HomePostTopic: Scholarship tax credit

Scholarship tax credit

Children raising hand in classroom

Key Points

  • The Georgia Promise Scholarship is a state-supported form of financial aid for students who need an alternative to traditional public school education.
  • The Tax Credit Scholarship Program could continue to serve students who are not eligible for a Promise Scholarship. Students would not be able to receive both scholarships. 
  • Promise Scholarships and Tax Credit Scholarships are complementary programs. Together, they diversify the sources and types of aid available to families and can broaden the potential applicant pool for private schools without creating additional fundraising burdens.

The Georgia Promise Scholarship is a state-supported form of financial aid for students leaving public school in search of a better educational setting. Under the proposed legislation, Senate Bill 233, eligible students would have $6,500—funds that the state would have spent on their public school education—set aside in an account. Parents then could direct that money to pay for educational expenses, including private school tuition, books, uniforms, and even transportation. 

Georgia already has two scholarship-based programs: 

  • The Special Needs Scholarship Program, which allows students with special education needs to choose the public or private school best suited for their situation. In the event that families choose a private school, the state provides a scholarship equal to the amount the student would have received for state-based education services. 
  • The Tax Credit Scholarship Program, which expands access to private schools for families who otherwise could not afford that option. 

Adding another scholarship program to Georgia’s menu of education options naturally raises questions about what Promise Scholarships would do and who would be affected. For Georgia’s private schools, these questions are top-of-mind as they seek to understand how Promise Scholarships would impact the Tax Credit Scholarship Program and potentially put other requirements on private schools.

Join the movement to give every child in Georgia the education they deserve! Visit Everykid.info to learn how you can make a difference and learn valuable information for parents on how you can help provide quality education for all Georgia kids. Don’t wait – visit Everykid.info now!

Join the movement to give every child in Georgia the education they deserve! Visit Everykid.info to learn how you can make a difference and learn valuable information for parents on how you can help provide quality education for all Georgia kids. Don’t wait – visit Everykid.info now!

Promise Scholarship (SB 233) FAQs for Georgia’s Private Schools 

Which students would be eligible for a Promise Scholarship?

Students currently attending public schools that are ranked in the bottom 25% of all public schools in academic performance. In 2024, the House of Representatives introduced changes to SB 233 that further narrow eligibility:

The bill now gives first priority to students from families below 400% of the federal poverty level—around $120,000 a year for a family of four. Students above that threshold will be allowed to participate if funds are left over after the lower-income students are served.

A funding cap was also put on the program. Funding for Promise Scholarships cannot exceed 1% of public school funding. Even if parent demand maxes out the program, this amount would only cover an estimated 22,000 kids. 

Are Promise Scholarship dollars limited solely to tuition and expenses related to private school education?

No. Unlike existing school choice programs in the state such as the Georgia Special Needs Scholarship and the Tuition Tax Credit Scholarship Program, the resources students receive from the Promise Scholarship are more flexible. In addition to private school tuition, allowable expenses could include tutoring and therapies—even offered outside of the private school setting—as well as curriculum and materials for homeschooling. 

What is required by the state of Georgia for a private school to accept students using Promise Scholarship dollars?

The requirements for private schools under the Promise Scholarship program substantially mirror the requirements for private schools already participating in either the Georgia Special Needs Scholarship Program or the Tuition Tax Credit Scholarship Program. If you already participate in either or both programs, there will be very few (if any) new requirements.

In order to serve students with a Promise Scholarship, private schools must:

  • Have been in operation for one school year.
  • Submit aggregate data of Promise Scholarship Students’ attendance rates and course completion rates.*
  • Report on-time graduation rates of Promise Scholarship Students.* 
  • Comply with the anti-discrimination provisions of 42 U.S.C. Section 2000d.
  • Comply with state laws applicable to private schools.
  • Be physically located in Georgia.
  • Administer to Promise Scholarship Students at least one norm-referenced test that measures academic progress in math and language arts per year.*

*Requirement is unique to the Promise Scholarship program and not currently required by the Tax Credit Scholarship Program.

Would the creation of the Promise Scholarship program negatively impact existing school choice programs, such as the Tax Credit Scholarship Program?

No. The programs should be viewed as complementary to one another, allowing for a greater pool of financial aid for prospective private school families. 

Students would be prohibited from receiving both a Promise Scholarship and a scholarship from an SSO under the Tuition Tax Credit Scholarship Program. However, the Promise Scholarship program gives each participating student $6,500 directly from the state—a higher value than the average scholarships awarded by SSOs under the tax credit program. 

The Tax Credit Scholarship Program could continue to serve students who are not eligible for a Promise Scholarship. 

Are there any protections for private schools, particularly faith-based schools, against state regulation as a result of accepting Promise Scholarship students and dollars?

Yes. Modeled after similar provisions in other states, there is explicit language in the bill prohibiting the state from requiring a private school or other participating provider to alter the creed, practices, admissions and employment policies, or curricula. 

What’s the key takeaway for Georgia’s private schools?

The Promise Scholarship Program and the Tax Credit Scholarship Program would be complementary to one another. Together, these two programs diversify the sources and types of aid available to families and can broaden the potential applicant pool for private schools without creating additional fundraising burdens.

 

Additional Resources

The Georgia Promise Scholarship Act (SB 233): Questions and Answers

5 Reasons Why It’s a Good Idea to Expand Georgia’s Tax Credit Scholarship

Parent Guide to Education Options in Georgia

Georgia Needs to Widen Schooling Choices in 2024

education outcomes 2023

We have much to celebrate as the 2023 Georgia legislative session comes to a close. At the same time, there is still much work to be done. That’s what this blog post is all about. First, we’ll take a look at recent victories in the area of education during the session. Then, we’ll talk about the road ahead—what still needs to be accomplished for the good of Georgia’s schoolchildren and families.

The Georgia Center for Opportunity team serves as an important source of information to lawmakers on the impact new laws can have on communities around Georgia, particularly the poor and underrepresented.

School literacy bills

A bright spot in the 2023 legislative session was the passage of two literacy bills that will improve reading and writing skills among Georgia’s kids. According to the Georgia Department of Education, only 64% of Georgia’s third-graders read at or above grade level. These bills will pave the way for our children to enjoy greater literacy, which will impact their educational and professional future.

Here is more about the two bills:

House Bill 538: The Georgia Early Literacy Act requires the state Board of Education to “approve high-quality instructional materials to be used for teaching students in kindergarten through third grade.” This will give Georgia an opportunity to raise the bar on literacy education for public school students in every community. 

Senate Bill 211: This legislation establishes the Georgia Council on Literacy. The Council will work with local school systems to develop a five-year plan to improve reading and writing among Georgia’s students. Coupled with state-approved instructional materials, we have renewed hope for seeing significant improvements in literacy over the next few years.

 

School safety

The next bill passage regards school safety, which is always an incredibly important topic, but which has received heightened attention in recent months. Here’s a look at the coming changes.

    • House Bill 147: The Safe Schools Act requires local school districts to develop safety plans and submit those plans to the Georgia Emergency Management and Homeland Security Agency (GEMA/HS). Because of the heightened threats on schools these days, having districts work with the experts at GEMA/HS will increase the safety of our children.

 It’s important to act quickly, and act together, for the benefit of our kids.

 It’s important to act quickly, and act together, for the benefit of our kids.

School accreditation

Finally, let’s go over the school accreditation bill that passed during this year’s session. 

    • Senate Bill 204: This legislation puts parameters on what K-12 school accreditation organizations can consider when they evaluate school districts. The bill is designed to address concerns that these organizations were limiting local elected school boards’ important discussions and debates.

 

Bad news from the 2023 Georgia legislative session

Now for the bad news. Despite passing in the Senate and making significant gains in the House, the Promise Scholarship bill (SB 233) didn’t get enough votes to pass on the last day of session. This delay has forced 500,000+ kids in failing public schools to wait yet another year for this critical education option.

Georgia’s General Assembly missed opportunities to adopt three other good education reforms. We’ll address each, but first, we’ll cover what happened to SB 233. 

 

What happened to promise scholarships?

The Georgia Promise Scholarship Act, SB 233, would have given parents $6,500 per year, per student to find the right education options for their kids. This would have opened up many non-traditional options, including private school, for families who want alternatives to the public school route. Eligibility would have been narrowed to around 400,000 kids stuck in the bottom 25% of public schools, based on the Georgia Department of Education’s evaluation.

    • The Promise Scholarship bill passed the Senate with unanimous support from Republican senators but, sadly, received no support from Democratic senators. It went all the way to the House of Representatives for a vote. The fact that the bill made it that far in the legislative process is good news.
    • On the last day of session, SB 233 received 85 votes in the House—six votes short of the 91 needed for passage. Sixteen Republican representatives voted against the bill. All but one Democratic representative voted against SB 233: the brave Rep. Mesha Mainor (Atlanta), who voted for the bill on behalf of her constituents’ interests.
    • Thankfully, SB 233 is still on the table for the 2024 legislative session. In the meantime, Georgia students stuck in underperforming schools will be forced to wait another year for this education option to be considered.

The ugly: Public school transfers, charter school management, and tax credit scholarships

As promised, let’s look at three other important opportunities the Georgia Legislature missed during the 2023 session. None of the following bills gained the traction they needed, depriving Georgia families and children of important or increased educational opportunities for at least one more year. 

    • Senate Bill 147 would have allowed students to transfer to attend better public schools, even if it was in a different school district. Other states like Arizona, Florida, and Indiana have seen success with similar laws. The bill never gained any traction, but can be considered again next year.
    • House Bill 318 would have streamlined the oversight of state- and locally-authorized charter schools. The bill passed the House and Senate with bipartisan support, but late amendments to the bill delayed the process. The Legislature adjourned for the session without the opportunity to agree to the Senate changes.
    • House Bill 54 would have increased the cap on Georgia’s Tax Credit Scholarship program from $120 million to $130 million. After going through changes in the House, the bill passed that chamber and moved on to the Senate. In a raucous Senate Committee meeting, the Tax Credit Scholarship portion of the bill was amended several times with unfriendly amendments, and ultimately, the bill died. Fortunately, the program is still operating under the existing cap of $120 million, giving Student Scholarship Organizations the opportunity to continue serving many Georgia students.

Looking toward 2024

While Georgia made important strides forward in school literacy, safety, and accreditation for 2023, there’s still much to be desired when it comes to opportunities for students and their families. It’s our mission to continue championing the value of bills like SB 233. Putting school funding into the hands of parents who wish to depart from the state’s status quo only makes sense; families’ tax dollars should support whatever educational path they choose. 

Likewise, school choice and tax credit scholarships should be open to a wider demographic of families statewide. It’s important to act quickly, and act together, for the benefit of our kids. As we look forward to the next legislative session, we’ll do everything we can to champion positive change.



This op-ed was originally published in the Savannah Morning News on March 26th. Check out the original post here.  

By Randy Hicks

Once again, it’s an election year. And as in the past, we’ll probably hear a lot of talk about the state of education in Georgia. But what does it really mean to have an excellent education for K-12 students? What constitutes real education reform that will prepare Georgia’s children for the jobs of the future and bring the benefits of competition to education?

Most basically, it’s a mistake to measure the quality of education by the amount spent on education. Instead, the quality of education must be measured by results. And that starts with two goals: First, finding the right school setting for each child. Two, ensuring that parents can take advantage of choice and place their child in that setting.

Every child is different. That’s why families should have a variety of educational options for their child. The goal of real education reform—of enhancing choice in education—is to ensure that families have high-quality options. Of course, this includes traditional public schools, but it also includes public charter schools (where Georgia’s programs are growing in popularity); private schools (including for children with special needs and those who benefit from the Georgia Tax Credit Scholarship program); online education, homeschooling, and hybrid education options. Parents can then select the option or options that help their child learn and grow the best.

Fortunately, Georgians already favor choice in education. Now, as the campaign season is intensifying, the Legislature can prove their dedication to our kids by taking real steps towards education reform this year. For instance, lawmakers can raise the arbitrary cap on the tax credit scholarship program, as two bills propose to do. More parents want these scholarships, and more people want to give to make them a reality for Georgia’s children. The Legislature shouldn’t stand in the way. Special needs children, children with disabilities, and others can benefit from expanded scholarship programs based on choice.

As the legislative session winds down and the campaign season begins, I hope that voters will take the time to inform themselves on education issues and ask the candidates where they stand and why, rather than simply being satisfied with proposals for higher spending for public K-12 schools. A vibrant education system in Georgia will include high-performing public schools all across the state, but it will include independent schools as well. Each sector should be committed to excellence, and parents should have the option of choosing the educational settings that are right for their child.

Seven years ago, Gov. Nathan Deal called on Georgians to “be frugal and wise. Let us restore the confidence of our citizens in a government that is limited and efficient.” His words ring true with a spirit of promoting true education reform which contributes to both of the Governor’s goals – frugality and efficiency. Public education, too, will benefit from the competition that true choice brings, and the results will benefit both Georgia’s children and Georgia’s taxpayers. The competition that comes from true choice for parents will improve all schools, making education in Georgia not only more frugal and efficient but also much more effective.

And that is the point of true education reform: more choice, and better schools, for everyone. Let’s keep that in mind and keep education reform a priority in this political year.

News | For Immediate Release

April 2, 2018

Georgia Center for Opportunity Lauds Approval of Tax Credit Scholarship Expansion 

ATLANTA – On the final day of Georgia’s 2018 legislative session, lawmakers gave final approval to a bill expanding the state’s wildly popular tax credit scholarship program. House Bill 217, championed by State Representative John Carson, lifts the program’s current cap of $58 million to $100 million over a span of ten years. 

The Georgia Center for Opportunity (GCO) had been a staunch advocate for the original bill, which first passed in 2009. Since its adoption, the program has increasingly suffered from over-demand, both from donors who were unable to give to the initiative and students who were unable to take advantage of the scholarship due to an arbitrary cap on the program.

GCO President and CEO Randy Hicks applauded lawmakers for taking a “bold stand for Georgia’s students.”

“For too long, too many kids have been waiting in line for the opportunity to attend a school that better fits their needs,” Hicks said. “By passing an expansion of the tax credit scholarship program, the Georgia General Assembly has set a standard of prioritizing students and providing hope to thousands of families for years to come.”

According to state law, the amount given per scholarship must not exceed the average state and local per-pupil expenditures. In 2017, that amount stood at $9,468, though the average scholarship awarded in 2015 was reported to be $3,425. 

“By raising the state cap another $42 million, you’re creating a potential situation where over 5,000 families at least can take advantage of this program, though it will likely be much more,” Hicks added. “That’s more than a number, it represents lives that will be changed for the better thanks to the passage of HB 217.”

House Bill 217 now goes to Governor Nathan Deal’s desk for signature. 

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For more information, contact Christy Riggins at christy.riggins@georgiaopportunity.org or 770-242-0001.

New research from EdChoice finds that Georgia’s scholarships for K-12 private school students have saved the state between $12 million and $85 million since 2011. Nearly two-dozen states have similar tax credit scholarship programs that allow individuals or businesses to make charitable contributions to K-12 private school scholarship organizations. The nonprofit scholarship organizations award scholarships to eligible students, and donors can take a credit on their state taxes that is equivalent to some or all of their donation.

EdChoice’s findings come at an important moment for state families because the state supreme court is considering a challenge to the program. Two years ago, the Southern Education Foundation supported four Georgia residents’ lawsuit to block state families from using the scholarships for their children. Recently, the Cato Institute filed an amicus brief in support of the scholarships.

“We urge the court to affirm the determination that the tax-credit program does not violate the state constitution, focusing on the fact that it does not involve spending public funds for any sectarian purpose,” write Ilya Shapiro and David McDonald.

In Georgia, individuals and businesses can receive a dollar-for-dollar credit for their contribution to scholarship organizations up to certain limits ($2,500 for a married couple and businesses can claim no more than 75 percent of their tax liability). Since 2010, scholarship organizations have awarded more than 60,000 scholarships for students to use at K-12 private schools.

Teacher unions, school board associations, and other associations regularly challenge parent and student educational options in court. Fortunately for families, courts have upheld tax credit scholarships around the country, without exception. The U.S. Supreme Court upheld the nation’s oldest such scholarships, in Arizona, in 2011.

The decision paved the way for students like Gabe Alba-Rivera to discover opportunities he didn’t know existed before his scholarship. In my 2014 interview with Gabe, he explains that he was born in Mexico and had little more than broken pieces of his school’s roof to draw hopscotch squares at recess. A bucket of water served two purposes when he used the bathroom—the first as his bathroom pass, the second to flush the toilet.

After moving to Arizona, Gabe used a tax credit scholarship—nearly identical to the scholarships available to thousands of students across Georgia—to attend Brophy Prep, where he was active in the school Robotics Club. Gabe earned a spot at MIT, where he studies 3-D printers.

Twenty-eight scholarship organizations serve Georgia families, and these groups awarded more than 13,000 scholarships last year. The state supreme court should uphold the lower court ruling and protect families’ freedom to choose the best learning opportunity for their child.

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