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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowRepublican Gov. Mitch Daniels’ budget proposal includes a scholarship tax credit that supporters say would give poor students the opportunity to attend private schools, but opponents say would open the door to vouchers.
Daniels’ budget proposal includes a 50-percent tax credit for donations to a not-for-profit scholarship-granting organization that helps students from low-income families attend their choice of a private school or a public school outside their home district.
There is only one such organization in the state, the Educational CHOICE Charitable Trust serving central Indiana.
State Budget Director Chris Ruhl said the scholarship tax credit is an important policy initiative for Republicans.
“It encourages people to help low-income children in poorly performing schools,” he said.
Supporters say the tax credit could help poor children attend private schools their families would not be able to otherwise afford.
“It’s scholarship money. Call it vouchers. Call it what you want,” said Sen. Marlin Stutzman, R-Howe. “I’d call it an opportunity for a child.”
Fans of the tax credit say it would provide an incentive for people and businesses to invest in new education choices while raising $10 million a year.
“This is not a voucher,” said Derek Redelman, vice president of Education and Workforce Development for the Indiana Chamber of Commerce. “None of this money is going to the school. The benefit is completely for the parent and the child.”
The Legislative Services Agency estimates that the tax credit would cost Indiana $5 million a year.
Redelman said the state could actually save money through the tax-credit program because the number of students enrolled in public schools would drop and the state would no longer have to pay for them.
But opponents question the timing of the $5 million program, which comes as Daniels has proposed cuts in funding to a program to teach English and for professional development for teachers.
“It doesn’t make any sense to me to introduce programs with new expenses when you don’t even have enough money to fund what you already have in the budget,” said Fort Wayne Community Schools Superintendent Wendy Robinson.
Rep. Terry Goodin (D-Crothersville) said “it’s a matter of economics” that the state cannot afford to fund private schools.
“I think it’s a real philosophical message against public education,” Goodin said. “I hope I’m wrong, but I think the governor is trying to make a point.”
The idea for a scholarship tax credit was raised in the regular legislative session, which ended in April without an agreement on a new state budget. The tax credit bill passed the GOP-controlled Senate, but didn’t gain traction in the Democrat-led House. Daniels revived it by adding it to his budget proposal.
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