Iowa families can begin applying for private school assistance program. Here's how

May 31—Iowa families can begin signing up starting at 8 a.m. Wednesday for a new state-funded private school financial assistance program.

The program, signed into law by Iowa Gov. Kim Reynolds in January, will be phased in over four years until all K-12 students in Iowa will be eligible for roughly $7,600 per year in public funding to put toward private school tuition or other private school expenses.

The program is expected to cost $107 million in the first year and $345 million by 2027, when fully implemented. In total, over the course of four years, the program would cost the state an estimated $879 million.

A New York-based company, Odyssey, that administers similar programs in other states has been contracted by Iowa to operate the program.

For the first academic year, applications for the new Students First Education Savings Accounts will be accepted through June 30.

The legislation was approved this year with only Republican support. Supporters said the program will provide greater choice for families in their child's education. Democrats and critics say it will divert state funding from public schools and will disproportionately benefit higher-income families.

"For families that attend one of the 75 percent of public schools in a rural area without access to a private school, there is no new 'choice' for them, it only means fewer opportunities for their kids," Iowa House Democratic Leader Jennifer Konfrst, of Windsor Heights, said in a statement. "Democrats will continue to hold the Governor and Republican politicians accountable at every turn until they drop the politics and start listening to Iowans."

Iowa State Auditor Rob Sand, a Democrat, has bemoaned a lack of accountability and transparency over how the taxpayer dollars are spent by private schools, which must be accredited by the Iowa Department of Education.

Reynolds released a video message Wednesday for the launch of her signature school choice legislation.

"Today, we're changing the face of education in Iowa and influencing what it looks like nationwide," Reynolds says in the video. "I believe that school choice will improve our overall education experience in Iowa. I believe it will create a system of schools, both public and private, that are driven by student-centered missions."

Reynolds said "education is the great equalizer," and stressed the importance of removing "boundaries" between public and private schools, and to ensure families can send their children to the school of their choice.

As of mid afternoon Wednesday, more 5,000 families have applied for the Students First ESA program, according to the governor's office.

How do I apply?

Parents and guardians can access the application on the Iowa Department of Education'sESA website at educateiowa.gov. The link redirects them to the Students First ESA platform managed by Odyssey. Applications are in English or Spanish.

At this point in the process, parents and guardians will not be asked to provide a name for an accredited private school. After applications are approved, they will be asked to supply that specific information starting July 15.

Parents or guardians who choose to enroll their children in an accredited non-public school will receive an amount equal to the per-pupil funding allocated to public school districts for each eligible child. The per-pupil funding for the 2023-24 school year will be $7,635. Half of the money will be available to pay tuition and approved expenses for the fall semester and the remaining half will be available for the spring semester.

Funds will be deposited into an education savings account to be used for tuition, fees and other qualified expenses. The money cannot be used to pay preschool tuition.

ESA funds must be used for kindergarten through 12th grade education at an accredited private school in Iowa. That includes an online private school, provided the student is enrolled full-time and the school is accredited through the state.

Which Iowa students are eligible?

All incoming kindergartners and all K-12 students currently attending a public school who choose to enroll in an accredited non-public school for the 2023-2024 school year are eligible for the ESA program, regardless of income.

Students who attended an accredited non-public school at any time this school year are eligible for the 2023-24 school year, if their household income is at or below 300 percent of the 2023 federal poverty level ($90,000 for a family of four).

Income eligibility will be automatically verified during the application process using the parent's or guardian's 2022 Iowa state tax return. If a parent or guardian did not file a 2022 state tax return, other documentation will be required to complete the application.

Income requirements will be phased out:

Year one (2023-24)

— All incoming kindergarten students

— All public school students

— Private school students at or below 300 percent of the federal poverty level

Year two (2024-25)

— All incoming kindergarten students

— All public school students

— Private school students at or below 400 percent of the federal poverty level that will be updated January 2024

Year three (2025-26)

— All K-12 students in Iowa, regardless of income

What about home-school students — are they eligible?

Yes, so long as they are to become a full-time student at an accredited non-public school. There are no income restrictions.

What information do I have to provide?

Parents and guardians applying will need the following information:

— Parent or guardian legal name, current address, Social Security number or individual taxpayer identification number and contact information (email address and phone number that can receive text messages for updates) and preferred language (English or Spanish)

— Address used for the 2022 Iowa state tax return, if different from current address

— Spouse's Social Security number or individual taxpayer identification number

— Student's legal name, date of birth and address, if different from the parent or guardian's address

A parent or guardian must also check boxes acknowledging:

— they must follow state laws and administrative rules governing the program

— by participating their student is required to take all applicable state and federally required students assessments, and results submitted to the Iowa Department of Education

— they authorize the Iowa Department of Revenue to release tax information to the Iowa Department of Education

— they consent to sharing financial and personally identifiable information from student records with any individual or organization necessary for participation in the program, with the understanding such information will be kept private and protected and not released without consent, unless required under applicable state or federal law

What information will be used to verify Iowa residency?

Residency will be verified using the parent or guardian's 2022 Iowa tax return. If they did not file a state tax return, they will need a current Iowa driver's license or a copy of their current mortgage, lease or utility bill, plus one of the following:

— Iowa voter registration card

— claim of a homestead tax credit or military tax exemption on an Iowa home

— active checking or savings account with an Iowa address

— other related documents and correspondence with an Iowa address during the tax period

— a signed, written statement from a parent or guardian claiming Iowa residency and related documents with an Iowa address

What if I have more than one child who is eligible? Do I need to fill out an application for each?

No. Only one application per family is needed.

What can the money be used for?

The educational savings accounts must first be used to pay for tuition and fees. Any remaining funds can be used for other eligible expenses, like textbooks, computers, software or tutoring sessions.

Odyssey will host a marketplace that will serve as the only eligible place for Iowa families to spend ESA funding on those other eligible expenses. Any purchases made outside Odyssey's marketplace will not be eligible for reimbursement, a company official said during a webinar last week.

Money cannot be used on clothing, school supplies, child care or transportation costs.

Iowa's Student First Act ESA Program: Eligible and Ineligible Expenses by Gazetteonline on Scribd

How long will it take to know if I've been approved?

Applications that are able to be verified through state tax return data should receive a response within 30 minutes of completion, according to the Iowa Department of Education. Applications that require additional documentation verification or manual review will take more time.

When will I receive the money?

Funds will be available starting July 15, or 30 days after the application is verified and approved, whichever is later.

If my student is eligible for an ESA for the 2023-24 school year, will I need to apply the next year?

Any student who is approved for an ESA and remains an Iowa resident is automatically eligible for funding for following school year, but still will need to submit an application through the Odyssey platform.

If ESA funding is more than tuition and fees, can I use the remaining funds to pay tuition and fees for another child?

No. ESA funding is specific to the individual student. ESA funds from one account may not be used to pay for costs related to another student.

Where can I learn more?

Parents and guardians can find answers to frequently asked questions about the application process, eligibility and more on the Iowa Department of Education'sESA website. Technical support will be available from Odyssey representatives by calling 515-368-9564 or emailing help.ia@withodyssey.com.

Families can also watch an application training webinar and view a PowerPoint presentation for families in English and Spanish.

Parents and guardians can also email studentsfirst@iowa.gov or call 515-954-5652 for more information.

Odyssey ESA application PowerPoint for Iowa families by Gazetteonline on Scribd

Iowa's Students First Act Cuentas de ahorro para Educación Capacitación para padres/guardianes by Gazetteonline on Scribd

Comments: (319) 398-8499; tom.barton@thegazette.com

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