Tag: scholarship tax credits

Parents and Taxpayers Want More Educational Choice

Ever since Georgia enacted a scholarship tax credit law in 2008, individual and corporate taxpayers in the Peach State could receive dollar-for-dollar tax credits in return for contributions to nonprofit scholarship organizations—at least until the $58 million cap is reached.

Donors are eligible to receive credits starting on January 1st of each year. In 2012, the last of the credits were claimed in mid-August. The following year, donors hit the cap in May. Last year, they hit it in just three weeks. This year, all the credits were claimed within hours of becoming available on January 1st. In fact, taxpayers applied for more than $95 million in credits, $37 million more than the cap.

Scholarship families are highly satisfied. In a 2013 survey of families receiving scholarships from Georgia GOAL, 98.6% of respondents reported being “very satisfied” or “satisfied” with their chosen school.

Clearly, both the demand for scholarships and the willingness of taxpayers to support scholarship students have grown far beyond what the law currently allows. It’s time to raise the cap. Georgia legislators considering pending legislation to raise the cap to $250 million should be encouraged by two additional facts. First, the best evidence suggests that the tax credit law saves money by reducing expenses by more than it reduces tax revenue. Second, two-thirds of Georgians support the scholarship tax credit law. In other words, it’s good policy and good politics.

In other states that cap the amount of scholarship tax credits available—such as Florida, Pennsylvania, and Rhode Island—donors consistently hit the cap each year. Two recent exceptions—New Hampshire and Alabama—highlight the adverse effects of lawsuits on fundraising. After anti–school choice activists sued to block New Hampshire’s Opportunity Scholarship law, donations dropped off precipitously because of the uncertainty about the law’s future. Fortunately, the state supreme court unanimously rejected the challenge last summer, so we should expect a significant increase in donations this year.

In Alabama, scholarship organizations raised only half as much in 2014 as they did in 2013 because of the uncertainty created by government education establishment’s legal challenge. The lawsuit is likely to meet the same end as similar lawsuits in Arizona and New Hampshire, but the plaintiffs are harming thousands of children while the case is being litigated.

Public Schooling’s Pluralism Problem and the School Choice Solution

Last month, the Orthodox Union, a prominent Jewish organization, launched a campaign advocating for private school choice policies. That raised hackles from Americans United for Separation of Church and State (AU), which condemned the chutzpah of the Orthodox Union to work for equal funding for children in their community:

“It [the campaign] will require us to stop being timid,” [Orthodox Union executive vice president Allen Fagin] said. “We pay our taxes, and our kids are also entitled not to be left behind.”

That statement, of course, is only half-true: Fagin’s constituents do pay their taxes, and their children are indeed entitled to an education. But that’s exactly what public schools are for. OU’s campaign relies on the same faulty logic we’ve seen from advocates of voucher programs: Because parents pay taxes, they should be able to ask every other taxpayer in the state to subsidize their child’s religious education. It’s a clear constitutional violation. […]

It’s unconscionable (and exceptionally brazen) for OU to demand that further funds be siphoned away from public schools intended to serve entire communities in order to promote their private religious agenda. If Orthodox parents want to place their children in religious schools, that’s their right. And it’s their responsibility to pay for it.

In reality though, it’s the idea that so-called “public” schools are actually “public” that is only half-true. District schools are technically open to any student whose parents can afford to live in the district, but they are certainly not “intended to serve entire communities.” For example, they are not intended to serve Orthodox Jews or others like them who have a different vision of education. When everyone is forced to pay for one school system and decisions about education are made via a political process, there will be winners and losers.

Newspaper Doubles Down on Anti-School Choice Errors

Give Rolling Stone credit: when their story on sexual assault at the University of Virginia completely unraveled, they at least had the decency to admit their errors and apologize to their readers. Sadly, the same cannot be said for Florida’s Sun-Sentinel.

A few weeks ago, the Sun-Sentinel ran an error-filled editorial against educational choice. Since then, it has refused to run a retraction or even a correction of its numerous errors, including:

  • Falsely claiming that the legislature enacted a “massive expansion” of the scholarship tax credit law this year;
  • Mistakenly relying on the moot fiscal analysis of a dead bill;
  • Misreading that analysis to report a “deficit” when it actually reports savings;
  • Falsely claiming that a separate fiscal analysis by the legislature’s budget office relied on “information provided by [private] schools.”

That list does not include several additional misleading comparisons and crucial omissions that were also brought to their attention.

Last week, they ran a rebuttal by Doug Tuthill, president of the Step Up for Students scholarship organization. However, they subsequently published a bellicose letter from Wayne Blanton, the executive director of the Florida School Boards Association, which attempts to rebut Tuthill… by repeating the same errors as the Sun-Sentinel editorial.

Blanton opened his letter by accusing Tuthill of “attempting to deceive the public,” but not a single one of Blanton’s accusations has any merit. Indeed, Blanton’s accusation better describes his own letter. Let us address his claims in order.

Exposing an Error-Filled Editorial against Educational Choice

Over the weekend, Florida’s Sun-Sentinel editorialized against Florida’s scholarship tax credit law. But, as I detail at Education Next today, the editorial was rife with errors, distortions, and omissions of crucial context. Here’s just one example of many:

Rather than put the scholarship tax credit law in the context of Florida’s overall education spending, the Sun-Sentinel compares it to… Iowa.

“No state has a bigger voucher [sic] system. Last year, Florida spent $286 million on just 2.7 percent of all students. Iowa spent $13.5 million on 2.6 percent of its students.”

Setting aside the fact that the state of Florida did not “spend” even one red penny on the scholarships, this comparison is misleading. Do the editors at the Sun-Sentinel really believe that Iowa has as many students as Florida? If so, why haven’t they decried the fact that Florida spends more than $25 billion on its public schools while Iowa spends barely $5 billion? Perhaps because Florida has more than five times the number of students?

Comparing apples to apples, fewer than 10,500 students received tax-credit scholarships in Iowa last year compared to more than 69,000 in Florida. And while the tax-credit scholarships are larger in Florida than Iowa – about $4,660 on average versus about $1,090 on average – they are dwarfed by the more than $10,000 per pupil spent on average at Florida public schools.

The Sun-Sentinel owes its readers and the public a full and detailed retraction.

Return of the Vampire Lawsuit Against School Choice

Just in time for Halloween, a vampire lawsuit against school choice has risen from the dead.

Nearly a month ago, a Florida judge dismissed the Florida Education Association’s (FEA) lawsuit against a bill amending the state’s school choice laws, ruling that the plaintiffs lacked the standing to sue because they were not harmed. The union wanted to block the creation of the Personalized Learning Scholarship Accounts program for students with special needs, and “in particular” the so-called “expansion” of the Florida Tax Credit Scholarship (FTCS) law, which provides tax credits to corporations in return for donations to nonprofit scholarship organizations that help low-income children attend the schools of their choice. There are two additional lawsuits against school choice in Florida, including another involving the FEA.

This year, nearly 70,000 low-income students received FTCS scholarships. One former scholarship recipient, Denisha Merriweather, recently wrote an op-ed for the Wall Street Journal explaining how the FTCS allowed her to switch from her assigned district school, which failed to meet her needs, to a private school where she thrived.

Last week, the FEA filed an amended complaint with additional plaintiffs. The union argues that the new plaintiffs have standing as district school teachers and parents of district school students because they “are threatened by the implementation of […] the expansion of the Florida Tax Credit Scholarship Program,” which they claim would cause the district schools to “[lose] considerable funding” since the scholarship funds “that otherwise would go to support the public schools are instead redirected through an intermediary to provide vouchers [sic] for Florida children to attend private schools.” (The FEA’s complaint did not discuss the impact of the Personalized Learning Scholarship Accounts.)

The union’s argument suffers from at least two fatal flaws.

First, the FTCS does not “redirect” any state funds. The state of Florida allocates funds to school, in part, on a per-pupil basis, but the fiscal impact of a student leaving her assigned district school to accept a tax-credit scholarship is no different than the fiscal impact of a student moving out of the district, attending private school without a scholarship, or homeschooling. Moreover, if the funds were actually “redirected” then the state would not realize any savings. In fact, the state’s own Office of Program Policy Analysis and Government Accountability found that the FTCS generates significant savings ($36.2 million in 2008-09) because the forgone revenue is less than the reduction in state expenditures.

Second, the union is factually incorrect in asserting that the challenged legislation, SB 850, “expanded” the FTCS. The bill loosened eligibility requirements by eliminating the requirement that recipients spend the prior academic year in a district school; allowing foster students to continue receiving scholarships if adopted; and raising the income thresholds for eligibility for full and partial scholarships. However, the bill did not expand the amount of tax credits available nor did it add any new credits against other taxes. In other words, while the bill increased the number of students who can apply for scholarships, it did not increase the actual amount of available tax credits or scholarship funds.

The FEA’s vampire lawsuit misunderstands how the FTCS law works and misstates the facts about what the legislation does. The judge should drive a stake through its heart.

School Choice Safe in Florida…for Now

Earlier this year, Florida’s largest teachers union filed a legal challenge to prevent the expansion of school choice. As I explained then:

The Florida Education Association is suing the state of Florida to eliminate the new Personal Learning Scholarship Account (PLSA) program, among other recent education reforms, including an expansion of the state’s scholarship tax credit law. Modeled after Arizona’s popular education savings account (ESA), the PLSA would provide ESAs to families of students with special needs, which they could use to pay for a wide variety of educational expenses, such as tuition, tutoring, textbooks, online learning, and educational therapy. Six families with special-needs children who would have qualified for the program are seeking to intervene as defendants in the lawsuit, represented by the Goldwater Institute’s Clint Bolick.

The union’s lawsuit argues that the legislation creating the PLSA, Florida’s Senate Bill 850, violated the state constitution’s “one subject rule” because it contained a variety of education reforms.

Today a circuit court judge dismissed the lawsuit, ruling that the plaintiffs lacked standing to sue because they could not show how they were harmed by the law. Last month, the New Hampshire Supreme Court unanimously ruled that plaintiffs lacked standing to challenge the Granite State’s scholarship tax credit law because they also could not demonstrate that they suffered any harm.

Anti-School Choice Activists Demand Judge’s Recusal Because She’s Catholic

It’s bad enough that a Florida teachers union, the Florida School Boards Association, and the PTA filed a lawsuit to deprive low-income students of scholarships citing the state constitution’s historically anti-Catholic, Know-Nothing inspired “Blaine amendment.” But now anti-school choice activists are demanding that a judge recuse herself from another lawsuit against the state’s choice laws because she’s Catholic.

Kathleen Oropeza, president of the ironically-named Fund Education Now (given that they want to deny tax-credit scholarship funds to low-income students), filed a motion demanding that the circuit court judge recuse herself for the following reasons:

2. On August 26 and 27, 2014, I discovered facts concerning Judge Angela C. Dempsey that cause me to believe that she is biased against the Plaintiff’s position that the Florida Tax Credit Program and the McKay Scholarship Programs are violations of Article IX of the Florida Constitution.

3. The facts are as follows:

a. Judge Dempsey is a member of the Board of Directors of Catholic Charities, and a contributor to same.

b. Judge Dempsey has been a speaker at Trinity Catholic School in Leon County, which is a recipient of funds from the Florida Tax Credit Scholarship Program and the McKay Scholarship Program as well as Step Up for Students which provides vouchers to Trinity Catholic School. (See Ex. A.)

c. The Florida Catholic Conference was an amicus curiae in Bush v. Holmes, 919 So. 2d 392, 404 (Fla. 2006), and supported Opportunity Scholarship vouchers which were struck down by the Florida Supreme Court.

d. Plaintiff’s research has led her to discover a Catholic strategy for saving Catholic education through Florida-style Opportunity Scholarships. A 2011 report, From Aspirations to Action, provides the strategy for this Catholic position complete with “Opportunity Scholarship” model legislation and with getting rid of the Blaine/No Child language through-out the nation, which Plaintiff believes has made Judge Dempsey unable to be impartial in this case. Also, Rev. Larry Snyder, president of Catholic Charities USA, is listed as a Council Member of the National Leadership Roundtable on Church Management, the organization which produced the position statement. (Ex. B, at 77.)

e. On April 20, 2014, Face the Nation reported that Cardinals and Bishops of the Catholic Church are pushing vouchers as a solution to a public school report. […]

4. These facts make me believe there is a continuing association between Judge Dempsey and the interests in my case through her relationship with the Catholic doctrine and position on vouchers for Catholic schools; Catholic Charities; Trinity Catholic School; and as a contributor to Catholic causes. Had I been aware of this relationship, I would have moved to disqualify her before she ruled in my case.

The judge belongs to a Catholic charity and has spoken at a Catholic school, the local Catholic Conference took a position in the original lawsuit, and a cardinal in another state said nice things about school choice on TV, therefore the anti-school choice activists want her to recuse herself. In other words, they want her to recuse herself because she’s Catholic.

The defendants’ response to the motion of recusal firmly rejects Oropeza’s arguments as “legally insufficient” and not “objectively reasonable”: 

10. Plaintiffs’ claim, as articulated in Ms. Oropeza’s affidavit, is legally insufficient. Of the five reasons articulated by Ms. Oropeza, only two—Judge Dempsey’s membership in and board service for Catholic Charities of Northwest Florida, and her role as a speaker at a Leon County parochial school—actually relate to the judge’s own activities. But neither of these affiliations indicate that Judge Dempsey is biased on the question of so-called voucher programs. According to its website, Catholic Charities of Northwest Florida focuses its charitable efforts on immigration, crisis pregnancy and adoption, and emergency assistance—not vouchers or other education issues. And a speaking engagement by Judge Dempsey at a parochial school that receives voucher funds—at an unspecified time, on an unspecified topic and in an unspecified capacity—provides no basis to impute any bias to Judge Dempsey on the question of vouchers or any other topic at issue in this lawsuit.

11. The remaining three “facts” alleged in Ms. Oropeza’s affidavit show nothing more than some individuals and organizations, with some degree of affiliation to the Catholic Church, support the enrollment of students at parochial schools through voucher programs. Unless Plaintiffs were to assert that all Catholics, by reason of their faith, support voucher programs to such a degree that they are unable to render an unbiased opinion on the issue—a position that Ms. Oropeza expressly disclaims—there is nothing about these third party positions that could shed any light on Judge Dempsey’s own ability to fairly and impartially preside over this case.

The defendants also note that there “are no judges in this state who have no involvement with the schools of this state,” since they “either have or had children in school, studied in Florida schools themselves, or have close relatives involved in Florida’s schools,” yet it would be ludicrous to demand that a judge recuse herself for such reasons. It would be equally absurd to demand that female judges not preside over cases involving abortion or sexual harassment or that black judges recuse themselves from cases involving racial discrimination.

Hilariously, Oropeza claimed in her motion, “I do not base this motion on Judge Dempsey’s religious beliefs, but rather on the positions of the organizations with which she is affiliated.” Yes of course, organizations like… the Catholic church and affiliated Catholic charities. But this has nothing to do with the judge’s religious beliefs, she claims, it’s just an attempt to protect citizens from the nefarious “Catholic strategy” that she “discovered” in her “research.” That sounds awfully familiar…

Thomas Nast's anti-Catholic "American River Ganges" cartoon, 1875 

Image: Thomas Nast’s infamous 1875 “American River Ganges” cartoon depicts a noble white Protestant male protecting his family from the bishops’ “Catholic strategy.”

Last year, plaintiffs demanded that a federal judge recuse himself from a case involving the Catholic church because he is Catholic. Sadly, the demand that Catholic judges recuse themselves from certain cases is increasingly common, even from seemingly respectable sources. The imposition of a religious test for judges should be vigorously resisted.