This bill amends the current law regarding participation in the education freedom accounts program. It requires an annual determination of eligibility for students to receive education freedom account funds. Currently, eligibility is only determined once when a student applies for the program. The bill also specifies that an education freedom account (EFA) remains in force and any unused funds roll over from quarter-to-quarter until the parent withdraws the student from the program, the student becomes ineligible, or the student graduates from high school. Any unused funds revert to the education trust fund.

The fiscal impact of the bill is indeterminable. Requiring annual income eligibility determination may result in a decrease in program participation, as some students may no longer qualify. The Department of Education estimates that students exiting the EFA program and going to non-public or home education options would result in a net savings to the state. However, students exiting the program and going to a charter public school would have a net cost to the state. The impact on state EFA payments and adequacy payments to districts would vary depending on the specific circumstances. The bill may also potentially result in an increase in local expenditures as districts accommodate an increased population of students.

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