cap from $2.5 Million to $5 Million –Recipients of SGO (tax credit) scholarships are eligible in future years for the voucher (choice scholarship) Choice Scholarship Program –Students/families who are on FR lunch are eligible for 90% of state tuition support of the students’ school corporation, capped at $4,500 for grades 1 to 8 or tuition and fees whichever is less. High School cap is the school’s tuition and fees. –Students/families who are at 150% of the FR lunch level are eligible for 50% of state tuition support for the students’ school corporation, capped at $4,500 for grades 1 to 8 or tuition and fees whichever is less. High School cap is the school’s tuition and fees. –Cap is 7,500 students in year 1, 15,000 in year 2, and no cap starting in year 3

STC

Choice Program Income Guidelines Page 8 Household Size FR Lunch Level (Eligible for 90% Choice Scholarship) 150% of FR Lunch (Eligible for 50% Choice Scholarship) 200% FR Lunch (Eligible for Tax Credit Scholarship) 1 $ 20,147$30,220$40,294 2 $27,214$40,821$54,428 3 $34,281$51,421$68,562 4 $41,348$62,022$82,696 5 $48,415$72,622$96,830 6 $55,482$83,223$110,964 7 $62,549$93,823$125,098 8 $69,616$104,424$139,232

Voucher Sample #1 Jones Family Family Profile –2 children transferring from a South Bend School Corporation school to St. Joseph H. S. –Family of four makes $40,000 annually Eligible for free and reduced level =90% voucher –South Bend ADM tuition support - $7,128 –St. Joe Tuition: 1 child =$4,535 2 children=$8,820 Eligible for up to 90% of State ADM capped at tuition –90% ADM $6,416 x 2 = $12,832 –Tuition Cap - $8,820 –Vouchers for Jones Family =$8,820

Voucher sample #2 Smith Family Family Profile –1 child transferring from Lafayette School Corp to St. Mary, Lafayette –Family of 4 makes $60,000 annually Eligible for 50% voucher (150% F&R) –Family is not Catholic –Lafayette School Corp ADM tuition support= $6,762 –St. Mary Tuition (non-parishioner) $5,566 Eligible for 150% of free and reduced lunch level voucher - 50% state ADM Tuition Cap for Elementary Schools is $4500 or tuition whichever is less 50% State ADM tuition support - $3,381 Tuition and $4,500 cap exceeds available voucher amount Maximum voucher $3,381

Student Eligibility Scholarship Tax Credit STC –Indiana Resident –Enrolling in K-12: New enrollees (K or transfer) –Meets income eligibility (200% F&R) –Not available to current students

Student Eligibility Voucher Choice Scholarship Students –Indiana Resident –Attended prior two semesters in a public school (excluding Kindergarten). Exception: if student received a STC scholarship or Choice Scholarship (voucher) in any prior year, they would not have to transfer in from public school (kindergarten loophole). –Income Eligibility: 90% F&R / 50% for 150% of F&R

School Eligibility/Requirements Scholarship Tax Credit –Located in Indiana –Has a tuition –Voluntarily participates –Accredited (state or other approved) –Takes State Test or other approved norm- referenced test

School Eligibility/Requirements Voucher –Located in Indiana –Has a tuition –Voluntarily participates –Accredited (state or other approved) –Takes State Test (ISTEP/ECA) –Participates in PL221 category placement –Lottery for Voucher Kids –Mandatory Curriculum Requirement (citizenship) –Teacher Evaluation Plan –DOE assurances and building access Page 14

Choice Scholarship and Scholarship Tax Credit Connection Connection created between the two programs has important implications –Kindergarten “loophole” –SGO focus on early childhood –“Restricted giving” possibilities Two or more schools Identify public school transfers already enrolled for next year SGO scholarships given to kids for this year SGO scholarship could supplement the voucher if student meets both eligibility requirements (capped at tuition)

Non-Pub. Fiscal Related Responsibilities SGO Relationship: critical and urgent Register as State Vendor Processing financial eligibility –School vs. State Finance Reporting –SBOA E1 From Additional requirement possible depending on how much state funds are received Fiscal Planning –Strategic approach to infusion of state dollars –Strategic use of local tuition assistance dollars –Review of Tuition Cost ad Structure

Non-Pub. Responsibilities Financial Implications –Making up the difference between voucher and actual cost of education (school/parent/other tuition assistance source) –Making up the difference between voucher and tuition (school/parent/other tuition assistance source) –School fiscal planning in light of new state funding –Timing of voucher payments (Once a semester) Impact on School Viability –Financially –Enrollment

Next Steps Implementation Plans (What to do now!) –Informed decision-making to participate ! –Continue your education on the school choice programs Additional webinars (DOE & INPEA) Info coming soon on INPEA and SCI web sites –SCI Goals: Diverse groups of schools, parent marketing efforts Administrators’ Conference Pre-session (Sept.29) –Insure SGO Relationship (and raise $$$) –Identify potential recipients (Voucher & STC) –Educate school community about involvement in the program (faculty, parents, board, donors)

Next Steps, Cont’d. If needed, formalize admission processes Review school financial planning –Local tuition assistance dollars –Insure financial independence –Review tuition structures Review academic intervention programs Review marketing plan in light of school choice WE MUST DEMONSTRATE IT WORKS! (RESULTS) Page 19

HEA 1003 Exam! School Choice Programs are intended to provide families the ability to choose the best educational option for their children –True or False Student eligibility requirements are the same for both the voucher and the STC programs –True or False

1003 Exam Continued Schools must be state accredited to participate in the voucher program –True or False Kindergarten students are not eligible for vouchers –True or False 7500 vouchers will be available in year one, beginning July 1, 2011 –True or False

1003 Exam Continued A participating voucher school must have a copy of “Common Sense” by Thomas Paine in the library or media center –True or False Students receiving a scholarship from an SGO would be eligible for a voucher in any grade if they meet the financial eligibility –True or False

1003 Exam Continued Schools must conduct an annual lottery for all students interested in vouchers –True or False HEA 1003 included a small tax deduction for the educational expenses of current families –True or False Voucher schools must accept all special education students that apply –True or False

1003 Exam Continued “Voucher schools” can no longer give admission preference on the basis of religion because of the non-discrimination clause –True or False Kindergarten students that do not receive a scholarship from an SGO would be ineligible for a voucher for 12 yrs. or have to leave the school and come back. –True or False

1003 Exam Continued Elementary (1-8) vouchers are capped at tuition and fees. –True of False A student can receive both a voucher and a STC scholarship in the same year –True or False Only schools rated in the lowest 221 category could lose eligibility for new voucher students –True or False

Exam Grades A – 1 wrong B – 2 wrong C – 3 wrong More than 3 wrong – summer school!!!

Page 27 Questions?? If your “chatted” questions haven’t been answered, we will save them and follow up with you via We will be following up with a an (from INPEA) providing additional information and a subsequent with a survey in order to collect some feedback from you regarding the webinar and your future participation.

Contact Info and Links Contacts John Elcesser, Glenn Tebbe, Links pdf Page 28