credits

Voucher welfare for big business

State Representatives Brenner, Patmon, Driehaus, Barnes, Butler, Maag, Newbold, Henne, Yuko, Young, Sears, Wachtmann, McClain, Huffman, Boose, Adams, J., Beck, Uecker, Stebelton, and Blessing have introduced HB242 which will "authorize nonrefundable tax credits for donations to nonprofit entities providing scholarships to low-income students enrolling in chartered nonpublic schools".

According to LSC the bill will;

  • Allow a nonrefundable credit against the income tax or certain business taxes for taxpayers who donate to nonprofit educational scholarship organizations that provide scholarships to lower-income students attending chartered nonpublic schools.
  • Authorize annual credits of up to $1,000 for individuals and $2,500 for joint filers, if the individual or joint filer is not a pass-through entity owner, and up to $300,000 for other taxpayers.
  • Limit the total amount of such credits to $20 million in fiscal year 2010, and increases the credit ceiling each year by 20% over the previous year's ceiling if the previous year's ceiling is reached.
  • Prohibit credits for donations designated for a specific child.

There is nothing in the bill however the limit the institution where the money can flow to. One can easily see the scenario where a "business" donates the maximum $300,000 to a fund, and gets a full tax credit for that amount - i.e. free money - and that business donation flows right back to a specific school.

In effect this bill simply expands the pool of voucher money by another $20 million - with a provision that it can grow by an additional 20% each year after the first.

This bill is nothing more than corporate welfare for the donors and the recipient private schools. Tax payers dollars should be used to fund public schools. That is the constitutional duty of the legislature, not to dole out precious money to private enterprise.

The State Constitution - Article VI

A lot of people seem to either not know, not understand, or forget, that the Ohio constitution lays out a very clear duty for the state in the delivery of public education. Here's the full text, with the most relevant pieces highlighted.

Article 6 - Education

§ 01 Funds for religious and educational purposes The principal of all funds, arising from the sale, or other disposition of lands, or other property, granted or entrusted to this State for educational and religious purposes, shall be used or disposed of in such manner as the General Assembly shall prescribe by law.

(Amended, effective July 1, 1968.)

§ 02 Schools funds

The General Assembly shall make such provisions, by taxation, or otherwise, as, with the income arising from the school trust fund, will secure a thorough and efficient system of common schools throughout the state; but no religious or other sect, or sects, shall ever have any exclusive right to, or control of, any part of the school funds of this state.

§ 03 Public school system, boards of education

Provision shall be made by law for the organization, administration and control of the public school system of the state supported by public funds: provided, that each school district embraced wholly or in part within any city shall have the power by referendum vote to determine for itself the number of members and the organization of the district board of education, and provision shall be made by law for the exercise of this power by such school districts.

(Adopted September 3, 1912.)

§ 04 State board of education

There shall be a state board of education which shall be selected in such manner and for such terms as shall be provided by law. There shall be a superintendent of public instruction, who shall be appointed by the state board of education. The respective powers and duties of the board and of the superintendent shall be prescribed by law.

(Amended November 3, 1953.)

§ 05 Guaranteed loans to residents attending colleges and universities To increase opportunities to the residents of this state for higher education, it is hereby determined to be in the public interest and a proper public purpose for the state to guarantee the repayment of loans made to residents of this state to assist them in meeting the expenses of attending an institution of higher education. Laws may be passed to carry into effect such purpose including the payment, when required, of any such guarantee from moneys available for such payment after first providing the moneys necessary to meet the requirements of any bonds or other obligations heretofore or hereafter authorized by any section of the Constitution. Such laws and guarantees shall not be subject to the limitations or requirements of Article VIII or of Section 11 of Article XII of the Constitution. Amended Substitute House Bill No.618 enacted by the General Assembly on July 11, 1961, and Amended Senate Bill No.284 enacted by the General Assembly on May 23, 1963, and all appropriations of moneys made for the purpose of such enactments, are hereby validated, ratified, confirmed, and approved in all respects, and they shall be in full force and effect from and after the effective date of this section, as laws of this state until amended or repealed by law.

(Adopted May 4, 1965.)

§ 06 Tuition credit program (A) To increase opportunities to the residents of this state for higher education, it is hereby determined to be in the public interest and a proper public purpose for the state to maintain a program for the sale of tuition credits such that the proceeds of such credits purchased for the benefit of a person then a resident of this state shall be guaranteed to cover a specified amount when applied to the cost of tuition at any state institution of higher education, and the same or a different amount when applied to the cost of tuition at any other institution of higher education, as may be provided by law.

(B) The tuition credits program and the Ohio tuition trust fund previously created by law, which terms include any successor to that program or fund, shall be continued subject to the same laws, except as may hereafter be amended. To secure the guarantees required by division (A) of this section, the general assembly shall appropriate money sufficient to offset any deficiency that occurs in the Ohio tuition trust fund, at any time necessary to make payment of the full amount of any tuition payment or refund that would have been required by a tuition payment contract, except for the contract's limit of payment to money available in the trust fund. Notwithstanding Section 29 of Article II of this Constitution, or the limitation of a tuition payment contract executed before the effective date of this section, such appropriations may be made by a majority of the members elected to each house of the general assembly, and the full amount of any such enhanced tuition payment or refund may be disbursed to and accepted by the beneficiary or purchaser. To these ends there is hereby pledged the full faith and credit and taxing power of the state.

All assets that are maintained in the Ohio tuition trust fund shall be used solely for the purposes of that fund. However, if the program is terminated or the fund is liquidated, the remaining assets after the obligations of the fund have been satisfied in accordance with law shall be transferred to the general revenue fund of the state.

Laws shall be passed, which may precede and be made contingent upon the adoption of this amendment by the electors, to provide that future conduct of the tuition credits program shall be consistent with this amendment. Nothing in this amendment shall be construed to prohibit or restrict any amendments to the laws governing the tuition credits program or the Ohio tuition trust fund that are not inconsistent with this amendment.

(Adopted November 8, 1994)