Print
E-mail
School Choice Advocates Oppose Tax Credit Cuts
By JOHN P. CONNOLLY, The Bulletin
School choice advocates are worried about potential cuts in the 2009 state budget that would drastically reduce the number of available scholarships for children seeking a better education.
The Educational Improvement Tax Credit (EITC) is a program that allows certain types of businesses to donate to nonprofit scholarships or educational improvement organizations in exchange for a tax credit. With Pennsylvania facing a tough budget year, EITC is a prime target for politicians looking to trim their way out of a $2 billion deficit.
The Road to Educational Achievement Through Choice (REACH) Foundation, a grassroots coalition dedicated to ensuring parental choice in education, reported that the new budget would cut the EITC allocation from $75 million to $40 million. Of the slated $35 million cut, $22.3 million are planned to come from programs for public schools.
The remaining $12.7 million cut will reduce scholarships for low-income students in both pre-K and kindergarten through 12th grade schools.
“During the 2008-2009 school year, over 44,000 students were able to attend a school of their choice thanks to an EITC scholarship,” said Andrew T. LeFevre, executive director of REACH. “A reduction in EITC funding could jeopardize thousands of children’s scholarships and will force thousands of students back into a school that will not give them a chance at a successful education. In addition, tens of thousands of worthwhile educational programs in our public schools will be significantly impacted with the loss of EITC funding.”
Mr. LeFevre also pointed out that cutting EITC funding could hurt the state economically, since the scholarship funding from businesses helps reduce the cost of education to the state.
“More students in public schools equals higher property taxes and increased state taxes,” he said.
Bishop Joseph McFadden, auxiliary bishop of Philadelphia, said cutting the EITC program across the board would increase the competition among schools for the remaining scholarships. He said the EITC program has helped Catholic schools over the past eight years.
“EITC has been a great benefit to parents who struggle to pay Catholic school tuition, because it allows businesses in the state to direct their tax money to scholarship organizations,” said Bishop McFadden. “Today we have 2,353 children receiving awards out of 8,020 applicants. The money is across the state, and there are private and public schools who are able to compete for these dollars. Across the state if they cut it to 30 million from 75, that’s a major situation and it’s going to affect our [current] ability to give almost $3 million [in aid].”
The Business Leadership Organized for Catholic Schools (BLOCS), an organization of business leaders who raise donations for the Catholic school system, expressed its disappointment at the cuts, but was optimistic at the fact that the scholarships avoided the brunt of the statewide cuts.
“BLOCS is pleased that the pre-K through 12th grade scholarships have been spared from the deepest budget cuts,” said Michael G. O’Neill, president of the BLOCS Board. “The manner in which the budget cuts were applied demonstrate that our lawmakers understand the importance of providing tuition assistance to the neediest families across Pennsylvania, and, ensuring that every child that wants a quality education is able to receive one.”
The EITC was started in 2001, and was the first statewide partnership between government and the private sector of its kind. Since then, REACH estimates over 200,000 students have benefited from the EITC, culminating in scholarships for over 44,000 students last year. More than $420 million has come from the business community for scholarships and funding of public school programs and initiatives.
Support for EITC has largely enjoyed bipartisan support, and Bishop McFadden said that teachers unions and the Pennsylvania School Counselors Association have also been unhappy about the possibility of cuts to the program. Earlier this month, thousands of students, teachers, parents and legislators gathered in Harrisburg to support the EITC program in what has become an annual demonstration in support of EITC.
“[EITC] has given businesses across Pennsylvania a chance to make a difference in their community while helping to improve education opportunities for children at the same time,” said Republican state Senate Majority Whip Jane Orie at the gathering. “The EITC program is crucial to organizations that rely on it to provide scholarships to young people. And it is vital to children and parents across the state who are looking for the best education opportunities available.”
Organizations like REACH and BLOCS, though they understand the challenges faced by the state, are aware that the budget is far from done. They hope to reverse some of the cuts that provide such widespread benefits to education in Pennsylvania.
“I know that these difficult economic times are forcing businesses, families and even our elected officials in the legislature to make difficult budgetary decisions,” said Mr. LeFevre. “Cutting funding for the EITC program will force all too many parents to put their child back into a school that does not work for them because they will not be receiving an EITC scholarship next year. That is a decision that will hurt the Commonwealth for years to come.”
John P. Connolly can be reached at jconnolly@thebulletin.us
Timeline Of The Pennsylvania Educational Improvement Tax Credit
2001 — Successfully gained passage of Educational Improvement Tax Credit (EITC) — the nation’s first corporate tax credit program ($30 million)
2003 — Expanded EITC by $10,000; added $5 million Pre-K EITC program; expanded business caps to $200,000 (from $100,000) per state fiscal year
2005 — Expanded EITC by $4 million; gained legislative language protecting families and participating organizations from intrusive and over-burdensome reporting requirements
2006 — Expanded EITC by $10 million
2007 — Expanded EITC by $13 million and Pre-K EITC by $3 million
2008 — Expanded business caps to $300,000 (from $200,000) for EITC and $150,000 (from $100,000) for Pre-K EITC; added sub-chapter S corporations and other pass-through business entities to be able to participate in program
Courtesy of the REACH Foundation
The Educational Improvement Tax Credit (EITC) is a program that allows certain types of businesses to donate to nonprofit scholarships or educational improvement organizations in exchange for a tax credit. With Pennsylvania facing a tough budget year, EITC is a prime target for politicians looking to trim their way out of a $2 billion deficit.
The Road to Educational Achievement Through Choice (REACH) Foundation, a grassroots coalition dedicated to ensuring parental choice in education, reported that the new budget would cut the EITC allocation from $75 million to $40 million. Of the slated $35 million cut, $22.3 million are planned to come from programs for public schools.
The remaining $12.7 million cut will reduce scholarships for low-income students in both pre-K and kindergarten through 12th grade schools.
“During the 2008-2009 school year, over 44,000 students were able to attend a school of their choice thanks to an EITC scholarship,” said Andrew T. LeFevre, executive director of REACH. “A reduction in EITC funding could jeopardize thousands of children’s scholarships and will force thousands of students back into a school that will not give them a chance at a successful education. In addition, tens of thousands of worthwhile educational programs in our public schools will be significantly impacted with the loss of EITC funding.”
Mr. LeFevre also pointed out that cutting EITC funding could hurt the state economically, since the scholarship funding from businesses helps reduce the cost of education to the state.
“More students in public schools equals higher property taxes and increased state taxes,” he said.
Bishop Joseph McFadden, auxiliary bishop of Philadelphia, said cutting the EITC program across the board would increase the competition among schools for the remaining scholarships. He said the EITC program has helped Catholic schools over the past eight years.
“EITC has been a great benefit to parents who struggle to pay Catholic school tuition, because it allows businesses in the state to direct their tax money to scholarship organizations,” said Bishop McFadden. “Today we have 2,353 children receiving awards out of 8,020 applicants. The money is across the state, and there are private and public schools who are able to compete for these dollars. Across the state if they cut it to 30 million from 75, that’s a major situation and it’s going to affect our [current] ability to give almost $3 million [in aid].”
The Business Leadership Organized for Catholic Schools (BLOCS), an organization of business leaders who raise donations for the Catholic school system, expressed its disappointment at the cuts, but was optimistic at the fact that the scholarships avoided the brunt of the statewide cuts.
“BLOCS is pleased that the pre-K through 12th grade scholarships have been spared from the deepest budget cuts,” said Michael G. O’Neill, president of the BLOCS Board. “The manner in which the budget cuts were applied demonstrate that our lawmakers understand the importance of providing tuition assistance to the neediest families across Pennsylvania, and, ensuring that every child that wants a quality education is able to receive one.”
The EITC was started in 2001, and was the first statewide partnership between government and the private sector of its kind. Since then, REACH estimates over 200,000 students have benefited from the EITC, culminating in scholarships for over 44,000 students last year. More than $420 million has come from the business community for scholarships and funding of public school programs and initiatives.
Support for EITC has largely enjoyed bipartisan support, and Bishop McFadden said that teachers unions and the Pennsylvania School Counselors Association have also been unhappy about the possibility of cuts to the program. Earlier this month, thousands of students, teachers, parents and legislators gathered in Harrisburg to support the EITC program in what has become an annual demonstration in support of EITC.
“[EITC] has given businesses across Pennsylvania a chance to make a difference in their community while helping to improve education opportunities for children at the same time,” said Republican state Senate Majority Whip Jane Orie at the gathering. “The EITC program is crucial to organizations that rely on it to provide scholarships to young people. And it is vital to children and parents across the state who are looking for the best education opportunities available.”
Organizations like REACH and BLOCS, though they understand the challenges faced by the state, are aware that the budget is far from done. They hope to reverse some of the cuts that provide such widespread benefits to education in Pennsylvania.
“I know that these difficult economic times are forcing businesses, families and even our elected officials in the legislature to make difficult budgetary decisions,” said Mr. LeFevre. “Cutting funding for the EITC program will force all too many parents to put their child back into a school that does not work for them because they will not be receiving an EITC scholarship next year. That is a decision that will hurt the Commonwealth for years to come.”
John P. Connolly can be reached at jconnolly@thebulletin.us
Timeline Of The Pennsylvania Educational Improvement Tax Credit
2001 — Successfully gained passage of Educational Improvement Tax Credit (EITC) — the nation’s first corporate tax credit program ($30 million)
2003 — Expanded EITC by $10,000; added $5 million Pre-K EITC program; expanded business caps to $200,000 (from $100,000) per state fiscal year
2005 — Expanded EITC by $4 million; gained legislative language protecting families and participating organizations from intrusive and over-burdensome reporting requirements
2006 — Expanded EITC by $10 million
2007 — Expanded EITC by $13 million and Pre-K EITC by $3 million
2008 — Expanded business caps to $300,000 (from $200,000) for EITC and $150,000 (from $100,000) for Pre-K EITC; added sub-chapter S corporations and other pass-through business entities to be able to participate in program
Courtesy of the REACH Foundation
 |
 |
|
| California Courts Uphold Prop. 8 | North Korea Pulls Out Of Armistice |
Reader Comments
The following are comments from the readers. In no way do they represent the view of thebulletin.us.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments.
Registered users sign in here: |
Become a Registered User |
