This bill proposes changes to the Education Freedom Accounts (EFA) program, specifically altering income eligibility requirements and reporting obligations. The definition of an "Eligible student" is amended to require that a student's household income must match the state-mandated income threshold, which is less than or equal to 350 percent of the federal poverty guidelines, both at the time of application and for each school year during participation. This is a change from the current law, which does not require meeting the income threshold in subsequent years. Additionally, the bill modifies the rollover of program funds, stating that an EFA will remain active and unused funds will roll over from quarter to quarter until the student withdraws, becomes ineligible, or graduates, with the exception of cases involving substantial misuse of funds. Unused funds will revert to the education trust fund, rather than being allocated to fund other EFAs as previously stated.

The bill also introduces a new reporting requirement for the Department of Education to annually report to the legislative oversight committee and the chairpersons of the education committees on the number of students participating in the EFA program in towns with more than 500 residents. Furthermore, the Legislative Budget Assistant's audit division is tasked with conducting randomized annual income verification audits of 33 percent of participating families. The fiscal note indicates that the bill could lead to a decrease in EFA program participation, affecting state savings and local expenditures in various ways depending on whether students exit the program for non-public education, charter schools, or traditional district schools. The bill is set to take effect on July 1, 2024.

Statutes affected:
Introduced: 194-F:1, 194-F:2