HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 7045 PCB EEC 21-01 School Choice
SPONSOR(S): Appropriations Committee, Education & Employment Committee, Fine
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Education & Employment Committee 18 Y, 3 N Fudge Hassell
1) Appropriations Committee 20 Y, 5 N, As CS Potvin Pridgeon
SUMMARY ANALYSIS
Florida provides a variety of school choice options, including the following five scholarship programs, that allow parents of
eligible students to choose the educational option that may better serve their student’s particular needs: the John M.
McKay Scholarship Program (McKay); the Gardiner Scholarship Program (GSP); the Family Empowerment Scholarship
Program (FES); the Florida Tax Credit Scholarship Program (FTC); and the Hope Scholarship Program (HSP).
The bill repeals the GSP and transitions students to the FES, revises the current McKay scholarship amount, and repeals
the McKay scholarship effective July 1, 2022 and transitions the McKay scholarship students to the FES.
The bill revises the requirements for the FES by:
Expanding program eligibility to include students who are dependents of a member of the United States Armed
Forces and is a sibling of a student with a disability receiving a FES scholarship, removing the prior public
attendance requirement and eliminating the need for scholarship students to renew program participation for
students seeking an educational choice scholarship.
Excluding students from the maximum number of students participating if they are a dependent child of a member
of the Armed Forces, a foster child, or an adopted child; or meet certain eligibility requirements and attended
public school in the prior school year. In addition, up to 15,000 FTC students whose scholarship may not have
been renewed due to a lack of available funds are also excluded from the program maximum.
Expanding eligibility to students with disabilities currently authorized under McKay and GSP.
Transitioning the funding of scholarships for students with disabilities to the FES program funded in the Florida
Education Finance Program (FEFP) with the amount dependent on the student’s matrix of services or physician
or psychologist’s diagnosis.
Establishing an initial maximum program capacity of 20,000 students, annually increasing by 1 percent of the
state’s total exceptional student education full-time equivalent enrollment. However, students who received a GSP
or McKay scholarship in the 2020-2021 school year receive the greater of the prior award amount or the new
award amount.
Excluding students from the maximum number of students participating if they are a student with a disability who:
received specialized instructional services in VPK; attended public school in the prior school year; are a
dependent child of a member of the Armed Forces, a foster child, or an adopted child; and students who received
a McKay Scholarship in the 2021-2022 school year.
The bill revises the frequency of FTC operational audits by the Auditor General from every year to at least once every
three years.
The bill increases the scholarship amount for the FTC, FES, and HSP to the full amount provided for the student, from the
current 95 percent of the calculated amount and increases the administrative fee from 3 percent to 2.5 percent for the
scholarship funding organizations administering the FES.
The bill requires all FES scholarships to be funded in the FEFP with state funds only. Based on the most recent
scholarship awards data, it is estimated that a maximum of 61,082 new scholarship students may be funded in the FEFP
which will have a fiscal impact on the FEFP. See Fiscal Analysis.
Except as otherwise provided, the bill has an effective date of July 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h7045a.APC
DATE: 4/9/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
For decades, Florida has been a national leader in providing high quality education options for
thousands of parents and students. In addition to a myriad of public options, Florida offers four
scholarship programs that allow parents of eligible students to register and attend private schools that
may better serve a student’s particular needs. Research shows students participating in another
scholarship program were 15 percent more likely to enroll in a public college than their peers.1 Private
schools must meet specific criteria in order to be eligible to participate in these programs2 and the
Department of Education (DOE)3 and Commissioner of Education (commissioner)4 are tasked with
implementation and oversight responsibilities. In 2018, the Legislature strengthened the oversight and
accountability measures for all scholarship programs in the state.5 In addition, because a majority of
private schools participate in more than one scholarship program, the Legislature consolidated all the
common criteria relating to private school participation into a single statute.6
The Gardiner Scholarship Program
The Gardiner Scholarship Program (GSP) was created in 2014 and provides parents of eligible
students with disabilities more flexibility to customize their child’s education.7 Funds are distributed to
qualified8 scholarship-funding organizations (SFOs) to establish accounts for eligible students.9 Parents
must use GSP funds to meet the individual educational needs of their child, and are authorized to use
funds from their account to pay for approved items,10 including:
instructional materials;11
curriculum;12
specialized services such as occupational therapy or applied behavior analysis;13
tuition and fees for expenses such as specialized education programs or tutoring;14 or
contributions to a college prepaid account.15
In order to be eligible for the GSP, a student must:
be a resident of the state;
1
Urban Institute, The Effects of Statewide Private School Choice on College Enrollment and Graduation – Evidence from the Florida
Tax Credit Scholarship Program, September 2017, available at:
https://www.urban.org/sites/default/files/publication/93471/the_effects_of_statewide_private_school_choice_on_college_enrollment_
and_graduation_1.pdf.
2
Section 1002.421(1), F.S.
3
Section 1002.421(2), F.S.
4
Section 1002.421(3), F.S.
5
Section 1002.421, F.S. as amended by s. 18, ch. 2018-6, L.O.F.
6
Section 1002.421, F.S. In the 2020-21 school year, 2,199 of private schools are participating in more than one scholarship program.
There were a total of 2,233 participating private schools as of March 10, 2021. Email, Florida Department of Education, Legislative
Affairs (March 11, 2021).
7
Section 1002.385(1), F.S.
8
Section 1002.385(2)(e), F.S.
9
Section 1002.385(3)(a)1.-4., F.S.
10
Section 1002.385(5), F.S.
11
Id. at (5)(a).
12
Id. at (5)(b).
13
Id. at (5)(c), and (g)
14
Id. at 5(d), (e), and (h)-(p).
15
Id. at 5(f).
STORAGE NAME: h7045a.APC PAGE: 2
DATE: 4/9/2021
be 3 or 4 years old on or before September 1 of the year in which the parent applies for a
scholarship, or be eligible to enroll in kindergarten through grade 12; and
have a qualifying disability16 documented by an Individual Educational Plan (IEP)17 or a
diagnosis of a disability by a licensed physician or psychologist.18
As of October 2020, 17,508 students were awarded Gardiner scholarships.19 The average scholarship
amount is $10,464 per student. 20
The McKay Scholarship for Students with Disabilities Program
The McKay Scholarship for Students with Disabilities Program (McKay Scholarship) provides
scholarships for eligible students with disabilities to attend a public or private school of their choice.21
Students with disabilities include K-12 students who are documented as having an intellectual disability;
a speech impairment; a language impairment; a hearing impairment, including deafness; a visual
impairment, including blindness; a dual sensory impairment; an orthopedic impairment; another health
impairment; an emotional or behavioral disability; a specific learning disability, including but not limited
to, dyslexia, dyscalculia, or developmental aphasia; a traumatic brain injury; a developmental delay or
autism spectrum disorder.22
A student with a disability may receive a McKay Scholarship to attend a public or private school if he or
she has an IEP or a 504 Accommodation Plan (504 Plan)23 and:
received specialized instructional services under the Voluntary Prekindergarten Education
Program (VPK)24 during the previous school year; or
spent the prior school year in attendance at a Florida public school or the Florida School for the
Deaf and the Blind.25
For purposes of scholarship eligibility, the term “prior school year in attendance” means the student was
enrolled and reported by:
a school district for funding during the preceding October and February Florida Education
Finance Program (FEFP) surveys in kindergarten through grade 12, which includes time spent
in a Department of Juvenile Justice commitment program if funded under the FEFP;
the Florida School for the Deaf and the Blind during the preceding October and February
student membership surveys in kindergarten through grade 12; or
a school district for funding during the preceding October and February FEFP surveys and the
student was at least four years old when enrolled and reported and eligible for services under
the school attendance requirements for prekindergarten aged children with disabilities.26
16
Section 1002.385(2)(d), F.S. Qualifying disabilities include: Autism spectrum disorder, cerebral palsy, Down syndrome, intellectual
disability, Phelan-McDermid syndrome, Prader-Willi syndrome, spina bifida, high-risk, muscular dystrophy, Williams syndrome, rare
diseases, anaphylaxis, deaf, visually impaired, traumatic brain injured, hospital or homebound, or dual sensory impaired.
17 An IEP is developed for students with disabilities ages three through 21. The IEP team must include the parent; at least one
Exceptional Student Education (ESE) teacher of the child; at least one general education teacher of the child; a representative of the
school district, and when appropriate, the student with the disability. The IEP team develops annual goals, both academic and
functional, for the student based on his or her strengths, needs, and the effect of the disability. Once the goals are determined, the team
decides what type of special education services and supplementary aids the student needs and how often and where the services should
be provided, e.g., in the general education class or in the ESE classroom. 34 C.F.R. s. 300.320 and .321; rule 6A-6.03028(3), F.A.C.
18
Section 1002.385(3)(a)1.-4., F.S.
19
Florida Department of Education, Office of Intendent Education & Parental Choice, Gardiner Scholarship Program Fact Sheet
(October 2020), available at http://www.fldoe.org/core/fileparse.php/5606/urlt/Gardiner.pdf.
20
Id.
21
Section 1002.39(1), F.S.
22
Id. Flush left provision.
23
A student’s 504 plan must be at least six months in duration in order for the student to be eligible for a scholarship. Rule 6A-
6.0970(1)(b)3., F.A.C.
24
A child who has a disability is eligible for specialized instructional services if the child is eligible for the VPK Program and has a
current IEP developed by the district school board. Section 1002.66, F.S.; see also s. 1002.53, F.S.
25
Section 1002.39(2)(a), F.S.
26
Section 1002.39(2)(a)2., F.S. Although not required to attend a public school, children with disabilities who attain the age of three
years are eligible for admission to public special education programs and related services. Section 1003.21(1)(e), F.S.
STORAGE NAME: h7045a.APC PAGE: 3
DATE: 4/9/2021
The parent of an eligible student with disabilities may choose from several options including:
attendance at another public school within the school district;27
attendance at an eligible public school in an adjacent school district that has space and
provides the services identified in the student’s IEP or 504 Plan;28 or
attendance at an eligible private, sectarian or nonsectarian school.29
The student’s parent must file a notice of intent with the DOE by completing an online application using
DOE’s website.30 If the parent chooses the private school option, the notice must be filed prior to
withdrawing the student from public school.31 Once a completed notice has been filed, the parent will
receive immediate online confirmation, which includes a notice of potential eligibility or ineligibility. 32 If a
student is deemed ineligible to participate, the reason for the ineligibility and instructions for contacting
the school district to address the ineligibility will be provided.33
During the 2019-2020 school year, $221.5 million in scholarship payments were distributed to 1,547
private schools serving 30,185 students.34 The average scholarship for a student with an IEP was
$8,473, and for a student with a 504 plan, the average scholarship was $4,676.35
The Family Empowerment Scholarship Program
The Family Empowerment Scholarship Program (FES) was established in 2019 to provide children of
Florida families that have limited financial resources with educational options to achieve success in
their education.36 The FES provides 18,000 students annually on a first-come, first-served basis
education opportunities for academic and career success.37 In the 2019-2020 school year, 17,823
students were served in the FES program.38 Beginning in the 2020-2021 school year, the number of
students participating in the FES may annually increase by 1 percent of the state’s total public school
enrollment.39
A student is eligible for FES if the student meets the following criteria:
The student is on the direct certification list (list of children who qualify for the food assistance
program, the Temporary Assistance to Needy Families Program, or the Food Distribution on
27
Section 1002.39(5)(a)1., F.S.; rule 6A-6.0970(2), F.A.C.
28
Section 1002.39(5)(e), F.S.; rule 6A-6.0970(2), F.A.C. A 504 Plan is formulated by a team of parents, teachers, and other staff
members for a student identified as an individual with a disability under the Rehabilitation Act. The Rehabilitation Act does not list
specific illnesses due to the difficulty of creating an all-inclusive list of impairments. The Act defines disability as any physical or
mental impairment that “substantially limits one or more major life activities.” The 504 Plan provides a description of the
accommodations that the school will provide a student. Generally, a student with a 504 Plan does not have an IEP or a matrix of
services. Section 504 of the Rehabilitation Act of 1973, Pub. L. 93-112, 87 Stat. 355; Florida Department of Education, A Parent and
Teacher Guide to Section 504: Frequently Asked Questions, available at, www.fldoe.org/core/fileparse.php/7690/urlt/0070055-
504bro.pdf.
29
Section 1002.39(2) and (7), F.S.
30
Rule 6A-6.0970(1)(a), F.A.C.
31
Id at (1)(a)2.
32
Id. at (1)(a)3.
33
Section 1002.39(1), F.S.; rule 6A-6.0970(1)(a)3., F.A.C.
34
Florida Department of Education, Office of Independent Education & Parental Choice, McKay Scholarship Program Fact Sheet
(Sept. 2020), available at http://www.fldoe.org/core/fileparse.php/5606/urlt/McKay-Aug.pdf.
35
Id.
36
Section 1002.394(1), F.S.
37
Section 1002.394(11)(a), F.S.
38
Florida Department of Education, K-12 Scholarships, Presentation to the Senate Education Committee (Jan. 12, 2021), at 10,
available at, https://www.flsenate.gov/Committees/Show/ED/MeetingPacket/4961/8848_MeetingPacket_4961_3.pdf.
39
Section 1002.394(11)(a), F.S.
STORAGE NAME: h7045a.APC PAGE: 4
DATE: 4/9/2021
Indian Reservations program) or the student’s household income level does not exceed 185
percent of the federal poverty level40 ($49,02541 for a family if four);
The student is currently placed, or during the previous state fiscal year was placed, in foster
care or in out-of-home care;42 or
The student’s household income level does not exceed 300 percent of the federal poverty level
($79,50043 for a family of four);44 and
The student is eligible to enroll in kindergarten or has spent the prior school year in attendance45