Much has been written about the Student Scholarships for Educational Excellence Program, otherwise known as the Louisiana Scholarship Program, or the voucher program. To summarize: The Department of Education allows vouchers for almost any private school that wants them (or so it seems) and then performs minimal oversight. The students are tested, but the Department works hard to make sure taxpayers don’t get to see any useful data. The program is based on a premise that it helps poor kids access private schools. But “poor” is 2.5 times the poverty level which, for a family of four, means an annual income of $59,625 is low enough to put a kid in a private school at taxpayer expense. And, of course, the state refuses to release any data about how many children are at which ends of that range of income. And the point is, allegedly, to allow kids to escape failing public schools. Never mind that the students may have never attended a public school. Ever.
But this post isn’t about THAT voucher program. It’s about the sneaky alternative that funds private schools by way of tax rebates. The Tuition Donation Rebate Program allows donors to fund private school tuition and recoup most of that donation as a tax rebate. As might be expected, there are middlemen taking their cut of the money. At the beginning of the program, there was only one such organization — Arete Scholars Louisiana. The registered agent, Gene Mills, has apparently neglected the paperwork required to keep charter 41200779N active with the Louisiana Secretary of State. Superintendent John White’s Department of Education, with the approval of the Board of Elementary and Secondary Education (BESE), thought it was critical that there be multiple organizations available to help people support private education rather than pay taxes. So they gave grants of up to $499,750 to ACE Scholarships Louisiana (charter 41590796K) and up to $500,000 for New Schools for Baton Rouge Excellence Scholarship Fund (charter 41726088K) so that these limited-liability corporations could each set up their business of accepting donations, funneling them to private schools, and providing the documentation required for the donors to get tax rebates from the Louisiana Department of Revenue.
According to the Louisiana Nonpublic School Choice 2015 Annual Report, which was submitted to BESE but not accepted, the tuition donation rebate program started in 2013-14 with Arete. Arete’s 2013-14 Arete’s 2014 Annual Report indicates that the organization disbursed 14 scholarships, worth a total of $60,975.02, and all funded by the Atlanta Falcons. No, that’s not a typo. THOSE Atlanta Falcons. That amount was confirmed by the Louisiana Department of Revenue: One unnamed taxpayer was issued a rebate in the amount of $60,975.02 in tax year 2014.
According to the state’s 2015 annual report cited above, there were two Student Tuition Organizations active in 2014-15: Arete and ACE. Arete’s 2015 Annual Report confirms the number of scholarships reported by the state, 50, at 24 schools, with a total value of $180,381, while ACE Scholarships Louisiana LLC’s 2015 Annual Report reports 13 scholarships, three schools, and a total of $40,780.67. The donors of note on Arete’s annual report include the Atlanta Falcons, Chik-fil-A, James Garvey and several other individuals. ACE’s donors were David George and Edward Rispone. According to the Louisiana Department of Revenue, the total of rebates awarded in 2015 was $101,659.85, and they ranged in size from $950 to $47,105.
The numbers exploded in 2015-16, though, especially for ACE. The state’s voucher report indicates that Arete awarded (as of March 2016) 205 scholarships at 50 schools, ACE awarded 558 scholarships at 77 schools, and New Schools awarded 13 scholarships at four schools. The names of the schools, donors and dollar amounts likely won’t be available for several months, however.
The targets for total scholarship awards (remember those half-million dollar contracts a few paragraphs above) were 1000 for this year and 1250 for 2016-17 (ACE) and 75 and 125, respectively for New Schools. So apparently New Schools aimed low and shot lower. Perhaps that’s a good thing, in that taxpayers will see less revenue diverted away from the state’s coffers. On the other hand, this spreadsheet indicates that, as of the end of 2015, New Schools had already collected $300,000 on its contract, and ACE had already collected $249,874.98.
It’s interesting what a person can learn from availing themselves of their rights under Louisiana’s public records law (Title 44).