Public Charter School Policies

• Charter schools are tuition free public schools that were established to provide additional choices to families for learning environments that would improve student achievement (R.S. § 15-181).
• Most public charter schools are operated independent of local school districts by either non-profit or for-profit entities, although school districts may also sponsor charter schools.
• Public Charter Schools are subject to open enrollment laws shall enroll all eligible pupils who submit a timely application, unless the number of applications exceeds the capacity of a program, class, grade level or building. (R.S. § 15-184)
• If remaining capacity is insufficient to enroll all pupils who submit a timely application, the charter school shall select pupils through an equitable selection process such as a lottery except that preference shall be given to siblings of a pupil selected through an equitable selection process such as a lottery.
• Public charter schools are subject to annual audits that must be submitted to the State Board for Charter Schools and account for financial, operational, procurement and reporting compliance.
• In June of 2019 the Arizona State Board of Charter Schools set additional transparency measures that went into effect for fiscal year 2020.

Private School Policies

• Private schools are exempt from the state regulatory requirements that apply to public schools. Because they are privately owned, private schools can charge tuition and require students to meet specified standards for admission.
• Each private school will provide their own policies and procedures for enrollment, tuition, and the curriculum offered at that school.
• There are several options for parents to receive financial aid for private school tuition, STOs and ESAs. The state of Arizona has placed various regulatory and transparency measures for both STOs and ESAs.

Student Tuition Organizations (STO) Policies

• The Arizona Department of Revenue (DOR) is required to certify STOs on the basis of statutory requirements and maintain a public registry of currently certified STOs.
• STOs certified to receive corporate tax credit donations are listedhere. These scholarships are limited to students with financial need.
  STOs certified to receive individual tax credit donations are listed here. These scholarships have broader eligibility requirements.
• Special scholarships are available from some STOs for disabled or displaced (foster) students. A qualified disabled/displaced student is a student who has been either:
• Placed in foster care in Arizona pursuant toR.S. Chapter 8, Title 5at any time before the student graduates from high school or obtains a general equivalency diploma.
• Identified as having a disability under Section 504 of the Rehabilitation Act or identified by a school district as a child with a disability as defined in R.S. §15-763or a child with a disability who is eligible to receive services from a school district under A.R.S. §15-763.
• There is a specific application for eligibility for these scholarships that can be found on Scholarships for Disabled/Displaced Studentspage of the Department of Revenue’s website.
• However, not all STOs participate in this program. Please visit the Arizona School Tuition Organization Associationwebsite for links to STOs that serve disabled and displaced students.
• Individuals and corporations who are interested in donating can take a dollar-for-dollar tax credit for their contributions to certified STO organizations.
• A detailed explanation of school tuition organization requirements for each of three possible credit/donation programs can be found in A Manual for School Tuition Organizations.

Empowerment Scholarship Accounts (ESA) Policies

An Empowerment Scholarship Account (ESA) is an account similar to a checking account with 90% of the state funding that would have been received by the school the child previously attended.

What can the funds be used for?

• Tuition and fees at a private school
• An online learning program
• Educational therapies or services
• Tutoring services
• Curriculum
• Testing fees
• Contributions to a Coverdell Education Savings Account
• Tuition and fees at an eligible postsecondary institution
• Bank fees changed for the management of an ESA

Who Qualifies?

All Arizona families can now utilize Empowerment Scholarship Accounts,  allowing them to choose the best form of educational delivery for their children. Previously, the program was only available to targeted student populations.

In April 2017, Governor Ducey signed legislation to expand educational freedom in Arizona, guaranteeing that families and children have access to the best educational opportunities available regardless of where they come from or what zip code they live in.

What the bill does:

Transparency

• Mandates the Arizona Department of Education (ADE) publish all expenditures made as a result of the ESA program, providing transparency on how dollars are being spent.
• The changes also require ADE to update financial figures monthly and provide enrollment data.

Fiscal Responsibility

• The bill is estimated to provide a net savings to the General Fund by extending the temporary cap through 2022, fixing ESA enrollment at 2021-2022 levels in FY 2023, and basing ESA funding on whether a student previously attended a charter or public school.
• The nonpartisan Joint Legislative Budget Committee estimates these changes will save the state $3.4 million by FY 2021.

Academic Accountability

• Requires schools that enroll at least 50 ESA students and administer examinations to make public the aggregated test scores of all students.

Enhanced Access For Low-Income Students

• Provides 100 percent of a student’s funding, rather than 90 percent, for students whose families have incomes at 250 percent of the federal poverty level or less, which is roughly $60,000 for a family of four.

Improved Management

• Based on input from an Auditor General report, creates new administrative efficiencies and guidelines to prevent fraud and abuse. Allows ADE to confirm with students’ schools that no child is concurrently accepting a School Tuition Organization scholarship and ESA, something prohibited by law.
• The reforms allow ADE to request documentation to confirm a student’s previous public school attendance, and directs public schools to reply within 10 days. In addition, the amendment requires ADE issue award letters within 30 days, rather than 45.
• Requires ESA funds be deposited monthly, rather than quarterly, enabling ADE to better oversee distributions.
• Removes as a qualifying expense contributions to Coverdell Education Savings Accounts, ensuring parents are spending dollars on current student needs.
• Mandates the Treasurer contract with a private financial management firm to manage ESA accounts.
• Allows ADE to request additional documentation regarding eligible expenses.

Oversight

• The reform proposal responds to Auditor General feedback by establishing an ESA oversight council to provide input to the legislature and ADE and review ADE actions.
• The amendment also establishes a process for parents to appeal administrative decisions made by ADE and requires public input and a public process for ADE policy formation.

More Information:

• ADE – Empowerment Sholarship Account Program
• ADE Empowerment Sholarship Account Guide
• Fill out the appropriate ESA application.