Senate education panel advances scholarship expansion, directs tax‑credit framework to calendar and finance

Leader Johnson told the Senate Education Committee on March 11 that demand for the state’s Opportunity Scholarship program far exceeded expectations, saying that 38,000 people applied within 24 hours after the program launched and that 56,000 families have applied so far for the coming school year.

Johnson said SB 22‑47 would double the number of scholarships available from 20,000 to 40,000 and that Governor Lee had included funding for the expansion in his budget. He described a technical amendment the committee adopted that removes an overlapping federal tax‑credit provision and asked for a favorable vote.

Senator Hensley and other members pressed Johnson on program costs and the interaction between the measure and the TISA formula that funds public schools. Hensley asked how many students who accept scholarships will leave public schools — which would shift state funding away from districts — and noted concern that the expansion would add roughly $300 million in recurring costs to the budget if fully implemented as described in the hearing.

Johnson said the program rules would not pay a public school for a student who leaves for private school: "If there is a child that is in public school now that leaves, is awarded a scholarship and goes to a private school, then the state will not be appropriating that $7,300 to that school," he said. He emphasized parental satisfaction metrics as an accountability measure, saying parental satisfaction surveys were ‘‘98 or 99 percent’’ in favor of the program.

After extended questioning about performance data, fiscal impact and enrollment dynamics, the committee adopted amendment number 1 and voted 7‑2 to refer SB 22‑47 to the Finance Committee (ayes: Crow, Hale, Lowe, Pody, Powers, Roberts, White; nos: Agberry, Hensley).

Separately, the committee considered SB 22‑06, a bill to set up the state procedures needed to let Tennessee participate in the new federal tax‑credit scholarship program. Leader Johnson said the bill creates an administrative framework — directing the Department of Education to certify eligible scholarship organizations, publish the required list for Treasury, and coordinate with Revenue — but would not use state funds. Committee members asked whether the bill obligates state money; sponsor said it does not. The committee unanimously moved that bill to the calendar (9‑0).

What’s next: SB 22‑47 will be considered by the Finance Committee, where members warned the budget implications will be examined. The federal tax‑credit implementation bill will proceed to the Senate calendar.