AAA Scholarship Foundation (AAA) has re-opened its 2023-2024 school year scholarship application for underserved Nevada students who were in jeopardy of losing their Nevada Educational Choice Scholarship and subsequently, would have been forced out of the educational setting that their families had chosen for them. We are honored to be able to serve these families and provide them with scholarships so that their children can continue to attend the schools that work best for them.

We have agreed to use our legally allowed scholarship reserves to fund the gap created by an oversubscription in the scholarship program while Governor Lombardo and the Nevada Legislature work together on their shared commitment to the current scholarship students that they will continue to have access to scholarship funding for the duration of their K-12 education.

In the prior Legislative Session, we asked the Legislature to increase the statutory tax credit cap for the Nevada Educational Choice Scholarship Program (NECSP) from $6.65 million to $25 million due to the demand from economically struggling families for this life-saving initiative. According to recent reports, the overall enrollment in the NECSP last school year exceeded the current tax credit cap capacity by approximately $3.5 million and without additional funding there is insufficient capacity to continue to provide scholarships to all of the renewing students.

Reserve Funds: In prior years the Nevada Legislature allocated one-time bonus tax credits and all scholarship granting organizations (SGOs) were cautioned by the State to not utilize these monies in a way that would result in over enrollment of the program. In 2017, the Legislature passed legislation that required all organizations to budget their donations so that they could reasonably assure students would be funded until they graduated high school. And in fact, if SGOs did not comply, they would have to refund their donations to the state. The law that required SGOs to refund these monies was removed from law in a subsequent session. Although that specific legislation was ultimately amended, the caution not to oversubscribe the program from one-time bonuses remains.

Nevada Department of Education (NDE) and State Treasurers office provided guidance during a meeting with SGOs on 6/08/2017 that contributions from the one-time bonus credits be utilized in a fiscally prudent way in order to provide underserved students with educational continuity and to help ensure that the scholarship program remained fiscally viable over time. The NDE was also very clear to the SGOs about the dangers of oversubscribing the scholarship program with contributions from one-time bonus credits.

We have followed state guidance and law, as well as proper budgetary guidelines as mandated by the state of Nevada and retained a portion of one-time funds to reasonably assure our current students will have a scholarship for years to come by maintaining a reserve fund. The need to maintain a reserve fund was indisputable at the Interim Finance Committee (IFC) meeting on Wednesday. The NDE, the State Legislature and AAA believe it is crucial to prepare for budget emergencies and to ensure fiscal stability and educational continuity, which is why AAA has worked to reserve sufficient funding to allow our student population to remain relatively stable once the one-time bonus credits ended.

Issuing of tax credits: Under state law and regulations, this program’s tax credits are issued first-come, first-served by the Nevada Department of Taxation (DOT). We have always followed the application process according to the laws and regulations. This year, all SGOs were instructed by the DOT on 6/6/2023 that tax credit applications would only be accepted in-person or by mail beginning on 6/15/23 and that no emailed applications would be accepted. Accordingly, we and various other SGOs submitted the tax credit applications at the DOT office at 8:00am on 6/15/23 as instructed. We had no special knowledge of how the DOT would decide to prioritize the granting of credits to applicants.

In our experience from other states when demand for tax credits is over and above the supply, some program regulators have chosen to treat all applications received on the first day as first-come, first-served and prorate them accordingly. Other program regulators allow tax credit applications to be emailed (as the NV DOT has in the past), with one application attached per email, granting them in the order received. That process allows for a more random distribution of the limited supply of credits. We encourage the NV DOT to re-examine their current tax credit submission process in the future and to consider alternatives.

The legislature is responsible for the amount of funding available for scholarships, not AAA. Our mission is to provide educational opportunities for those who cannot afford them, and it saddens us that any child will face losing a scholarship and disrupting their education. However, we are not responsible for the lack of funding that the legislature has established for this program.

During the 2023 Nevada Legislative Session, the Legislature failed to pass a bill that would have increased the amount of tax credits available under this program, consequently reducing the number of low-income children that could receive scholarships from the $6.65 credit cap for this upcoming school year. The current tax credit cap is about $3.5 million below what is needed to serve all returning students and does not provide the opportunity for siblings to be served as well. At no time were we aware that three of the six approved SGOs did not have reserve funds as was directed by NDE.

Transferring students: As was provided previously to the NDE and to the IFC in written and spoken testimony on Wednesday, 8/9/2023, we had planned to accept a limited number of transferring students from other SGOs who wished to apply with us. The number of transferring students’ scholarships was limited as reserved funds must be maintained to ensure stable funding for our current students over time. At the IFC meeting, the committee indicated they did not want to see any eligible returning student denied funding and they committed to work in the future to assure there is always funding for current students. Members requested that AAA use the funds they reserved for their students’ future needs and provide scholarships for all eligible returning students this year. With this commitment from the committee, that they will assure current students will always have access to funding for the duration of their K-12 education, all interested transferring students can apply with us here: https://www.aaascholarships.org/parents/nevada/

It is important to know that the program will continue to be oversubscribed based upon the existing $6.65 million tax credit cap and we will hold the Legislature to their word that no eligible current student will ever lose their funding in the future.

We have always followed the guidelines and processes put in place by the state and diligently worked to be a fiscally responsible steward of our donors’ contributions. In fact, we have earned the Platinum Nonprofit Seal of Transparency, the highest level of recognition offered by Candid, the world’s largest source of nonprofit information. Additionally, because of our strong financial health and ongoing accountability and transparency, we have earned a Four-Star- Rating from Charity Navigator, America’s largest and most-utilized independent charity evaluator. This is the highest possible rating and indicates that our organization is using our donations effectively based on Charity Navigator’s criteria.

We look forward to working with the Legislature and Governor Lombardo to strengthen this life-saving program so the at-risk students that need other educational opportunities to thrive and succeed are served.

Click here for our press release

 

Are you trying to decide whether an AAA Tax Credit Scholarship or Arizona Education Savings Account is the best k-12 education funding solution for your family? Here are 10 things to consider before making a decision:

1. What is the funding source of each Program?

AAA: AAA Tax Credit Scholarships are privately funded via donations to a non-profit organization = Small Government, Private Spending, Targeted Regulation

ESA: Arizona Education Savings Accounts are government funded via taxpayer dollars^[1] = Big Government, Big Spending, Big Regulation

 

2. What state department is responsible for Program Regulations?

AAA: The AZ Department of Revenue, a neutral, non-politically driven department regulates AAA Tax Credit Scholarships.

ESA: The Arizona Department of Education whose director actively worked to stop the program from going into effect^[2] regulates ESAs.

 

3. Who administers the day-to-day activity of the Programs?

AAA: AAA is a state-approved non-profit organization known as a School Tuition Organization (STO). AAA’s mission is to serve under-privileged families and promote the advancement of education. AAA is required to pass annual financial and compliance audits.

ESA: An unaccountable third-party for-profit company that is being sued by the state of Oklahoma for fraud and mismanagement of two scholarship programs^[3] administers the ESA.

 

4. What is the Program funding frequency?

AAA: AAA raises the private contributions to fund our 3-year Arizona tax credit scholarships before any awards are granted each school year.

ESA: The Arizona state legislature must debate, vote and pass bi-annual budget legislation to include funding allocations for ESAs. If funding is allocated, the ESA accounts are funded quarterly^[4].

 

5. What is the family reporting requirement?

AAA: Not applicable – families do not have to report scholarship payments to the state. AAA is responsible for all state reporting.

ESA: The parent (“Contract Holder”) must submit an itemized school invoice to the state’s third-party administrator^[5].

 

6. Which Arizona private k-12 schools can I choose from?

AAA: All qualified private schools are eligible. Payments are sent directly to the schools by AAA once the student has been verified as remaining enrolled. Click here for AAA’s AZ School Eligibility Flyer.

ESA: Qualified schools must be registered with state’s third-party administrator otherwise the parent/Contract Holder must pay out-of-pocket and then request reimbursement from the ESA personally. The Contract Holder must submit an itemized school invoice to the third-party administrator^[6].

 

7. Are there any specific subject matter requirements?

AAA: Private schools are responsible for ensuring appropriate subject matter is being taught to students. Families are free to move their children into any eligible private school that best fits their children’s educational needs. Click here to learn about three easy steps for selecting a school.

ESA: Contract Holders are responsible to prove to the State that at least a portion of the ESA funds have been expended to provide for an education in State-mandated subject matter^[7].

 

8. What about the family requirement for reporting of other types of expenditures?

AAA: Not applicable – AAA Tax Credit Scholarships may only be used for tuition at eligible private schools.     

ESA: Transaction receipts must be turned-in by the Contract Holder to the third-party administrator quarterly or after every 20 transactions. Transactions are subject to audit by the state for up to two years after the fact^[8].

 

9. What if we have no expenditures in a quarter?

AAA: Not applicable – AAA Tax Credit Scholarship payments are remitted to the schools on behalf of the students periodically throughout the school year.

ESA: If no spending occurs in a particular quarter, Contract Holders are required to attest in the ESA portal that no funds were spent^[9].

 

10. How are disallowed expenditures handled?

AAA: Not applicable – because AAA Tax Credit Scholarships may only be used for tuition at eligible private schools, there is no chance that a family could accidentally misspend funds.

ESA: Transactions are subject to audit by the State for up to two years after the fact. Disallowed expenditures must be repaid to the State by the Contract Holder. Any disallowed, misspent, or un-submitted expenses will be sent to the State Attorney General’s Office of Collection / Fraud for collection, fraud investigation, or both^[10].

Ready to apply for an AAA Tax Credit Scholarship? Click here to access our online application.

Need more information before applying? Click here to learn everything you need to know about applying.

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[1] https://www.azed.gov/sites/default/files/2022/05/2022-2023%20ESA%20Program%20Handbook%20%28SBE%20Approved%204-29-22%29.pdf

[2]  https://twitter.com/kathyhoffman_az/status/1548412129044180994?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1548412129044180994%7Ctwgr%5E725917d326178b1d6d1a5e70c2f4a211ea6fa504%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fazfreenews.com%2F2022%2F09%2Fpublic-school-activists-telling-petition-signers-school-choice-program-has-no-oversight%2F

[3] https://www.documentcloud.org/documents/22127910-classwallet-lawsuit

[4] https://www.azed.gov/sites/default/files/2022/05/2022-2023%20ESA%20Program%20Handbook%20%28SBE%20Approved%204-29-22%29.pdf

[5] Ibid

[6] Ibid

[7] Ibid

[8] Ibid

[9] Ibid

[10] Ibid

 

For Immediate Release

On behalf of the many families and students it serves, AAA Scholarship Foundation today offers sincere thanks to Governor Brian Kemp, Lieutenant Governor Geoff Duncan and Speaker David Ralston on the passage yesterday of HB 517, a bill that will increase the Georgia K-12 education tax credit program to $120 million from $100 million.  The legislation would also make permanent an increase to the program that was set to expire soon and expand the types of entities that can contribute to these important educational scholarships.

HB 517 will allow the AAA Scholarship Foundation to serve more families through critical needs-based scholarships and help these students accomplish their educational goals with greater success.  “I am deeply grateful for the work that Governor Kemp and the Georgia General Assembly have done by continuing to invest in student excellence and to give families educational options.  We are especially grateful for the efforts of Representative John Carson and Senator Chuck Payne who sponsored the legislation and helped it to receive final passage,” said Kim Dyson, President of AAA Scholarship Foundation.

“I am very proud of my fellow lawmakers in approving an increase in Georgia’s tax credit scholarship program. Under HB 517, more families will be able to choose the school that best meets their child’s needs, Georgia taxpayers will be able to contribute more per family, and the state will have increased transparency, disclosure and cost savings.  Truly a win for everyone, especially Georgia’s kids in need of educational opportunities”” said bill sponsor Rep. John Carson.

HB 517 has been transferred to the Office of Governor Brian Kemp and is awaiting signature.  For more information on AAA Scholarship Foundation, please visit https://www.aaascholarships.org/.

Click here for a pdf of this press release

We want to say “Thank You!” to everyone who helps us thank our generous donors!

We are so very grateful to every recipient of an AAA scholarship who sends in a letter, card, or video that expresses how much their child’s scholarship means to them and to their future.

Click here to view our 2022 Donor Thank You video.

Sharing how your child’s scholarship positively effected their life lets our donors know that their continued support is vital.

If you, your child, your school, or someone you love was positively affected by an AAA scholarship, please upload or mail us a short Thank You card/letter/video for our donors. Include a little bit about how the scholarship has positively affected your child(ren). These letters/cards/videos will be used to help us raise funds for the next school year and into the future.

Thank you!!

**UPDATE** Unfortunately, on Thursday, October 7, 2021, the Nevada Supreme Court ruled against Nevada parents, schools, and taxpayers by allowing AB 458 to stand. Although this decision was disappointing, we will not give up our mission to help families with modest means afford to send their children to the educational settings that best fit their learning needs.

We pledge to continue to ask legislators to vote in-favor of allowing the contribution “cap” for the Nevada Educational Choice Scholarship Program to increase annually so that we can once again add new students. We ask that all interested parties do the same by letting your elected officials know what a scholarship would mean to you and to your family. Here is a link if you need to look up the name of your Nevada elected officials. A short email or phone call to one of more could make a big difference in that effort. Thank you!

* * * * *

On Thursday, May 13, 2021, the Nevada Supreme Court ruled in favor of Nevada’s taxpayers, stating that “[b]ased on the plain language of the supermajority provision, we conclude that it applies to the subject bills [SB 551 and SB 542] because they create, generate, or increase public revenue. Because the bills did not pass by a two-thirds majority in the Senate, those portions of the bills that would require a supermajority vote are unconstitutional.” The Justices went on to state, “[a]nd, by using the word ‘any,’ the provision has broad application and applies to all bills that create, generate, or increase the public revenue at any time.”

We wholeheartedly agree with their opinion! So much so that we joined with Nevada parents, schools, and business taxpayers to ask the Institute for Justice to help us file a lawsuit against AB 458 arguing that it is also unconstitutional because it has the same result as both SB 551 and SB 542: it is a bill that increases public revenue but did not pass by a two-thirds majority in the Senate!

The two cases are remarkably similar in that, but for these bills, the state would not have received increased revenue. The details of the cases are slightly different in that AB 458 removed the automatic ten percent annual increase in modified business tax (MBT) credits available to Nevada employers who donate to eligible non-profits like AAA Scholarship Foundation to fund the Nevada Educational Choice Scholarship Program, whereas SB 551 and SB 542 removed the sunsetting of an increase in the MBT tax rate and a DMV fee, respectively.

We applaud the Nevada Supreme Court’s reasoning in its concise and accurate decision finding both SB 551 and SB 542 unconstitutional. It would defy all logic if it did not use that exact same reasoning to find AB 458 unconstitutional as well.

So we have to ask the Nevada Supreme Court Justices, will you rule in favor of Nevada’s taxpayers again this month?

 

A new peer-reviewed study released by the journal  School Effectiveness and School Improvement indicates that an increased ability to choose the educational settings that is the best fit for a child has a positive effect on the mental health of the child as they reach adolescence and into adulthood.

The study examined suicide rates of adolescents and adults in states where private voucher and charter school laws had been enacted. Controlling for other factors, the study found that “[s]tates adopting charter school laws witness declines in adolescent suicides…” and “…private schooling reduces the likelihood that individuals report having mental health issues as adults.”

At AAA, we hear from families every day that receiving a scholarship positively affects them – in more ways that just changing where their child attends school. We have always known anecdotally that these scholarships save lives but now we have empirical proof! Please help us save more lives by telling a friend or family member about our scholarships.

You can find a link to the full study (and many others) here.

AAA Scholarship Foundation is committed to resolving an issue brought to our attention by the Florida Department of Education in a way that honors the legislative intent of CS/HB 7067, while maintaining fidelity to the charitable trust of our donors, compliance with both the Florida Solicitation of Contributions Act and the Internal Revenue Code, and most importantly, dedication to our scholarship recipients.

We have been in communication with the Department regarding this issue and have offered several possible solutions that would allow us to maintain the integrity of our values and beliefs.  Our proposed solutions would allow us to continue to be representative of our charitable mission/exempt purpose, while complying with the letter of the law – that renewal students are eligible for the Florida Tax Credit Scholarship Program regardless of income. Unfortunately, our solutions have not been accepted by the Department, but we remain hopeful that together we will arrive at a path that is in the best interest of the scholarship students.

Just as we celebrate the diverse students and communities we serve, we ask the State Board of Education and Florida Department of Education to continue to support the idea that having a choice of different Scholarship Funding Organizations administering the Florida Tax Credit Scholarship Program makes it a stronger, more robust Educational Choice Program for the citizens of Florida.

What an incredible example of paying it forward! Warren Brinson is an AAA Scholarship graduate who has continued on to higher education with a full football scholarship to the University of Georgia this year.

In between classes and football practice, Warren and his teammates recently spent time getting groceries to donate to the UGA “Dawgs for Pups” food drive to help underprivileged youth during these difficult times. Here is a link to a video that Warren made of the shopping expedition!

We are thankful for the opportunity to be a part of Warren’s story and can’t wait to see all he will accomplish on and off the football field. Way to go Warren!

AAA Scholarship Foundation is built on empowering economically-disadvantaged children to access the educational opportunities that may otherwise be out of their reach. We are a strong organization because our scholarships strive for equity, are inclusive, and because we exist to serve a diverse group of families and children.

It breaks our hearts that so many children and their family members are the targets of anti-black racism. Racism has no place in America – or anywhere. It destroys lives. It steals opportunities. Ultimately, it weakens the bonds of our nation and breaks the very fabric that should be holding us together.

We stand with the Black community to condemn racism in its every form and manifestation. We support the act of peacefully protesting against oppression, injustice, and brutality. We commit to continue the hard work of breaking down the barriers to the educational opportunities that so many Black and Brown children face daily.

We believe in the American dream for EVERYONE and that a high-quality education is the surest means to achieving it. We pledge to re-double our efforts to help make that dream come true for all of the children that we serve.

HOT OFF THE PRESS! The City of Miami is the first city in the nation to establish a program to assist families with rent and utility assistance. The city is establishing a website and application process which will begin on May 4^th, 2020.

Video in English: https://youtu.be/80hHOku0dpE?t=847

Video in Spanish here: https://youtu.be/80hHOku0dpE?t=1092

Rental / Utility Assistance Program:

• Residents with 60% or below of area median income can apply.
• Up to $1,500 and the funds will be paid directly to landlord and/or utility company.
• Funds will be ready by mid-May to still be able to pay the May rent before late fees are incurred.

Micro Small Business Loans:

• Micro and Small Business loans also starting soon, special meeting next week to approve.
• Call 305-416-2080 or email CommunityDevelopment@MiamiGov.com

Grant Program for Business with 5 Employees or Less:

• Businesses with 5 employees or less can receive a grant up to $10,000 – to cover rent and other costs.  (Business must have not received PPP funds).

Small Business Loan:

Small Business loan that is potentially forgivable, if one job is created, pays for costs not included in the PPP and supplemental to the PPP.  Up to $20,000 loan is forgivable is a job is created.