Gov. Kay Ivey has long been a proponent for expanding school choice and creating education savings accounts (ESA), and she said her signing of the CHOOSE Act into law will provide families with financial support for educational expenses.

HB129, also known as the CHOOSE Act, will offer $7,000 to eligible students and create an ESA for families to use toward qualifying education expenses such as tuition, tutoring and books or fees for after-school or summer education programs provided by a participating school. The bill, which directs public funds to private schools, homeschooling and other educational options, passed both chambers and landed on the governor's desk to sign.

"Passing an education savings account bill that works for families and for Alabama is my No. 1 legislative priority, and I am proud to have our education budget chairmen, Sen. Arthur Orr and Rep. Danny Garrett, carry the CHOOSE Act," Ivey said in a news release.

To receive this funding, children must be aged 5 to 19 who have not graduated high school (or up to 21 with special needs).

The credit will be accessible to parents of eligible students if their family's adjusted gross income does not surpass 300% of the federal poverty level for the previous tax year.

The way it works is through a refundable income tax credit, which is an accredited K-12 school, either public or private, including religious schools, approved by the Department of Education. It must be accredited by specific regional or national accrediting agencies, or their partners recognized by the department. The amount depends on whether the student attends a participating school or not. If they do, the credit can be up to $7,000 per year or the actual education expenses, whichever is lower. If they don't attend a participating school, the credit can be up to $2,000 per year or the actual expenses, again, whichever is lower. However, for students not in a participating school, the total credits for all parents can't exceed $4,000.

According to the Alabama Demographics website, 16.2% of people in Alabama are in poverty, with 7% of people in Baldwin County living in poverty.

Although Baldwin County Public Schools could not provide a number of students that this bill will affect in the county, BCPS Communications Coordinator Chasity Riddick said that for the 2023-2024 school year, Baldwin County had over 16,000 students eligible for free and reduced meals. However, this is not an apples to apples comparison. All children in households receiving benefits from Alabama SNAP, Alabama FDPIR or Alabama TANF are eligible for free meals. Foster children who are under the legal responsibility of a foster care agency or court are also eligible for free meals. The criteria for qualifying for free and reduced meals is also distinct from the CHOOSE Act's criteria as the former is governed by federal regulations rather than state policies.

If families choose to use the $7,000 credit, they likely will still need to contribute from their own pockets to attend a school of their choice.
Bayside Academy, for example, charges varying tuition rates for its elementary, middle and high school programs. Yearly tuition for the private school in Daphne, which is the only NAIS-accredited, co-educational, non-sectarian, independent college preparatory day school on the Eastern Shore, for kindergarten is $11,078, for fifth and sixth grades it's $15,192, and for high school it's $17,091.

Head of School Scott Phillipps said Bayside currently hosts 856 students in K-12, but the capacity depends on the grade. Phillipps noted they offer tuition assistance, using the Clarity Application, which allows families to fill out a financial aid application.

"A number of our families take advantage of that, and it is done the same way that it is done by colleges. We have an outside agency that assesses student needs financially, and we make those awards accordingly," he said.
Phillipps added that Bayside is flexible with bringing in new students, even throughout the semesters.

"We do have some room where we have a lot of people in the waiting pool in the lower grades, but as they move up through the school, when students start changing classes, we have a lot more flexibility in being able to schedule and bring kids in. We do have some room in the middle and upper grades," he said.
The annual tuition for St. Michael Catholic School in Fairhope is $12,480, not including fees. There are multiple-children and lump sum discounts as well as payment options.

"We will fully fund a student because our tuition is over $7,000, but it would definitely help defray the cost of attending St. Michael Catholic High School," Principal Andrea Williamson said. "We have donors that have designated scholarships. We have monies that we designate through our annual fund that is specifically for financial assistance. We also have something called a Guardian Angel Fund, which is specifically for Catholic families to offset the cost of Catholic education. All of our scholarships and financial aid is needs-based."

Orange Beach Superintendent Randy Wilkes said enrollment for Orange Beach City Schools is based on factors like educational needs, space and following the proper guidelines that the city district has set in place for good behavior, such as academic performance, attendance and the review of discipline records.
Non-residential students who live outside the zoning boundaries of Orange Beach can attend but must submit an application to the superintendent to be reviewed.

He said the city school district's board of education will need to review and update its policy to include the use of ESA funds.

According to HB129, money for families who want to use the CHOOSE Act will be accessible starting January 2025.