CASE STUDY Live Free and Learn: NUMBER 19 February 2014 A Case Study of ’s Scholarship Tax Credit Program By Jason Bedrick

I. INTRODUCTION An STC program grants tax credits to individuals and/or corporations It has long been recognized that who contribute to approved, non- a democratic society requires an profit scholarship organizations educated citizenry. Education (SOs) that help low- and middle- not only confers benefits to the income families send their children individual, such as higher income to the schools of their choice. and greater life expectancy, but also There are currently more than to society. Education enhances civic 150,000 students participating 1 2 engagement, reduces crime, and in 14 STC programs operating 3 increases GDP. However, different in 11 states, including children have different educational (individual, corporate, and special needs and the international evidence needs), , , , suggests that the superior education , , New Hampshire, systems are those that provide choice , (low- 4 and competition. For these reasons, income and failing schools), Rhode policymakers have sought innovative Island, and .5 methods of expanding educational opportunities, including scholarship In order to facilitate a better tax credit (STC) programs. understanding of how STC programs work in practice, this

ADVANCING LIBERTY WITH RESPONSIBILITY BY PROMOTING MARKET SOLUTIONS FOR MISSOURI PUBLIC POLICY CASE STUDY I SHOW-ME INSTITUTE

paper summarizes the available research schools, 68 percent noticed measurable on STC programs in general and presents academic improvement since receiving a case study on New Hampshire’s STC the scholarship, and 74 percent of program in particular. private school parents reported that they would have been unable to afford tuition As discussed in Section II, the without the scholarship. These findings overwhelming consensus of high-quality are consistent with previous research and research finds that educational choice demonstrate once again the promise of programs improve student outcomes for educational choice programs. both participants and those students who remain in their assigned district schools. II. RESEARCH ON There are This is one of many reasons that parents EDUCATIONAL CHOICE currently more give for their extraordinarily high levels of satisfaction with educational choice Educational Choice Leads to than 150,000 programs, along with teacher quality, Improved Student Outcomes students school responsiveness to parental needs, improvement in student behavior, and Few policies in the realm of education have participating in more. Moreover, fiscal impact studies have been studied as extensively as educational 14 scholarship consistently found that scholarship tax choice. The research literature provides credit programs produce these benefits strong evidence that educational choice tax credit while saving money for taxpayers. programs raise student performance.6 programs In 2012, the New Hampshire Legislature Eleven of 12 random-assignment stud- ies—the gold standard of social science passed the Opportunity Scholarship Act 7 operating in 11 (OSA), the first scholarship tax credit research —found that educational choice program to allow scholarships to cover programs had a positive impact on the states. academic performance of some or all certain homeschooling expenses. Section 8 III details the OSA’s program design and categories of participating students. Only outlines the legislative and legal challenges one study found no statistically significant to the program. positive impact. No gold standard study has found a negative impact. Other recent The OSA’s first-year implementation studies have found that educational choice is discussed in Section IV, including programs produce higher graduation rates,9 the results of a survey of the parents of higher college enrollment,10 and even scholarship recipients. Since the OSA went increased civic-mindedness.11 into effect, the Network for Educational Opportunity, New Hampshire’s first and Educational choice programs can also so far only active scholarship organization, benefit district school students because distributed $128,340 in scholarships to they create an incentive for schools to 103 students for the 2013-14 school year. compete for students. A recent study of Ninety-one percent of those recipients are Florida’s STC program found that it had from families with income low enough to a small but statistically significant positive qualify for the federal “National School impact on the academic performance of Lunch” program. district school students in response to the increased competition.12 The survey found that 97 percent of parents of scholarship recipients are A global literature review of studies satisfied with their chosen private or home comparing education systems that are

2 Number 18 I February 2014 more market-like (i.e., those with minimal • 76 percent were “very satisfied” with regulations that are at least partially the teacher quality in their chosen funded directly by the parents) against schools, compared to 7 percent in those with more centralized government public schools. control found that it is “the least regulated market school systems that show the • 76 percent were “very satisfied” with greatest margin of superiority over state their chosen schools’ responsiveness to schooling.”13 Among other outcomes, their needs, compared to 4 percent in the more market-like education systems public schools. produced higher student achievement, • 62 percent were “very satisfied” with greater parental satisfaction, and the student behavior in their chosen higher attainment levels than the more schools, compared to 3 percent in centralized education systems, on average. public schools.16 Families Are Highly Satisfied That such high levels of scholarship With Educational Choice recipients reported being more satisfied with their chosen schools than with their A chief measure of the success of educational assigned district schools does not mean choice programs is parental satisfaction. In that public school parents in general are a recent study of Georgia’s scholarship tax unsatisfied with their children’s school. credit program by the Friedman Foundation However, this clearly demonstrates that for Educational Choice, 98.6 percent of district schools are not meeting the needs respondents reported being “satisfied” or of a significant segment of the population. “very satisfied” with their chosen schools Educational choice programs allow such relative to their previous experience in an 14 families to select educational alternatives assigned district school. In 2010, a survey that do meet their children’s needs. commissioned by the Florida Department of Education found that 75.1 percent of families Even where survey data is not available, in their STC program said their schools the behavior of parents indicates a strong The survey found were “excellent” and 20.3 percent said they demand for educational choice. In were “good,” for a combined approval rating Pennsylvania, for example, demand far that 97 percent greater than 95 percent.15 A 2009 Friedman exceeds available scholarships. Just a single of parents of Foundation study went further, asking scholarship organization, the Children’s scholarship recipients about their satisfaction Scholarship Fund Philadelphia, had to scholarship regarding a variety of factors relative to their turn away more than 90 percent of the recipients are previous experience in the government more than 125,000 scholarship applicants district school system. The report found: over the last 12 years.17 satisfied with • 80 percent of the parents were “very The Friedman Foundation study of their chosen satisfied” with theacademic progress Georgia’s STC program also sheds light on private or home their children are making in their chosen what parents value most about education. independent schools, compared to 4 Not surprisingly, different parents prioritized schools. percent in their previous public schools. different things. The study found: • 80 percent were “very satisfied” with The top five reasons why parents the individual attention their children chose a private school for their received at their chosen schools, children are all related to school compared to 4 percent in public schools. climate and classroom management,

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The research including “better student discipline” a top priority. By contrast, parents who (50.9 percent), “better learning live in areas where safety can be taken for literature environment” (50.8 percent), “smaller granted are likely to place a higher priority class sizes” (48.9 percent), “improved on other matters. Educational choice provides strong student safety” (46.8 percent), and programs allow parents to select the evidence that “more individual attention for my schools that best meet their child’s needs. child” (39.3 percent).18 educational Scholarship Tax Credits Can Expand What parents value can depend on the Choices While Saving Money choice programs individual needs of their children or raise student the circumstances they would otherwise The existing scholarship tax credit face at their assigned district schools. programs were designed to save states performance. For example, the parent of a student money. Though the tax credits decrease with learning disabilities might seek out tax revenue, states save money for each a school that provides more individual child who switches out of the government attention while a parent whose child was school system. In each state, the average bullied might seek a school with better scholarship size is significantly less than student discipline. Likewise, when a the average per-pupil expenditure for parent’s child is assigned to an unsafe public schools (Table 1). This means that district school, safety naturally becomes SOs could award a considerable number

Testimonial: The Fader Family

Like any mom, Tia Fader wants what’s best for language, claiming that she’d be “eaten alive.” her two girls, Leah (age 12) and Candace (age 7). When Fader discovered that her older daughter Fortunately, Fader heard about Pine Hill Waldorf was being bullied, she reached out to the school and the Network for Educational Opportunity. The for help but school officials failed to protect her school would have been out of reach financially, but daughter. The school officials would force the New Hampshire’s scholarship tax credit program bullies to write apology letters but the bullying made her dreams for her daughters a reality. would not stop and Leah’s work suffered. “Because we’re low-income, I would not have had the opportunity to send my children to a school When she began exhibiting signs of depression, that mirrors my parenting style.” Fader pulled her daughter out of school for nearly a year. Tia spent several months in a private school, With the aid of their scholarships, both her but it was a long drive and too expensive for Fader’s daughters are now thriving at their new school. Leah modest income. She spent several more months is at the top of her math class and she is learning two homeschooling her daughter until she was ready to languages. “She used to be shy but she made two return to public school to be with her friends again. best friends in the first two days of school and she is even in the school play,” Fader said. “Her teachers Leah “never fit the mold” and teachers seemed care about her and she comes home and wants to do either unable or unwilling to work with her. “She her homework. It’s just night and day!” never had anyone who cared about anything she did,” explained her mother, “because she never Fader’s younger daughter, Candace, did well in public learned the same way.” After she failed two terms, school, but even she has shown improvement. “She the school wanted to give Leah remedial math skips up to me every day and says, ‘I just had the best instruction and discouraged her from taking a day ever,’ and that’s all a mother ever wants.”

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TABLE 1: Comparison of Average Scholarship Size and Per-Pupil Expenditures in Public Schools

Average Public School Average Scholarship Size Scholarship Per-Pupil Expenditures As Percentage of State Size19 (2009-10)20 Public School PPE

Arizona (corporate) $1,861 $9,273 20.1% Arizona (individual) $2,077 $9,273 22.4% Florida $3,664 $10,283 35.6% Georgia $3,494 $10,684 32.7% Indiana $880 $10,704 8.2% Iowa $1,031 $11,590 8.9% New Hampshire $1,246 $13,963 8.9% Pennsylvania (low-income) $990 $14,531 6.8% $2,727 $15,322 17.8%

This chart uses the most recent data available from the Friedman Foundation for Educational Choice (column 2, except for New Hampshire), the Network for Educational Opportunity (NH average scholarship size) and the National Center for Education Statistics (column 3). Column 4 is based on the author’s calculations. The chart excludes Arizona’s STC program for special needs students and the STC programs in Louisiana, Oklahoma, Virginia, and Pennsylvania’s failing-schools program, which only recently launched or have yet to launch. Table includes the most recent data available in each category. of scholarships to families already sending Florida: In an official report in 2010, the their children to independent schools and Florida Legislature’s nonpartisan Office of District schools the state would still break even. Program Policy Analysis and Government are not meeting Accountability (OPPAGA) estimated Researchers have calculated the fiscal that Sunshine State taxpayers saved $32.6 the needs of impact of the three oldest and largest million, which is approximately $1.44 in a significant STC programs and each study found state education funding for every forgone that they saved money by decreasing dollar of corporate income tax revenue.23 segment of the government expenditures more than the OPPAGA’s estimate used census data to population. decreased tax revenue. account for children who would have Educational Arizona: In 2009, Baylor University attended an independent school even in economist Charles North estimated absence of the program. While Florida’s choice programs that Arizona’s STC program reduced state government collected $82.2 million allow such expenditures between $99.8 million and less in tax revenue as a result of the tax families to select $241.5 million.21 Even under the study’s credits, the state reduced its expenditures most conservative assumptions, the state by $118.4 million. educational saved nearly twice as much as the $55.3 Pennsylvania alternatives that 22 : A 2011 study by the million in forgone revenue. Commonwealth Foundation estimated do meet their children’s needs.

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that Pennsylvania saves $512 million a (Table 1). Moreover, a majority of scholarship year as a result of its STC program, while recipients in Pennsylvania come from low- reducing tax revenue by only about $40 income households, which cost more to the million.24 Though the study did not take into state and are less likely to attend independent account students who would have attended schools without financial assistance.25 independent schools anyway, there still are very likely substantial savings because the While there have not been formal average scholarship size is only $990, less evaluations of the fiscal impact of other than 7.5 percent of the then-$14,531 average STC programs, Florida’s experience in cost-per-child in Pennsylvania district schools particular suggests that savings are likely. Testimonial: The Burke Family Being the proud parents of twins (later in life) became confident and realized that he could do as we have experienced the full spectrum of public well as others as a result of the hands-on teaching education. Our daughter was blessed with methods of his new school. exceptional intellect and spent years in elementary school not understanding why she had to conform Everything looked so promising. However, things to the pace of her other classmates. Our son was took a turn for the worse as a result of an industrial learning at a non-typical pace and was diagnosed as accident that left me disabled and our financial “learning disabled” in the second grade. condition became dire. We knew that we would not be able to send the twins to their respective schools and As parents with limited financial resources we had dreaded the thought of having to explain it to them. no choice but to accept the mandates of our public school system. Yet, as parents who questioned the We desperately sought funding options yet lack of alternative educational options for our conventional bank loans were out of the question. children, through due diligence, we were able to During our search for a remedy, we discovered locate a small independent school for our daughter the scholarship program that the Network for that had a most generous scholarship program. Educational Opportunity offers and promptly Even with this, we had to make major financial applied. We have been most fortunate to have been sacrifices to allow her to attend. awarded scholarships for the twins that allowed us to work out financial arrangements with their schools, Her twin brother continued in public school allowing them both to complete their senior year. through junior high and started his freshman year at a large regional high school. Even though he The twins have flourished at their respective received the available support from the Special schools. Our daughter has obtained high honors Education Department, he was overwhelmed. After and plans to be a veterinarian. Our son has become having struggled through his first year, he begged us a respected member of the student body and is well not to send him back for his sophomore year. liked by his fellow students and faculty. He plans to be a writer and is already completing his first novel His Individual Educational Plan prepared by with the support and encouragement of the school. the Special Education Department stated that he needed the benefit of “hands-on education.” We hope that readers will help any way they can Unfortunately, the regional school could not to allow others in need of financial assistance provide this. Again we searched for an alternative the opportunity to find the best educational school for him and found a small independent opportunities for their children. school that would work within our financial -The Burke Family abilities. During his first year, he flourished. He

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As noted in Table 1, Florida’s STC program in the year that the credits are claimed. is the least likely candidate for realizing Starting in the second year of the savings because it offers the maximum program, scholarship organizations may possible tax credit (100 percent), has both carry forward up to 10 percent of their the largest average scholarship size, and the unused eligible contributions. highest ratio of scholarship size to average public school per- pupil expenditures.26 Scholarship organizations have the STC programs in seven of the other 10 prerogative to set their own eligibility states offer only partial credits, as low as 50 criteria and to decide how to prioritize percent in Indiana and Oklahoma. the allocation of scholarships, within certain guidelines. The OSA requires that all scholarship recipients be III. NEW HAMPSHIRE’S between the ages of 5 and 20 and have SCHOLARSHIP TAX CREDIT an annual household income no greater PROGRAM than 300 percent of the federal poverty 29 The Opportunity Scholarship Act guidelines, which was $70,650 for a family of four in 2013. According to In 2012, the New Hampshire Legislature the most recent data provided by the enacted the Opportunity Scholarship U.S. Census Bureau, New Hampshire’s Act27 (OSA), a pioneering scholarship median household income is $64,664.30 States save tax credit program that moves beyond money for “” to “educational choice.” Additionally, in the first two years of the Whereas voucher programs and previous program, the scholarship organizations each child who scholarship tax credit programs have must allocate at least 70 percent of switches out of provided a choice among private schools, scholarship funds to “switchers” who the OSA was the first STC program attended a public school in the previous the government school year. Starting in the third year in the nation to allow scholarships school system. for homeschoolers to cover certain of the program, this requirement is educational expenses. phased out by 5 percentage points each year. Any student who initially receives The OSA grants tax credits to corporations a scholarship as a switcher continues to worth 85 percent of their donations to count toward the required percentage of non-profit scholarship organizations that switchers in subsequent years. Moreover, are registered with the New Hampshire the law requires that at least 40 percent Secretary of State’s office. (Some states also of the switchers qualified for the U.S. grant tax credits to individual donors, but Department of Agriculture’s “National New Hampshire has no personal income School Lunch” program (185 percent of tax.) Tax credit rates in other states range the federal poverty guidelines) in their from 50 percent in Indiana and Oklahoma final year of public school. to 100 percent in Arizona, Florida, Georgia, and Louisiana.28 Scholarship organizations also have the discretion to determine the amount of Scholarship organizations may use no each scholarship, but the law requires that more than 10 percent of the tax credit- the average of all scholarships granted to eligible contributions for administrative students attending private schools must expenses. Scholarship organizations must be no greater than $2,500 in the first year. disburse the remainder as scholarships The maximum average scholarship for homeschooling families is one quarter of

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the private school maximum average, which year increases by 25 percent. Therefore, for is $625 in the first year. The minimum example, if the amount of credits claimed in scholarship for special needs students is 175 year two exceeds $4.08 million, the amount percent of the maximum average scholarship of credits available in year three will be size. Starting in the second year of the $6.375 million. This “escalator” provision, program, the maximum average scholarship which is similar to the statutes in Arizona amounts will be adjusted annually using the and Florida, allows the program to grow U.S. Bureau of Labor Statistic’s Consumer over time to meet demand. Price Index for All Urban Consumers, Northeastern Region. Repeal Effort and Lawsuit Most states cap the total value of each The New Hampshire Legislature passed “As parents scholarship to ensure that the program the OSA by overwhelming majorities, saves the state money by reducing overriding the governor’s veto in the process. with limited expenditures by more than the reduction However, when the composition of the New financial in tax revenue. By capping the average Hampshire Legislature changed dramatically scholarship amount, New Hampshire in the wake of the 2012 election, opponents resources we simultaneously ensures that the program of the OSA sought to repeal the law. In had no choice will produce savings for the state while late February 2013, the New Hampshire granting scholarship organizations House of Representatives voted 188 to 151 31 but to accept greater flexibility than in other states to to repeal the law. However, two months tailor scholarship amounts to the specific later, the New Hampshire Senate blocked the mandates needs of specific families. The cap on the repeal with a 13-11 vote. Two senators of our public the average amount allows scholarship who had voted against the original bill also organizations to grant smaller amounts voted against the repeal, explaining that the school system.” to families that only need a little program should be given the opportunity to additional support in order to give prove itself, noting that hundreds of students 32 larger amounts to families that are in had already applied for scholarships. more dire financial straits due to illness, Simultaneous with the repeal effort, the unemployment, or other factors. OSA faced a legal challenge. In January The OSA also caps the total number of of 2013, the American Civil Liberties tax credits available Union and Americans United for the Quick Facts to $3.4 million in Separation of Church and State sued the the first year and state, claiming that the law violated the Tax Credit 85% of corporate $5.1 million in New Hampshire Constitution’s “No Aid” Value donation the second year. In provision, which prohibits the public subsequent years, funding of parochial schools.* The New Recipient Maximum 300% of federal whenever the total Hampshire Attorney General’s office and Eligible Income poverty line amount of credits the Institute for Justice, a civil liberties law claimed exceeds firm that represented NEO and parents Maximum Average $2,500 (homes- 80 percent of the seeking scholarships under the OSA, both Scholarship choolers: $625) available credits, defended the OSA in court. They argued that the New Hampshire courts should Maximum Year 1 $3.4 million the amount of credits available follow the precedent that the Tax Credits in the following Supreme Court set in ACSTO v. Winn

*The provision states that the legislators and public officials should “cherish the interests” of education, “[p]rovided, nevertheless, that no money raised by taxation shall ever be granted or applied for the use of the schools or institutions of any religious sect or denomination.” New Hampshire Constitution, Section II, Article 83.

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(2011), which held that private money that since secular education serves a does not become public money until “it public purpose, it may be supported has come into the tax collector’s hands.”33 by tax money if sufficient safeguards The are provided to prevent more than Opportunity Moreover, they argued that even a voucher incidental and indirect benefit to a program that clearly used government religious sect or denomination. We are Scholarship funds to aid low-income families would also of the opinion […] that members be constitutional under New Hampshire of the public are not prohibited from Act was the precedent because the program has a secular receiving public benefits because of their first in the purpose and any money used at a religious religious beliefs or because they happen school arrives there in an indirect manner to be attending a parochial school.34 nation to allow that is incidental to the choices of parents. In 1955, the New Hampshire Supreme Court Unfortunately, in a flawed and scholarships for declared that a voucher program for students unprecedented decision in June of 2013, homeschoolers attending nursing school was constitutional a trial court in New Hampshire banned even though some students may choose to scholarship organizations operating under to cover certain attend religiously affiliated schools: the OSA from issuing scholarships to educational students for use at religious schools.35 The Our state Constitution bars aid to decision relied on the dissent in Winn and expenses. sectarian activities of the schools the dissent of the Arizona Supreme Court and institutions of religious sects or in Kotterman v. Killian (1999), as well denominations. It is our opinion as a selective reading of New Hampshire

Testimonial: The Harris Family The Harris family knows very well that no one school often financially difficult, especially on a teacher’s is right for every child. When they first moved to New salary. (The Harris children qualify for the federal Hampshire from Georgia more than five years ago, Mr. “National School Lunch” program.) The children Harris got a job teaching advanced mathematics as a attending boarding school received scholarships, but public school teacher and eight of their 10 children, now the remaining tuition and travel expenses, including ages 6 to 20, spent between one and five years in public visits, were still significant. To save money, Mrs. Harris school. However, the public schools often failed to meet bought the bare minimum homeschooling supplies. their needs. Now, Mrs. Harris homeschools five of their Though it was frustrating for her children, she even 10 children (ages 6 to 12) and tutors other children on had them write on separate papers instead of in the the side. Two of their children are in college and three workbooks so that they could be re-used. attend a boarding school in Connecticut. When the Network for Educational Opportunity In some cases, the public school lacked a program for awarded the Harrises scholarships for their five gifted students but the Harrises did not want to move homeschooled children, they described it as a their children up a grade, as the school suggested, for “blessing,” especially because knee surgery for one social reasons. One daughter is homeschooled due child this year had involved thousands of dollars to health issues and another “was like a zombie, she in out-of-pocket expenses. “I can’t tell you the had no joy in school.” The Harrises also had concerns excitement that I felt when I just placed my huge about negative social influences. order of homeschool materials,” wrote Mrs. Harris, “For the first time in our homeschool career, I didn’t The Harrises always strove to give each of their children cringe at the thought of purchasing curriculum! I the education that was right for them, but that was could get workbooks for my children to write in!”

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The “escalator” precedent. Prior to this decision, every for homeschooling expenses, including court to consider a challenge to a books, homeschool curricula, educational provision allows scholarship tax credit program had found software, museum/aquarium visits, and the program to them to be constitutional, even if some sewing lessons.37 Scholarship recipients parents choose to send their children attended all K-12 grade levels with a grow over time to to religious schools. The decision is plurality (15.5 percent) attending first being appealed to the New Hampshire grade (Figure 1). Recipients were nearly meet demand. Supreme Court. evenly divided by gender with 53 females and 50 males. IV. YEAR ONE OF THE Though the law allows recipients to SCHOLARSHIP TAX CREDIT earn up to 300 percent of the federal PROGRAM poverty line, scholarship families are Implementation of the Opportunity overwhelmingly lower income. More than 91 percent of scholarship families Scholarship Act had an annual household income below The Opportunity Scholarship Act took the threshold necessary to qualify for effect on January 1, 2013. In the first year, a free or reduced price lunch under only one scholarship organization, the the federal “National School Lunch” Network for Educational Opportunity program, which is 185 percent of the (NEO), distributed scholarships. At the federal poverty guidelines ($43,568 for beginning of the 2013-14 school year, a family of four). Moreover, 73 percent NEO awarded $128,340 in scholarships of scholarship recipients had an annual to 103 students from 62 families out of household income less than 130 percent a total of 1,006 applications.36 Nearly of the federal poverty guidelines ($30,615 half of the scholarships (46 percent) were for a family of four), which would qualify granted to students to attend secular for a free lunch under the federal program 38 private schools while slightly more than (Table 2 and Figure 2). half of the scholarships (54 percent) were “We prioritized scholarships based on highest financial need, taking FIGURE 1: Scholarship Recipient Grade Level into consideration both income and family size,” explained Kate Baker, executive director of NEO, “There were many more families than we could help this year. We look forward to growing the organization so that we can help even more children get the education that’s right for them.” Scholarship recipients were more racially diverse than the general population in New Hampshire. Non-Hispanic whites make up 91.9 percent of

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TABLE 2: Free or Reduced Price Lunch Status of Scholarship Recipients

Qualifies for Qualifies for Does Not Qualify Scholarship Free Lunch Reduced for Free or Reduced Recipients Price Lunch Price Lunch Total Secular 32 7 8 47 Private School (31.1%) (6.8%) (7.8%) (45.6%) 43 12 1 56 Home School (41.7%) (10.7%) (1.0%) (54.4%) Prior to this 75 19 9 103 Total decision, (72.8%) (18.4%) (8.7%) (100%) every court to consider New Hampshirites39 but only 84.5 percent eligible for a tax credit, the donations of scholarship recipients. Non-Hispanic had to be reported to the Department of a challenge to a blacks were overrepresented at 4.9 percent Revenue Administration by June 15. In of scholarship recipients compared with 1.4 addition, fighting to keep the program scholarship tax percent of the state population. Scholarship alive in the legislature and the courts credit program recipients were 2.9 percent Asian, 1.9 diverted resources away from fundraising percent Hispanic, and 1.9 percent multi- and promoting the program. had found racial compared with a general population them to be that is 2.4 percent Asian, 3.0 percent The lawsuit had an even greater negative Hispanic, and 1.5 percent multi-racial. impact because the lower court’s flawed constitutional. But for the lawsuit and repeal effort, NEO would FIGURE 2: Income Levels of New Hampshire likely have raised even Tax Credit Scholarship Recipients 2013-14 more money and certainly would have issued more scholarships. Both efforts to eliminate the OSA generated an uncertainty about the future of the program that made fundraising difficult. “Businesses were enthusiastic about the opportunity to invest in education, but many were concerned that the program would disappear before we were able to distribute scholarships,” Baker lamented. To be

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ruling prohibited NEO from issuing the scholarship program is likely to more scholarships to students who wanted to than double in size in the next year, even attend religious schools. Because the law holding all else constant. required that 70 percent of donations go to “switchers” in the first year, and because Likewise, no matter how the court rules, the When the most of the switchers wanted to attend end of the court and legislative battles means religious schools, the outcome of the lawsuit that NEO will be able to spend more time Network for greatly impaired NEO’s ability to fund low- on fundraising and promoting the program. NEO will start with a base of previous Educational income students. Though nine corporations had donated a total of $235,000, NEO donors and the uncertainty about the future Opportunity was only able to distribute $128,340 to of the program will have dissipated. It also is scholarship recipients as a result of the trial possible that new scholarship organizations awarded court decision. Moreover, because the law will form to provide for even more students. the Harrises did not allow carrying over funds in the These factors make it highly likely that first year of the program, NEO had to the scholarship program will experience scholarships refund $96,660. NEO kept only $10,000 tremendous growth in the next year. for their five for administrative costs, well under the 10 Survey of Scholarship Recipients percent of donations that the law allows.40 homeschooled This section contains the result of a survey According to Baker, had the program children, they of the parents of scholarship recipients functioned as the legislature had intended, conducted online in mid-October 2013.42 described it as a NEO would have been able to provide at The Opportunity Scholarship Act requires least 216 scholarships using their funding 41 all scholarship organizations to conduct “blessing.” formula. That is more than twice the a survey of the parents of scholarship 103 scholarships that NEO actually recipients. The survey includes specific issued. If the New Hampshire Supreme questions regarding parental satisfaction Court follows its own precedent and the with their current and (where applicable) United States Supreme Court’s precedent, previous schools, the student’s academic achievement since FIGURE 3: “How did you find out about the scholarship program?” starting participation in the STC program, their ability to afford private schooling without the program, and the amount they spent on education beyond the scholarship. This survey fulfilled the Network for Educational Opportunity’s obligation by including the legally mandated questions, among others. The law mandated a minimum response rate of 90 percent. The survey had a response rate of 92.2 percent (95 of 103 scholarship recipients). Before applying for scholarships, potential

12 Number 18 I February 2014 recipients must know that the program to participation in athletic programs, exists. Because the government does not transportation expenses, extracurricular administer the program, it relies on the activities or clothing.” The median amount efforts of the scholarship organizations that private school scholarship recipients and word of mouth. The survey results spent beyond the amount of their indicate that most homeschoolers (55 scholarships was $3,575. Four families percent) found out about the program spent nothing beyond the scholarship through a friend or family member while the most any one family spent was More than while most parents of private school $37,000 beyond the scholarship. The 91 percent of students (62 percent) found out second-highest amount was $14,100. A through a private school staff member. plurality of families spent between $1,001 scholarship The second-largest source for both and $2,000 more than their scholarships groups (25 and 14 percent, respectively) (Figure 5). families had was the scholarship organization itself, an annual tied with friends and family for private The OSA also required scholarship school parents. About 5 percent of all organizations to ask recipients to state household recipients heard of the program from whether they agreed or disagreed with the income below newspaper articles or the radio while an following three statements using a five- additional 5 percent, which answered point scale: 185 percent “other,” heard through a homeschooling 1. My child would have been unable of the federal group or Facebook (Figure 3). to attend the school of his or her poverty The vast majority (73.7 percent) of choice without the education tax scholarship recipients indicated that it credit program. guidelines. was very easy, easy, or somewhat easy to 2. I am satisfied with the school my apply for a scholarship. Only 1.1 percent child is attending as compared to the said that it was very difficult and 12.6 school my child attended prior to percent reported that it was somewhat difficult. FIGURE 4: “How easy or difficult was it to apply for a scholarship? Homeschooling families appeared to have more difficulty, with about 21 percent saying that it was somewhat or very difficult compared to less than 5 percent of private school families who said it was somewhat difficult to apply (Figure 4). The Opportunity Scholarship Act required scholarship organizations to ask recipients to report how much money they spent on students to attend school beyond what the scholarships covered, not including “expenses related

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the availability of the education tax their children to the schools of their credit program. choice without the scholarship program. Only 14.3 percent disagreed while 11.9 3. My child has seen a measurable percent were neutral (Figure 6). improvement in academic achievement. Only 16 scholarship recipients attended The vast majority (73.8 percent) of a public school in the previous year and private school parents reported that used the scholarship funds to switch to a they would not have been able to send private or home school and of those, 14 responded to the FIGURE 5: Out of Pocket Expenses Paid by Families survey.† All of the respondents reported greater satisfaction with their current school with 78.6 percent answering that they strongly agree (Figure 7). • In addition to the required questions, the survey asked respondents to describe their level of satisfaction with the school their children used in the year before enrolling in the scholarship program. Some of the responses included: • I was not very satisfied, it was not a good fit for him and the distance was much [too] far. FIGURE 6: “My child would have been unable to attend the school of his or her • I wish I had known about choice without the education tax credit program.” the scholarship program earlier. My daughters were bullied for 4 months in a public school and the school expected my 5 year olds to defend themselves. There was not enough protection. For example, another 5 year old [told] my daughters to “get out of town” and [pushed] them around. The school [brushed] it off [and that] did not settle with me. It upsets me so much that I felt like I had no other option or choice but to continue to bring them there. I’m so happy now that I know there are programs

† There were 15 “switchers” confirmed with the New Hampshire Department of Education. In addition, there was one student who attended a public school in the 2012-13 school year but whose student identification number was not submitted in time to verify.

14 Number 18 I February 2014

like this out there. Thank you! made a HUGE difference in their academic performance. • The school did the best they could to provide a challenging educational Despite being only a couple months environment for my son, despite their into the 2013-14 school year, 68.4 limited resources. percent of families reported that there has been a measurable improvement • I was disappointed with the local in their child’s academic performance public middle school. It did not since participating in the program. Only adequately challenge or support my 1.1 percent somewhat disagreed while son, who has even said […] that he 30.5 percent were neutral. Slightly more has to try much harder now at his homeschoolers (71.7 percent) reported new school and he doesn’t feel he was seeing an improvement relative to private prepared for the workload. Also, his school families (64.3 percent) (Figure 8). school last year didn’t allow him to take all honors as we requested and didn’t It is possible for parents to be more offer a full year algebra class, so we had satisfied with their child’s current school to utilize [an online class] to prepare than their previous school and for the him for high school math. child to show academic improvement yet still be dissatisfied overall. Therefore, The scholarship • We were very dissatisfied with the the survey asked another question about public high school my son was parent satisfaction beyond what the law program is likely attending. required. The overwhelming majority (96.8 to more than • My daughter’s middle school was percent) expressed satisfaction with their small and she did okay. Her public child’s current private or home school, with double in size in high school option was large with 89.5 percent reporting that they are very the next year. large classes and I worried that she satisfied. Only 1.1 percent reported being would fall into the cracks there. somewhat dissatisfied while none reported She is quiet and an average student. being simply dissatisfied or very dissatisfied She would have only gotten attention at this FIGURE 7: “I am satisfied with the school my child is attending as compared to the high school if she was school my child attended prior to availability of the education tax credit program.” very smart or very low academically. • I was to the point of disgust with our public school system. Finding an alternative was a MUST for my children. • I am very disappointed in our public school system in Franklin, NH. The NEO made homeschooling a reality for my children and it has

15 CASE STUDY I SHOW-ME INSTITUTE

• [My son] is thriving and the FIGURE 8: “My child has seen a measureable improvement in academic school is the perfect fit for his achievement since participating in the scholarship program.” needs to continue to improve as a student and individual. • I feel like the private school saved my daughter. After being bullied and harassed so severely in public school I made the choice to move her, no matter the sacrifices I had to make to afford it. She is accepted, loved, and thriving at her new school. • We are thrilled with the improvement we have seen in our son both academically and socially. • This school is incredible. My daughter has already shown improvement in confidence and is becoming more outgoing. She FIGURE 9: “How satisfied are you with the [private/home] school that the is participating more in classes scholarship student presently attends? as they are small. Her teachers are all connected to her in many ways as advisors or coaches. She feels part of a community at this school. She is taking courses like Mandarin and getting an A. This would not have been possible in the public school option. I am extremely happy and grateful that my daughter is at this school. I have cried more than once as I watch her reach new highs. Very Dissatisfied • [We are] very happy to have [our daughter] attend. [She] was unable to last year and she was looking forward to getting back to school.

and 2.1 percent were neutral (Figure 9). • My son is immersed in a challenging and rigorous academic The survey further asked respondents program. He is thriving and very to describe their level of satisfaction happy in his new school. with the school their child currently attends. The following include some • Our school has always tried very hard of the responses from private school to make it possible for my daughter to families: attend, but with a modest income and growing basic family expenses (such

16 Number 18 I February 2014

as housing, heating, transportation staff, curriculum, practical life, and and fuel costs) continuing at a private discipline strategies/ procedures are school has been increasing difficult exemplary. I am thrilled to be part of and stressful. I am grateful that in this school community. combination with the Network for Educational Opportunity, we somehow • The school has an exceptional have managed to enroll my daughter experiential based philosophy that for this year’s school term, which works well with my child. would have been impossible without • We are extremely satisfied with the the help our school and that of the private school he is attending. It is a additional funding from the Network. dream come true for us to be able to • This school has been a lifesaver for have him there at this time in his life. The vast majority my child. She is noticeably different • My child is being challenged to excel (73.7 percent) and improved both socially and in all areas. I am delighted that she academically. Public school did not has the opportunity to attend this of scholarship work for her. This school has been a school. miracle for our family. recipients • I am very satisfied and so filled with indicated that • The current school provides a much gratitude that my daughter can attend more challenging and supportive the school that I feel meets her in the it was very academic structure with teachers that best way for her to develop and meet easy, easy, or expect results. My son meets with an her full potential. It is a very well advisor weekly and it is a much better rounded program, strong academically somewhat easy social atmosphere. with a very extensive exposure to to apply for a • My child has ADD and he is getting literature, math and science but a lot more help them he would have also rich in the arts, producing very scholarship. gotten at a public high school. confident, talented and responsible young people with a love of learning • [My child’s school] is a wonderful and a desire to make a positive alternative to the public middle school difference in the world. [that our son] attended in the past. I feel [my child’s school] is home • [My child’s school] is becoming schooling for those who are not able known for its academic excellence. to provide it for their family. They This school is competitive in choices offer a unique environment that for college placement but also creates celebrates the student’s individuality. an educated student for any field of employment. I highly value this • We adore [my child’s] school. It is the school’s ability to educate mostly any perfect blend of academics, physical, child with positive results. emotional, cognitive development all integrated into one school and • I am extremely satisfied with his philosophy, and our daughter is current school, he comes home and thriving there. [She is] happy, healthy excitedly shares what he is learning. and challenged. • My child has excelled in this program, • I LOVE [my child’s] school. The I am more that highly satisfied.

17 CASE STUDY I SHOW-ME INSTITUTE

The only negative responses included: and other classroom learning opportunities that my child is able • They need more organization to the attend outside the home. school. • I love the [state’s virtual learning] • There is a lot of disorganization at program, and it is making a profound the school right now that we are not difference in allowing my children happy with. more options for classes even at the The following include some of the middle school level. responses from homeschooling families • We use a mix of textbooks, workbooks regarding their level of satisfaction: and online curricula for our The vast majority • We were able to build a homeschool homeschool. Our child is reading above (73.8 percent) curriculum based upon our child’s grade level and loves to do school! needs and learning style. We are very • [The scholarship funds] allowed for of private school satisfied with the result. enrollment in an online classical parents reported • Because we received funds from the school. The emphasis on history and Network for Educational Opportunity, literature based curriculum meets that they would we were able to afford an excellent her interest and need to be more not have been curriculum for our son’s first grade year. challenged academically. It also allows We are enjoying a rich and productive us the opportunity for this to take able to send their school year so far, and we look forward place as a home school. We are very children to the to the days and weeks to come. satisfied with this approach. schools of their • I find our home school to be very well- • The materials purchased through this rounded, fun and has the added benefit grant have been extremely helpful in choice without of developing strong family bonds. meeting my son’s educational needs, which are atypical. the scholarship • These funds allowed us to obtain program. better and more books and materials • I am very pleased with the materials used in home schooling, which has that we were able to purchase due to made the planning easier for mom, this grant. They are well suited to her and the learning more fun, in depth, learning styles and are helping her to and interesting for the student. We be successful. are very satisfied with what has been • He is homeschooled and participates in made available to us and the fact outside classes as well as a co-op. I am that we can continue in home based very satisfied with these options he has. education for our family. • I love being able to teach my daughter • We are very pleased to have the at home using a curriculum of my incredible privilege of teaching own choosing that focuses on our our child at home. The scholarship values as a family. program has enabled us to purchase the additional classes that we desired The survey also asked families whether to strengthen his education. there was anything they would like to change about the scholarship tax credit • I am satisfied with [the state’s virtual program, besides increasing funding. In learning program], added curriculum,

18 Number 18 I February 2014 addition to those who did not answer, • I would like the funding limits to be 23 respondents with a child attending a raised significantly. private school wrote that they would not change anything. The following are some • Of course the increase in funding of the responses from the remaining would make it not a “token” program private school families: but a real help in helping families make the right choice without extreme • I would like public support, more financial stress. The scholarship has visibility and advertising, celebration of helped a little bit. Our son would not the program, support and investment be able to attend for much longer. We for families who are struggling and have refinanced out house twice to doing everything possible to provide purchase this education. the right thing for their child. All of the Among homeschooling families, the • More publicity. timing of the program and the difficulty scholarship of the application process were the most recipients who • More notification of area towns about frequent complaints: availability. attended a • It would be helpful if we had more • I would like to see it expanded to all time between the initial award notice public school in eligible students & awareness and and when we had to have all of our the previous year support of it increased. receipts sent in. I was late in sending • I have to sign a contract for tuition in in my information due to how long reported greater February! It would be nice to find out it takes me to put together all of my satisfaction with if we got a scholarship a little earlier curriculum orders. I have four children, so I can see if I can keep her in her and generally purchase curriculum as their current school. I go along through the year, for both financial as well as organizational school. • I believe that the scholarship monies reasons. Our total award for the should be able to go to any school family was $1,000, and I found it very even if they have a religious affiliation. difficult to come up with this amount of money in the time allotted. • The timing of the scholarship makes it a little challenging but hopefully the • Timing – knowing you will receive the level of funding will remain about the funds and then time to go purchase same each year. The tuition process is the materials, because I would not buy finished by May and parents are not some of the stuff if we didn’t get the made aware of the amounts they will scholarship. Can’t afford to. receive from the scholarship program until late July. This means parents • Given our financial situation, it was have to just hope and pray. challenging to “front” the money to make the purchases for the scholarship Though the question asked what and then submit receipts. I fully scholarship recipients would like to see understand your reasoning, I just changed besides an increase in funding, wanted to express this thought. a few respondents nevertheless took the opportunity to state that they would like • It would be great if it was not a to see more generous scholarships: reimbursement program OR if people

19 CASE STUDY I SHOW-ME INSTITUTE

would at least be advised in advance • No. It is a wonderful resource that has The that it is in fact a reimbursement enabled us to expand the curriculum program so that they can be better and resources used in our home school. overwhelming prepared for saving receipts etc. majority • No, I am very grateful for a little extra • [I wish] that the scholarship be help. (96.8 percent) distributed earlier in the summer. • I think that the program seems to be expressed • It would be better if the application pretty fair, but as you say, increased satisfaction with process were simpler. funding would be nice. their child’s • The format for filling out the • I think the program is excellent and financial information is not would definitely recommend this current private tailored to the scholarship and a program to friends and others who are bit challenging in completing and looking for an alternative to failing or home school. making contact with, however, I public schools. know that [NEO is] aware of this. CONCLUSION • I wish that you used the [School and Student Services (SSS)] financial Families participating in New aid application by [the National Hampshire’s pioneering scholarship tax Association of Independent Schools]. credit program report near-universal It was a pain to do a separate one for levels of satisfaction because it enables [NEO] when most private schools them to choose the best educational fit require the SSS. It cost extra money for their children. Whatever parents are when people already are lower income seeking for their children—improved and it is a pain to have to complete two academic performance, more engaged separate [financial aid] applications. teachers, social acceptance, freedom from • I think parents with children who bullying, special needs programming, attend religious schools should be able and so on—they are more likely to find to apply for the scholarship as well. it if they have more than one choice. Policymakers across the country who • Let it go towards out of state schools are seeking to expand the educational as well. The best option for our choices available in their state should children in high school is a boarding look to New Hampshire as a model. school in CT, so that should be an option for us. There were also 14 homeschooling About the Author: respondents who wrote that they would Jason Bedrick is a policy analyst with the not change anything about the program, Cato Institute’s Center for Educational including the following: Freedom. He previously served in the New Hampshire House of Representatives and • I think that the program is awesome. was a research fellow at the Josiah Bartlett I don’t think there is anything I would Center for Public Policy, where he focused change. on state education policy. • No it is well-managed and has great communication.

20 Number 18 I February 2014 Appendix: Survey Questions 1. Which grade does the scholarship student currently attend? 2. What is the age of the scholarship student? 3. What is the gender of the scholarship student? 4. Has the scholarship student ever been diagnosed with a learning disability? 5. What is your family’s total household size (including one’s spouse and all dependents)? 6. What is the race/ethnicity of the scholarship student? 7. How did you find out about the scholarship program? 8. How easy or difficult was it to apply for the scholarship? 9. Please indicate your level of agreement with the following statement: “My child has seen a measurable improvement in academic achievement since participating in the scholarship program.” [The following two questions were asked to private school families only.] 9a. Please indicate your level of agreement with the following statement: “My child Families would have been unable to attend the school of his or her choice the without the education tax credit program.” participating in 9b. Excluding the education tax credit scholarship, how much did you pay out of New Hampshire’s pocket for your child to attend school this year? Do not include fees or expenses pioneering related to participation in athletic programs, transportation expenses, extracurricular activities, or clothing. scholarship tax 10. Did the scholarship student attend a public school in the 2012-13 school year? credit program [If “Yes” to last question, then continue to 10a and 10b. If “No” then skip to report near- question 11.] universal levels 10a. Please indicate your level of agreement with the following statement: “I am satisfied with the school my child is attending as compared to the school my child of satisfaction attended prior to the availability of the education tax credit program.” because it 10b. Please describe your level of satisfaction with the school your child used in the enables them to year before enrolling in the scholarship program in the space provided below. choose the best 11. How satisfied are you with the private/home school that the scholarship student presently attends? educational 12. Please describe your level of satisfaction with the private/home school the fit for their scholarship student currently attends in the space provided below. children. 13. Besides increasing funding, is there anything you would like to change about the scholarship tax credit program?

21 CASE STUDY I SHOW-ME INSTITUTE

ies of voucher programs, though it is import- “More Than Scores: An Analysis of Why NOTES ant to interpret the results cautiously. and How Parents Choose Private Schools.” 7 Friedman Foundation for Educational Choice. 1 Random assignment studies are the “gold Organisation for Economic Co-operation November 13, 2013. View online here: http:// standard” because they compare two groups and Development. “Education Indicators in www.edchoice.org/Research/Reports/More- that are almost exactly similar except for the Focus.” January 2013. View online here: http:// Than-Scores--An-Analysis-of-Why-and-How- “treatment.” In this case, the studies compare www.oecd.org/edu/skills-beyond-school/ Parents-Choose-Private-Schools.aspx. students who applied for a voucher and won EDIF%202013--N%C2%B010%20(eng)--v9%20 the voucher lottery against students who ap- 15 Figlio, David. “Evaluation of the Florida Tax FINAL%20bis.pdf. plied for a voucher but lost the voucher lot- Credit Scholarship Program: Participation, 2 Lochner, Lance, and Enrico Moretti. “The tery. Because the lotteries were random, the Compliance, Test Scores and Parental Satis- Effect of Education on Crime: Evidence from only important difference between the two faction.” University of Florida. June 2010. Prison Inmates, Arrests, and Self-Reports.” groups was the offer of a voucher. Therefore, 16 Forster, Greg, and Christian D’Andrea. University of California at Berkeley. October any observed difference in performance be- “An Empirical Evaluation of the Florida 2003. View online here: http://emlab.berkeley. tween the two groups can be interpreted as Tax Credit Scholarship Program.” Friedman edu/~moretti/lm46.pdf. being caused by the “treatment” of winning Foundation for Educational Choice. August 3 the voucher lottery. Hanushek, Eric A., Paul E. Peterson, and 2009. View online here: http://www.edchoice. Ludger Woessmann. “Endangering Prosper- 8 Forster, Greg. “A Win-Win Solution: The Em- org/Research/Reports/An-Empirical-Eval- ity: A Global View of the American School.” pirical Evidence on School Choice.” Friedman uation-of-the-Florida-Tax-Credit-Scholar- The Brookings Institution. 2013. Foundation for Educational Choice. April 17, ship-Program.aspx. 4 2013. View online here: http://www.edchoice. Coulson, Andrew J. “Comparing Public, 17 Children’s Scholarship Fund of Philadelphia org/Research/Reports/A-Win-Win-Solution- Private, and Market Schools: The Internation- website. “Program Description.” View online -The-Empirical-Evidence-on-School-Choice. al Evidence,” The Journal of School Choice, here: http://www.csfphiladelphia.org/about- aspx. Volume 3, Issue 1. 2009. us/program-description. 5 9 Peterson, Paul E. “Graduation Rates The Friedman Foundation for Educational 18 Kelly and Scafidi. Page 1. Choice. 2013. “The ABCs of School Choice.” Higher at Milwaukee Voucher Schools.” 19 Average scholarship size data for New View online here: http://www.edchoice.org/ Education Next. January 10, 2011. View Hampshire collected from the Network for CMSModules/EdChoice/FileLibrary/965/The- online here: http://educationnext.org/grad- Educational Opportunity. Data for all other ABCs-of-School-Choice---2013-edition.pdf. uation-rates-higher-at-milwaukee-vouch- er-schools/. states from The Friedman Foundation for 6 This section draws on studies of both STC Educational Choice. 2013. “The ABCs of 10 Brown Center on Education Policy & Har- programs and voucher programs. Research- School Choice.” View online here: http:// vard’s Program on Education Policy and Gov- ers have conducted scores of studies on www.edchoice.org/CMSModules/EdChoice/ ernance, Chingos & Peterson. “The Effects voucher programs, but STC programs have FileLibrary/965/The-ABCs-of-School-Choice--- of School Vouchers On College Enrollment: received little attention. Because of their 2013-edition.pdf. design, it is easier to study and draw con- Experimental Evidence from New York City.” 20 National Center for Education Statistics, clusions from voucher programs. Voucher August 2012. View online here: http://www. Digest of Education Statistics. 2011. “Total programs are often designed such that when hks.harvard.edu/pepg/PDF/Impacts_of_ and current expenditures per pupil in fall en- the number of applicants is greater than the School_Vouchers_FINAL.pdf. rollment in public elementary and secondary number of available vouchers, the vouch- 11 Wolf, Patrick J. “Civics Exam: Schools of education, by function and state or jurisdic- ers are distributed by lottery. This allows choice boost civic values.” Education Next. tion: 2007-08.” View online here: http://nces. researchers to conduct random assignment Summer 2007. http://educationnext.org/civ- ed.gov/programs/digest/d11/tables/dt11_193. studies, the “gold standard” of social science ics-exam/. asp. research. STC programs, by contrast, are not 12 Figlio, David and Cassandra Hart. “Does centrally administered and different schol- 21 North, Charles M. “Estimating the Savings Competition Improve Public Schools?” arship organizations handle oversubscrip- to Arizona Taxpayers of the Private School Tu- Education Next, Winter 2011. View online tion differently (e.g., considering merit or ition Tax Credit.” Baylor University. November here: http://educationnext.org/does-competi- financial need). However, while significantly 2009. View online here: http://www.azpolicy. tion-improve-public-schools/. different in administration, the effect of both org/sites/azpolicy.org/files/downloads/Arizo- voucher programs and STC programs is es- 13 Coulson, Andrew J. “Comparing Public, naSTOTaxCreditCMNorth.pdf. sentially the same: students receive money Private, and Market Schools: The Internation- 22 Butcher, Jonathan. “Giving Arizona Chil- to attend the school of their parents’ choice. al Evidence.” The Journal of School Choice, dren Better Opportunities In Education: A Hence, it is possible to draw conclusions Volume 3, Issue 1. 2009. Case Study of the Nation’s Oldest Tax Credit about the effect of STC programs from stud- 14 Kelly, James P., and Benjamin Scafidi. Scholarship Program.” Show-Me Institute

22 Number 18 I February 2014

Case Study. January 2014. shire Public Radio. February 20, 2013. View donated about $150,000 that did not qualify online here: http://nhpr.org/post/nh-house- for tax credits in order to cover NEO’s admin- 23 Office of Program Policy Analysis and Gov- votes-repeal-school-choice-tax-credit. istration costs. ernment Accountability. “Florida Tax Credit Scholarship Program: Fiscal Year 2008-09 Fis- 32 “N.H. Senate rejects attempt to repeal 41 Email from Kate Baker. October 31, 2013. cal Impact.” March 1, 2010. View online here: education tax credit program.” Fosters There were 88 applicants who qualified as http://www.oppaga.state.fl.us/MonitorDocs/ Daily Democrat. April 20, 2013. View “switchers” under the Opportunity Scholar- Reports/pdf/0868_1rpt.pdf. online here: http://www.fosters.com/ ship Act. By law, 70 percent of the donations apps/pbcs.dll/article?AID=/20130420/ raised must go to switchers. That would have 24 LeFevre, Andrew. “A Decade of Success: GJNEWS_01/130429958/-1/FOSNEWS. been $164,500 of the $235,000 raised. At Pennsylvania’s Education Improvement Tax $2,500 maximum per scholarship recipient Credit.” Commonwealth Foundation. Policy 33 Arizona Christian School Tuition Organiza- on average, that amount would have covered Brief, Vol. 23, No. 8. August 2011. tion v. Winn, 131 S. Ct. 1436 (2011). approximately 66 switchers with $70,500 25 34 Pennsylvania Legislative Budget and Opinion of the Justices, 99 NH 519 (1955). remaining for other students. NEO gave Finance Committee. “Pennsylvania’s Tax 35 See: Bedrick, Jason. 2013. “NH Court: You $10,800 to 54 homeschoolers and averaged Credit Programs.” June 2010. Page 31. View Can Choose a School So Long as It’s Secular.” $625 per pupil for existing private school online here: http://lbfc.legis.state.pa.us/re- Cato at Liberty Blog. June 17. View online students. Using that average, they could ports/2010/49.PDF. here: http://www.cato.org/blog/nh-court-you- have awarded scholarships to approximately 26 Bedrick, Jason. “The Continuing Debate can-choose-school-so-long-its-secular. See 96 non-switcher private school students for a Over Scholarship Tax Credits.” Education also: Bedrick, Jason. 2013. “New Hampshire total of approximately 216 students. Next blog. March 8, 2013. View online here: Court’s School Choice Decision Was Flawed 42 Survey conducted via Kwiksurveys.com, an http://educationnext.org/the-continuing-de- and Unprecedented.” Cato at Liberty Blog. online survey builder, Oct. 8-24, 2013. bate-over-scholarship-tax-credits-2/. June 24. View online here: http://www.cato. org/blog/new-hampshire-courts-school- 27 Senate Bill 372, New Hampshire General choice-decision-was-flawed-unprecedented. Court, 2012. View online here: http://www. gencourt.state.nh.us/legislation/2012/SB0372. 36 Data provided by the Network for Educa- html. tional Opportunities.

28 DeGrow, Benjamin. “A Scholarship Tax 37 Email from Kathleen Lauer-Rago, opera- Credit Program for Colorado.” Independence tions director of the Network for Educational Institute. February 2013. View online here: Opportunities. October 22, 2013. http://education.i2i.org/wp-content/up- 38 U.S. Department of Agriculture. “Child loads/2013/02/IP_2_2013_a.pdf. Nutrition Programs; Income Eligibility Guide- 29 U.S. Department of Health and Human lines.” 78 Federal Register 61 (29 March Services, Office of the Assistant Secretary 2013). p. 19179. View online here:http://www. for Planning and Evaluation. “2013 Poverty fns.usda.gov/cnd/Governance/notices/iegs/ Guidelines.” View online here: http://aspe. IEG_Table-032913.pdf. hhs.gov/poverty/13poverty.cfm. 39 United States Census Bureau. 2013. “State 30 United States Census Bureau. 2013. “State and County QuickFacts: New Hampshire.” and County QuickFacts: New Hampshire.” View online here: http://quickfacts.census. View online here: http://quickfacts.census. gov/qfd/states/33000.html. gov/qfd/states/33000.html. 40 Email from Kate Baker, executive director 31 Evans-Brown, Sam. “N.H. House Votes to of the Network for Educational Opportunity. Repeal School Choice Tax Credit.” New Hamp- October 30, 2013. In addition, 120 individuals

Acknowledgements: The author wishes to thank Kate Baker and Kathleen Lauer-Rago of the Network for Educational Opportunity for the invaluable assistance they provided. Their professionalism and transparency is commendable and their dedication to expanding educational opportunities for those most in need is inspirational.

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