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No Tax Credits for Private Schools!
Last week, the Indiana State Senate approved House Bill (HB) 1001 – the State Budget Bill. As currently written, this bill contains a tax credit item that would indirectly fund private schools with as much as $5 million of public money. This tax credit item is a trick to disguise vouchers as tax credits in order to evade the limitations imposed by church-state separation. Like vouchers, however, these tax credits would use public money to fund private religious schools. Please take action NOW! It will only take a few minutes of your time to make an impact. Please, read the sample letter below. You can keep it “as is” or you may add your own comments, but please SEND IT. The more messages the legislators receive, the more they will understand that the state budget should not be used to fund private schools. Thank You!
Dear [ Decision Maker ] , As a resident of Indiana, I urge you to remove the language from HB 1001 that would provide a tax credit of 50 percent of contributions made to "scholarship granting organizations" that would then be distributed to private schools. This ill-advised scheme cannot avoid the constitutional problems that vouchers have had in other states. These tax credits are an attempt to funnel state money to private schools, often religious schools, and they are unconstitutional. Vouchers have repeatedly been found unconstitutional under state constitutions. These tax credits are only vouchers in disguise. In fact, these tax credits are now being called "neovouchers" because they were devised by people who believe that private schools should receive public money. Further, these tax credits drain money away from our already underfunded public schools because they will require additional administration - perhaps as many as two or three more state administrative staff - and will subtract tax money from state funds that would otherwise benefit our public schools. Despite claims made by its supporters, this provision will not benefit many poor children because their parents are unlikely to be able to take a tax credit. The bill also does not protect students from discrimination in private schools, which could deny them admission on grounds of religion, race, national origin, gender, or disability. It is not true that private schools increase student achievement; no research has ever shown reliable, consistent evidence that they improve student learning. Members of the General Assembly should not be parties to the deceptions embodied in this tax credit scheme. I urge you to stop this backdoor attempt to get vouchers into Indiana. Please remove this item from HB 1001. Thank you.
Sincerely, |
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| Background Information |
This item in HB 1001 is a trick to disguise vouchers as tax credits in order to evade the limitations imposed by church-state separation. Like vouchers, however, these tax credits still use money to fund religious schools.
Here’s how it works: if you owe state taxes and itemize deductions on your tax form, you can designate part of the amount to go to a non-state entity called a “scholarship granting organization.” Fifty percent of that amount is then deducted from your state taxes. The scholarship granting organization sends the money to students so that they can attend private schools. Essentially the tax credit is a smoke screen to disguise state funding of private schools—90% of which are religious, and often schools that engage in discrimination.
Not only is this a dubious trick to avoid the problems of directly funding vouchers with state money, it is also a burden on Indiana’s finances. The state will have to spend between $200,000 and $300,000 on administrative expenses and devote two or three full-time staff to doing the work associated with the plan. The state will lose money because the credit would go to the scholarship granting organizations and not to the state treasury. If 5,000 Indiana residents or corporations donate $500 each and get a credit of $250, the state would lose $1,250,000. If they contribute $1,000 each and get a credit of $500, the state would lose $2,500,000.
These dollars are being drained away from Indiana’s already underfunded public schools.
The students most likely to benefit are those already in subsidized private schools. The students who might be beneficiaries of this program for the first time must qualify for a free or reduced lunch program. Their parents, however, are unlikely to be eligible to itemize deductions on their state income tax forms, so they wouldn’t get a credit. These poor parents are also unlikely to be able to afford the additional tuition beyond the scholarship money for their children to attend private schools.
This item in HB 1001 places no legal restrictions on the schools receiving funds through the scholarship granting organizations. They can discriminate on grounds of religion, gender, national origin, race, or disability both against students and staff.
Perhaps most important of all, private schools, including those funded by vouchers or tax credits in the six states that have them, have NOT been shown to improve results for students.
One researcher, Kevin Welner, an expert in education law, calls these tax credits “neovouchers.” If you would like to know more, look at his book, NeoVouchers: The Emergence of Tuition Tax Credits for Private Schooling.
Don’t let “neovouchers” come to Indiana! Send the message NOW!
