Don Soifer Testimony in Opposition to AB 458

On Behalf of Nevada Action for School Options

May 2, 2019

Dear Chairwoman Dondero Loop and Members of the Revenue and Economic Development Committee,

Thank you for the opportunity to offer this testimony on AB458. I regret that I am unable to present this testimony in person, and am grateful for your consideration.

We at Nevada Action for School Options are opposed to this proposed reduction in allowable tax credit revenues to fund the Educational Choice Scholarships, or Opportunity Scholarship Program. We hope that this Committee will consider the four proposed conceptual amendments at the conclusion of this testimony.

We oppose this proposal for the following three reasons:

First, this is an extremely popular program, and much more broadly than among scholarship participants. This was in strong evidence when Nevada Action published a scientific poll of Nevada adults earlier this year. Among the findings:

• 68% of all Nevadans support the Opportunity Scholarship program, while only 29% oppose it. Support polled highest among (in order): middle-aged adults, millennials, African-Americans, and those living in Nevada’s suburbs.
• More than two-thirds of Nevada’s Hispanics (70%) and African-Americans (69%) support Nevada’s Opportunity Scholarship program. Support was even higher among Hispanic parents (74%) and African-American parents (70%).
• Nevadans identifying themselves as Democrats also strongly support Opportunity Scholarships (70% support, 27% oppose). Among Republicans, 71% support and 27% oppose the program.

Second, student outcomes in the program are particularly strong, and compare favorably with other education reforms.

The 2019 Nevada Department of Education report showed 68 percent of students participating in the program for all three of its years showed positive score change on norm-referenced assessments, as did 66 percent of students in the program for two consecutive years.

Please keep in mind that between 2017 and 2018, Nevada public school students gained one percentage point of proficiency in English Language Arts, and 1.5 percentage points in math. The tests are different, of course, but the comparison offers useful context. It is also worth being mindful that these are all lower-income students, with an average household income of under $46,000, and with a substantial number coming from less-than-optimal educational experiences in their prior school settings.

Third, the program represents a bargain for taxpayer in several ways. The average scholarship size, $4,500, is far less than average per-pupil expenditures in public schools. As a result, private schools’ boards contribute millions of dollars each year so that scholarship students can attend their schools. And with the U.S. Census projecting that Nevada will need some 250,000 new seats in schools over the next ten years, the private philanthropy and other cost savings associated with building private schools are no small consideration in this climate of tight tax revenue.

Finally, we know that this relatively young program is still evolving, and contains some inevitable program inefficiencies which we know can be improved upon. In this spirit, we offer the following policy recommendations which we would be happy to discuss at anytime.

Thank you.

Proposed Conceptual Amendments to AB 458

Summary

1. Fund the Nevada Department of Education $30,000 to contract with an independent evaluator to design and conduct a quantitative analysis of student outcomes, with an emphasis on longitudinal academic growth, for participating Opportunity Scholarship Program students.
2. Stipulate that Scholarship Organizations provide families an alternative to requiring students provide filed tax returns of all adults in the household for specified periods. Require, and provide resources for, NDE to sample SGOs for adhering to income eligibility guidelines and other regulatory and statutory requirements.  This requirement has been identified as a barrier for the poorest students’ participation in the program.
3. Give the authority to the Nevada Department of Education to audit the application and acceptance practices of Scholarship Organizations, to ensure adherence to NDE regulations.
4. Clarify that any monies received by a Scholarship Organization for the purposes of scholarships must be transferred to another Scholarship Organization in the event that it loses its standing with NDE.

Amendment Language

Part I:

Amend chapter   388D of NRS by adding thereto a new section to read as follows:

The Department of Education:

Shall initiate a request for proposal from institutions within the Nevada System of Higher Education for a quantitative analysis of outcome data of pupils participating in the Nevada Educational Choice Scholarship Program.

Shall conduct a study which contains an analysis of:

(a) The year-to-year longitudinal progress of pupils participating in the Program;

(b) The   number   of   students   meeting   or   exceeding   typical growth as determined by the publisher of the assessment;

(c) Other academic outcome data for pupils participating in the program, as measured by their performance on approved norm-referenced tests

When complete, the results of the evaluation must be provided contemporaneously  to   the   Department and the Legislative Committee on Education.

There   is   hereby   appropriated   from   the   State General Fund to the Department of Education the sum of $30,000 for the purpose of contracting with an independent evaluator to conduct an evaluation pursuant to [subsection, section] of this act.

Part II:

Amend chapter 388D.270 (1) of NRS by adding thereto a new section to read as follows:

• provide eligible pupils under section (e) an alternative as part of their application process which does not requiring them to provide filed tax returns of all adults in the household for specified periods.

Part III:

Amend chapter 388D of NRS by adding thereto a new section to read as follows:

NRS 388D.290 Department of Education Validation of Scholarship Organizations

1. The Department of Education shall conduct a review of Scholarship Organization practices by reviewing a statistical sample of scholarships awarded by reviewing documentation, to be provided by Scholarship Organizations, not to exceed 5 percent of the total number of scholarships awarded.
2. This review shall confirm that Scholarship Organizations are adhering to income eligibility guidelines and other regulatory and statutory requirements of this program.
3. When complete, the results of the evaluation must be provided contemporaneously to the Department and the Legislative Committee on Education.

Part IV:

Amend chapter 388D.270 (1) of NRS by adding thereto a new section to read as follows:

Should the Department of Education determine that a Scholarship Organization is in substantial and repeated violation of regulations established under 388D.270 (6), the Department may revoke the Organization’s approval to provide scholarships under section. 388D.250 of NRS.

Should a Scholarship Organization’s status be revoked by the Nevada Department of Education under this section, it shall transfer all funds collected as donations from taxpayers under this program to another approved Scholarship Organization to be used to provide scholarships in accordance with Chapter 388D.270.

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