Seton Catholic School students in Ottumwa volunteered to serve at the Heartland Pregnancy Center’s fundraiser Nov. 7. Sixth-graders Millie Birrell, left and Caroline Clark carry items.
By Anne Marie Amacher
The Catholic Messenger
“The School Tuition Organization (STO) program continues to play a vital role in Iowa,” says Trish Wilger, executive director of Iowa Alliance for Choice in Education and Iowa Advocates for Choice in Education (ACE).
Many low and middle-income families rely on the STO to bridge the financial gap that may exist between the Education Savings Account (ESA) amount and the cost of tuition. “Without this support, some families might struggle to afford a private school education for their children.”
ESAs were signed into law by Iowa Governor Kim Reynolds in 2023. For the first two years, there were income guidelines for eligibility. For the current school year, all K-12 students who reside in Iowa and planned to attend an accredited private school were eligible. Each eligible student receives $7,983 that is used for tuition and fees at those schools. If there is any left over, funds may be used for approved educational expenses, according to the Iowa ACE website.
Half the funds are available for the fall semester and the rest for spring semester.
With ESA funds, why are STOs still needed?
Wilger said families may have missed the deadline to apply, moved to Iowa after the deadline or decide to transfer their child(ren) during the school year to a private, accredited school.
“The STO ensures that these families are not excluded from accessing private education due to timing issues or unforeseen circumstances. The STO continues to help thousands of families every year.”
In the Diocese of Davenport, there are two STOs.
Steve Roling, executive director of the STO of Southeast Iowa, said STOs do not cover tuition fees for all schools. “STO funds can fill the gaps.”
He noted STO grants are restricted to K-12 students who live in Iowa households with a total income that does not exceed an amount equal to four times the federal poverty guideline. “That means a family of four would generally be eligible if their total income was less than $128,600.”
STO donors (for any Iowa STO group) still receive a 75% tax credit against their Iowa taxes. It is not a tax deduction. “The law has not changed,” he said.
Last year the STO of Southeast Iowa raised $1,739,677. This year’s goal is $1,760,188.
STO of Southeast Iowa covers Holy Trinity Catholic Schools in Fort Madison and West Point; Notre Dame Catholic Schools in Burlington; Prince of Peace Catholic School in Clinton; St. Joseph Catholic School in DeWitt, Regina Catholic Schools in Iowa City; Seton Catholic School in Ottumwa; St. James Catholic School in Washington, Saints Mary and Mathias Catholic School in Muscatine and St. Vincent Catholic School (Keokuk Catholic Schools) in Keokuk.
Andy Craig, president of Scott County Catholic Schools, said ESA funds fully cover the Catholic schools’ tuition rate in Scott County. He noted there are Christian schools in the state that have higher tuition to reduce subsidies, but that is not the case in Scott County.
“But there still is a need for STOs,” he said speaking for the Mississippi Valley STO. Families move into the area, miss the filing deadline for ESAs or have a change in family income.
The Mississippi Valley STO’s goal for next school year is $1.4 million.
Craig noted that 90% of STO funds must be used for tuition assistance. Up to 10% can be used for administrative costs. “We use 100% for tuition assistance.”
The Mississippi Valley STO covers St. Joan of Arc Catholic School and Rivermont Collegiate in Bettendorf and Assumption High School, All Saints, John F. Kennedy and St. Paul the Apostle Catholic schools in Davenport.
STO of Southeast Iowa
The deadline to apply for a grant from the STO of Southeast Iowa is April 30. To donate, the contribution form is available online at www.stoseia.org
Mississippi Valley STO
The deadline is ongoing with no set date to apply. To donate, visit any of the school websites for an application or call 563-326-2667.
The deadline to donate to any STO is Dec. 31. Once the goal is reached, no more donations are accepted.
