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Cost and Fiscal Impact
The maximum CSTP scholarship had been $2,250 since the program’s inception; legislation passed in 2003 increased the amount to $2,700. This limited financial support means that already established (mostly religious) schools are much more likely than new schools to participate. The result is that a relatively small number of non-religious schools have joined the program. The cost of a CSTP scholarship is substantially lower than the per pupil cost in the Cleveland Municipal School District.
For families with incomes below 200% of the federal poverty level, the maximum scholarship may not exceed 90% of a private school’s tuition or $2,700, whichever is less. The family must pay the remaining tuition (up to $300) or volunteer equivalent hours at the school their child attends. For families above the 200% level, the scholarship pays a maximum of 75% of the tuition. Schools may collect the full difference between the voucher amount and tuition from families above the 200% level. For special needs students, scholarships cover 100% of extra expenses for their education needs. The Ohio Department of Education hired KPMG Public Services Consulting to study administrative and fiscal issues involving management of the CSTP. KPMG reported that the CSTP had not cut state financial support from Cleveland’s public schools. See “Cleveland Scholarship and Tutoring Program, Management Study Final Report,” KPMG LLP, Dayton OH, (937) 259-9850.
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