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House moves forward with tax credit plan for private schools after adding $500M cap


The Alabama House Ways and Means and Education Committee on Thursday morning passed Alabama's latest bill aimed at redirecting taxpayer dollars to private schools.

The bill's biggest change is putting a $500 million cap on the program, a concern public education groups raised during a hearing on the Senate version of the bill last week.

Several education groups expressed “neutral” on the bill, despite expressing some concerns about the long-term health of the Education Trust Fund due to changes made to the House version.

Education groups had already noted that Gov. Kay Ivey's version of the program valued additional accountability compared to a similar bill that was blocked in the previous legislative session.

The original language specifying a minimum spending of $100 million remains in the bill, but the new language would require Congress to use 90 percent of the previous year's funding to increase spending.

Families can cover up to $7,000 per student at participating schools, and up to $2,000 per student and $4,000 per family for homeschoolers.

For the first two years of the program, only households at 300 percent of the federal poverty level can apply and will receive approximately $75,000 annually.

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The first 500 students to be granted access to the benefit will be students with special needs and military families who attend schools with a “D” or “F” grade on the Alabama Department of Education report card. will also be given the opportunity to participate early.

Committee Chairman Danny Garrett (R-Trussville) is pushing the bill through the House after Ivey declared the program a top priority for this Congress.

“The purpose behind this law is to provide parents with the opportunity to use a portion of their tax dollars to choose the school that best meets their child's needs, including academic, social, emotional, environmental, and educational needs.” It could be mental health or bullying reasons,” he said. “The CHOOSE Act provides students with the opportunity to learn and grow in the environment that best suits their needs.”

While the program benefits the wealthiest families, some still question whether it will leave the state's poorest students behind.

“Last night, I looked at a map showing the location of private schools in Alabama, and the people who would be most harmed by this bill are the lowest-income, rural children in this state, and the children whose parents attended private schools. These are kids who can't afford to support their children, and even if private schools are available, they can't get an education,” said Carol Gundlach, senior policy analyst at Alabama Arise.

Thursday's voter vote fell along party lines, raising the possibility of a showdown between the Republican supermajority and Democrats if the bill is brought to the House next week.

Democrats criticized the bill, raising concerns that money directed to the program could be used to eliminate state taxes on groceries or improve public education. They also argue that the program amounts to tax breaks for the wealthy and that the state's lowest-income students are not eligible for the program because of lack of transportation, lack of private school options, and free or reduced school lunches. They have also expressed concern that they may no longer receive benefits. Lack of ability to pay state-funded tuition in excess of $7,000.

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