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States use their accountability systems to identify low-performing schools, which can receive added support and are expected to improve. Alternative schools serve students whose needs are not met in a regular school. They often serve at-risk students who are struggling academically or behaviorally. Given this unique population, the Government Accountability Office (GAO) looked at how states hold alternative schools accountable. A review of 15 selected state accountability systems--used to assess all types of schools--found that all 15 include at least one indicator that research organizations and relevant studies considered useful in capturing alternative school achievement. The GAO also found a few states that, as part of their accountability system, adopted approaches to differentiate alternative schools when identifying them for support and improvement.

All tax credit scholarship (TCS) programs are state programs. States develop program policies and requirements, including establishing the roles and responsibilities of scholarship granting organizations (SGOs) and participating private schools. The President's fiscal year 2020 budget request included a proposal for federal tax credits for donations to state-authorized SGOs. The Government Accountability Office (GAO) was asked to review key characteristics related to accountability in state TCS programs that can fund K-12 educational expenses. This report examines (1) key requirements state TCS programs have chosen to establish for SGOs; (2) key requirements for private schools participating in state TCS programs; and (3) how selected states implement TCS programs and assess whether SGOs and participating private schools are following key state requirements. GAO identified key requirements states may choose to establish related to accountability for SGOs and schools based on relevant research and prior work. GAO also reviewed program documents from all 22 TCS programs to identify whether they had these key requirements as of school year 2018-2019 and then verified this information with state program officials. GAO did not conduct an independent review of state laws and regulations. GAO visited Arizona, Florida, and Pennsylvania, which have the largest TCS programs. In each of these states, GAO reviewed program documents and interviewed officials at state agencies and staff at selected SGOs and private schools (selected to provide variation in size and other characteristics).

Tax credit scholarship (TCS) programs offer state tax credits to individuals or businesses that donate to scholarship funds for students to attend private elementary and secondary schools. Through these credits, donors may reduce the amount they owe in state taxes by the full or a partial amount of their donation, depending on each program's rules. Designing a TCS program requires that many decisions be made, such as which students will be eligible to receive scholarships and the effect donations will have on donors' state taxes. The Government Accountability Office (GAO) was asked to review key characteristics of TCS programs. This report examines: (1) state TCS programs' policies regarding student eligibility and scholarship awards; and (2) how donating to a TCS program could affect the amount of state and federal taxes owed by donors. For both objectives, GAO reviewed publicly-available documents about student eligibility and tax provisions for all 22 programs authorized as of January 2018 and verified the accuracy of the information with state program officials. GAO also interviewed federal officials and reviewed relevant federal guidance and policy documents. Findings reveal that in 2018, there were 22 TCS programs authorized across 18 states, which provide state tax credits for individual and business donations that fund scholarships for students to attend elementary and secondary private schools. To determine the eligibility of students for these scholarships, most TCS programs use household income and have various approaches to determine scholarship award amounts. Income limits vary widely among programs, ranging from approximately $32,000 to $136,500 per year for students from a four-person household in school year 2017-2018. The effect of TCS donations on donors' tax liability depends on program characteristics and donors' financial circumstances. Specifically, half of the 22 programs allow eligible donors to claim 100 percent of their donations as state tax credits, meaning that for each dollar donated, state taxes owed are reduced by a dollar, up to any maximum set by the state. The remaining 11 programs allow donors to claim from 50 to 85 percent of their donations as state tax credits.