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Senators approve enrollment cap structure for Education Freedom Account program in SB 295
Summary
Senators adopted amendment 0691s to Senate Bill 295 to set an initial enrollment cap of 10,000 students for the Education Freedom Account program, establish prioritization rules, and create a mechanism that increases the cap by 25% when applications exceed 90% of the current cap.
Senators voted to adopt amendment 0691s to Senate Bill 295, which sets an initial enrollment cap of 10,000 students for the Education Freedom Account (EFA) program, prioritizes current enrollees, siblings and students with disabilities, and directs that if applications exceed 90% of the enrollment cap the cap will automatically increase by 25% for the next fiscal year (for example, from 10,000 to 12,500).
A presenter who described the amendment said it “prioritizes students below the current income cap at 350% of federal poverty, and it sets an enrollment cap on the program of 10,000 students, which would then increase gradually each year.” The amendment retains the residency requirement and sets stepwise priorities—current EFA students and their siblings first, then students with disabilities, then income eligibility—if demand exceeds capacity.
Why it matters: supporters framed the approach as a way to provide predictability and avoid uncontrolled year‑to‑year spikes in enrollment; opponents called the mechanism a weak “cap” because the automatic 25% increases could allow rapid growth and raise significant budget pressures on the Education Trust Fund (ETF).
Members pressed staff and sponsors on how the cap mechanism would operate. Committee discussion clarified that the cap increase is triggered when applications—not just accepted enrollments—reach 90% of the cap in a fiscal year, and that the increase is applied for the following fiscal year. The example given in debate: if applications hit 90% of a 10,000 cap, the program’s cap for the next fiscal year becomes 12,500; if 90% of 12,500 is hit in a subsequent year, the cap could rise again by 25% the following year.
Critics noted budgetary risks: one senator said the program currently serves about 5,000 students at an estimated cost of $30,000,000 and warned that removing income limits as a priority could double costs. Another speaker referenced an ongoing lawsuit that could raise per‑student payments and substantially increase program costs.
The amendment 0691s and the motion to move SB 295 forward as amended were adopted by voice vote. The committee record shows no roll‑call tally in the transcript for the voice votes.
Ending: The adopted language adds a formal enrollment ceiling and an automatic adjustment mechanism intended to limit sudden, unchecked growth; however, committee debate highlighted fiscal uncertainties and differing views on whether the mechanism meaningfully restrains program expansion.
