Students First Act draws local praise, criticism

Jan. 27—Local private schools are celebrating the passage of what could be considered one of Gov. Kim Reynolds' most ambitious yet controversial legislative victories to date.

On Tuesday, Reynolds signed the Students First Act into law. The Students First Act, or House File 68, establishes an education savings account program for K-12 students to receive taxpayer dollars to fund the cost of private school tuition.

"Public schools are the foundation of our education system and for most families they will continue to be the option of choice, but they aren't the only choice," Reynolds said. "For some families, a different path may be better for their children. With this bill, every child in Iowa, regardless of zip code or income, will have access to the school best suited for them."

Beginning the 2023-24 academic year, all students with a family income at or below 300% of the federal poverty line will be eligible to receive $7,598 each to fund tuition and other associated costs for a private school education. Income eligibility will increase to 400% at or below the federal poverty line for the 2024-25 academic year, with no income limit beginning the third year of the program.

The bill will also give public school districts $1,205 for every student in the district who chooses instead to enroll in a private school.

The program is estimated to cost about $106.9 million in the first year, then about $345 million per year once income restrictions are phased out, according to estimates provided by the governor's office and the nonpartisan Legislative Services Agency. These estimates do not include the cost of a third-party vendor to manage the program. Once a vendor is selected and the system is implemented, Reynolds said applications will be accepted through June 30, 2023.

James Wessling, principal of Seton Catholic School in Ottumwa, sees the bill as a "huge win" for school choice and hopes the new bill will increase enrollment.

"It's a huge win for people of school choice and allows the money to follow the student. We're excited because I think it gives more opportunities to families who may not have looked at us before," he said. "It'll be affordable now and hopefully increase our enrollment."

Tracey Menninga, principal of Ottumwa Christian School, echoed Wessling's thoughts on school choice, noting the bill will provide more options for families and help alleviate financial obstacles.

"I'm just thankful there is that opportunity for choice, and that it alleviates the financial burden. It levels the playing field and removes the financial obstacle. I know many families that make sacrifices to send their children here.

"There are always two sides to this, but this will provide support to public schools and we do want public schools and homeschooling to be an option."

While Reynolds and other proponents of the bill say the program will not have a negative impact on public schools, others are not convinced.

Andy Maw, of Ottumwa, addressed the Ottumwa Board of Education about his concerns at their regular meeting Monday prior to the bill's signing.

"I believe in our public schools and our public education. I am deeply disturbed about what's happening in Des Moines and what they're trying to do to our public schools ...They are trying to lure our kids away from our public schools and into private schools," Maw said. "We have programs that the private schools do not have, and I think we need to protect those before they can actually acquire that competitive advantage."

Maw asked the board to not engage in any new potential sharing agreements with private schools that could arise from the program.

"I would like to ask you [Ottumwa Board of Education] to adopt a policy that Ottumwa Schools does not accept any sharing agreements with our private schools in our community, and that we will make it a policy that we will not engage with other private schools around the state in extra-curricular activities because of the situation unfolding," he said.

"If this is about competitiveness and school choice, parents and students can choose to go to those private schools without those programs, or they can choose to be with us. That's why I'm saying no to sharing agreements."

Ottumwa Schools Superintendent Mike McGrory said "everyone in public schools" is concerned about how the program will affect public school funding, especially in more rural areas.

"Seventy-five percent of our school districts in Iowa don't have private schools, so they're not concerned about losing students to the private schools. What they're concerned about is the cost of this bill," he said. "Over time ... it could be a billion dollars ... so where is that cost going to come from? And I think everybody knows it's going to come from public education.

"The fear for smaller school districts is that they're going to [potentially] have to consolidate or cut teachers, those type of things."

According to a map created by the Cedar Rapids Gazette using data from the Iowa Department of Education, 42 of Iowa's 99 counties have no private schools, with 75 counties lacking 12th grade private school option. There are seven private schools in the Oskaloosa Herald and Ottumwa Courier coverage area, which includes Wapello, Mahaska, Marion, Jefferson, Van Buren, Davis, Monroe and Appanoose Counties. Van Buren, Davis, Monroe and Appanoose have no private schools.

However, because of the district's size and the number of students who currently open enroll, McGrory said this is not a concern for him at this time.

"I don't see a mass exodus, at least initially," he said. "I don't see that happening."

McGrory said his constituents have also expressed frustration with the lack of government oversight when it comes to using taxpayer dollars to fund private institutions. Additionally, there's no law or provision that will keep private schools from increasing their tuition from year-to-year.

"Accountability doesn't appear to be in the bill that the public schools have. The private schools won't have that," he said. "Even to the point where it isn't really clear ... about the $7,600 per pupil. Say a private school charges $5,000 for tuition. Can that individual family then use that for clothing? Can they use that for supplies? How does that work? I can't believe that would happen, but it's unclear."

The final bill signed by Reynolds Tuesday says the $7,598 per student can be used for "qualified educational expenses," which include tuition; fees; textbooks; tutoring; cognitive skills training; software and materials for classes and programs; education materials and services for pupils with disabilities, including costs for trained paraprofessionals and assistants; standardized test fees; and advanced placement exams. It cannot be used to cover costs for transportation, food/refreshments, clothing and "disposable materials," like paper, notebooks, pencils, etc.

Ottumwa Courier staff writer Chad Drury contributed to this report.

Emily Hawk is the associate editor of the Ottumwa Courier and the Oskaloosa Herald. She can be reached at ehawk@ottumwacourier.com.