Second Edition of Education Tax Credit Laws Across the States Evaluates Power in Providing Options

WASHINGTON, DC - Iowa ranks sixth strongest of the 16 states that have education tax credit programs, earning a "C" grade according to the second edition of School Choice Today: Education Tax Credit Laws Across the States, Ranking and Scorecard 2015 released today by The Center for Education Reform (CER). In all, two states earn A's, three earn B's, seven earn C's, three earn D's and one earns an F. The report provides analysis and state-by-state comparisons, ranking states not only based on the law itself, but real results of programs.

"Over 200,000 students are benefiting from tax credit scholarships today," said Kara Kerwin, president of The Center for Education Reform. "As the momentum for choice programs grows, with half of these 16 states enacting tax credit programs in the last three years, it's essential to evaluate which elements foster the creation of meaningful choices to the most number of students. Simply having a law alone does not translate into more and better opportunities for children."

Iowa's tax credit program serves over 10,000 students across the state, and has a moderately high income cap. The number of students enrolled has remained steady for the past few years, unlike many other states where it has grown, indicating that elements of the program's design and implementation are preventing new students from receiving scholarships. One barrier is that because of donation provisions, it is difficult for Iowa Scholarship Granting Organizations (SGOs) to raise money for scholarships.

The Education Tax Credit Laws Across the States Ranking and Scorecard 2015 methodology has been revamped from last year's analysis, placing greater emphasis on participation and implementation, and taking a deeper look at rules and regulations governing programs. There are four major components that determine the strength of high-quality education tax credit programs across the states:

• Participation and purchasing power
• Eligibility
• Credit design
• Operational autonomy

"States that implement tax credit programs well will see reductions in overall expenditures in addition to growth in investments in K-12 education," continued Kerwin. "This fairly simple concept of allowing individuals, businesses, or both to claim a tax credit for contributions made to scholarship organizations provides big benefits, with the most important being a shift in the power to choose a school from bureaucrats to parents."

"The goal of this ranking and analysis is to provide a roadmap for lawmakers, parents, and advocates to bring about substantive and lasting change," said Kerwin. "We look forward to furthering debate and discourse to ensure laws being enacted are indeed fostering a marketplace where parents have the power to make choices among excellent options."

The 2nd edition Education Tax Credit Laws Across the States, Ranking and Scorecard 2015 can be found online here.

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There's a reasonable tendency among Americans to view the education of their kids as an exclusively local issue and distinct to their communities. After all, school buildings are constant fixtures in neighborhoods, sports teams play crosstown rivals and the vast majority of public students still attend schools based solely on zip code.

However, the innovations and flurry of activity that takes place in classrooms and communities are guided by the state level policies that govern them, which is why the 2014 gubernatorial election results matter, and could potentially mean substantial improvements to student learning.

A national analysis found that more than half of governors hold encouraging views or have proven track records on promoting the types of choice and accountability measures that will lift student outcomes and give more power to parents in the educational process.

Post-election media reports signaled an overall victory for candidates with fresh ideas on how to make education the great equalizer.

This means that if there are meaningful shifts in policy that facilitate excellent schools, they're likely to originate from the statehouses and governor's mansion.

These governors and governors-elect understand that schools cannot be properly held accountable for results if parents don't have the choice to look around them and find the best educational fit for their child. And the teachers that work hard day in and day out should be rewarded for performing well and going the extra mile for kids.

They appreciate that some students need an alternate environment to master course content, and want to expand charter schools to operate alongside traditional schools, with the necessary autonomy for teachers to cater to particular learning needs.

By Kara Kerwin

Americans are fans of fantasy and myth - the resounding success of franchises like Twilight and Harry Potter offer strong evidence to support this claim. But when it comes to our education system, Americans must learn to distinguish fact from fiction.

This is especially true of our nation's charter schools. Despite the fact that over 2.5 million children are served by over 6,500 charter schools across the country, the majority of Americans have been swayed by tall tales and misinformation about the role of charter schools in our public education system.

One of the most common misconceptions is that charter schools are privately funded institutions. A recent survey from the Center for Education Reform (CER) found that only 20 percent of Americans correctly identified charter schools as public schools. Charter schools are in fact independent public schools that are held accountable for student results.

Another myth asserts that charter schools take money and resources away from the public school system. This could not be further from the truth. Like district public schools, they are funded according to enrollment and receive funding from the district and the state according to the number of students attending. In fact, charter schools actually do more with less, receiving 36% less revenue on average than traditional public schools.

When a student's family relocates and moves from one public school system to another, the public school system itself does not lose any money. The same can be said of a student moving from a conventional public school to a charter school. When a child leaves for a charter school the money follows that child. This benefits the public school system by instilling a sense of accountability into the system regarding its services to the student and parents and its fiscal obligations.

Additionally, research shows that charter schools have a positive impact, or "ripple effect," on neighboring public schools. A Harvard University study found that in Arizona, public schools neighboring charter schools scored increases in math achievement of more than three times that of schools with no charter schools in their communities. As the focus continues to shift from the needs of the system to the needs of children and parents, our children are better served.

Critics are quick to claim that because charter schools operate independently, they have lower teaching standards and less accountability than conventional public schools. This is pure fantasy. Charter schools design and deliver programs tailored to educational excellence and community needs. Because they are schools of choice, charter schools are held to the highest level of accountability - consumer demand. If they fail to deliver, they are closed.

Another common myth is that charter schools "cream" more advantaged students from traditional public schools. The reality, however, is that a majority of charter school students are non-white, or minority students. Only 45 percent of charter students are white, while 52.5 percent of public school students are white. Additionally, 61 percent of charter schools serve a student population where over 60 percent qualify for Free & Reduced Lunch.

Seventy-three percent of Americans support the concept of charter schools. The short story is that charter schools work, and are an asset to a public educaiton system that is slow to embrace innovation despite an ever-changing and increasingly global world. As the nation marks the achievements of the charter school movement during National Charter Schools Week, it is important for parents, teachers, students and all of those involved with charter schools to share their successes so that all Americans can learn more about institutions committed to accountability and choice in education, and for lawmakers to take note so they can improve charter school laws, and in turn improve public education, in their state.

Kara Kerwin is President of The Center for Education Reform, a K-12 education policy and advocacy organization based in Washington, DC.