An Update on ESEA, SES, and Tax Incentives for Tutoring

For Middle Class Families

Education Industry Association:Legislative Update

AgendaOverview

ESEA Reauthorization – Congressional Action/Inaction

A Wave of Waivers – U.S. Department of Education

Saving SES – What We’re Doing, What You Can Do

Education Industry SES Bill

Private Pay Tutoring – Tax Incentives for Middle Class Families

ESEA Reauthorization:Congressional Action . . .and Inaction

“No news is no news” – Congress consumed by budget and debt ceiling debates

Senate Health, Education, Labor & Pensions (HELP) Committee:

Chairman Harkin vows action on ESEA bill this Spring, using Administration’s Blueprint as model

SES currently mentioned as optional tool for lowest 5% of schools Cultivating Republican support of SES; hard to find helpful

Democrats on HELP CommitteeBoth Republicans and Democrats call for more quality and accountability . . . and more District flexibility for all of ESEA

ESEA Reauthorization-Continued

House Education & Workforce Committee – Progress lagging behind Senate: Many new Members and unsure of Federal role in education Republicans campaigned to abolish USDoE; generally favor local control and

few Federal mandates (like SES) Republican’s generally “friendly” to parent choice like programs but local

control values also in play. Chairman Kline, prefers series of small bills to fix NCLB and House committee

has already produced 3: 1) edflex; 2) program elimination, and charters.

Timeline and Prediction: Congress must complete action on ESEA by October, 2011, or we skip 2012 -elections Passing ESEA will be like a “Hail-Mary” pass

May 10, 2011

A Wave of Waivers:U.S. Department of Education Chips Away at

ESEA

States and Districts nationwide – Clamoring to be excused from key directives of NCLB -- including SES -- for fiscal relief: Arne’s Plan B to fix NCLB if Congress fails to act.

Impact on 2011-12 school year less likely at this point but….?

How could waivers work? Notice in Fed Register with application that trades local flex for fed’l ed reform—like RTTT.

Waivers might be comprehensive (like stopping AYP/2014 goal) or more narrow (no SES).

Impact on the 2012-13 school year likely.

Saving SES: The Players

SES Coalition

Saving SES: Our Activities Hill Day (April 13) – On SES as a civil right, hosted by U.S. Reps

Alcee Hastings, Carolyn McCarthy

Grassroots organizing via www.tutorourchildren.org – electronic pledges (currently > 2,600)

Meetings with Democrats and Republicans, in the Senate and House – as well as with U.S. Department of Education

Letters to Secretary Duncan, from Members of the Black and Hispanic Caucuses and Leading Republicans – urging no waivers

Outreach to all policymakers by SES providers . . . to demonstrate and share SES’s success stories

Saving SES: Our Activities

Industry Bill to Improve SES

Changes to entice districts to want SES; improve provider quality, and provide more administrative funds for States and LEAs

Final bill will change based on ESEA school accountability plan

To be introduced in Senate by influential Republicans

Funds tutoring as a non-mandatory Title 1 programRequires States to reserve 20% of Title 1 funds (formerly SIG) at State level Encourages Districts to obtain new Title I tutoring fundsImproves evaluation rubric for providers based on Florida model.Provides for re-allocation of unused funds to other districts-just for tutoringContinues PPA model to fund tutoring

Industry SES Bill-continued

Requires Districts to:Implement planning and start up of tutoring on specific timeline (120/60 days from start of school)Disclose how parents and students will be informed; open enrollmentProvide school facilities to tutoring providers on same basisAllows LEAs as providers – with State oversight

Raises the bar for provider eligibility-no grandfatheringCurricula aligned with State standardsAt least five years of experience educating youth Research-based instructional methods and materialsDemonstrate financial stability-audit/liquidityEmploy tutors that meet State-determined qualifications

Holds the U.S. Department of Education accountableProgram oversightAnnual report on participation and expendituresComplaint and resolution processEvaluation of high-quality tutoring

Private Pay Tutoring – Tax Incentives for Middle Class Families

In context of tax reform legislation, expand current 529 Plans to resemble 401 (k) for “Family Education Savings Program:”

Expands college savings plan to become a “life-long” education planOwner, spouse and all qualified dependents = beneficiaries of ProgramUp to $5,000 annual before-tax salary reduction contributions, with employer matching non-taxable to employer, tax-deductible to employeeUnlimited after-tax contributions; investment return not taxedQualified expenditures to include tutoring and college preparation courses as well

as early education, college and re-training expensesFamilies get 30-40% “discount” via the tax code for their savingsQualified Providers: accreditation, state approval, or uses certified teachers

EIA’s Affordable Tutoring Coalition leads the wayActive since 2009Visible support and leadership from U.S. Senator Olympia Snowe (R-ME); U.S.

Rep. Bill Pascrell (D-NJ), and now seeking House Republicans on Ways and Means

Questions, Discussion?

What YOU can do to help.

What WE need to hear from you.

What the future looks like for ALL OF US.

Join EIA today: www.educationindustry.orgAnd the SES Coalition