HARTFORD, CT – A bill that would authorize a new tax credit for individuals who donate to organizations that provide K-12 scholarships to low-income students would help “balance the scales,” advocates said at a rally at the state Capitol Monday.
The legislation, House Bill 5101, is being met with opposition from the state’s largest teacher’s union.
The Connecticut Center for Educational Excellence (CTCEE) is an organization that advocates for opportunity scholarships for low-income students throughout the state, and helps give K-12 scholarships to students from households that are at or below 250% of the federal poverty line. In Connecticut, 150,000 children would be eligible under that threshold.
The bill is still being considered by the General Assembly’s Finance committee. The deadline for the committee to vote on the bill is April 4. CTCEE is working in conjunction with other organizations, like the Yankee Institute, in order to try to bring awareness to the issue.
If a student is struggling in an environment, or needs services that are offered at a different school, they can apply to organizations like the Yankee Institute that could help provide them with the necessary funds that are not available to their family.
Bryce Chinault, director of external affairs for the Yankee Institute, said in a phone interview Monday that a tax credit – which would mirror those being given out in states like Pennsylvania and Rhode Island – would be a way to incentivize wealthy residents of the state to help low-income students.
“We think that this is a great way to help bridge the gap that exists in Connecticut,” he said, referring to the achievement gap between students from low-income communities and students from wealthier towns.
Chinault said the program received over 900 applications for scholarships since its launch in March of last year. Those applications came from 79 municipalities across the state. Chinault said that there wasn’t enough funding available in order to give out that many scholarships. That’s where the tax credit comes in.
Exact language hasn’t been finalized on how the credit would be structured, and what percentage donors would recoup on their taxes.
Chinault said that there are different structures being used for the credit, but that the one that would likely be used in Connecticut would represent a 50% credit back on the donation.
Classrooms and schools in low-income areas are overstuffed, Chinault said, and legislation that creates more opportunities for students should be a priority.
The Connecticut Education Association (CEA) is in opposition of the bill. CEA President Kate Dias said in a written statement that the bill is a disguise for another agenda.
“This is another bid that follows last year’s attempt to fund elite private schools through tax credits,” Dias wrote. “Tax Credit Scholarships are private school voucher programs masquerading as a tax credit. Whether called a voucher, tax credit scholarship, or education savings account, programs like this are handouts to wealthy taxpayers and private schools like Choate, Taft, and Gunn.”
Some of the opposition to the bill, Chinault said, is that there is not enough oversight on students or the program itself. He said those doubts are ill-founded, and that students would only be eligible for scholarships to send them to accredited schools in the state.
Still, there is a question of funding for the credit.
Chinault said that a possible means of coming up with funding for the credit could come from repealing the film tax credit. Both the film tax credit and past versions of the opportunity scholarship tax credit have received bipartisan support, while there are some doubts now about the bills’ viability.
