Indiana HEA 1003 Parental Choice Legislation & HEA 1341 Special Education Grants

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

2. 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

3. 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.

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.

5. 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

6. 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

7. STC

8. Choice Program Income Guidelines

9. 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

10. 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

11. Student EligibilityScholarship 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

12. 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

13. School Eligibility/RequirementsScholarship Tax Credit • Located in Indiana • Has a tuition • Voluntarily participates • Accredited (state or other approved) • Takes State Test or other approved norm-referenced test

14. School Eligibility/RequirementsVoucher • 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

15. 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)

16. 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

17. 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

18. 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)

19. 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)

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

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

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

28. Contact Info and Links Contacts John Elcesser, jelcesser@archindy.org Glenn Tebbe, gtebbe@archindy.org Links www.inpea.org www.schoolchoiceindiana.org www.doe.in.gov/schoolscholarships http://www.in.gov/legislative/bills/2011/PDF/HE/HE1003.1.pdf