School choice effort gets big boost

Program lacks bitter debate seen with ESAS

A small scholarship program for low-income Nevada students got a $20 million boost in funding last week when legislators couldn’t come to terms on education savings accounts, or ESAS.

Opportunity Scholarships, which are awarded through the Nevada Educational Choice Scholarship Program, were the beneficiary of the political deadlock, receiving the one-time funding infusion as a balm to Republicans who had hoped to steer $60 million to fund ESAS over the biennium.

Launched after the 2015 legislative session, the scholarship program provides money for lower-income students to attend private schools or pay for other educational programs, like dual-credit courses. Since its inception, more than 1,600 scholarships have been awarded.

“It’saprogramthathasatrack record of working,” said Brett Barley, a deputy superintendent in the state Department of Education. “We also know there’s incredible demand from families across the state. The dollars have gone quickly.”

Families with incomes of up to 300 percent of the federal poverty line can apply for a scholarship through one of four registered nonprofits. If they are accepted, the nonprofits connect them with a private school, determine the scholarship amount and pay the schools directly.

Funded by tax credits

The scholarships are funded through businesses that donate to the nonprofits in lieu of paying the state’s modified business tax.

The program was capped at $5 million for the first year in 2015 and is allowed to grow 10 percent each year. Businesses can claim up to the amount owed under the modified business tax, and donations must be approved by the Department of Taxation.

For the 2017-18 year, businesses will be able to donate a maximum of just over $26 million to the program. Under Senate Bill 555, the $20 million added by the Legislature will not be included in the 10 percent growth figure next year.

The funding was a compromise between legislators who couldn’t come to a deal to fund education savings accounts.

Last week, Gov. Brian Sandoval told reporters he was disappointed that ESA legislation didn’t work out but called the Opportunity Scholarship deal a worthwhile compromise.

ESAS vs. Opportunity Scholarships

The ESA program, which remains on the books in Nevada but is unfunded, is more universal than the Opportunity Scholarships. With ESAS, there was no income limit to apply and the money would go directly to families to be spent on the school of their choosing.

Although ESAS weren’t funded in Nevada this session, school choice experts expect the conversations to continue.

Sam Abrams, director of the National Center for the Study of Privatization in Education, said tax-credit scholarships like Nevada’s program are often more palatable than school vouchers or ESAS. Other states with such scholarships have either expanded eligibility to serve more students or maintained eligibility requirements but allowed more money into the programs over the years.

That might also happen in Nevada if the makeup of the Legislature stays the same in the future, Abrams said.

“Unless they have a Republican House and Senate it seems dead,” he said of ESAS.

For more information on how to apply for a scholarship, visit the Nevada Department of Education website at doe.nv.gov.