News Summary

In Nevada, school choice advocates are rallying for a federal tax credit to support scholarship opportunities for K-12 students amid restrictions on the Opportunity Scholarship program. The proposed ‘One Big Beautiful Bill Act’ aims to eliminate funding caps and broaden eligibility, allowing families of all income levels to access educational choices. With a focus on expanding school options, Governor Joe Lombardo is assessing the federal program’s implications, while critics express concerns about potential impacts on public education.

Nevada Advocates Hope for Federal Tax Credit to Enhance School Choice Amid Legislative Challenges

Las Vegas – School choice advocates in Nevada are directing their efforts toward a new federal program aimed at supporting scholarship opportunities for K-12 students amid limitations on the state’s Opportunity Scholarship program, which has been faced with political hurdles. The proposed “One Big Beautiful Bill Act,” part of President Trump’s spending bill, includes a provision for a federal tax credit designed to help fund scholarships for educational expenses, including private school tuition.

Currently, Nevada’s Opportunity Scholarship program is constrained by a funding cap of $6.65 million, which has severely limited its impact. Under this program, fewer than 2,000 students can receive scholarships, primarily targeting lower-income families. In comparison, the anticipated federal program, set to launch in 2027, eliminates funding caps and extends eligibility to higher-income families, providing greater access to educational choices.

To participate in the federal program, states must opt in and select scholarship granting organizations (SGOs) to manage donations and allocate scholarships. Details on scholarship amounts are still pending. The bill mandates that states provide lists of approved SGOs by January 1 each year to remain eligible for the program. Support for this initiative is expected from states with Republican governance, though Democratic governors may face internal pressures regarding participation.

Current State of School Choice in Nevada

Governor Joe Lombardo, a proponent of school choice, is currently evaluating the implications of the federal bill to enhance educational options for Nevada students. However, Democratic leaders, including Senate Majority Leader Nicole Cannizzaro and Assembly Speaker Steve Yeager, have not made any public statements regarding the potential impact of the federal program on state education policy.

School choice proponents argue that the new federal initiative is essential for addressing the lack of educational options available to Nevada families, especially since attempts to expand school choice options have stalled due to Democratic control of the state legislature since 2016. Presently, the Opportunity Scholarship program allows corporations to provide donations to SGOs in exchange for a modified business tax credit, specifically designed for families earning up to 300% of the federal poverty level.

Impact of Current Programs

In 2023, approximately 1,800 students received Opportunity Scholarships, with the average income of recipients ranging from $55,000 to $59,000. However, the program has faced budgetary limitations, leading to reduced funding caps over the years, which have subsequently affected school enrollments. The financial restrictions have also contributed to the closure of several Catholic schools within the Las Vegas area.

The newly proposed federal tax credit program would offer a dollar-for-dollar tax credit for individual donations up to $1,700 to SGOs, although corporations will not have the option to donate directly. Estimated to cost the federal government between $3 billion to $4 billion annually, this program is expected to significantly broaden scholarship eligibility, extending beyond current private school students to include those attending public and charter schools.

Concerns and Criticism

Critics of school voucher programs continue to express concerns about the potential privatization of education and the diversion of much-needed resources away from public schools. They cite historical issues with oversight and the potential for negative academic outcomes associated with such programs. In Nevada, approximately 63,000 students are currently enrolled in charter schools, while 22,000 are in private institutions.

The Opportunity Scholarship provides families with up to $9,800 per year for tuition at private or charter schools, funded through tax credits rather than state budget allocations. Despite attempts by Governor Lombardo to significantly increase program funding to $50 million in the recent legislative session, these efforts were unsuccessful. As the 83rd session of the Nevada legislature approaches, school choice is expected to be a pivotal issue in deliberations.

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Additional Resources

• The Nevada Independent
• Reno Gazette Journal
• Nevada Appeal
• KOLO TV
• Las Vegas Review-Journal
• Wikipedia: School Choice
• Google Search: Nevada School Choice
• Google Scholar: School Choice Nevada
• Encyclopedia Britannica: School Choice
• Google News: School Choice Nevada

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