Education Savings Accounts (ESA’s) – “Education Savings Accounts (ESAs) are a new form of government subsidy for private education, and they are arguably the most strongly promoted approach by voucher advocates. Parents are provided a set sum, often in the form of a debit account, which they can use for a variety of educational services including private school tuition and fees, online courses, extracurricular activities and private tutoring. Students enrolled in an ESA program are not allowed to concurrently attend a public school.”
More information regarding Education Savings Accounts may be found here.
Regular Session of the 88th Texas Legislature
House Bill 619 (Shaheen) – “Relating to an insurance premium tax credit for contributions made to certain educational assistance organizations.”
This bill proposes to provide a premium tax credit for qualified entities to be administered as student scholarships for private education by Education Assistance Organizations (EAO’s) that are approved by the state. The program would award up to 75% of the state average maintenance and operations education expenditure per student (from the previous year) to qualifying students. Students from both private and public schools would be eligible and an Educational Savings Account (ESA) would be established for them. The bill would take effect on January 1, 2024 and limits the total expenditures for the program for that year to $100 million. The Coalition for Public Schools considers this a voucher bill since there is an overt transference of taxpayer funds to private entities.
House Bill 2817 – (Jetton) – Relating to establishing a program allowing certain students who are educationally disadvantaged, have a disability, or failed certain assessment instruments to use state money or money the state receives for the purpose from gifts and non-federal grants to pursue certain educational alternatives to public schools.
This bill proposes the creation of an Education Savings Account to disburse public funds to private educational entities if the children meet the eligibility requirements listed above. Parents of eligible children will receive each year an amount equal to 90 percent of the amount to which the school district in which the child resides would be entitled to receive for the child under Chapter 48 if the child were enrolled in the district. If passing by 2/3 vote in each chamber the bill would become law immediately or on September 1, 2023 if not. The Coalition for Public Schools considers this a voucher bill since there is an overt transference of taxpayer funds to private citizens.
House Bill 3781 – (Jetton) – “Relating to special education in public schools, including the special education allotment under the Foundation School Program, an education savings account program for certain children with disabilities, and a grant program to reimburse public schools for the cost of certain employer contributions for retirees of the Teacher Retirement System of Texas employed to teach special education.”
The bill focuses on requiring TEA to develop a comprehensive system to ensure school district compliance with federal and state law regarding special education and outlines rules for that system including the provision of supplemental services outside of the admissions, review, and dismissal (ARD) process for special needs children. The bill requires the agency to establish and administer an education savings account (voucher) program to provide funding for certain education-related expenses of eligible children. A child is eligible to participate in the program if the child is a child with a disability; is eligible to attend a public school and (A) was enrolled in a public school in this state for a period of at least six weeks during the preceding or current school year; (B) was required to attend school under Section 25.085 for a period of less than six weeks during the preceding and current school year due to the child’s age or nonresidence in this state; or (C) participated in the program during the preceding school year. The Coalition for Public Schools considers this a voucher bill since there is an overt transference of taxpayer funds to private citizens.
House Bill 4340 – (Frank) – Relating to the establishment of the Education Savings Account Program to allow certain children to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.
This bill would create education savings account programs that rely on educational assistance organizations (EAOs) to receive funds, either from the state or from private donations, to provide to individuals of varying eligibility for educational expenses, including private school tuition. The EAOs could take up to 10 percent of the provided funds, which could be provided by donations from companies that could then claim a tax credit against their state taxes to limit their contribution to state general revenue. The ESA Amount would be 90% of average M&O. This is both a tax credit voucher and an ESA type voucher. The Coalition for Public Schools considers this a voucher bill since there is an overt transference of taxpayer funds to private citizens.
Senate Bill 8 – (Creighton | Bettencourt | Campbell | King | Middleton | Parker | Paxton | Schwertner | Springer) – “Relating to public education, including parental rights and public school responsibilities regarding instructional materials and the establishment of an education savings account program.”
Article 2 of of this bill proposes the establishment of an Education Savings Account (ESA) program. The comptroller would certify one or more Educational Assistance Organizations (EAO’s) charged with administering: (A) the application process under Section 29.356; and (B) the program expenditures process under Section 29.360; and (2) assisting prospective applicants, applicants, and program participants with understanding approved education-related expenses and finding preapproved education service providers and vendors of educational products. Funds from the program would pay for tuition to private school; instructional materials; testing costs; tutoring; educational therapies; and transportation. The total amount of funds that would be deposited in an eligible participants ESA account is $8,000 per year. The Coalition for Public Schools considers this a tax credit voucher bill since there is an overt transference of taxpayer funds to private entities.
See Talking Points for SB 8 here…
Senate Bill 176 (Middleton) – “Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.”
This bill proposes the creation of the Texas Parental Empowerment Program and provides a premium tax credit for qualified entities to be administered as student scholarships for private education by Education Assistance Organizations (EAO’s) that are approved by the state. The introduction to the bill emphasizes that private religious schools must be included. The bill requires a parental review committee to approve the providers of educational services or products but prohibits anyone requires to register as a lobbyist or anyone employed by a political subdivision that hires a lobbyist from serving on the committee. The program would award 100% of the state average maintenance and operations education expenditure per student (from the previous year) to qualifying students and an Educational Savings Account (ESA) would be established for them. The bill would take effect on January 1, 2024 and limits the total expenditures for the program for that year to $200 million. The Coalition for Public Schools considers this a voucher bill since there is an overt transference of taxpayer funds to private entities.
SB 1474 – (Bettencourt/Paxton) – “Relating to special education in public schools, including the special education allotment under the Foundation School Program, an education savings account program for certain children with disabilities, and a grant program to reimburse public schools for the cost of certain employer contributions for retirees of the Teacher Retirement System of Texas employed to teach special education.”
This bill provides for the establishment of an Education Savings Account (ESA) for eligible special needs students. The bill adjust the amount of the Basic Allotment (BA) to the severity of the need of the child. The bill additionally provides for a statement to parents that private schools are not subject to certain federal protections otherwise guaranteed the child. The ESA pays for tuition at a private school; curriculum for homeschool; a private tutor; $500 per year transportation costs; food costs at private school; uniform costs at private school; therapy needs, etc. The bill expands the supplemental services program for special needs students outside of their Individual Education Program (IEP). If receiving a 2/3 vote of both chambers of the legislature the bill takes effect immediately, otherwise it takes effect September 1, 2023. Amendments to the Texas Education Code take effect September 1, 2024. The Coalition for Public Schools considers this an ESA type voucher bill since there is an overt transference of taxpayer funds to private citizens.
SB 2354 – (Bettencourt) – “Relating to the establishment of the Education Savings Account Program to allow certain disadvantaged children and their siblings to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.”
This bill proposes the establishment of an Education Savings Account for eligible participants funded by a tax credit to qualifying entities. A child is eligible to participate in the program if the child was enrolled in a public school during the entire preceding school year; or is enrolling in a school in this state for the first time; and meets one of the following criteria: is a member of a household with a total annual income that is at or below 200 percent of the income guidelines necessary to qualify for the national free or reduced-price lunch program; is the sibling of a child who is eligible to participate in the program; was eligible to participate in the program during a previous school year; is a child with a disability; or is covered by Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794). A parent of an eligible child shall receive each year that the child participates in the program a payment from the state from funds available under Section 29.353 to the child’s account in an amount equal to 90 percent of the state average maintenance and operations revenue per student in average daily attendance for the preceding state fiscal year. Approved expenses under the bill include tuition and fees; instructional materials; uniforms; online program costs; testing; co-curricular activities; transportation; and educational therapies. The Coalition for Public Schools considers this a voucher bill since there is an overt transference of taxpayer funds to private citizens.
Regular Session of the 86th Texas Legislature
No Education Savings Accounts (ESA) vouchers were introduced in the regular session of the 86th Texas Legislature.
Special Session of the 85th Texas Legislature
HB 52 by Simmons provides an Individualized Education Plan Account (IEPA) type voucher for students with a disability. The voucher provides 90% of the funding the child would have generated in a public school. The money would come from the Foundation School Program.
HB 52 Talking Points may be found here.
Regular Session of the 85th Texas Legislature
Committee Substitute House Bill 21
House Bill 21 is a school finance bill that passed the House and was sent to the Senate. When it was heard in the Senate Education Committee a voucher was added to the bill as a committee substitute. CSHB 21 provides an ESA voucher for students with a disability including students identified as special education and 504. The voucher provides 90% of the funding the child would have generated in a public school. The money will come from the Foundation School Program. We oppose this voucher on the following grounds:
ESA’s takes taxpayer funds directly from public schools and provides no real funding
With money coming directly from the Foundation School Program, ESA’s siphon money directly from public schools and divert it to be used in private, religious and home schools. Aside from the 450,000 special education students in Texas, the inclusion of 504 students opens the door for any student with a “life impairment” (e.g. asthma, hearing loss, anxiety, etc.) and could cost billions of dollars. Besides, the current Senate budget does not fund CSHB 21 and doesn’t provide any real funding for Texas public schools. With Texas public schools already being underfunded, Texas can’t afford the voucher in CSHB 21.
Parents and students give up their federal protections under ESA’s
Students with disabilities in special education receiving a voucher under CSHB 21 would give up their federal protections upon exiting the public school. This includes their rights to due process under admissions, review and dismissal (ARD) committees and other federal protections.
No accountability under ESA’s
Private and religious schools that would access taxpayer dollars through CSHB 21 are not accountable to the state in the same way as public schools. CSHB 21 would allow these schools to receive taxpayer monies while not meeting the same curriculum nor fiscal requirements of a Texas public school. Texans overwhelmingly believe that schools that receive tax dollars should be accountable for how they are spent, but the schools that receive vouchers would not be accountable to taxpayers.
ESA’s violate the separation of church and state and the first amendment
CSHB 21 provides monies that can be used in any private or religious school. Earlier ESA’s that this was modeled from provided no disallowance for religious content or services. Taxpayer funds used for religious content or services violates the first amendment.
Downloadable CSHB 21 Talking Points (CFPS).
Downloadable CSHB 21 LETTER rev3.
Senate Bill 3
SB 3 (Taylor, L.) is both an ESA and a tax credit voucher which allows certain businesses or individuals to count donations to scholarships against their tax liability. SB 3 allows a tax credit against an entity’s state premium insurance tax liability.
The Coalition for Public Schools opposes SB 3 on the following grounds:
SB 3 diverts taxpayer funds away from the public trust to private, religious and corporate entities
Under SB 3, taxpayer funds may be used to fund tuition to a private, religious or corporation-operated school. With Texas currently in the bottom quarter of states for per-pupil funding, Texans cannot afford to pay for a parallel system of education – one for the affluent who want to subsidize tuition at a private school – and one for over 90% of Texas public schoolchildren. If limits are expanded and the approximately 600,000 homeschooled and privately schooled children are eventually funded, the additional cost would be in the billions of dollars.
SB 3 provides no accountability for taxpayer dollars
Private and religious schools that would access taxpayer dollars through SB 3 are not accountable to the state in the same way as public schools. SB 3 would allows these schools to receive taxpayer monies while not meeting the same curriculum nor fiscal requirements of a Texas public school. Texans overwhelmingly believe that schools that receive tax dollars should be accountable for how they are spent, but the schools that receive tax credit vouchers would not be accountable to taxpayers.
SB 3 is an entitlement for the affluent
The eligibility requirements in SB 3 are designed to provide greater access to those with income over 200% of the free and reduced lunch eligibility level. These families have greater ability to provide supplemental tuition and transportation to the private schools they want to attend. The voucher does not provide as much opportunity for access to those below the 200% level or to those parents with students with disabilities – whose educational costs are typically higher.
SB 3 is an expansion of government
In order to ensure compliance with the educational spending requirements of SB 3, the comptroller’s office will have to create administrative positions, assign staff, and conduct audits of parents’ educational expenditures. If the program were to grow, additional staff would be needed. SB 3 will result in the expansion of the government in Austin, throughout the state and potentially into the lives of private and homeschool parents and children.
SB 3 violates the separation of church and state
SB 3 states that “the content or religious nature of a product or service may not be considered in determining whether a payment for the product or service is an expense allowed” under the bill. Taxpayer funds could be used to purchase curriculum with any religious orientation in violation of the establishment clause of the first amendment.
Downloadable SB 3 Voucher Talking Points ONE PAGER
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House Bill 1335
HB 1335 (Simmons) provides an ESA type voucher for students with a disability, kids in the DFPS system, or victims of a variety of crimes or abuse. The voucher provides 90% of the funding the child would have generated in a public school. The money will come from the Foundation School Program.
The Coalition for Public Schools opposes this voucher on the following grounds:
HB 1335 takes taxpayer funds directly from public schools
With money coming directly from the Foundation School Program, HB 1335 siphons money directly from public schools and diverts it to be used in private, religious and home schools. With Texas public schools already being underfunded, Texas can’t afford the voucher in HB 1335.
HB 1335 violates the separation of church and state and the first amendment
Like SB 3 (above), HB 1335 provides that “content or religious nature of a product or service may not be considered in determining whether a payment for the product or service is an expense allowed” under the program. Taxpayer funds used for religious content or services violates the first amendment.
Parents and students give up their federal protections under HB 1335
Students with disabilities in special education receiving a voucher under HB 1335 would give up their federal protections upon exiting the public school. This includes their rights to due process under admissions, review and dismissal (ARD) committees and other federal protections.
No accountability under HB 1335
Private and religious schools that would access taxpayer dollars through HB 1335 are not accountable to the state in the same way as public schools. HB 1335 would allows these schools to receive taxpayer monies while not meeting the same curriculum nor fiscal requirements of a Texas public school. Texans overwhelmingly believe that schools that receive tax dollars should be accountable for how they are spent, but the schools that receive tax credit vouchers would not be accountable to taxpayers.
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For more information contact Dr. Charles Luke at charlesluke43@gmail.com or by phone at 940-768-8594.