Private Schools

Educational Tax Credits Are Often a Bait-and-Switch

By Stephen Herzenberg, Third and State

A story in Monday's New York Times explores the use of state tax credit programs to pay for "scholarships" for students who attend private schools. The story suggests that many of the students who receive such scholarships already attend private school and are not low-income.

To the extent that this is true, the political marketing of these programs as alternatives (for a select few students) to public schools in distressed communities is a "bait and switch." Educational tax credits actually siphon taxpayer dollars to subsidize private schools, reducing state revenues available for public schools.

Is this how the scholarships to attend private schools work under Pennsylvania's Educational Improvement Tax Credit (EITC) program?

Probably: there is no prohibition on EITC scholarships going to students already attending private schools; middle-class families are eligible to receive scholarships (the income limit for a family of four is $84,000); and there is no evidence that even this income limit is enforced. In fact, Pennsylvania's Act 46 of 2005 prohibits the state from requesting from scholarship organizations any information other than the number and amount of scholarships that they give out. I guess we're just supposed to trust the scholarship organizations to self-enforce the income limit.

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