The Opportunity Scholarship Act
Tuesday, June 19, 2012

The Opportunity Scholarship Act (OSA)

A-2830

Description

Under a 4-year pilot program, eligible low-income children attending a chronically failing non-charter public school (CFS) or eligible to enroll in the first year of a CFS located in 7 targeted districts (Asbury Park, Camden, Elizabeth, Lakewood, Newark, Orange, and Passaic) can apply for scholarships to attend participating out-of-district public schools or any participating nonpublic schools in the State.

Ø Scholarships valued at the lower of: participating school’s actual cost or $6,000 K-8/$9,000 grades 9-12.

Ø For use at any NJ participating out-of-district public school or in-district or out-of-district nonpublic school.

Ø A chronically failing school is defined as one where 40% or more of students have failed both the math and language arts assessments for two years consecutively, or 65% or more have failed either of these during the same time. Charter Schools are excluded because parents/guardians already choose them.

Ø Maximum contributions/tax credits: $13.8 million (yr. 1), $27.6 million (yr. 2), $41.4 million (yr. 3), and $55.2 million (yr. 4) but no more than 2,000 scholarships (yr. 1), 4,000 (yr. 2), 6,000 (yr. 3) and 8,000 (yr. 4).

Ø Qualifications for children to receive scholarship:

• Family earns less than 1.85 times the current Federal Poverty Level, e.g. $40,100 for family of 4.

• Enrolled in or eligible to enroll in the lowest grade of a CFS in a targeted district.

• May use scholarship in any participating non-targeted district or nonpublic school in N.J. (grades K-12).

Ø Scholarships funded by 100% tax credit for contributions on NJ Corporate Business Tax filings, then offset by reduced State allocated education aid to cover cost of scholarships allocated to 7 targeted districts.

Ø Targeted district’s scholarship allocation based on: number of students enrolled in a targeted district’s CFS divided by the total of all 7 targeted districts’ CFS enrollment times tax credits granted. Unused scholarships after August 1 may be allocated to other target districts’ students attending a CFS, then those attending non classified CFS.

Ø NJDOE approves all Participating Nonpublic School and requires that:

• Scholarship must be accepted as payment in full for nonpublic’s cost of attendance.

• All scholarship eligible children who apply are accepted. If more students apply than seats available, a lottery is held. Siblings of enrolled students get preference. Once accepted, student enrolled for at least 2 years (unless safety/health threat) and receives scholarship until graduating 8^th or 12^th grade.

• Shall not discriminate on the basis of: intellectual or athletic ability, measures of achievement or aptitude, status as a person with disabilities, or English language proficiency. Allows single sex schools.

§ Opt-out provision for religious classes.

§ Parent acknowledges Special Ed services provided by participating school.

§ Funds cannot be used for capital improvements.

• Test scholarship students yearly using the appropriate grade level State assessment and report results.

Ø Scholarship Organization (SO) Requirements

• Must be 501(c) 3 tax exempt organization.

• SO must distribute 100% of tax credit contributions as scholarships. SO’s total administration fee of $1.5 million for 4 year pilot, allocated from State’s General Fund.

• 1 SO chosen by Opportunity Scholarship Board made up of 3 Board members appointed by Governor, with consent of Senate, that have required experience, i.e., members coming from a giving corporation, managing a non-profit entity, and, an educator of low income children.

Ø SO reporting: Annual independent audits for pilot program and 4^th year independent report of academic achievement and financial impact to all affected entities, enrollment patterns, and parental satisfaction.

Ø Reduces class size in targeted districts’ failing public schools, reduces need to build new public schools, reduces State’s contribution for public school employees’ benefits. Reduces state aid to pilot districts to cover the scholarship costs leaving remainder of state aid in the district without the child to educate, therefore increases per pupil aid to targeted school districts. In summary, OSA scholarships are “Revenue Neutral” to the State of NJ.

CONTACTS: Prime Sponsors

Legislation endorsed by the NJ School Choice and Education Reform Alliance (NJSCERA):

Rev. Reginald Jackson, Exec. Dir., Black Minister’s Council of NJ: 201-341-9865 or cell 201-341-9865

Martin Perez, President, Latino Leadership Alliance of NJ: 732-214-1166

Rev. Miguel Rivera, President, NJ Coalition of Latino Clergy and Christian Leaders: 201-637-9905

Rabbi Moshe Zev Weisberg, President, The Lakewood Jewish Community Vaad: 732-370-1631

Howard Fuller/Kevin Chavous, Founder/Chairman, Black Alliance for Educational Options: 202-544-9870

John Galandak, President, Commerce and Industry Assoc. of NJ: 201-368-2100

Mary McElroy, Director, NJ Network of Catholic School Families, Newark Archdiocese: 973-467-9396

George Corwell, Associate Director for Education, NJ Catholic Conference: 609-989-1120 ext 16

Kim Chorba, Director, NJ Network of Catholic School Families, Diocese of Metuchen: 973-907-7329

Mary Ann Boyle, Director, NJ Network of Catholic School Families, Diocese of Camden: 856-583-6107

Maria Rocco, Director, NJ Network of Catholic School Families, Diocese of Trenton: 609-406-7400

Mary Rone, President, NJ Association of Public and Subsidized Housing Residents: 973-482-0556

Christy Davis-Jackson, President and CEO of Excellent Education for Everyone (E3): 732-964-3100

Christine Healey, Executive Director, International Education Foundation: 856-235-5222

Derrell Bradford, Trustee, We Can Do Better NJ: 917-609-3944

Luis Diaz, President, Hispanic Advocacy Association (USHAA): 908-448-1162

Melanie Willoughby, Senior Vice President, NJBIA: 609-393-7707 ext. 205

Batya Jacob, Associate Director, NJ Association of Jewish Day Schools: 551-404-4447

Sondra R. Clark, President, Black United Fund: 908-561-0123

Meir Brody, Executive Director, Agudath Israel of NJ: 908 943-4859

Josh Pruzansky, NJ Director of Public Policy, Union of Orthodox Jewish Congregation of America: 732-690-7074

Kathleen A. Davis, Executive Vice President & COO, Chamber of Commerce Southern New Jersey: 856-424-7776

Jack Koumbis, Chairman, New Jersey Restaurant Association: 609-599-3316

Sal Risalvato, Executive Director, New Jersey Gasoline/C Store/Automotive Association: 973-376-0066 ext. 201

Linda Doherty, Executive Director, NJ Food Council:

John T. Tomicki, Executive Director, League of American Families: 201-725-2154

NJ SCHOOL CHOICE & EDUCATION REFORM ALLIANCE – 123 Church St., New Brunswick, NJ 08901 732-964-3100