More Choices, Brighter Futures: Expanding Education Freedom

The Committee on Education and Workforce will please come to order. A quorum is present. The committee meets today pursuant to notice, and without objection, uh the chair may recess the committee at any point. I think the only reason for that would be to go outside, enjoy the beautiful weather and the views around this community. Good morning and welcome to the Committee on Education and Workforce. We're here this morning to discuss school choice. We should begin with a simple principle. Parents know what's best for their kids. That's especially true when it comes to education. Parents know better than anyone else when their child is thriving, when their child is struggling, and when a new approach is needed. Our education system should respect parents' fundamental right to direct their children's education. School choice policies empower families to select the educational environment best suited for their children's unique needs and supplement their schooling with additional resources and services to support their yearn- uh their learning. Fortunately, school choice programs have seen remarkable growth across the country in recent years. In the last academic year there were seventy-five private school choice programs across thirty-four states serving roughly one point five million students, almost three times as many students as just four years ago. Millions more benefit from charter schools, micro-schools and homeschooling. Since two thousand five the number of charter schools has doubled, and charter enrollment has tripled to nearly four million students. There's a reason parents are so ego- eager for more educational options. According to the most recent Nations Report card, only thirty percent, thirty percent, of eighth graders were proficient in reading, and only twenty-eight percent were proficient in math. Behind these numbers are millions of children whose futures depend on getting a high-quality education. School choice programs can put students back on track toward academic excellence. Studies indicate that students enrolled in private school choice programs achieve better academic results than their peers in traditional public schools. And they graduate from high school and college at higher rates. Research also shows that school choice programs improve traditional public schools by providing much needed competition. School choice is a win for students, for parents, and communities. And these programs are about to receive a critical boost. Starting in January of this year, the ed- or this coming year, the Education Freedom Tax Credit passed as part of the Working Families Tax Cuts package will go live allowing filers to receive up to seventeen hundred dollars off their federal tax bill for donations uh to scholarship granting organizations, thirty- four hundred dollars per couple. In turn, these organizations will offer scholarships to K-twelve students to cover a range of educational expenses, including private school tuition, homeschooling expenses, or enrichment programs at public schools. With billions projected to be made available for scholarships in the coming years, the program will help bring educational freedom within reach for millions of families. However, the benefits of the Education Freedom Tax credit may not be available in all fifty states. Governors must choose to opt their states into the program. Unfortunately, Pennsylvania, and may I add, Michigan as well, is one or two of nineteen states that has not yet opted in. Failing to opt in means leaving millions of dollars for students and families on the table and disregarding the seventy-one percent of Pennsylvania and, may I add, Michigan families on the table uh, and - and voters who want to participate. Tens of thousands of Pennsylvania families want access to state-level school-choice programs, but have been denied that opportunity because the state provides insufficient resources for these programs. Pennsylvania should not stand in the way of families seeking better educational opportunities for their children. The state should opt into the Education Freedom Tax Credit and provide a vital lifeline for these families. Today we'll hear from our panel of witnesses about promise of school choice for students and families. The remarkable track record of options such as charter schools and the benefits the Education Freedom Tax Credit can offer states looking to support their students. At the heart of today's discussion is a question that matters deeply to every parent. How do we give our children the best possible chance to succeed? I thank our witnesses for being here today, and I look forward to hearing their testimony. Um. Normally, I would yield to the Democrat member to make their statement, uh, but none chose to be here today, sadly. And so pursuant to Committee Rule eight C, all members who wish to insert written statements into the record may do so, by submitting them to the Committee Clerk electronically in Microsoft Word format, by five PM, fourteen days after this hearing. And without objection, the hearing record will remain open for fourteen days to allow such statements and other extraneous material Noted during the hearing to be submitted for the official hearing record. I'll now turn to the introduction of our witnesses. Our first witness is Mr. Nathan Benef- Benfield, Chief Policy Offer at the Commonwealth uh Foundation in Harrisburg, Pennsylvania. Welcome. Our second witness is Miss Ellen Perez Valdez, Future Leaders Fellow at AFC in Miami, Florida. In this weather beautiful up here.

It is.

Our third witness is Miss Susan Spica?

Yep.

Got it right, Spica, Executive Director at Education Voters of Pennsylvania in Harrisburg, Pennsylvania. And I would note, thankfully, uh, the Democrat chosen witness. Thanks for being here. Our final witness is Merrick, Eric Paesner, Chief Legal Officer at the National Alliance for Public Charter Schools in Washington DC. Welcome. We thank the witnesses for being here today. Pursuant to committee rules, I would ask that you each limit your oral presentation to a five minute summary of your written statement. I would also like to remind the witnesses to be aware of the responsibility to provide accurate information to the committee. And so now I will first recognize Mister Benefield for your testimony.

Thank thank you Chairman Walberg and thanks to the members of the committee for this opportunity to t- to testify and uh thanks for coming to Pennsylvania to talk about this important topic uh as mentioned uh I'm the Chief Policy Officer with the Commonwealth Foundation we are uh a public policy research and advocacy organization in Pennsylvania, um, focused on the mission of uh, advancing free market ideas so that all Pennsylvanians can - can thrive. Um, as you mentioned, the - the federal scholarship tax credit, uh, which has also been called to the Education Freedom Tax Credit, uh, originally was the Education Choice for Children Act. Um, we tend to use the - the term " federal scholarship tax credit", uh, which matches the IRS rules, uh, also explains what it is very clearly since a lot of people are still unfamiliar with - with that, unfortunately. Um, but it, uh, the same name applies to the o- same program. Um, as mentioned, beginning next year, um, individuals can give up to seventy-hundred dollars, um, and married couples up to thirty-four hundred dollars, and get all that money back, um, by donating to a scholarship organization. Um, but unfortunately, students are only going to benefit if our governor opts into the program. Uh, this is a - a tremendous opportunity for Pennsylvania, uh, and really builds on the experience we've had here in our state, uh, with a - a scholarship tax credit program for twenty-five years. Um, under the state programs, um, the Education Improvement Tax Credit, um, we have several buckets. It goes to K-twelve scholarships, Pre-K scholarships, uh, as well as education improvement organizations that work in public schools. Uh, we found, um, that program now has more than two hundred scholarship organizations across Pennsylvania serving more than a hundred thousand students with scholarships um the latest numbers show that the average scholarship was only around twenty-six hundred dollars per student, uh that compares to twenty-four thousand dollars in public schools. So we're serving students uh for - for a lot less, uh and serving students in every single Pennsylvania county, from the most urban in Philadelphia to the most rural county, uh every county has students being served by these scholarship programs. We also know that they are reaching low and middle income households. Uh, while the state doesn't collect data, uh, common law legislation did go out and do a lot of research on this, finding that the average um, family income of uh, students being served in this program is between forty-four thousand and seventy-eight thousand um, based on this fellowship organization. Um, that compares to um, it's much less in the state average family income and much less than the income limits under the program. Uh, so do scholarship organizations choosing to, uh, to provide scholarships to the students who have, uh, the most need? Um, I'll highlight a few of those in examples in my written testimony of, um, schools that are serving, uh, students under forty thousand dollars, uh, per family. I'm really trying to target their - their need. Uh, unfortunately, Um, almost seventy thousand scholarship applications were not be able to be filled last year because of limits on the program. That's where the federal scholarship tax credit can come in and really supplement that. Um, under this program, um, evidence indicates about ninety percent of Pennsylvania students would be eligible. Um, that's even higher in low-income areas. Um, our assessment is about ninety-five to ninety-eight percent of students in Allentown, uh, here, uh, would be eligible to - to receive scholarships under this program. Um, additionally, um, how much can that generate for Pennsylvania? Um, there's different models of this, but, uh, one suggested if just ten percent of taxpayers who can give up to the maximum do so, uh, that would yield seven hundred million dollars in scholarships for Pennsylvania students um but again that's not a guaranteed amount. Um, but also means that if the g- our governor does not opt in, that money can flow to other states. Um. And, uh, already thirty-one states have opted in, including most recently our neighbors uh to the north of New York. Um, Governor Hochul indicated intention to opt in. Um, again, nothing against New York, but I want - I would hope Pennsylvania dollars can stay here and help Pennsylvania students, um, which is very important for our Governor to opt in and take advantage of that. Um, and also just wanted to throw out that, um, the one difference between this program and the state program is this program can also benefit students in public schools. Um, it can o- it's open to anyone in public schools, charter schools, cyber schools, um, and things for - from tutoring, special education, services, books, supplies, uh, extended day programming like after school programs. Um, we actually have, uh, in our state program, um, organizations that work with public schools, uh, almost a hundred and twenty organizations that do things like after school program. do recreational um arts and culture programs, zoos, symphonies, uh and organizations that do services just for students with special needs, they would also be able to benefit from this program, helping students that are in public schools. Uh, so clearly it's a win-win. Um, and that's uh what polling shows. We've done some polling at Commonwealth Foundation. Um, seventy-one percent of Pennsylvania um voters support to having the governor opt in this program and they see the benefit of it um even as a l- not enough information about it, but there is widespread support for doing this. Uh, so it's, it is a no-brainer, it would really help Pennsylvania students uh to expand this and fill the need that currently exists here in the Commonwealth. Thank you for your time and I'll look forward to questions.

Thank you. Now I turn to uh Miss Perez-Valdez for your testimony.

Thank you for having me and I really appreciate this invitation. My name is Elin Perez-Valdez and I am from Miami, Florida, and I am here with you today because I am a beneficiary of school choice. My mother was an immigrant, and she understood the quality of a good education. However, as a single mother, she faced many financial hardships, and she worked so hard to take care of our family, but putting me in private school at first gate was not there for her. She didn't have the money for it. However, at the same time, I was also diagnosed with three autoimmune disorders as a child. Because of that, I needed different medications and treatments to be given to me throughout the school days so I could have a successful life, so I could be healthy. Unfortunately, with the public school that I was initially zoned for, they could not meet my medical needs. I ended up hospitalized for four months and I had to repeat kindergarten. So, when it came time for my mother to find a new school for me, she found the Step Up for Students Tax Credit scholarship in Miami, Florida. Through that scholarship, she was able to put me in a private school, where I had a nurse that could take care of me on the daily. She could give me my medications, my treatments at the exact time, and my mother knew that I was safe. in this private school with a nurse, that what occurred before would not happen again, and I had a chance at survival, had a chance of succeeding and receiving a good education. School choice gave her the opportunity for survival. School choice gave her the opportunity for me to succeed and be where I am today. I'm a University of Miami student, studying Psychology and Public Relations. I'm the first in my family to go to college. I'm the first in my family to receive a higher education. And I couldn't be more proud of that. I am so grateful for the opportunity that school choice gave me. I often hear that many people say that school choice does not cater to people with special needs but I am full proof that that is not true. I wouldn't be here today if it wasn't for the nurse that I had at private school. And I'm not saying that private school is perfect for every child, because it's not. But, I'm here to fight for options. I'm here to fight that every child deserves an option. for a school that works best for them. Not every child can succeed at a public school, not every child can succeed at a private school. But the need is for options. That is basically all that we need. School Trades gave me the opportunity for an environment where I s- could succeed, an environment where I didn't have to worry about if I could have my medications, have my treatments, because I knew that it was going to be there. I knew that no matter what, I would be called down to the office, to the Nurses' Aids office, and be like, " Hi, You need to take your medications and your treatments, and then you can continue to go about your day. I learned math, I learned English. I graduated at the top of my high school. I started a not-for-profit, and I've been a Future Leaders Fellow with AFC. I've done so many things, um, in the course of my life, and uh the majority of that, I could be very grateful to school choice for it. Um, no child should have to choose between receiving the medical support that they need and receiving the education that they deserve. I just I could not be more grateful for all that school choice has given me, and I just wouldn't be here without it today. So, thank you for your time in allowing me to share my story. I'm happy to answer any questions.

Thank you. We're delighted that you're able to be here today, and especially with the with the story that you have. Thank you for sharing it.

Thank you.

Uh, I'll now recognize Miss Spickup for your testimony.

Thank you. Um, thanks, thank you for inviting me to present this testimony today. I'm, my name is Susan Spica, I'm the Executive Director of Education Voters of Pennsylvania, the organization whose views I'm representing today. So, Pennsylvania invests heavily in providing families with choice outside of public school districts, with mixed results in terms of student achievement. Taxpayers spend around three point three billion dollars annually on tuition to fourteen cyber-charter and about a hundred and sixty brick-and-mortar charter schools. that enroll over a hundred and thirty-five thousand students. An additional five hundred and seventy-five million dollars is allocated through the educational tax credit programs. Um, the and cybercharters perform poorly, um, in terms of graduation rates and academic outcomes. Brick-and-mortar charters vary in quality, and the state law prohibits collecting achievement data for private schools, so we have no idea what quality education students who attend these receive. School districts also operate more than eighty career and technical centers that educate over seventy-six thousand students. They are very successful programs, howe- however, many have wait lists because public school districts lack adequate funding to meet student demand. The question at hand today is what additional opportunities would federal vouchers create and who would benefit from the program, which is, uh, determined to, estimated to cost a staggering twenty-six billion dollars by twenty-thirty. So, first we need to be clear that if voucher dollars do go to private schools, families will have increased choice only if private schools choose to enroll their children. Proposed regulations have clarified that states will have no ability to prohibit private and religious schools from discriminating against students, because of the way they learn, who they love, how they worship, and the list goes on. Some have suggested that the federal voucher dollars could be used to support public schools. However, recent regulations omit what constitute eligible expenses, So it's not yet clear how or even if voucher dollars could reach public schools. And the law is clear on this, voucher dollars must be allocated to individual students to pay for specific fees. Public school districts cannot use voucher funding to pay for teachers' programs or services that their schools offer to all students at no costs. Um, I am a trustee on my school district foundation board in Shippensburg where the median family income is about seventy thousand dollars. Because individuals would need to earn about eighty-five thousand dollars to have the seventeen hundred dollar fa- federal tax liability to direct to an SGO, to support our district, we would have a very small pool of individuals with this tax liability locally to support our students. And while individuals outside of our school district could contribute to an SGO that would support our local students, a Brookings institution analysis finds that this would deviate from typical giving patterns, and it would be very unrealistic for school districts to plan for this type of giving at scale. Um, our district intentionally charges very few fees so that students' educational experiences are not based on their family's ability to pay. As a result, as a result, the benefit of federal vouchers would be small. Um, and because none of the voucher funding could be used to support the district budget including substantial staff time to administer the program, federal vouchers would likely be a net negative for our district. This is a program that is really a program for private school vouchers. Um, and, you know, any complicated machinations a public school district would do, like start billing students for a tutoring program, would raise all sorts of issues about how the money would flow, who would receive it, and what would happen if it came up short. And ultimately, here in Pennsylvania, a scheme that rations access by lottery would very likely be immediately flagged as violating the twenty twenty three commonwealth court ruling that declared education a fundamental right under the state's constitution. John Ballin, uh the director of the Brown Center on Education Policy, recently called this program title one for rich kids. This is exactly how we should expect it to function. The law allows families making up to three hundred percent of an area's meeting i median income to participate in the program. In Northampton County, that would mean a family of four making up to three hundred and thirteen thousand dollars could benefit. They could receive vouchers to pay for a private school tuition, eighty-five dollar an hour private tutors, and the list goes on. "Vouchers given to wealthy families won't create more opportunities or choices for most most most students. They will simply put money in the pockets of people who already have a lot." Um, I think that we can all agree that what most parents want is to be able to send their kid to a high quality neighborhood school that will provide them with the skills they need to be successful after graduation. The federal voucher won't bring Pe- bring Pennsylvania any closer to achieving this goal for most families in the Commonwealth. If policymakers in Washington DC have twenty-six billion dollars to spend on educating the nation's students, they should invest these dollars in Title I and IDEA, which are programs that target funding to support students who need the most. And these are programs that have a proven track record of success in improving student outcomes.

Thank you. Uh, lastly, I'll recognize uh, Mister Peissner for your testimony.

Chairman Walberg, Representative Mackenzie, Representative Messmer, thank you for the opportunity to testify. And thank you, Representative Mackenzie, for bringing this hearing to the Lehigh Valley. These conversations belong in the communities where our children live, and I'm grateful to be a part of this one. I serve as the Chief Legal Officer of the National Alliance for Public Charter Schools. I'm also a charter school parent, so I see the benefits of charter schools not only in my work, but in my own family. I experience first-hand how charter schools directly serve the families who choose them. My sixth grader recently remarked how he, low-key, prefers half days to days off. He gets to have shortened shortened versions of all of his classes, and he sees his friends, instead of hanging out with no schedule and no learning. I was shocked, but his charter school is obviously doing something right. Thousands of Lehigh Valley families have made the same choice. My message today is simple. Charter schools work, and Pennsylvania families deserve more of them. Policymakers should clear the way for charters to grow. Charter schools are public schools, tuition-free, open to all, and accountable for results. Nearly four million students, an all-time high, attend charter schools in forty-six states. Charter schools are schools of choice. No child is assigned to one, and families can leave at any time. As a parent, I see that accountability firsthand. Charter schools are earning parents' trust with their results. Stanford researchers found charter schools gained the equivalent of sixteen additional days of learning and reading and six in math each year compared to peers. In Allentown, public charter school students achieved proficiency rates sixty-eight percent higher in reading and thirty-seven percent higher in math compared to their district school peers. And in Bethlehem, charter school students from low-income families outperformed district school peers too. achieving higher proficiency rates in both math and reading. The real measure is where charter school is where students go next, and that's why it means something to be gathered at a community college today. Charter schools are preparing students for secure futures. Their flexibility lets them build pathways around local wor- workforce needs, with industry certifications, employer internships, and dual enrollment. When Pennsylvania opened their first charter schools in nineteen ninety-seven, fewer than one thousand students were enrolled. Today, that number is more than a hundred and sixty thousand. But demand still outpaces supply. In Allentown, charter schools have spent years asking the district to raise enrollment caps that have barely moved, while families wait. Each of those families is choosing a public school and each student deserves a seat and fair funding. The statistics only tell part of the story. Iris Cholula Lopez is a first generation Mexican-American who grew up in Allentown and graduated from Lincoln Leadership Academy Charter School. She was the first in her family to finish high school, and she did it with an associate degree already in hand. Mentors at Lincoln took the time to know her and recognize her potential. She went on to Penn State, which led her to a career in education policy. I'm proud to say that today Iris, who's here, is my colleague at the National Alliance for Public Charter Schools, working to give students the same kind of supportive school community that changed her life. No single school fits every child. The Education Freedom Tax Credit, modeled on Pennsylvania's own scholarship programs, can help. Not only with private school tuition, it can help charter and other public school students pay for tutoring, special needs, education services, and more. At least thirty states have opted in, and we urge Governor Shapiro to opt in. At the same time, the charter schools program is the only federal funding dedicated to growing high quality charter schools. This committee has advanced three bills that would strengthen it, without new spending. The Flex Act, led by Representative Mackenzie, would create flexibility within the program to get funds to schools faster. The Equitable Access to School Facilities Act would help charter schools secure safe, permanent places to learn. And the Empower Charter School Educators to Lead Act would help experienced teachers launch charter schools of their own. We urge the House to pass all three. Every family deserves a school that works for their child. As a parent, I know what it means to find one. And students like Iris show what's possible when they do. Thank you again, and I look forward to your questions.

Thank you, I appreciate it, appreciate all the panel, your testimony. Under committee rule nine we'll now question witnesses under the five minute rule. I'll recognize myself for five minutes. Mister Benefield, you mentioned uh this in your testimony, but how many um children, students in Pennsylvania are on wait lists or have been denied school choice opportunities?

Yeah, just under, under the education uh improvement tax credit, um about seventy thousand scholarship applications uh weren't sort of about forty percent of those who applied uh were turned away. Um, and there are programs um in Philadelphia, for instance, Children's Scholarship Fund, uh has a scholarship program for low income students. Um, they get about three applications for every one scholarship they're able to award in terms of new scholarships.

Mm-hmm.

Um, so this would definitely help uh address that, that waiting list for, for students.

Okay, going on from that, uh what would it mean for these children from Pennsylvania uh, for Pennsylvania to adopt into the ed- education freedom tax credit.

It would be tremendous. It would, uh, I think, imagine, address that - that waiting list for educational choice. There is similarly a waiting list for charter schools of students looking for a better option. Um, it also is something that can be, um, complimentary in terms of having a state-based scholarship to the tax credit at the state level, uh, and having a federal scholarship that helps supplement that. Again, the average scholarship in Pennsylvania is only around twenty-five hundred dollars, uh, versus public school spending of twenty-four thousand per student. So, uh, it does not, uh, totally meet the need. Uh, and then I think the third thing is the supplemental aspects of it, that can be used for tutoring, can be used for after-school programs, can be used for special needs services. Um, a lot of students have those needs both in private school and in public school, having those additional needs. Um, the federal scholarship tax credit program would allow to, to supplement that and, and really be additive for all those students.

Well, extremely uh, extremely geared toward choice and options made more available. Thank you. Um, Miss Perez-Veldez, um, your testimony of how um, the opportunity to have choice changed your entire life. Um, I I I am I'm amazed at that and, you know, very much grateful that you were able to share that testimony. And I think more students should have the same opportunities that you had. I'd love to hear uh more about your experience and specifically how did school choice change the trajectory of your life and open opportunities uh for you otherwise uh you you would have missed had you not had that chance.

Thank you for your question. So school choice wasn't just about choosing a school for me. It was about access to medical support, educational stability, and opportunity to pursue my future. Um, like I mentioned, with three autoimmune diseases, you need different medication treatments to be given to you, especially as a child when your immune system is very low. Um, so at a public school not receiving that left me vulnerable. It left me with no options, until my mother found an option, an option that saved my life. And I can't tell you where I would be without school choice today, because I can't predict stuff that didn't happen. But I can definitely tell you that I wouldn't be the person that I am today, and I wouldn't be as successful as I am today. And My story is an example of what can happen when families have the freedom to choose the good education for their child.

Two key words, freedom and choice.

Yeah.

Yeah, yeah. Thank you. Uh, Mister Paisner, one of the strongest arguments for charter schools is their academic track record. You touched on this in your testimony, but what do we know about how good charter schools are at educating students?

Thank you, Chairman Walberg. Uh, yeah, as I mentioned, charter schools are outperforming their district peers time and time again across the country but just to add in addition to the nationwide figures I provided before black students gain thirty five days of learning and reading, and twenty nine in math, an average in charter schools across the country, and Hispanic students thirty days of extra learning and reading, and nineteen in math in one year. Over the course of many years, that counts to months of additional learning in charter schools as compared to their district peers. Charter schools are working, they're performing for families, that's why they're in such high demand.

Mm. Well I appreciate that, and the the the key with choice, we we would hope that it could it could be uh seen in alt all school settings. public as well, with the opportunity. I think of, and I'm grateful to uh Northampton Community College to allow us to use this facility, which is pretty cool. Former, former building with Bethlehem Steel, uh now, now a site for workforce training specifically, uh that we're sitting in, but I know if North- Northampton is, is similar to community colleges in my district, the amount of remediation that takes place from students who are coming unprepared for some of the basic requirements. Uh, if we would see that opportunity for freedom, choice, and then the quality that could come from school districts making their own decisions on how to work it out, I think it would add to our higher education opportunities as well. So thank you. I now, uh, have the privilege of representing, uh, uh, the district in which we sit, favorite son. Um. Representative Mackenzie, uh, who serves on this committee but also, uh, gratefully is, is, uh, the subcommittee chair for workforce protection subcommittee as well. And so I recognize you now, uh, for your five minutes.

Fantastic. Well, first of all, thank you, Chairman Walberg and the entire committee for joining us here today in the Lehigh Valley. We are a very blessed and fortunate community. that has so many school choice options, uh, both in the K through twelve space and higher education. Uh, we really excel in education throughout our community and, uh, we see it in the K through twelve space. I went to a traditional public school, but we have great charter options right down the street. We have a performing arts high school, which is very popular. Uh, in the higher ed space, we have Northampton Community College, so many other great opportunities. And then, just a couple blocks down the road, we have Lehigh University, a top-tier research institution. uh, nationally. And so we - we have all of these options, but again, that gives a vibrancy to our community where people choose to live and grow their families, because they can always find that option and that choice for them in their lives wherever they choose to be. So we wanna continue to foster these educational opportunities as we move forward, and the federal scholarship tax credit as we talked about is one way to do that. And just yesterday, I'll give you a story of how this could impact families right here in our local community. I visited a neighborhood Catholic school, and they have lots of students there, they are a vibrant community, and the principal asked about the federal scholarship if Pennsylvania was going to be opting into it. He said he's hearing from families that they wanna take, uh, advantage of that, and it's not just about new choices or filling - adding new seats or new students to their classrooms. But it's also about affordability for the existing families. They would like to see those additional tax dollars flow to the school. Uh, they would receive the benefit, and that could help, uh, bring about some savings for them and their families. So, this is a - a win-win for our local community. We encourage Governor Shapiro to opt into this, uh, so that all Pennsylvanians can take advantage of it if that is what they would like to do. Uh, for my questions, I'll go to Mister Benefield. Uh, I've mentioned how I support all of our educational opportunities and choices right here in our local communities. Uh, one reason, uh, is that we have a track record of school programs and school choice programs here at the state level, uh, that have been utilized and they benefit existing school choice programs. Can you tell me a little bit more about how those programs have worked here at the state level and the benefits that you're already seeing from them?

Yeah, I think the - the benefits uh are - are very clear in this program. It - and it is something where it has grown um i- you know, with bipartisan support. The legislature has to authorize it uh every year and it's grown with - with bipartisan support because uh I think everyone has seen the - the benefits in the local c- community um now there is truth like the state doesn't collect a lot of data, um but we can get that from schools and scholarship organizations and seeing uh that it's serving a lot of low income students uh seeing if there are scholarship organizations that are serving primarily special needs students and focusing uh their efforts there. Um, seeing that there are programs that are primarily trying to serve low in- income students um and seeing i- you know even though the income limits themselves are - are higher um the incomes that scholarship organizations are choosing to serve, and this would be the same under the federal program, um the scholarship organizations can choose what type of students they're - they're trying to focus on serving. Um, and then the academic results. Um, you are actually seeing greater performance in uh some of the school settings. Uh, and you, even I mentioned the children's scholarship fund of Philadelphia. They did a study of their own students, um, looking at them as being very low income students, comparing them to outperforming the district schools, but even outperforming the suburban schools, uh, in their area, um, that are very high income, the highest income in the state, Lower Merion. Um, the low income students served by the scholarship programs are outperforming uh the high income students. Uh, and that starts where, um, Frank, those parents did have school choice. They chose to move, uh, to a higher income area to have great schools, uh, but some of these school educational choice programs on the tax credit are actually outperforming those - those students.

All right. Fantastic. Mister Paisner, you mentioned a bill that I introduced back in January, the Flex Act, which would give charter schools more flexibility to access the charter school program. Uh, I'm glad that the committee moved that, uh, bill out of, uh, our - our committee with a vote recently. And I would ask, uh, you what you see as the benefits to the Flex Act and how it could help ensure that federal tax dollars, uh, reach classrooms and students where they actually belong.

Well, yes, and thank you so much for your leadership and for the committee as well. Um, the - the - the Flex Act would update a thirty-year-old program that was created when there were only sixty-four charter schools across the country. Today there are more than eight thousand one hundred, so it's - it's time. It's important to note that there's no new federal s- f- s- fu- there's no new federal funding that's required for the Flex Act. It just makes the existing charter school program work more efficiently. For example, schools can buy, based on real enrollment, under the Flex Act, things such as buses, digital subscriptions, special education staff, instead of before where they presently where they have to sort of guess what enrollment would look like before they even open, making sure that the dollars are actually matched to the students in the buildings and pegged to actual growth in schools. Grants can also, will also be able to fund new programs. not just seats, so schools can add in-demand pathways, things like coding, robotics, or skill trades, again, pinned to the actual needs of the students in the buildings. So there's lots of opportunities for the - for the dollars to reach students in the buildings in a different way than they are presently.

You got it. Awesome. Well, thank you, uh, to all of our witnesses, and with that I'll yield back to the Chairman.

Uh, thanks gentlemen. I now recognize the, uh, gentleman from the cold country of Indiana.

'Kay.

for the opportunity to mine some answers from our witnesses.

You got it. Thank you, Chairman Walberg, and thank you, Congressman Mackenzie, for inviting us here today. I have worked for many years at both the state and federal levels on advancing school choice opportunities uh for families, so the issue is near and dear to my heart. Uh, Indiana has their own uh school choice voucher program that I helped create when I was a state rep. Uh, I authored many of the enhancements to that program during my times in the State Senate. We have a robust charter school program, with signature school in my district being the number one rated charter school in the country. And we've had a state uh tax credit scholarship program for decades. I'm glad we can highlight some of the major wins we've achieved in Congress, in school choice programs, and emphasize the importance of giving families educational freedom to thrive. Uh, so uh, Mister Benefield. One thing I uh appreciate in your testimony is how ch how school choice can help special needs students. I think it's an excellent point that often gets overlooked in the debate. Uh, what would you say to advocates who think only traditional public schools can be trusted uh to educate special needs children?

Yeah, absolutely. I'd address that in a couple ways. One, there are definitely programs out there now uh, serving special needs students and some that want to participate uh in the federal program. Um, we actually had one in a in an op-ed that we uh came in contact with, it's called Andrew's Gift. It's a program that works uh within uh works with s- several different school districts providing autism services to students. Um, they were like very excited to hear about the federal scholarship tax credit and wanted to like " hey how can we participate in this?" Um, those are the types of the programs that can be served uh with us. Um, the second part of it is, you know, there's kind of the myth of, hey, only uh, only public schools can serve special needs students. Um, there was a recent study, um, just released by um, AEI, um, showing that actually there are more students served by school choice programs. A higher percentage of students in school choice programs are special needs uh versus traditional public schools. Uh, that is because a lot of those special parents students with special needs need to find a customized opportunity. Um, we even have done studies in Pennsylvania looking at how much sc- school districts they have certain s- special needs students they can't serve. Um, and they have to actually go outsource, and uh the school district of Philadelphia spent almost forty million dollars sending students to private schools um that they could not serve because they had a severe special needs so they would pay private schools to take those students. Uh, so clearly there is m- a great deal of need um, and operat- and programs that can do, serve special needs students better than simply assigning them to a school by their zip code.

OK. Thank you for that clarification. Uh, also one of the common critiques in the Education Freedom Tax Credit is that it defunds traditional public schools. Uh, Mister Bennefield, uh, would you clarify and explain why this critique is so misguided?

Yeah, it's, it's, it, it clearly does not, uh, this is a, a tax credit for donors to give and take their their tax dollars that would go to Washington DC and send it to uh a scholarship granting organization it doesn't take a single dollar away from public schools, uh from their federal funding, not from their state funding, from their local funding. Uh in fact it allows them to invest more per student. That's what we've seen from school choice programs in Pennsylvania and across the country that uh they're able to spend more per student uh in public school, and this isn't beneficial, but to be very clear, this does not take a single dollar away from public schools.

'Kay, thank you. Uh, Miss Perez-Valdez, I think it's wonderful how many opportunity school choice is open for you. Uh, I wou I wish all students around the country had the same opportunities you had. What would you say to politicians who would wanna limit educational opportunities that students have?

I think I can answer that in one line. Basically, you're advocating for options for families. You're not fighting for which school is best for what children. You're just advocating for the options. It's not a fight, it's an advocacy.

OK, thank you. Uh, you had also mentioned, uh, that your family faced signis, sig significant financial hardships. Uh, private school tuition was out of reach. I imagine if not for Florida's school choice programs, uh, how do you th- how do you think without Florida's, uh, programs that your education would have turned out, uh, wi- without choice?

How would I have turned out?

Yeah, how how do you think your education would have turned out, had it not been for Florida school choice?

So as I mentioned before, I can't predict where I would be, but I definitely can tell you that I wouldn't be who I am today. I probably would not have been able to attend the University of Miami. I wouldn't have graduated top of my class in high school. And who knows if I would have been here today? Who knows if I would have been alive? I was very sick. I was hospitalized for four months and my mother was scared that I wouldn't have even made it out. So her being able to put me in a private school where I w- was access to a nurse was detrimental. It was so important and it got me here today to speak before you. Thank you.

Thank you. With that, I'll yield back to the Chairman.

I thank the gentlemen. Now we'll proceed for our second round of questioning of the of the panelists. Um. Mister Paisner, we're meeting today, as I said, at uh Northampton Community College, and thanks again for that opportunity. Um, how are charter schools preparing students for both college and careers, uh, including through dual enrollment and career and technical education?

Thank you. Uh, charter schools are innovative at their core. and they are designed and can meet students where they are, and can be flexible to understand the dynamics of the community, and design the programs that serve the families in those communities. So before I mentioned Lincoln Leadership Academy, charter school nearby, uh in Allentown in which my colleague came out with a high school diploma and associate's degree, there are schools like that all around the country. Another school I'd mention in in Indiana, for example, Geoacademies, They have what they describe as a K sixteen program, where students graduate with a college degree of some kind, or a career certificate. They are thinking about how to serve those students, how to prepare them for college and career and beyond. And charter schools, again, because of the way in which they are flexible, and the way in which they are designed to serve the communities uh their students in their communities they are absolutely thinking about all of these things.

Um, Miss Perez-Veldez, uh, as you know, what we've been discussing here, the new federal education freedom tax credit would allow thousands of new students to benefit from school choice, including here in Pennsylvania. Unfortunately, Governor Shapiro, as we've mentioned, unlike Governor DeSantis in your state, uh, has not yet committed to opting into the program. Why do you think that Governor Shapiro should opt into the program and give more students like you a chance to succeed.

So as I mentioned in my testimony, my family faced many financial hardships, and I myself faced many health challenges. And through that, I was able to get the scholarship and succeed. So, just like my family, there are many families in Pennsylvania that are going through their own challenges and I am proof that school choice works. I am proof that options matter. And he should really opt into it because he really needs to carefully consider the potential benefits for Pennsylvania families and their children. And the statistics don't lie. The statistics show that school choice works. And having options will let children learn in the best way that they need. Not every child learns the same way, and not every child has the same circumstances. Therefore not every school, not every private school works for every child. So, every child just needs the option to get the education they deserve in the best way possible.

Yeah, your your testimony caused me to c to wonder if if this had been in place, when you were attempting to find a public school that would meet your needs,

Mm-hmm.

if the dollars, the scholarshiping dollars might have assisted that to keep you in the public school.

Maybe, it's possible.

Um, who knows, who knows, yeah.

Who knows, yeah.

Thank you. Um, Mister Benefield, um, one thing that struck me in your testimony is how many parents both nationally and in Pennsylvania want more school choice options. I hear the same thing from my constituents in Michigan who loo look literally, uh, in my district, literally look across the border into Indiana and Ohio. and wonder why we can't, as of yet, be assured that we're gonna have that scholarshiping opportunity like Indiana and Ohio. Uh, if parents are so supportive of school choice, why have so many governors been hesitant to opt into the educational freedom tax credit?

Yeah, I think it really boils down to there being special interest groups who have come out uh in opposition to it. Um, mainly the t- the two main um, public school unions, um, uh, the AFT and NS NEA. Um, You know, calling it a voucher, and it's not a voucher, it is a s- a tax credit for donations to scholarship organizations.

That's important, it is not a voucher.

It's not a voucher, it's a gift.

It doesn't leave your pocket unless you choose to leave it.

Right, and again, as emphasized, it doesn't take a single dollar away from from public schools. Um, but there is kind of this, this mythology around, around that. And I think, um, correcting the record like, hey, this does indeed serve low income students, it can serve special needs students, it can serve students in public schools. Um, correcting tho- those myths, um, it has been called, uh, by Governor Jared Politz, a Democrat, a - a win-win. Um, there's a - it's a no-brainer. Uh, first he stopped in, uh,

Colorado.

yes, he's from Colorado. Um, but some, I think, they just, and some governors just kinda feel the politic, the political pressure, and unfortunately we're in a intense election cycle that, uh, I think a lot of governors have been like, well, I don't want to do things because it might disrupt the elections. But on the policy front, this is absolutely a win-win for uh for students. Uh, if the governor's pure option would be a win for Pennsylvania students. If not, um, donors are going to give to other states, including our our neighbors in New York and Ohio and West Virginia.

It will be interesting, immediately following the election, whether some of these governors sign on to the scholarshiping program. Um, OK, thank you. I yield uh back and now I uh yield time to the uh the favorite son gentleman here from Pennsylvania, Mister Mackenzie.

Well, thank you, Mister Chairman. I'll pick up where we were just uh leaving off with Mister Benefield. What I saw at the state level is that the state school choice tax credit programs grew the pie of money for education in our state. Because it's not a one-for-one tax credit, right? I mean, it's a seventy-five percent, ninety percent tax credit at the state level. So the additional dollars that are flowing in, it's not just an offset to those tax dollars, but there is additional money that that donor has given. So, overall, the - the pie for education for students in our state ends up growing any time somebody makes a - a contribution to one of those programs. That can benefit all students, and so one of the misconceptions is that it only serves wealthy families. And you talked about this in your testimony, uh, but what do we know about the different types of families who benefit from school choice uh and their income levels?

Yeah, I think, and that's one of the, uh, you know, the misnomer is that kind of, in, for the most it's only in the benefit of wealthy families. The wealthy already have educational choice without these programs. Um, wealthy families can afford private school tuition on their own. Wealthy families can move and most exercise what we call school choice by mortgage. Uh, they're going to move into a wealthier area, uh, what - which keeps out lower income families. Um, these educational choice programs in Pennsylvania, um, we've definitely seen they are serving lower income households giving the opportunity they would not otherwise have. Um, you mentioned touring a Catholic school this week. visited so many schools who said we would not survive without the education, tax credits, scholarships, um, and many of our students would not be able to afford this opportunity with, without that. Um, so I think that is critical of how many students uh, are given that - that opportunity, especially students from low income households, students who don't have any other options um, because their - the school has assigned them by zip code, uh, i- is not very performant, is not safe. Um, a lot of these programs actually help students find safer schools, um, or schools that, um, if they have medical needs, uh, help them. So, uh, the diversity of how students are being helped is - is immense. I think that's important to note.

And I will just add that Catholic school that I - I visited, I did ask the principal. I said, " Do you utilize this day program, the EITC?" And he said, " Absolutely." Um, and he encouraged an expansion of that, uh, because again, as we know, uh, it gets maxed out every single year and he said they could do more if they had access to more of those tax credits. Uh, for Miss Perez-Valdez. Uh, you talked about your personal story, and we thank you for sharing that. Uh, we also heard in your testimony about your - your - your mother's engagement in your educational journey. Um, tell us about her involvement, uh, and how she, uh, was the one that brought accountability to the public school, your charter school option that you ended up residing in, uh, and how that mechanism of parent engagement and, uh, involvement is what led to your successful outcome.

So, yeah. So my mother, um, I could not be prouder enough to call her my mother. Um, she went above and beyond for me, and still does to this day. So my mother, uh, she was a single mother, since basically the moment I was born. And she worked three jobs to be able to keep our family afloat. So my family was me, my mother, and my grandmother who passed earlier this year. Um, so my grandmother had to leave her job, um, when I was born to be able to take care of me. So then my mother could work, and she could put food on our table. So, private school was not an option. It was either we eat or I go to s- private school, and it was, we couldn't have both. So, my mother, um, she worked very hard to do the best she could to be there for me, while maintaining three jobs. But the majority of my life I was raised by my grandmother who took me on medical appointments who picked me up and dropped me off at school, while my mother was working. However, the moment that I got extremely sick and ended up hospitalized, my mother pretty much dropped everything to be there for me and to cater for me. And then when it came time to enroll me back in school for a second year of kindergarten, my mother did tireless amount of research. She tells me all the time that she would literally go to school districts and ask them, what can I do for my child, how can I find something better for my child, until someone was able to actually tell her about the school choice program that we have in Florida. And tirelessly she enrolled in the program and then she got the money. My mother, mind you, I went to LaSalle, which is about forty-five minutes away from me, and my mother drove me every day to school. She worked out her hours at work so she could drive me every day to school. Even if it meant like spending more money on gas and spending more money on driving all the way over there, she did it for me and I could not be happier to call her my mother, and I wouldn't be who I am today without her.

That's awesome. Well, thank you again for sharing, uh, your story. Uh, Mr. Peisner, also, uh, just to wrap up here. We touched on, in the first round of questioning, the Federal Charter School Program, or CSP. Uh, tell us just about the importance of that program at the federal level, cuz not a lot of people even, uh, are aware that a program like that exists at the federal level.

Sure. The Charter School program is created to help charter schools start up and expand and provides a few other services to charter schools as well. But it is vital for the charter school program. The CSP represents less than two percent of total federal K-twelve education spending, but it has been responsible for about half of all charter schools that have opened over time. These schools come in, there's seed funding to help charter schools get started, or later perhaps expand to additional location. And without them there would be far fewer charter schools and choices available to families across country. If the charter school program did not exist, the amount of growth would stagnate and options for families would be significantly less. It is a vital program. It is small but mighty. We're deeply appreciative of your support.

Fantastic. Well, thank you again to all of you for joining us, and I yield back to the Chairman.

Gentleman yields, and I recognize the gentleman from Indiana, Mister Messmer, for your questioning.

Thank you, Mister Chairman. Uh, Mister Paisner, one common critique of charter schools is that they they're achive excellent academic academic results by cherry-picking their students. I know that argument is incredibly misguided, and as you know, charter schools have to distribute their seats by lottery. Uh, how would you respond to the argument that charter schools only accept the best students?

I would respond by saying it's simply not true. Charter schools are public schools, and they are open to all. The way that it works is that if a parent wants to send their child to a charter school, they opt to enroll. If there is more demand than there are seats, which happens because charter schools are performing so well, then there is a lottery. Um, and so, like, that is the way that that it works. There i i the the schools are not cherry picking students. And interestingly enough, if you look at cr at the demographics of charter school students across the country, sixty-one percent of students in charter schools are economically disadvantaged as compared to fifty-four percent in district-run public schools. So looking across the country, the facts just do not bear out, it's just a myth that charter schools are are cherry picking students.

'Kay. Thank you, uh, Mister Paisner. We've also heard today about the new federal uh Education Freedom Tax Credit, that a lot of people assume the program will only apply to private schools. Uh, but the program is actually much broader than that. How would you, how could the tax credit be used to benefit charter schools as well?

For, for certain, we've seen what we looked at the regulations, and the regulations clearly suggest that charter and other district public s district run schools can access the Education Freedom Tax Credit. Uh we've had a lot of communications with charter schools that we work with across the country and organizations that work with charter schools. They are excited and ready to engage. They know that there are opportunities to get scholarships for services. Um, it's similar to our private schools, but charter schools are absolutely ready. We see SGOs being created across the country. We know that charter schools are gonna be meaningful participants in this, in this program, and we hope that all governors will opt in.

Thank you. Uh, Mister Benefield, another common complaint about the Education Freedom Tax Credit is that there's no guardrails or accountability in, built into the program. Uh, I think that's also misleading. Uh, could you, could you explain the program's guardrails and why we can trust that funds will be used responsibly?

Yeah, I think there's, uh, two parts to that answer is there are guardrails in the regulations of what scholarship granting organizations have to do in terms of um registering the IRS, providing the donor information so that making sure that the donors actually gave, uh, what their claim on the tax credit, uh, as well as providing their actual audit, and doing an audit every single year and making that public and providing it to the state. Uh, that's a significant uh burden. Um, but to deal with the accountability question. Um, second part of it, uh, though, is that there are many checks throughout the process because this is individual donors giving their money to a scholarship granting organization than giving it a scholarship to a, to a parent. So the scholarship granting organization wants to make sure that money's being used well. The donor wants to make sure that their money's being used well, and uh frankly I hope this isn't a a a shock, as any of my members of the committee, but a lot of people think their money would be better spent spending it locally, uh, to a scholarship organization than sending it to Washington DC, uh, where they think their money is often misspent. Um, that is a significant check that scholarship granting organizations are going to have to prove themselves to their donors, um that they are using their money wisely, uh it's not being wasted and it's actually going to help students.

'Kay, thank you. Uh, Mister Paisner, another common critique of charter schools is that there is existence as an attack on traditional public schools. How would you respond to that?

These are schools of choice. Parents are choosing them for their children. It is not an attack that parents are exercising the options to send their child to a place that suits their needs. Charter schools are free, they're open to all, and they are public schools. They were created as different kinds of public schools that had existed for decades in this country. But that does not mean it is an attack on district run schools that charters exist. This is about parents making choices for their families, and we think they should be able to do that.

Uh, do charter schools have to comply with the same accountability standards as traditional public schools?

They do. And in many cases the accountability standards are more stringent for charter schools.

They are in the end.

We see charter schools close in a way that we don't see the same thing happen for district run charter schools that are not performing. That's part of the bargain. Charter schools are given flexibility to be innovative in the ways we talked about in exchange for accountability and we see that authorizers, those agencies responsible for overseeing charter schools, are keeping those schools accountable, and in cases where they are not performing, charter schools are closing down. It's another reason why parents are choosing them. They see the bargain, they understand what's going on with their with their children, and they are trusting their children to go to these schools cuz they know they're gonna perform for their families.

'Kay. Thank you, and with that I yield back.

I thank the gentlemen, and I thank uh the committee members here who participated. I wish that the uh other Pennsylvania member of our committee, a Democrat, uh had been here today as well. I think it would have been very helpful to this - this committee and its hearing for fuller uh perspective. But I think what we heard today was uh - was - was powerful. Um. One thing that we heard that we're talking about a tax credit, we're talking about individual citizen taxpayers having the choice, whether it be a parent, or a grandparent, an aunt or uncle, or someone even unaffiliated, who sees the value of education choice, being willing to contribute that seventeen hundred dollars or thirty-four hundred dollars for a couple. Or even beyond that, but that would be the tax credit that could go to these scholarshiping programs to make a difference, to provide resources across the spectrum of education, not just private, not just charter, not just home school, but public school as well. And the opportunities would be there. We also have heard, really in what the testimony said, that this would provide significant competition. And I've always thought that competition raises all levels. I've seen in my own district where private schools have had to ultimately compete even more because of choice in seeing choice give an opportunity for parents to choose different public schools to send their kids to. And now even the private schools have to compete further, uh a positive thing that this could take place. Um, I think we've also seen very clearly that parents do care. Um, Ms. Perez-Valdez, uh, we honor your mother and your grandmother for their efforts and their willingness to do what was necessary. I think we often almost are asked to forget that parents are the chief, number one, first educators of their kids. And they supplement that education in most cases with a school system that meets their needs. I'll never forget just recently, and with this, visiting at a charter school in New York, Success Academy, fifty-two separate academies that they - they run, and that's c- that - that, uh, city and state of New York with no support coming from the governor or the mayor of New York. And yet what they do is amazing. As they fill spaces that are left open in public schools and put their charter school above, in most cases, at upper levels, where there are - there are space for a - a charter school. Uh, to see a parent, a mother, bring three kids to school. And charter, since you - you mentioned, Mr. Paesner, it's by lottery. One of her children goes up to the Success Academy, the other two go to PS ninety-three or whatever the school, uh, public school is called. That parent made the choice, was only successful in getting one into the success academy. Maybe with this new scholarshiping program, if New York decides to use it, there'd be potential for getting the other two, if that's the choice of the parent. So that's what we're talking about here. We're talking about expanding opportunity for education through choice, Again, not a voucher, but a tax credit, voluntarily made as a contribution by taxpayers who see this as important. I appreciate uh the the uh witnesses today for all of your testimony, your answers, and I appreciate my colleagues being here and all of you in the room, taking your time to uh consider what this hearing, a field hearing, out, not in Washington, but out on an actual district, uh can mean for the future. Having nothing else as far as, uh, business to consider, I declare the hearing adjourned.