The bill proposes amendments to the Education Freedom Accounts (EFA) program, which aims to make the program more accessible by increasing the household income threshold for eligibility from 350% to 400% of the federal poverty guidelines. It also seeks to reduce the administrative costs retained by the scholarship organization from 10% to 8%. The bill extends the availability of phase-out grants for new EFA students until July 1, 2029, and mandates an annual report from the Department of Education on the program's funding and costs. Additionally, the bill modifies the definitions of average daily membership in attendance (ADMA) and average daily membership in residence (ADMR) to include home educated pupils and EFA participants for school funding calculations, with each pupil in grades 7-12 enrolled in a public school course counting as an additional 0.15 pupil. The bill's fiscal impact on state and local revenue and expenditures is indeterminable and will take effect 60 days after passage.

The bill also addresses the financial implications of students transitioning from various school types to the EFA program. It notes that students leaving charter public schools for the EFA program may result in cost savings for the state, while those leaving traditional district schools, especially from communities with a SWEPT grant exceeding the cost of adequate education, would incur a net cost to the state. The departure of students from non-excess SWEPT communities would reduce state adequacy grants and local revenues per student, with an additional net cost to the state from the EFA phase-out grant. The overall impact on local expenditures is uncertain but could potentially lead to reduced spending as districts adjust to smaller student populations. The Department of Education has been consulted regarding the bill.

Statutes affected:
Introduced: 194-F:1
As Amended by the Senate: 194-F:1
As Amended by the Senate (2nd): 194-F:1, 194-F:4, 194-F:10, 198:38