1. An Update on ESEA, SES, and Tax Incentives for Tutoring For Middle Class Families Education Industry Association: Legislative Update

2. Agenda  Overview  ESEA Reauthorization – Congressional Action/Inaction  A Wave of Waivers – U.S. Department of Education  Saving SES – What We’re Doing, What You Can Do  Education Industry SES Bill  Private Pay Tutoring – Tax Incentives for Middle Class Families

3. ESEA Reauthorization: Congressional Action...and Inaction  “ No news is no news” – Congress consumed by budget and debt ceiling debates  Senate Health, Education, Labor & Pensions (HELP) Committee:  Chairman Harkin vows action on ESEA bill this Spring, using Administration’s Blueprint as model  SES currently mentioned as optional tool for lowest 5% of schools  Cultivating Republican support of SES; hard to find helpful Democrats on HELP Committee  Both Republicans and Democrats call for more quality and accountability... and more District flexibility for all of ESEA

4. ESEA Reauthorization-Continued  House Education & Workforce Committee – Progress lagging behind Senate:  Many new Members and unsure of Federal role in education  Republicans campaigned to abolish USDoE; generally favor local control and few Federal mandates (like SES)  Republican’s generally “friendly” to parent choice like programs but local control values also in play.  Chairman Kline, prefers series of small bills to fix NCLB and House committee has already produced 3: 1) edflex; 2) program elimination, and charters.  Timeline and Prediction: Congress must complete action on ESEA by October, 2011, or we skip 2012 -elections  Passing ESEA will be like a “Hail-Mary” pass May 10, 2011

5. A Wave of Waivers: U.S. Department of Education Chips Away at ESEA  States and Districts nationwide – Clamoring to be excused from key directives of NCLB -- including SES -- for fiscal relief: Arne’s Plan B to fix NCLB if Congress fails to act.  Impact on 2011-12 school year less likely at this point but….?  How could waivers work? Notice in Fed Register with application that trades local flex for fed’l ed reform—like RTTT.  Waivers might be comprehensive (like stopping AYP/2014 goal) or more narrow (no SES).  Impact on the 2012-13 school year likely.

6. Saving SES: The Players SES Coalition

7. Saving SES: Our Activities  Hill Day (April 13) – On SES as a civil right, hosted by U.S. Reps Alcee Hastings, Carolyn McCarthy  Grassroots organizing via www.tutorourchildren.org – electronic pledges (currently > 2,600)www.tutorourchildren.org  Meetings with Democrats and Republicans, in the Senate and House – as well as with U.S. Department of Education  Letters to Secretary Duncan, from Members of the Black and Hispanic Caucuses and Leading Republicans – urging no waivers  Outreach to all policymakers by SES providers... to demonstrate and share SES’s success stories

8. Saving SES: Our Activities

9. Industry Bill to Improve SES  Changes to entice districts to want SES; improve provider quality, and provide more administrative funds for States and LEAs  Final bill will change based on ESEA school accountability plan  To be introduced in Senate by influential Republicans  Funds tutoring as a non-mandatory Title 1 program  Requires States to reserve 20% of Title 1 funds (formerly SIG) at State level  Encourages Districts to obtain new Title I tutoring funds  Improves evaluation rubric for providers based on Florida model.  Provides for re-allocation of unused funds to other districts-just for tutoring  Continues PPA model to fund tutoring

10. Industry SES Bill-continued  Requires Districts to:  Implement planning and start up of tutoring on specific timeline (120/60 days from start of school)  Disclose how parents and students will be informed; open enrollment  Provide school facilities to tutoring providers on same basis  Allows LEAs as providers – with State oversight  Raises the bar for provider eligibility-no grandfathering  Curricula aligned with State standards  At least five years of experience educating youth  Research-based instructional methods and materials  Demonstrate financial stability-audit/liquidity  Employ tutors that meet State-determined qualifications  Holds the U.S. Department of Education accountable  Program oversight  Annual report on participation and expenditures  Complaint and resolution process  Evaluation of high-quality tutoring

11. Private Pay Tutoring – Tax Incentives for Middle Class Families  In context of tax reform legislation, expand current 529 Plans to resemble 401 (k) for “Family Education Savings Program:”  Expands college savings plan to become a “life-long” education plan  Owner, spouse and all qualified dependents = beneficiaries of Program  Up to $5,000 annual before-tax salary reduction contributions, with employer matching non-taxable to employer, tax-deductible to employee  Unlimited after-tax contributions; investment return not taxed  Qualified expenditures to include tutoring and college preparation courses as well as early education, college and re-training expenses  Families get 30-40% “discount” via the tax code for their savings  Qualified Providers: accreditation, state approval, or uses certified teachers  EIA’s Affordable Tutoring Coalition leads the way  Active since 2009  Visible support and leadership from U.S. Senator Olympia Snowe (R-ME); U.S. Rep. Bill Pascrell (D-NJ), and now seeking House Republicans on Ways and Means

12. Questions, Discussion?  What YOU can do to help.  What WE need to hear from you.  What the future looks like for ALL OF US. Join EIA today: www.educationindustry.org www.educationindustry.org And the SES Coalition