The document summarizes North Carolina House Bill 388, which proposes an individual income tax credit for parents of children with special needs to help cover education expenses. The bill would provide a tax credit of up to $3,000 per semester to help pay for tuition and other costs at non-public schools. The bill is supported by representatives from both parties and has bipartisan voter support. Supporters argue it would save the state and local governments money compared to the cost of educating special needs students in public schools, and would give parents more choice in their child's education.

1. North Carolina General Assembly: House Bill 388: 2007-2008 Benefits of Providing Parents with Choice Prepared for House and Senate Members Representative Paul Stam Tax Credits for Children with Special Needs

2. Slide Order Understanding House Bill 388 Voters’ positions on this issue Support from all Backgrounds Fiscal impact of tax credits Allocation of educational funds Fiscal impact of tax credits Next Slide Fiscal impact of tax credits Comparable Programs Programs in FL & AZ Who would qualify? Sample Form for Tax Credit Beneficiary – Case Study #1 Beneficiary – Case Study #2 Select a slide to view or click Next Slide to begin show Beneficiary – Case Study #3

4. Voters’ positions on this issue Bipartisan Support (800 actual, proven, North Carolina voters) Previous Next Menu Voters’ positions on this issue 85 82 % Yes Republican Democrat Affiliation

7. $4168.19 As the North Carolina Department of Public Instruction detailed in their February 2007 Budget Analysis, a child with special needs is devoted over two times as many resources, in base funds, as a child without special needs. When other funding requirements are brought into consideration, such as additional funding to students falling behind grade level achievement, the actual cost to educate a child with special needs in our public school system can soar to more than $14,500/year, almost three times what a child with no additional needs requires, at $5,158/year. Previous Next Menu $4168.19 $8766.69 Allotment of educational funds

9. Fiscal impact of tax credits $6,978.96 is the predicted operational “savings” to the State that results from each student with an IEP transferring from the public schools, with $2,100 local expenditures savings. Previous Next Menu Legislative Fiscal Note The number of eligible students participating in the program will determine how much state and local governments will save each year, as more parents take advantage of the program the long term savings will continue to increase.

11. Other States with comparable programs Florida, Ohio, Utah and Arizona all have programs that are comparable to the proposed tax credit program in North Carolina for children with special needs. Ohio’s Autism Scholarship Program, Utah’s Carson-Smith Special Needs Program, and Arizona’s Pupil’s with Disabilities Program all allow credits of around $3,000. The programs allowing school choice have been so successful that nearly 30 states have considered school choice legislation within the last year. Allowing parents the freedom of school choice is proving an effective way to address the needs of the exceptional students in our country. Of the programs Florida’s stands out as one of the effective and best performing and is very similar to the proposed North Carolina tuition tax credit. Previous Next Menu

15. A simple, straight forward, form is needed in order to receive the tax credit. Previous Next Menu Sample form to receive tax credit

16. Previous Next Menu A young adolescent male from Charlotte is having difficulty getting along with students in his class at school, he was diagnosed with Oppositional Defiance Disorder (ODD), is on medication for his condition, and has to see a behavior specialist daily. Being prone to behavioral problems he is often unable to cooperate with his teachers and fellow students, and is often removed from the classroom to be dealt with because the teachers do not know how to handle his temperament. His parents are concerned that he is not learning to his grade level, and that his problems are not able to be addressed to in the classroom. With a tuition tax credit his parents would be able to afford to send their child to a school understanding of his specific needs. Within their county is The Keys of North Carolina School, designed address behavioral deficiencies in adolescents If the parents were able to afford this option, their son would have already been enrolled. With a tuition tax credit they will finally be able to enroll their son in a school where he will be understood. Program Beneficiary – Case Study 1

17. Previous Menu The Smith family in Raleigh has a daughter who has recently been diagnosed with autism; she is one out of every 73 children in North Carolina suffers from autism. Having had their daughter enrolled in the first grade the previous year they are worried about keeping their daughter in public schools after hearing a number of cases where autistic children were picked on and unable to keep up in classes. In Cary North Carolina Mariposa School recently opened. Mariposa’s service is dedicated specifically to autistic children. Learning of the tuition tax credit they are excited about the possibility of enrolling their daughter in a school where her special needs will be directly addressed, avoiding having their daughter placed in a classroom with special needs students requiring differing treatments. Next Program Beneficiary – Case Study 2

18. Program Beneficiary – Case Study 3 Parents of special needs children like the Petruks in Charlotte are examining their educational options and are finding out that they have very few. Their son’s placement in a classroom with 23 other special needs children leaves little time for the one on one instructional and physical environment needs that are necessary for his specialized learning requirements. He has an average IQ, but has a difficulty learning when there are more than a handful of people in a room. It is disheartening for their family to know there are non-public educational opportunities and services that are structured specifically for their child’s particular disability but they are unable to enroll their child because of financial limitations. The price is simply too high. With the proposed tax credit the Petruk family, along with potentially hundreds of other families, will be provided the freedom to choose where their son is educated. End Presentation prepared by Dan Henson - Intern Previous