ATLANTA – State Representative Lisa Campbell (D-Kennesaw) cautions against claims that the Georgia Department of Audits and Accounts’ recent economic analysis for the state’s Qualified Education Expense (QEE) Tax Credit program saves public taxpayer funds. Rep. Campbell is concerned that such claims lack direct data evidence gathered during the analysis and notes that, as acknowledged by the auditors, “the exact fiscal impact cannot be determined.”
“Upon review, any alleged profitability for the state is a non sequitur fallacy of an audit that did not include financial results or ‘switcher rate’ data that is directly linked to the Georgia program,” said Rep. Campbell. “Instead, the analysis uses an indirect 67 percent switcher rate, but data collected in this analysis was much lower. Using the reported switcher data that averaged 32 percent, there would be a projected tax loss – not a savings. According to the reported calculation, there would be a substantial negative impact to the state if the actual switcher rate reported by the SSOs is used. This is a loser for Georgia taxpayers to the tune of at least $81 million annually and more than $172 million over the last few years.”
The analysis reviewed program-wide requirements and also obtained Student Scholarship Organizations’ (SSOs) specific requirements from five SSOs that account for approximately 75 percent of the scholarship funds awarded. Three of the five SSOs involved in the analysis reported awarding most scholarships, which is between 58 and 64 percent, to students transferring from public schools. However, public school transfers accounted for a smaller portion of scholarships awarded by the other two SSOs, which is 29 percent and three percent.
“Data can answer the questions regarding financial viability, savings and student learning outcomes, but only when data is transparent,” added Rep. Campbell. “This report should not be used to suggest that siphoning taxpayer dollars from our public schools to private entities saves taxpayers money, furthers parental choice or improves students’ educational opportunities. Using this report as the impetus to tout taxpayer savings is a prevarication.”
Rep. Campbell says she will continue to work to advance evidence-based initiatives to improve educational outcomes for all students. She also urges lawmakers to establish greater transparency requirements for the QEE program to ensure accountability for taxpayers. Rep. Campbell seeks legislative changes that would accomplish the following transparency goals:
- Ensure that financial details are not redacted from the Georgia Department of Revenue’s postings of SSO’s most recent compliance audit;
- Provide state agencies with adequate access to the SSO financial data;
- Establish a mechanism for the state legislature and the Georgia Department of Revenue to ensure funds for scholarships are transferred from SSOs that cease operations;
- Require the state to monitor the supply and demand of the tax credit, clarify the SSOs’ responsibility for assessing student financial need or prohibit SSOs from sending schools donor lists;
- Require SSOs to report the amounts allocated to schools or students receiving scholarships;
- Improve state law regarding prohibitions regarding for-profit and out state schools and require schools to identify which schools receive the money.
During her first legislative session, Rep. Campbell advocated for investments in public education and opposed Senate Bill 233, legislation which would create a private school voucher program. Rep. Campbell also spoke against this legislation on the House floor; a video clip of her remarks may be found here.
“I will continue to seek data-driven results, and I look forward to future work with Speaker Jon Burns and the Georgia General Assembly to strengthen investments in our public educational system,” added Rep. Campbell. “We should unify to find solutions that are proven to empower teachers, support parents and inspire students to become independent learners and prepared thinkers for the jobs, careers, families and communities of our shared tomorrow.”
The full audit report may be found here.
For more information on Rep. Campbell, please click here.
Representative Lisa Campbell represents Georgians in House District 35, which includes Kennesaw, Acworth and other portions of Cobb County. She was elected to the Georgia House of Representatives in 2022 and currently serves on the Human Relations and Aging; Budget and Fiscal Affairs Oversight; and the Interstate Cooperation committees.
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