House Education Committee passes HB1371 to the House of Representatives
Poll from Arkansas State Teachers Association shows support for HB1371
Poll from Arkansas State Teachers Association shows support for HB1371
LITTLE ROCK, Ark. (March 12, 2020) – In a recent member poll from the Arkansas State Teachers Association (ASTA), a nonunion educator association, 56% of teachers indicated they support HB1371, which would create the Arkansas Child Academic Opportunity Scholarship and Grant Act.
“I think it is a great idea for businesses and the state to work together to support the community,” one response said.
About 24% neither agree or disagree with the proposed program, and only 20% oppose it. Many of the disagree comments reflected a misunderstanding of the bill, according to Michele Linch, ASTA’s executive director. For example, one survey response said, “Tax dollars are not for private or charter schools,” when the program is funded by donations made by individuals and organizations in exchange for tax credits, not by tax revenue. Also, tax dollars already go to charter schools because they are public schools; the program does not have an effect on that.
The poll follows a recently released survey from Cyngal that showed that more than more than half of voters in all eight of the identified House of Representatives districts support tax credits for scholarships. In February, the University of Arkansas Office for Education Policy and EdChoice also released a fiscal impact statement showing a positive benefit of $2.3 million for the state, along with a positive fiscal benefit of $773,00 to public schools, from the private scholarship component of the program.
ABOUT THE ARKANSAS STATE TEACHERS ASSOCIATION: The Arkansas State Teachers Association is the state chapter of the Association of American Educators (AAE), the largest national, nonunion, professional educator organization, advancing the profession by offering a modern approach to educator empowerment and advocacy—promoting professionalism, collaboration, and excellence without a partisan agenda. ASTA-AAE is committed to a teaching profession that is student oriented, well respected, and personally fulfilling. Classroom teachers, paraprofessionals, administrators, student teachers, university professors, support staff, and supporters can learn more at astapro.org.
ABOUT THE REFORM ALLIANCE: The Reform Alliance is a nonprofit organization dedicated to ensuring every K-12 student in Arkansas has equal access to a world-class education. The Reform Alliance is proud to manage the Succeed Scholarship at no cost to the State of Arkansas. Even small expenses like the cost of mailing checks to schools are paid for by a private foundation grant. Free educational resources and more information about The Reform Alliance are available at thereformalliance.org.
Researchers declare DFA’s statement about HB1371 is an 'incomplete picture'
Researchers declare DFA’s statement about HB1371 is an ‘incomplete picture’
The statement fails to take into account potential savings
LITTLE ROCK, Ark. (March 4, 2020) – On Tuesday researchers from the University of Arkansas Office for Education Policy and EdChoice, a nonpartisan nonprofit, refuted the Department of Finance and Administration’s legislative impact statement about HB1371, which would create the Arkansas Child Academic Opportunity Scholarship and Grant Act, as an “incomplete picture.”
“The DFA fiscal note provides an incomplete picture of the likely fiscal impact of HB1371 because it only includes the cost of the program without regard for potential savings,” said Marty Lueken, director of EdChoice’s Fiscal Research and Education Center. “When students leave public schools via a scholarship program, it reduces educational costs for public school districts and generates savings for taxpayers.”
As written in HB 1371, the program would require all eligible students to be enrolled in public school prior to entering the program. When students leave a school district for any reason, total expenses for that district decreases by the foundation amount ($7,018 per student), plus any categorical or grant funding associated with the student. Because local revenue is fixed, any reduction in district costs resulting from HB 1371 would accrue to the state as savings.
Lueken and Josh B. McGee, associate director of the Office for Education Policy, recently released a fiscal impact statement that takes into account these potential savings. Their analysis estimates that the net fiscal impact of the scholarship program on the state would be $2.3 million in savings, and the net fiscal effect on districts would be a positive benefit of about $770,000.
DFA’s statement projected $465,000 in administrative costs exceeds the costs actually incurred in other states, even though those states don’t have the extra benefit of nonprofits administering the scholarships and grants.
For example, Arizona appropriated up to 3% of ESA amount for admin costs in FY 2012 (the program’s first year), which amounted to $47,280. The state appropriated $200,000 in FY 2013, and $240,000 in FY 2014 and FY 2015 ($200,000 for state DOE and $40,000 for the State Treasury). Mississippi set aside $180,000 for administrative costs and had $99,000 in unused funds in FY 2018 and $33,000 in FY 2020.
“In these states, a state agency is running the program whereas Arkansas’s program would be run by nonprofit orgs and only overseen by a state agency,” said Jason Bedrick, director of policy at EdChoice. “Other states are running much larger programs at less than half [DFA’s projected] cost, so it should take Arkansas even less than that to merely provide oversight.”
ABOUT THE OFFICE FOR EDUCATION POLICY: The Office for Education Policy (OEP) is a research center within the College of Education and Health Professions at the University of Arkansas. The OEP exists to serve as a resource to state lawmakers, educators, administrators, and other leaders, providing them with current national, state, and regional research in education to support them in thoughtful decision-making concerning K-12 education in the State of Arkansas.
ABOUT EDCHOICE: EdChoice is a nonprofit, nonpartisan organization dedicated to advancing full and unencumbered educational choice as the best pathway to successful lives and a stronger society. EdChoice believes that families, not bureaucrats, are best equipped to make K-12 schooling decisions for their children. The organization works at the state level to educate diverse audiences, train advocates and engage policymakers on the benefits of high-quality school choice programs. EdChoice is the intellectual legacy of Milton and Rose D. Friedman, who founded the organization in 1996 as the Friedman Foundation for Educational Choice.
ABOUT THE REFORM ALLIANCE: The Reform Alliance is a nonprofit organization dedicated to ensuring every K-12 student in Arkansas has equal access to a world-class education. The Reform Alliance is proud to manage the Succeed Scholarship at no cost to the State of Arkansas. Even small expenses like the cost of mailing checks to schools are paid for by a private foundation grant. Free educational resources and more information about The Reform Alliance are available at thereformalliance.org.
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Fiscal Impact Statement from the University of Arkansas and EdChoice shows tax credit scholarship program would have a positive fiscal impact on public schools
LITTLE ROCK, Ark. (Feb. 25, 2020) – On Wednesday, researchers from the University of Arkansas Office for Education Policy and EdChoice released a fiscal impact statement regarding HB1371, The Arkansas Child Academic Opportunity Scholarship and Grant Act. The study revealed the proposed tax-credit scholarship program would generate a positive estimated net benefit of $773,000 to Arkansas public school districts.
The study projected that any reduction in funding to districts would more than offset the reduction in variable costs for those students, leaving a positive return for public schools in the amount of $900 per student in the program.
“It’s a common myth that programs like this will negatively impact public school finances,” said Emmy Henley, managing director of The Reform Alliance. “The reality is this innovative, parent-driven program helps alleviate budget concerns at public schools while giving families who have been historically marginalized access to options that better serve their children’s needs.”
The study also estimates that state taxpayers would experience net fiscal savings worth $2.3 million, or $2,600 for each scholarship student.
Last week a poll conducted by Cygnal, an award-winning national public opinion and predictive analytics firm, revealed that 65% of Arkansas voters want parents to be able to customize their child’s education or invest in both traditional and other education options. Additionally, 61% of Arkansas voters support tax-credit funded grants for public schools that serve Arkansas’s lowest income populations.
“Overall, Arkansans want parents to be in charge of their children’s education,” said Jacqueline Boggess, director of insights & communications at Cygnal. “Tax credits for donations to scholarships for low- and middle-income students and donations for grants to public schools that serve low- and middle-income students are both popular statewide.”
The full fiscal impact statement is available here. The full poll is available here.
ABOUT THE OFFICE FOR EDUCATION POLICY: The Office for Education Policy (OEP) is a research center within the College of Education and Health Professions at the University of Arkansas. The OEP exists to serve as a resource to state lawmakers, educators, administrators, and other leaders, providing them with current national, state, and regional research in education to support them in thoughtful decision-making concerning K-12 education in the State of Arkansas.
ABOUT EDCHOICE: EdChoice is a nonprofit, nonpartisan organization dedicated to advancing full and unencumbered educational choice as the best pathway to successful lives and a stronger society. EdChoice believes that families, not bureaucrats, are best equipped to make K-12 schooling decisions for their children. The organization works at the state level to educate diverse audiences, train advocates and engage policymakers on the benefits of high-quality school choice programs. EdChoice is the intellectual legacy of Milton and Rose D. Friedman, who founded the organization in 1996 as the Friedman Foundation for Educational Choice.
ABOUT THE REFORM ALLIANCE: The Reform Alliance is a nonprofit organization dedicated to ensuring every K-12 student in Arkansas has equal access to a world-class education. The Reform Alliance is proud to manage the Succeed Scholarship at no cost to the State of Arkansas. Even small expenses like the cost of mailing checks to schools are paid for by a private foundation grant. Free educational resources and more information about The Reform Alliance are available at thereformalliance.org.
ABOUT CYGNAL: Cygnal is an award-winning national public opinion and predictive analytics firm that pioneered multi-mode polling, peer-to-peer text collection, and Political Emotive Analysis. Cygnal was recently named the #1 most accurate polling and research firm in the country for 2018 by The New York Times. Its team members have worked in 47 states and countries on more than 1,500 corporate, public affairs and political campaigns.
