Education Industry Association: Legislative Update

1. Education Industry Association:Legislative Update An Update on ESEA, SES, and Tax Incentives for Tutoring For Middle Class Families

2. Agenda • Overview • 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

3. 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 Committee • Both Republicans and Democrats call for more quality and accountability . . . and more District flexibility for all of ESEA

4. 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

5. 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.

6. Saving SES: The Players SES Coalition

7. 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

8. Saving SES: Our Activities

9. 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 program • Requires States to reserve 20% of Title 1 funds (formerly SIG) at State level • Encourages Districts to obtain new Title I tutoring funds • Improves evaluation rubric for providers based on Florida model. • Provides for re-allocation of unused funds to other districts-just for tutoring • Continues PPA model to fund tutoring

10. 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 enrollment • Provide school facilities to tutoring providers on same basis • Allows LEAs as providers – with State oversight • Raises the bar for provider eligibility-no grandfathering • Curricula aligned with State standards • At least five years of experience educating youth • Research-based instructional methods and materials • Demonstrate financial stability-audit/liquidity • Employ tutors that meet State-determined qualifications • Holds the U.S. Department of Education accountable • Program oversight • Annual report on participation and expenditures • Complaint and resolution process • Evaluation of high-quality tutoring

11. 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 plan • Owner, spouse and all qualified dependents = beneficiaries of Program • Up to $5,000 annual before-tax salary reduction contributions, with employer matching non-taxable to employer, tax-deductible to employee • Unlimited after-tax contributions; investment return not taxed • Qualified expenditures to include tutoring and college preparation courses as well as early education, college and re-training expenses • Families get 30-40% “discount” via the tax code for their savings • Qualified Providers: accreditation, state approval, or uses certified teachers • EIA’s Affordable Tutoring Coalition leads the way • Active since 2009 • Visible 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

12. 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.org • And the SES Coalition