The Invest in Kids Act: Tax Credit Scholarships What happened on - - PowerPoint PPT Presentation

The Invest in Kids Act: Tax Credit Scholarships What happened on January 31st? What is the recovery plan?

OCS Leadership Day University of St. Mary of the Lake February 16, 2018

Agenda

• Review what happened on January 31st
• Overview of the two step recovery plan
• Planned OCS parent support
• Update on TCS donations; projections for

scholarship funding volume and value

• Plans for follow-on financial support programs:

Caritas, Phoenix, BSF, needs-based tuition discounts

• Q&A

2

• Background
• Empower Illinois (EI) contracted with Step Up For Students (SUFS) to
• perate their back office
• SUFS contracted with TADS for application entry and processing
• Applicants access TADS through a link from the EI website
• On January 31st 64,924 unique visitors accessed the EI

website for all purposes

• 15,259 accessed the site between 12:00 and 12:10 PM
• 6,577 accessed the site at exactly 12:00 Noon
• TADS has MUCH lower simultaneous user capacity (<1,000)
• Until the process was shut down, 36,742 users attempted to

complete an application

• Fewer than 100 people were actually able to complete a valid

application

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What happened on January 31st?

• The Invest in Kids Act “First Come, First Served” (FCFS)

requirement, the limited availability of funds and high demand all motivated people to attempt to apply at exactly Noon.

• The TADS scholarship application process was not designed

and is incapable of handling the demand surge that was seen

• The recovery plan separates the high demand “event” loading

from the actual application entry

• A very high volume “Reservation” process is being created to allow

families to register and receive a place in line for first come, first serve purposes (date and time stamp): Step 1

• After reservation, parents will be sent emails (with unique URLs) in

carefully sized batches to enter application data, spreading the application load over many days: Step 2

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Recovery Plan: Adopt a 2 Step Process

• Reservation dates and times are still being finalized, but current plans

project it to occur during the week of February 26th.

• Step 1 will require completing 2 very simple on-line pages of information.
• Page 1 information (tentative): Parent name, phone number, email address, email

confirmation, “Captcha” confirmation (I am not a robot); FCFS date and time stamp will occur after this step.

• Page 2 Information (tentative): Home address, names and dates of birth of children for

whom scholarships are being sought, and perhaps selected school for ea. (may be a text box or drop down box); Note: The form will allow entry of up to 15 children; if a family has more than 15, there will be a box to check. The time to complete Page 2 will not impact FCFS.

• The 2 page reservation process will have a 15 minute count-down clock

for completion; it will provide bi-lingual descriptions of requested data

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Step 1 Details

• The Reservation system will allow access from all common browsers (IE,

Edge, Chrome, Safari, etc.) and mobile devices

• At the completion of page 2 of the Reservation process and entering

“Submit,” a unique reservation confirmation code will be displayed. Families should record this number for reference and follow-up if needed

• Reservations will be reviewed for duplications. If a family is found to be

entering multiple reservations or duplicate reservations, the FCFS date and stamp in the event of duplications will be the LAST of the duplicate entries.

• After review of duplications, families will be sent an email with a link (with a

unique URL) to the application process (Step 2).

• The above emails and links will be grouped and throttled to provide a

manageable load to the TADS servers; their release will be in order of the FCFS date and time stamp over a several day process.

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Step 1 Details (cont’d)

• The email and link referenced on the previous slide will invite the parent to

connect to the TADS site and complete an Empower Illinois scholarship application; bi-lingual support will be provided

• Emails will be sent beginning a few days after the Step 1 reservation

event, grouped in batches of perhaps 500 – 1000 initially, in the FCFS

• rder of reservations
• Families will be given a specified timeframe within which to complete their

application (3 days), giving families a non-time pressured opportunity to complete the application at their convenience. Completion within the timeframe will not impact their FCFS place in line.

• Applications will not be considered complete until both the application is

finished and submitted along with all necessary documents to determine eligibility are provided.

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Step 2 Details

• Week of February 26th: Reservation: a one-time event requiring an
• n-line simple reservation; determines FCFS
• Week of March 5th: Scrubbing reservation list for duplications
• Weeks of March 5th – March 12th: batch emails to families asking

them to complete applications on-line

• Weeks of March 12th – March 26th: review of applications for

eligibility, priority and available funding (NOTE: upon a priority application’s determination of eligibility and completeness, the 10 business day response clock starts)

• Weeks of March 26th – April 2nd: Begin notification emails to

eligible, approved families. (Note: these notifications may be provisional and contingent upon the availability of funds.)

8

Overall Schedule and Timing (Tentative)

RESERVATION:

• Unlike January 31st, the Reservation event is very simple and quick
• Timely reservation is the most important consideration
• Central reservation support centers (and potential queues) might delay some

registrants vs. independent registration – but some local support may be desirable in some cases. APPLICATION:

• Applications will be spread over an extended period
• As long as completed within the allotted timeframe, parents may apply at any

time within their window;

• Applications can be started, saved and resumed later
• Some families may still require support and/or computer access, but centrally

staffing multiple application entry support sites across the Archdiocese doesn’t seem warranted What other support needs / staffing would you like to see?

9

Planned Local Support / Discussion of Need

Note: Following are samples of screen shots for the Step 2 – Application. We will provide a full set of screen shots of the application as soon as they are available.

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Step 2 Application-Sample Screen Shots

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Initial School Designation Page

12

Multiple Student School Selection

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Custodian / Parent Information

14

Dependent Information

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Summary and Submit Page

• Required for a school in order for an award to be

designated to school

• Most schools have submitted the SPA. Communication

from EI to follow shortly.

• OCS will communicate with schools who have either NOT

yet submitted the SPA or submitted incorrect data on the form.

• Use link to submit SPA:
• https://forms.tads.com/empower-il-school-participation-

agreement/

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School Participation Agreement (SPA)

Contributions Region 1 Region 2 State Contribution Limit $51.22 MM $23.09 MM $100 MM Authorized Contributions to date $36.44 MM $5.89 MM $45.40 MM Percentage Authorized of Limit 71.1% 25.5% 45.4% Available Contributions $14.78 MM $17.20 MM $54.60 MM Receipted Contributions to date $6.09 MM $1.36 MM $8.24 MM

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Donations to-Date (February 15, 2018)

• Region 1 (Cook County) and Lake County (p/o Region 2)

estimated pledged donations: ~$40 Million

• Estimated Empower Illinois SGO share: ~$32 Million
• Estimated AoC or AoC School designations: ~$25 Million
• Estimated EI undesignated funds: ~$2.0 Million
• Estimated average AoC scholarship: ~$7,500 (Elementary and

High School)

• No. of scholarships funded by pledges at $7,500 average: 3,600

(5,400 @ $5K)

• No. of scholarships funded by receipted contributions to-date:

~800 @$7.5K (~1,200 @ $5K)

• No. of expected AoC applications: 25,000+
• Percentage of applicants likely to get a scholarship: 5-15%

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Expected Scholarship Funding & Value

• Encourage families to Apply for TCS
• BSF SGO and/or EI SGO
• Families should apply for financial aid as usual
• Local funded scholarships
• AOC – Caritas or Phoenix
• Big Shoulders
• Needs based discount
• OCS Communication next week providing

explanation of financial aid options

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Financial Aid Process

FY 18-19 Budget cycle more dynamic due to TCS

• Budgets are due April 6th
• TCS awards uncertain by that point
• Enrollment projections based on historical trends and

latest updates; budget conservatively

• Include renewable scholarships (e.g. some BSF & AOC)

in budget

• Record TCS awards only if registered and award

confirmed

• Continue to update budget as better information available

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Financial Aid Budgeting Implications

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Need to change mindset re tuition aid

Myth: I can only reduce invoiced tuition when I have Caritas/Phoenix or other funded scholarships to make up the difference. Reality: You should give a tuition discount as long as a family qualifies (via FACTS input and fin. committee review), and contracts to pay the discounted amount. Myth: Tuition reductions cost real money, e.g., “How will I pay for the discount?” Reality: Any incremental tuition to fill an empty seat, even if not at full price, makes real money, assuming you can’t fill that seat with a different student bring fully funded tuition. Myth: If I admit a reduced price student, I need to have an offsetting full-price student to “make up the difference.” Reality: If you don’t admit that reduced priced student, you are actually worse off. Assuming you don’t have an alternative, full-paying student ready to fill that seat, your bottom line will worsen if you don’t admit the reduced price student. Myth: I already run a deficit. By admitting more families at discounted tuition rates, my average tuition per student will decline and OCS will criticize me! Reality: As long as your financial aid process verifies justified need, with rigor, you are doing your best to maximize total tuition from the population you serve. Myth: If full-tuition families find out I’ve discounted their neighbor, they will feel this is unfair. Reality: In the schools that need to consider discounting, very few of your families currently bear the full cost

• f their education. The List Price is already discounted, and the cost is made up by the parish, BSF, or AoC aid.

• February 21st – Pope Francis Global Academy

8:30 am – 11:30 am 12:00 pm – 3:00 pm

• February 22nd – St. Albert the Great

8:30 am – 11:30 am 12:30 pm – 3:30 pm

• Follow Link to register:

https://factsmgt.com/chicago-best-practices/

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FACTS Financial Aid Training Session

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Appendices

Scholarship details

• Scholarship based on the lower of: 1) tuition and eligible

fees, and 2) state average cost of $12,973.

• Schools with Gifted, ELL and Special Ed programs – and

differentiated tuition / fees – have higher caps

• Gifted: (X 1.1)
• ELL: (X 1.2)
• Special Ed: (X 2.0)
• Limits on geographic allocation of funds:
• Region 1 (Cook County): 51.22%;
• Region 2 (Lake and 12 other counties): 23.09%.)
• Priority consideration given to low income households

and students in “Focus” districts

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How to Qualify

• Scholarship eligibility and level is based on a family’s household income,

defined as “Adjusted Gross Income” from your tax return

• Student are eligible if family income is less than $73,800 a year for a

family of four (amount varies by household size)

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Household Income* Per Year (Family of Four) Eligible Scholarship Amount** Less than $45,510 100 percent of tuition $45,510-$61,500 75 percent of tuition $61,500-$73,800 50 percent of tuition

*Adjusted Gross Income **The maximum scholarship award is $12,973

• Up to April 1, priority given to:
• Households with incomes below $45,510 (for family of 4) OR
• Students who reside in a “focus district”
• After April 1, income threshold increases to $73,800 (for family of 4);

priorities are dropped – awards are first come, first served

• Household Income:
• Form 1040 (Federal Tax Return), pages 1 & 2 only, 2016 or 2017
• If you do not file taxes, provide other evidence of income (i.e. W-2, recent pay

stubs, Form 1099, official letter from employer or disability statement)

• Proof of Residence (one of the following):
• Illinois Driver's License with current address
• Illinois State ID with current address
• Utility bill with name and current address
• For Kindergarten and 1st grade students only: Evidence of Child’s Age (one
• f the following):
• Birth certificate
• Passport
• Number of the Public School District in which the household resides:
• Example: #299 for CPS

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Materials Needed to Apply

• Chicago CPS SD 299
• Bellwood SD 88
• Berwyn South SD 100
• Cicero SD 99
• Morton HSD 201
• Maywood-Melrose Park-Broadview 89
• Argo CHSD 217
• Bloom Twp. HSD 206
• Bremen CHSD 228
• Calumet City SD 155
• CCSD 218
• Chicago Heights SD 170
• Dolton SD 149
• Gen. George Patton SD 133
• Hazel Crest SD 152-5, 152-6
• Hoover-Schrum Memorial SD 157
• Rich Twp. HSD 227
• Thornton Fractional Twp. HSD 215
• Thornwood HS
• Palatine CCSD 15
• Wheeling CCSD 21
• Addison SD 4
• Aurora East USD 131
• Aurora West USD 129
• Beach Park CCSD 3
• CUSD 300 (Dundee-Crown HS,

Lakewood, Perry)

• Fairmont SD 89
• Joliet PSD 86
• Joliet Twp. HSD 204,
• Marquardt SD 15
• Plano CUSD 88
• Round Lake CUSD 116
• SD U-46 (Steamwood HS)
• Waukegan CUSD 60
• West Chicago ESD 33
• Zion-Benton Twp. HSD 126

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“Focus” School Districts in NE Illinois

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Illinois Appellate Court Map: Defines the Invest in Kids Act Geographic Distribution Bands

Approved SGOs Region(s) Approved ACSI Children Education Fund 1, 2, 3, 4, & 5 Big Shoulders Fund 1 & 2 Chicago Minority Supplier Development Council 1, 2, 3, 4, & 5 Children at the Crossroads Foundation 1 Empower Illinois 1, 2, 3, 4, & 5 Glen View Club Scholarship Foundation 1 Highsight 1 Institute for Community Inc 1, 2, & 3 Join Hands ESL Inc 5 Lutheran Elementary School Association 5 Merit School of Music 1 Urban Prep Foundation 1, 2, 3, 4, & 5

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Approved SGOs

Approved Scholarship Granting Organizations