Educational choice laws have the potential to expand educational opportunity and improve quality. However, design matters. Ideally, educational choice laws allow very wide participation and eschew technocratic regulations that can impede or even undermine their success.
Unfortunately, Alabama’s scholarship tax credit (STC) law is far from ideal.
Last week, the Alabama State Senate passed legislation making numerous changes to the state’s STC law. Yet while the legislation includes several improvements, the changes fail to address the law’s most serious flaws, and would further constrain what is already among the most limited private school choice laws in the nation.
Under the Alabama Accountability Act, low- and middle-income students who are zoned to attend a district school designated as “failing” are eligible to receive tax-credit scholarships from a nonprofit scholarship-granting organization (SGO). Sadly, while other states are seeking to expand eligibility, the Alabama Senate is seeking to further restrict it.
The legislation would lower the income eligibility level from 150 percent of Alabama’s median household income (about $65,000 for a family of four in 2014–15) to that of the federal free-and-reduced lunch program, which is 185 percent of the federal poverty line (about $44,000 for a family of four). It also eliminates the provision that allowed students to continue receiving scholarships if their parents’ income outgrew the eligibility guidelines, which could contribute to the poverty trap.
Even worse, rather than eliminate the problematic “failing schools” provision, the legislation would narrow the scope of what constitutes a “failing” school. The legislation would restrict tax-credit scholarships to students zoned to district schools scoring in the lowest 6 percent on the state standardized assessment in reading and math, down from 10 percent (among other provisions). However, even schools that perform higher on average might not meet the particular needs of particular students. Educational choice laws should provide opportunities to all students, no matter where they live or how well or poorly their local district school performs on average.