Education
| November 18, 2015
ESA Overview Chart
| Arizona | Florida | Mississippi | Tennessee | Nevada | |
|---|---|---|---|---|---|
| PROGRAM OVERVIEW | |||||
| Official ESA Program Name | Empowerment Scholarship Accounts (ESAs) | Personal Learning Scholarship Accounts (PLSAs) | Equal Opportunity for Students with Special Needs Program, 5-Year Pilot | Tennessee Individualized Education Account Program (IEA) | Education Savings Accounts |
| Year Enacted | 2011 | 2014 | 2015 | 2015 | 2015 |
| Year Operational | 2011 | 2014 | 2015 | 2016 | 2016 |
| Students participating: 2014-15 | 1,311 | 1,265 | n/a | n/a | n/a |
| Student Funding | 90% of charter school base funding amount | 90% state and local public school funding | $6,500 | 100% state and local public school funding |
●100% public school funding, special needs & low-income students ●90% all other students |
| Current Amount |
●$5,300 average general ed. ●$3,500 - $26,000 average special ed. |
$10,000 average | $6,500 | $6,200 average |
●$5,700 average at 100% ●$5,100 average at 90% |
| Student Eligibility |
State resident and at least one of the following: ●Identified with a disability; or ●In/would otherwise attend a failing public school; or ●Parent/guardian is Active Duty military stationed in AZ or killed in the line of duty; or ●In/adopted from the foster care system; or ●Sibling of a current/former ESA recipient; or ●Pre-K or K students eligible to attend a public school; or ●Received a tax-credit private school scholarship as a student with disabilities or from the foster care system ●Child residing within an Indian Reservation |
State resident ages 3 through Grade 12 ●With an IEP (Individualized Education Program); or ●Diagnosed disability; or ●Kindergarteners deemed "high risk" for developmental delays |
State resident identified with an IEP in the past 18 months. |
Eligible to enroll in K-12 public schools, identified with an IEP, diagnosed with a disability, and one of the following: ●Enrolled in a state public school during the previous 2 semesters; or ●Be attending a public school for the first time; or ●Received an IEA (Individualized Education Account) in the previous school year |
All students who attended a state public school at least 100 days prior to ESA application. |
| Legal Status | |||||
| Legal Challenge(s) | Yes-Niehaus v. Huppenthal (2011) | Yes-Faasse v. Scott (2014) | No | No | No |
| Filed By |
●AZ School Boards Association; ●AZ Education Association; ●AZ Association of School Business Officials; and ●Sharon Niehaus, Continental Elementary School District (in Green Valley) Governing Board member |
●FL Education Association; ●Tom Faasse, FEA member, public school teacher, and parent; and ● three more public school parents |
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| Status |
Program upheld in 2012 & 2013-ESAs are: ●Neutral toward religion-parents have a variety of educational choices; and parents choose, not government. ●Do not violate the "Aid Clause"- beneficiaries are students, not schools; and no public funds are earmarked for a particular private school; ●Do not forfeit students' right to a "free public education"- they can re-enroll, just like home- and private-schooled students; parents are not coerced into accepting ESAs; and ESAs expand education options, not restrict them 2014-AZ Supreme Court refuses to review appeal. |
Program upheld in 2014-Plaintiff's motion dismissed with prejudice for: Failure to show special injury, as claimed, to public school children and teachers because public schools will lose funding | |||
| PROGRAM MECHANICS | |||||
| ESA Fund Disbursement | Prepaid, dedicated-use debit card through private bank account. State agency makes quarterly deposits upon submission and approval of quarterly expense reports. Leftover funds roll over. | Direct deposit reimbursement of approved expenses (pre-authorization recommended for items not on pre-approved expense list); or direct payment can be sent to approved providers. One non-profit has policies for parents who cannot afford out-of-pocket expenses. | State Education Department reimburses parents quarterly after review of reimbursement form and documentation. Funds can also be paid to education provider directly if parent approves. | Prepaid, dedicated-use debit card through private bank account. State agency makes quarterly deposits. | Private financial management firms approved by the State Treasurer. State agency makes quarterly deposits. |
| Unused Funds Rollover | Yes | Yes | Yes | Yes | Yes |
| Eligible for College Savings | Yes | Yes | No. Return to state upon completion of high school. | Yes | No. Return to state upon completion of high school. |
| RULES & REGULATIONS | |||||
| Family Income Limit | No | No | No | No | No |
| Prior Year Public School Requirement | Yes- with exceptions | No | No- but preference is given to public school students. | Yes- with exceptions | Yes |
| Private School Students Eligible | Yes-if meet exceptions | Yes-if meet qualifications | No | No | No |
| Home School Students Eligible | Yes-if meet exceptions; and can use funds to educate at home. | No-but can use funds to educate at home. | No-and cannot use ESA funds to educate at home. | Yes-if meet exceptions; but use of ESA funds to educate at home is unclear. | No-but can use ESA funds to educate at home. |
| Geographic Limit | No-Statewide | No-Statewide | No-Statewide | No-Statewide | No-Statewide |
| Enrollment Cap | Yes-0.5 percent of total traditional public and public charter school students through 2019: ~5,400 students. | No | Yes-500 in 2015-16; increasing 500 students each year thereafter. | No | No |
| Account Cap | 90% of charter school per-student base funding amount | 90% state and local public school funding | $6,500 in 2015-16; tied to proportional annual base cost changes | 100% of state and local funds reflected in the state funding formula and categorical grants for students with special needs | 100% public school base formula funding. |
| Testing Mandates | No |
State or nationally norm-referenced test |
No | State or nationally norm-referenced test | State or nationally norm-referenced test |
| OVERSIGHT & ACCOUNTABILITY | |||||
| Administering Agency | State Department of Education; Treasurer | State-approved non-profits (currently 2) | State Board of Education; State Department of Education; approved non-profit | State Board of Education | State Treasurer; approved private financial institutions |
| Agency Administration Fee | Yes-State Department of Education can retain up to 5%; 1% of that amount must go to Treasurer | Yes-non-profits have an allowance worth 3% of total awards | Yes-State Board of Education can retain up to 6% | Yes-State Department of Education can retain up to 4% | Yes-State Treasurer to establish "reasonable fees" for management of ESAs. |
| Expense Reports | Yes-quarterly | Yes-quarterly | Yes-quarterly | In development | In development |
| Audits | Quarterly and annually all accounts; random audits; and anonymous fraud reporting, phone and website | Annual Auditor General audit of all non-profit PSLA accounts | Random throughout the year. Biennial Program reviews starting in 2019. | Quarterly and annually all accounts; random audits; and anonymous fraud reporting, phone and website | Randomly and annually by a CPA/licensed public accountant. State Treasurer can require additional audits. |
| Sanctions for Misspending | Account frozen or terminated if not repaid; legal action to recover funds. | Commissioner of Education can deny, suspend, or revoke funds. | Any fraudulently spent funds must be repaid. Fraudulent providers will be removed from program. Violators may be referred to appropriate law enforcement agency. | In development | Accounts frozen or dissolved; legal action to recover funds. |
| PROTECTIONS FOR PARENTS & PRIVATE PROVIDERS | |||||
| Express Prohibition Against State Control of Private Schools/Providers | Yes | Yes | Yes | Yes | Yes |
| Express Prohibition Against Treating ESAs as Taxable Income | Yes | Yes | No | Yes | Yes |