Overview

The purpose of Title IV is to promote parental choice and to increase the amount of flexible funds available to states and school districts for innovative education programs.

Systems are often resistant to change -- no matter how good the intentions of those who lead them. Competition can be the stimulus a bureaucracy needs in order to change. For that reason, the Administration seeks to increase parental options and influence. Parents, armed with data, are the best forces of accountability in education. And parents, armed with options and choice, can assure that their children get the best, most effective education possible.

Summary of Proposals

Promotes Charter Schools. Funding will be provided to assist charter schools with start-up costs, facilities, and other needs associated with creating high-quality schools.

Broadens Education Savings Accounts. The amount of funding that can be contributed annually to these accounts will be increased to $5,000 and allowable uses of funds will be expanded to include education-related expenses in Kindergarten through 12 th grade.*

Expands School Choice. A school choice fund will be created and administered by the Secretary of Education to demonstrate, develop, implement, evaluate, and disseminate information on innovative approaches that promote school choice.

Consolidates Categorical Grant Programs to Send More Dollars to Classrooms. Overlapping and duplicative grant programs will be consolidated into one flexible grant for innovative programs and sent to states and school districts. Funds may be used for local innovative programs, as well as to provide choice to students in persistently failing or dangerous schools so they can attend adequate, safe schools of choice.

Expands Public-Private Partnership in School Construction. States are currently allowed to issue a certain number of tax-exempt bonds for private contractors to build public facilities, such as airports and low-income housing. Public school construction is currently not an allowable use of such bonds. By allowing private activity bonds to be used for public school construction, local districts across America will be able to leverage additional funds to be used for school construction and repair. The amount of bonds in each state able to be used for public-private partnerships in school construction would be based on the state population.*