BILL TO EXPAND EDUCATIONAL OPPORTUNITIES TO MORE MIDDLE-CLASS FAMILIES

Choice in a child’s education is only afforded to families with the means to do so.

                                                                                        Commonwealth of Kentucky

                                                                                           Senate Majority Caucus

FRANKFORT, KY (January 20, 2022) – Senator Ralph Alvarado (R-Winchester) introduced Senate Bill 50 last week which, if enacted, would expand Education Opportunity Accounts (EOAs) to more middle-class families by extending the existing program to all counties in the Commonwealth.

"When I was a child, I remember my parents sacrificing and pinching pennies just so they could afford me the opportunity of an education best suited for me,” Alvarado said. “While challenging, that was attainable then, but today the power of choice in a child’s education is only afforded to families with the means to do so.”

EOAs were first enacted in the 2021 Regular Session’s House Bill 563 but access to the bill’s benefits was blocked by Franklin Circuit Judge Phillip Shepherd. The ruling is currently being appealed, but SB 50 would remedy Shepherd’s scrutiny of HB 563’s provision providing students in counties with more than 90,000 people financial assistance for non-public school tuition.

Like HB 563, EOAs under SB 50 would be funded by donations from individuals who could then qualify for a tax credit. Funds would be distributed to families by account-granting organizations. SB 50 would expand eligibility to students of families 200% above the federal poverty level. Highest-need families would be prioritized.

“Education is the great equalizer and at the heart of education is the student,” Alvarado continued. “SB 50 recognizes families and, most importantly, the individual student by giving them access to funding to address their unique educational needs. This is an empowerment bill for both taxpayers and students.”

Like provisions of HB 563, SB 50 would allow families to utilize funds for everything from educational technology and materials to home education or private school tuition. The credit cap from HB 563 was set at $25 million but would double under SB 50.

For context, of Kentucky’s nearly $13 billion annual distribution of general fund dollars in the current operating budget, more than 50% is allocated to education alone. This includes money to the state’s ailing pension systems to ensure promises to working and retired teachers are kept. Reliable retirement plans also give financial comfort to prospective educators that post-career income will be available.

The record levels of funding to the Teachers Retirement System (TRS) and other benefits are not calculated into the state’s per-pupil funding as in other states. Base per-pupil funding in the current fiscal year sits at $4,000. When all education-related spending is factored in, the actual per-pupil stands at $7,243, well above even the rate of inflation.

Critics of EOAs argue they pull funding from public education. Notably, since the passage of HB 563, although tied up in litigation, the budget introduced by the state House of Representatives and the Governor’s proposed budget include substantial increases in education funding, including per-pupil funding.

Closure of in-person learning brought attention to the need for educational choice. With an increased dissatisfaction among the public regarding the one-size-fits-all education system, it’s no surprise public polling indicates measures such as SB 50 enjoy strong support among voters across party lines.

“It’s wrong for anyone to suggest that giving a choice and more tools to families is a bad thing,” Alvarado said. “Parents know what is best for their kids. As the child of immigrant parents, I may not be where I am today without my parents making the choice to prioritize my education. SB 50 makes opportunity attainable for more students, especially children of color and those lower on the socio-economic scale. All students deserve a choice and opportunity. The concept of education exists only because there are students. They are who it’s all about. This bill is about them.”

SB 50 has been assigned to the Senate Standing Committee on Education.