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North Carolina SB 257, passed in June 2017, established an Education Savings Account for students in the state. The bill was vetoed by Gov. Roy Cooper, but his veto was overridden by the state’s General Assembly. Keep reading to see where surety bonds come in.
What’s an Education Savings Account?
North Carolina’s Education Savings Account (ESA) is a fund that will award eligible students with disabilities in the state with grants for educational spending. Applications opened on February 1, and the priority deadline is March 1; funds will be disbursed for the 2018-19 school year and recipients will be notified in April. This program is overseen by the North Carolina State Education Assistance Authority (NCSEAA).
No student can receive more than $9,000 from the ESA in a school year, with $3.4 million allocated for the program including administrative costs. The funds can only be used for educational expenses, including private school tuition and fees, textbooks, tutoring, extracurriculars, educational therapy, and approved educational technology. If the funds are used at a private school, it must be an approved school that is registered with the NCSEAA. Students’ eligibility is reevaluated every three years to ensure they are still eligible to receive ESA funds.
When students are granted ESA funds, their parent or guardian receives a debit card onto which their funds are loaded quarterly. Parents are responsible for tracking the money they spend and submitting quarterly expense reports with receipts to the NCSEAA. Any problems with expenses must be resolved each quarter before the student can receive any more funds.
When could a bond be needed?
The NCSEAA may require a bond if a school is receiving a certain amount of ESA funds. The surety bond would protect the state and recipients of ESA funds from loss of those funds should the school close, mishandle funds, or otherwise cause financial damages. While there is no current surety bond mandate by the state, SB 257 gives NCSEAA the option to require the bond if they deem it necessary.
You might not yet need this bond, but get in touch with Single Source Insurance for a quote for another North Carolina surety bond.