Advocacy News – October 19, 2021
During the pandemic, families have seen the promise of greater flexibility in how education is delivered that can better meet individual student and family needs.
Legislation considered by the House and Senate Education committees Tuesday would give participating families access to flexible education spending accounts that would open a wide variety of opportunities that could propel students to success.
Under the legislation (HBs 5404-5, SBs 687-8), which is supported by the Michigan Chamber, MI Student Opportunity Accounts could be used by families for a wide array of possible uses, including tuition; tutoring; online courses; dual enrollment; curriculum materials; alternative education, summer school & afterschool programs; occupational, behavioral, speech-language therapies; mental health services; career counseling and training; education-related transportation; AP and college prep testing fees; athletic and extracurricular activities. All accounts are tax-exempt, limited to receiving maximum contributions each year. Unused account funds could be rolled over to future years and would be available for post-secondary expenses.
Under the legislation, accounts would be funded through scholarships from qualified nonprofit organizations, with maximum contributions capped at 90% of minimum foundation allowance. Donors to scholarship organizations could receive 100% credit on Michigan’s Individual Income Tax or Corporate Income Tax.
Please contact Wendy Block with any questions about this legislation or the Chamber’s support at wblock@michamber.com.