The Alabama Republican Party opposes adding a funding cap to the school choice bill currently making its way through the legislature, ALGOP chairman John Wahl said on Monday.
The Alabama House of Representatives passed the CHOOSE Act, an education savings account (ESA) bill, last week, 69-34.
As the legislation awaits the Alabama Senate's consideration this week, the Alabama Education Association (AEA) is urging its members to ask for a funding cap.
House Bill 129 (HB129) would allow the Department of Revenue to manage the ESAs for approved students. The ESA would be funded through a refundable income tax credit made available to eligible parents. The individual credit would be $7,000 for students in participating schools, while non-participating school students – such as homeschooled students – are $2,000 per student and $4,000 per family.
"The Republican Party has been working towards School Choice for years, and we are thrilled to finally see it getting close to the finish line. We expect HB129 to be passed into law this week. A child's quality of education should never be based on their background or where they live. We believe every family should have the opportunity to receive a better education, and School Choice is an important part in accomplishing that goal. It's time to put parents back in control of their children's education," Wahl said on Monday. "The Republican Party does not support adding a monetary cap to School Choice in Alabama. We believe every student should have access to a better education. Placing a cap on this bill would be discriminatory to many Alabama students, leaving families who should be able to participate out in the cold. Such a system would be unfair, and quite simply bad policy for any state. The bottom line is that Alabama parents must be making the decisions for their children, not a government bureaucracy or an education union. We thank Governor Ivey for making this a legislative priority. Now is the time to pass School Choice and put parents back in the driver's seat."
Under the bill, the legislature is required to appropriate not less than $100 million to the program's fund, beginning with appropriations made for the fiscal year ending September 30, 2026, and continuing annually thereafter.
The bill also states in future fiscal years, it is the intent of the legislature to increase appropriations to the CHOOSE Act Fund if the Commissioner of Revenue certifies that increased appropriations are necessary to satisfy consumer demand for the program based on prior-year participation in the program as reflected by the expenditure of ninety percent or more of the funds available in the CHOOSE Act Fund.
All funds received by the CHOOSE Act Fund shall remain in the CHOOSE Act Fund and shall not revert or be expended for any purpose other than the tax credits authorized by the act unless more than $500 million in excess, unused, accumulated funds is in the CHOOSE Act Fund. Before the end of each year, the Commissioner of Revenue shall determine the amount of excess, unused, accumulated money in the Fund. If the amount of excess, unused, accumulated money in the Fund as determined by the Commissioner exceeds $500 million, then such excess shall revert to the Education Trust Fund to become available for appropriation by the legislature.
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