Gov. McDonnell just signed a bill that will give a tax credit to the film industry. They will shell out up to $2.5 million to movie-makers in the first year and up to $5 million thereafter. Proponents say it might save money. Unfortunately, the evidence from other states suggests it will lose money.
At a time of economic turmoil and budget problems, the Governor wants to lose money by giving a tax credit to the film industry. It’s even refundable, which in normal-talk means the state will send a check to a film executive even if he doesn’t owe any taxes; that’s a straight BAILOUT, not a tax credit. The last thing Virginia needs is another corporate bailout.
What is wrong with our Commonwealth? And what in the world is Governor McDonnell thinking?
There is one tax credit that has consistently proven to save money and increase achievement in public schools: education tax credits.
Florida recently expanded its successful education tax credit program to $140 million with the support of 42 percent of Democrats and almost every Republican. The program was found by the government to save $1.49 for every dollar invested in the credits. And the official academic researcher for the program just found that it significantly increases public school performance.
Strangely, education tax credits are not on the Governor’s agenda. Why?
Why is a Governor who had the good sense to appoint a true education reformer, Gerard Robinson, as the Secretary of Education not out front leading the movement for effective, efficient investment in education?
Look to Pennsylvania, to Georgia, Iowa, Rhode Island, Illinois, Arizona, any of the nine states supporting twelve education tax credit programs to see the new, bipartisan wave of education reform. A toothless Virginia charter school law will do nothing to improve education or save money. And the constitution won’t allow a strong charter law.
We need to save money, not waste it on another corporate bailout. We need to increase achievement.