In the Silver State a child’s education is often determined by their zip code. Unless the families can afford alternatives, students are enrolled in schools closest to their residence, regardless of the school’s ranking or the child’s individual needs. As a result, many children from less affluent backgrounds are stuck in underperforming public with no educational choice.
In 2015, Nevadan lawmakers passed legislation creating the Opportunity Scholarship program (also known as the Nevada Educational Choice Scholarship Program) – an easy policy solution to the status quo that is a win-win both for students and for local businesses. Essentially, the initiative allowed any Nevada business facing a tax liability under the Modified Business Tax to contribute money to scholarship-granting organizations and receive a dollar-for-dollar tax credit. Initially, capped at $5 million annually (adjusted for inflation), the funds were used to provide scholarships for families with household income not more than 300% of the federal poverty level. The scholarships helped finance attendance to private schools while using 95% of total donations for scholarships and minimizing the administrative costs.
After a change in legislative leadership, in 2019 the lawmakers prohibited Opportunity Scholarship from being extended to students who had not been recipients prior. The restriction was lifted in 2021, and later, in 2023 Governor Lombardo proposed to expand the total tax credit that funds the program from $6.65 million to $25 million annually. Instead, lawmakers repealed the tax credit program entirely.
Why Opportunity Scholarships Matter
Educational choice has always been available to families who can afford it. It is children from less affluent backgrounds that benefit from the scholarships. Without the Opportunity Scholarships many students would be trapped in underperforming public schools, potentially perpetuating the cycle of poverty. The Opportunity Scholarship serves as a reminder that every child deserves a chance to receive quality education in a competitive setting….
