This bill proposes amendments to the Education Freedom Account (EFA) program to expand eligibility and adjust administrative and funding aspects. It increases the household income threshold for eligibility from 350% to 400% of the federal poverty guidelines, allowing more families to participate. The bill also reduces the maximum administrative cost retention for the scholarship organization from 10% to 8% and extends the phase-out of grants for new EFA students from July 1, 2026, to July 1, 2029. Additionally, it revises school funding definitions to include home educated pupils and EFA participants, with an additional 0.15 pupil count for each public school course taken by students in grades 7-12. A new reporting requirement mandates an annual report on EFA funding and costs from the Department of Education, with the act taking effect 60 days after passage. The fiscal note anticipates increased state expenditures and local revenue changes due to these modifications.

The bill's specific changes include a potential increase in EFA enrollment by approximately 296 students, resulting in an estimated additional cost of $1,554,592 based on an average grant of $5,252 per student. The phase-out grants' termination date is extended by three years, and the bill proposes counting EFA students enrolled in public school courses as additional pupils for funding purposes. The bill also removes the language limiting grant payments to available appropriations and redefines "public school" to match the standard definition. The financial impact of these changes is indeterminate, but an estimate using 2023 data suggests a payment of $154,817.64 for FY 2025. The overall impact on home education reporting and public school funding for EFA students remains unclear, and the Department of Education has been consulted for further analysis.

Statutes affected:
Introduced: 194-F:1
As Amended by the Senate: 194-F:1, 194-F:4, 194-F:10, 198:38