Governor Hogan’s Education Tax Credit Could Shift Millions of Taxpayer Dollars From Public To Private Schools
Hogan’s proposed Education Tax Credit would reduce Maryland state tax revenue by $15 million a year, shifting
g it to individuals and corporations as compensation for donating money to well-funded private schools.
The Maryland Education Tax Credit has been called “a voucher scheme that would shift public, taxpayer dollars into private schools” by the Maryland State Education Association. Under the Governor’s proposal, an individual would be eligible for a tax credit as high as $200,000 for one year, or 60% of the contribution not exceeding this amount.
The governor’s legislation would appropriate $5 million to pay for credits in fiscal year 2016, which starts July 1. Within just two years, the appropriation would triple to $15 million, reducing available funding to already depleted public schools in Maryland. Governor Hogan has already proposed a separate $68.1 million reduction in the Geographic Cost Education Index (GCEI), which benefits schools in areas of the state where costs for transportation and other services are higher. That would cause the greatest harm to some the most vulnerable public schools in the state located in Baltimore City and Prince George’s County.
While public schools ostensibly would be part of the plan, there is no guarantee that the donations made will not end up in the hands of private schools, which already offer top-notch education. At the same time, struggling public schools that need additional funding just to keep their heads above water will be facing budget cuts as a result of the governor’s budget cuts.
The governor’s bad idea is not original; it has been introduced in various forms since 2006. Each time, it was rejected by the General Assembly in the face of broad opposition and opponents highlighting the fact that it would give tax credits to corporations for contributions to private schools. This bill shares stark similarities to a tax credit program implemented in the state of Pennsylvania, which to date has resulted in the reduction of over $80 million in state revenue.
Providing a quality education for all children in Maryland should be the goal of Governor Hogan’s administration, not creating mechanisms that can be used by the most privileged to keep a greater share of wealth. The proposed education tax credit is a major threat to further marginalizing students of color; making education, race, and income inequality worse; and aggravating educational inequities within the state of Maryland. State policymakers should prioritize the promotion of equal educational opportunities for all children in Maryland regardless of where they live or what type of school they attend. In addition, supporters of strong public schools should shine a light on how the governor’s proposal will hurt public schools.
