The debate over scholarship tax credit (STC) programs continues. Yesterday, Professor Kevin Welner of the University of Colorado at Boulder responded to my rebuttal of Valerie Strauss’ faulty analysis in the Washington Post’s blog. Welner, who wrote a book that was critical of STC programs, makes several points worthy of consideration. However, he ultimately fails to defend Strauss from any of my central criticisms. Contrary to Strauss’ claims, STC programs do benefit low-income families, donors do not “profit” from the tax credits, and STC programs are significantly different from vouchers. Finally, Welner is correct that the true fiscal impact of STC programs is unknown but the available evidence suggests that savings are likely.
STC Programs Do Benefit the Poor
In conceding that there is “no question that these programs … do indeed provide financial assistance to many lower-income families,” Welner flatly contradicts Strauss’ assertion that low-income families do not benefit. (Strauss correctly noted that tax-credit scholarships do not always cover full tuition, but then incorrectly concluded: “Poor families can’t make up the difference. Guess who can.”) So while Strauss did not directly admit that she was wrong, at least she was willing to let Welner do so on her behalf.
However, Welner then continues, “This [that low-income families benefit] is particularly true in states like Florida that means-test the recipients… It appears to be much less true in states like Arizona and Georgia… In those states, the programs also provide a great deal of assistance to upper-income families.”
Welner’s assertion is misleading because he neglects to provide context. Nine of the ten corporate-donor STC programs, including Arizona’s, contain means-testing provisions. The same is true for five of the seven individual-donor STC programs, the only exceptions being Arizona and Georgia. So when Welner refers to “states like Florida” he means every single STC program except for two, but when he expresses concerns about “states like Arizona and Georgia” he actually means just one of Arizona’s two STC programs and Georgia’s.
Welner notes correctly that I avoided “making many specific claims about the actual distribution of benefits” because there is little available evidence. That is why it is especially odd for him to claim that a “great deal” of upper-income families benefit in Arizona and Georgia. Though that’s technically possible in Georgia, he provides no evidence to support his claim.

From Al.com


