Relating to school district and area education agency funding and education savings accounts, and including applicability provisions

The inclusion of this explanation does not constitute agreement with the explanation’s substance by the members of the general assembly. This bill relates to public school funding and education savings accounts (ESAs). DIVISION I —— TRANSPORTATION. The bill strikes the requirement that the board of directors of a school district provide transportation services to nonpublic school pupils when the general assembly appropriates funds to the department of education for the payment of claims for transportation costs, if the nonpublic school accepts payments using funds from an ESA. The bill also specifies parents and guardians of nonpublic school students are not entitled to reimbursement for transportation costs or supplemental mileage payments, if the parent or guardian utilizes an ESA for payments to a nonpublic school. The division applies to school budget years beginning on or after July 1, 2025. DIVISION II —— SCHOOL AID FORMULA FOR NONPUBLIC SCHOOL SHARED TIME.11B. DIVISION III —— AREA EDUCATION AGENCIES MEDIA AND EDUCATION COSTS FOR NONPUBLIC STUDENTS.37. The bill strikes provisions requiring area education agencies to provide educational, programming, and professional services to nonpublic schools that accept payments from parents or guardians using an ESA and to the pupils that are the subject of such payments. DIVISION IV —— SCHOOL TUITION ORGANIZATION TAX CREDIT —— REPEAL. The bill provides that contributions made to a student tuition organization (STO) that are used by a qualified school that accepts payments from a parent using funds from an ESA are not eligible to receive the STO tax credit. The provision applies to contributions made to a school tuition organization on or after July 1, 2025. DIVISION V —— SCHOOL TUITION AND TEXTBOOK TAX CREDIT.12(b) that is equal to 25 percent of the first $2,000 the taxpayer has paid others for tuition and textbooks for each dependent receiving private instruction at an accredited nonpublic school that does not accept payments from ESA funds. The division applies to tuition and textbooks purchased for school budget years beginning on or after July 1, 2025. DIVISION VI —— CONCURRENT ENROLLMENT. The bill defines “accredited nonpublic school” for purposes of Code chapter 261E (senior year plus program) to mean a nonpublic school that does not accept payments from a parent or guardian using an ESA. By defining “accredited nonpublic school” in Code chapter 261E in this manner, a pupil who attends a nonpublic school that accepts ESA funds is not eligible for the senior year plus program under Code chapter 261E.