Will Josh Shapiro finally say yes to school choice? The Pennsylvania Governor and some of his Democratic colleagues have said they won't decide whether to opt in to the new federal education tax credit until they see the program rules. Now the rules are here, and on Wednesday the Governor said he's "very open" to the credit but will decide within a "few weeks" as his office reviews the rules. But what could be the excuse for holding up money for students?
Billions of dollars could be on the table across the 19 states and Washington, D.C., that haven't opted in to the scholarship program enacted by Congress last year. The biggest news from the rules, issued last week, is that the Treasury Department is letting married couples filing jointly claim a $3,400 credit for their donations to scholarship organizations.
That's double the $1,700 credit individuals can claim. Patrick Graff of the American Federation for Children says this could add $75 billion to the $188 billion he estimates could be donated nationally at $1,700 if everyone gave their full credit-eligible amount. The rules might encourage more donations because they let people give via payroll deductions, which makes the process easier.
Treasury's rules also try to keep states from playing politics with the program. The statute allows the money for public and private school expenses for students in households at 300% of local median income or less, but some Democrats have suggested they'd exclude private students. Treasury's rules clarify they can't do this. States can't disqualify scholarship-granting organizations, nor limit the types of schools or expenses these organizations fund, if they meet federal requirements.
Treasury is still working on guidance on which K-12 education expenses are covered. That guidance may also affect the treatment of homeschoolers, whose participation is currently affected by how they're defined in state law. Treasury also issued most of its regulations as a proposed rule-making, meaning it's open to public comment and will be made permanent later, though the department says the proposals govern the program for now.
But nothing should deter governors from opting in. Georgetown's Marguerite Roza says income-verification requirements may deter public-school students from applying for funds, since they're more likely to use it for small-dollar fees and it may not be worth the paperwork. But Treasury says students in certain low-income areas won't have to verify their income for some services. If there are concerns about access, the comment period is a time to raise them.
Some Democrats may opt out in fear of the teachers unions, which hate the credit because they don't want competition for failing public schools. New York Democratic Gov. Kathy Hochul has resisted a call from the unions to not opt in after saying she would, though she still has to make it official.
The main benefit of the program is that it gives families more money to choose the best school, public or private. That might lead to more competition among schools and more student flourishing.
(END)