Tax Credit Scholarships: What they are, talking points and sample testimony

 

What is a Tax Credit Scholarship? 

Tax-credit scholarships allow taxpayers to receive full or partial tax credits when they donate to nonprofits that provide private school scholarships. Eligible taxpayers can include both individuals and businesses.

Currently, if an individual or business donates to a scholarship granting organization (SGO), they would receive a standard charitable deduction for their donation. In a Tax Credit program, those donors would receive a credit against their tax liability to the State. Tax Credits are much more valuable than a deduction and would serve as a strong incentive for donors to contribute to SGO’s. 

 

Are Tax Credits a thing in CT? 

YES! CT has multiple Tax Credits including one that has given over a BILLION DOLLARS in Tax Credits to Hollywood film studios. If the State can afford that, they can afford a credit for their students. 

 

Talking Points:

Here are some talking points to focus on. Feel free to focus on one or more of them. Sample testimony can be found below. 

 

DO:

Focus on the benefit to children and struggling parents.

Talk about how education is not a one size fits all solution. Even the best public schools will have students that need a different setting to thrive. Those students deserve an opportunity to do so.

Talk about how parents know best the type of education or school that meets the needs of their child.

Talk about how parents are looking for and demanding educational options. 

Talk about how investing in a child’s education is net positive to the state. 

Talk about how Scholarship programs also can help stabilize neighborhoods and provide an incentive for families to remain in their communities, rather than “buying” a better education by moving elsewhere. This, in turn, increases the tax base and helps support public schools.

Talk about how Tax Credit scholarship programs in other States have been very successful and that members of your community when deciding where to live and bring their skills or business look at the States education policies.   

 

NOT Suggested:

Stay away from talking about how expensive frum Jewish life is… Or how if you weren’t paying tuition for all your kids you could be living a much wealthier lifestyle… that’s not a winning message. Lawmakers are concerned about low income single moms, not moderate to high income families that could be more financially secure if they weren’t paying tuition. 

 

DONT:

Do not talk bad about public schools. 

 

Sample Testimony:

Sample Testimony #1

A scholarship tax credit program will benefit low-income children looking for a better education and a brighter future. Similar programs in Florida, Pennsylvania, Georgia and Arizona, have met with enthusiastic participation, bipartisan support, and most importantly, more options for struggling parents. 

This program supports two of the highest ideals in Judaism: education and charity. One of the keys to educational excellence is parental involvement. There is no better way to encourage such involvement, and to ensure educational accountability, than to develop policies that help parents choose the school that is best for their children, whether public or non-public, secular or sectarian. However, with the current economic uncertainties, existing scholarship organizations have seen a dramatic increase in requests while experiencing a decrease in donations, leaving many students on waiting lists. Tax credits will spur the philanthropic spirit of Connecticut taxpayers and corporations and help parents fund an appropriate education for their children.

 Tax credits encourage increased charitable giving, despite this difficult economic period. In conversations with Jewish business owners, community leaders, and taxpayers, we have heard overwhelming support for such a program. Our community looks forward to contributing to the education of Connecticut’s children. Scholarship programs also can help stabilize neighborhoods and provide an incentive for families to remain in their communities, rather than “buying” a better education by moving elsewhere. This, in turn, increases the tax base and helps support public schools. There is no wiser investment the state of Connecticut can make, than an investment in the education of its youth. 

 

Sample Testimony #2

I would like to  express my strong support for the implementation of tax credit scholarships, as outlined in the proposed HB5101. 

First and foremost, tax credit scholarships promote educational equity by providing financial assistance to families who may face economic barriers to accessing quality education. This policy empowers parents to make choices that align with their children’s educational needs, fostering a more inclusive and diverse educational landscape.

Furthermore, tax credit scholarships encourage innovation within the education system. By enabling families to explore alternative educational options, such as private schools or specialized programs, the policy stimulates healthy competition and encourages schools to continuously improve to meet the diverse needs of students.

Moreover, the implementation of tax credit scholarships has demonstrated success in many other States, leading to improved educational outcomes. These scholarships not only empower parents but also contribute to the overall enhancement of educational standards by fostering a dynamic and responsive educational marketplace.

Additionally, supporting tax credit scholarships can lead to long-term economic benefits for our community. A well-educated workforce is essential for economic growth and prosperity. By investing in the education of our youth through this policy, we are laying the foundation for a more skilled and competitive workforce, ultimately benefiting the entire community.

In conclusion, tax credit scholarships represent a forward-thinking and inclusive approach to education policy. By supporting the empowerment of families, fostering innovation, and contributing to long-term economic growth, this policy is a positive step towards building a stronger, more equitable community. I urge you to consider the immense potential of tax credit scholarships and support their implementation for the betterment of our education system and, ultimately, our community as a whole.

 

Sample testimony #3

Across our state and in this chamber, there are many issues on which people disagree. But surely all of us agree on this: Every child is equally important — regardless of race, socioeconomic background, religion (or lack thereof), disability, or zip code. And it is our duty to give each child the chance to succeed.

We all know education is the pathway to a good job and financial security. But it’s more — it’s the doorway to a life of dignity, meaning, and purpose. And that’s why every one of our children deserves access to a quality education.

Opportunity scholarships are designed to help students whose educational needs aren’t being met in their current learning environments. They would offer families the opportunity to pay for approved schools, courses, programs, and services of their choice — enabling them to focus on the unique needs of their children and their individual strengths and challenges.

These scholarships would cost our state virtually nothing, while still helping students including those diagnosed with learning disabilities; those from poor families; and those who’ve been bullied. The scholarships will be funded entirely through private donations, which would be eligible for a tax credit. Businesses and individuals could donate to nonprofit organizations providing scholarships to eligible Connecticut students. In return for the donation, these taxpayers can take a dollar-for-dollar, 100% credit against their state income tax. Eligible students can apply for scholarships through nonprofits that offer them. It’s a win/win. Actually, it’s a win/win/win. Expanding educational access and choice will have the positive byproduct of revitalizing our cities and improving Connecticut’s workforce development efforts. Many of our cities experience outflows of young families when their children approach school age.

Nor do opportunity scholarships weaken our public schools; in fact, they strengthen them. Out of 33 empirical studies on education choice’s impact on academics in public schools, 31 found choice programs improved the performance of nearby public schools. What’s more, they actually increase per-pupil spending on students who remain in their assigned schools; when a student withdraws from a public school in order to participate in a scholarship program, the public-school system retains funding for a student it no longer educates.

Tax credit scholarships already exist in 18 states including Illinois, Pennsylvania, Rhode Island and New Hampshire. Eligible taxpayers can include both individuals and businesses. The overarching goal is to ensure that each child is learning in the educational environment that offers him or her the best opportunity to succeed. Struggling students — particularly those from low income households — need new solutions now. Rich parents shouldn’t be the only ones who get to craft an education plan based on their children’s unique needs. Every family deserves flexible education options that best fit their student’s individual requirements.

It’s time for Connecticut to put students’ needs first and establish Opportunity Scholarships.

How to testify:

Sign up to testify at https://zoom.us/webinar/register/WN_AI_KGkh9QUCgeFGbKcp4lg#/registration 

When prompted write that you are testifying in support of HB5101

 

Zoom

If you are participating via Zoom, you will enter the public hearing using the link provided to you by committee staff upon registering for the public hearing. You will begin the hearing as an “attendee” in listen-only mode. Before your time to speak, committee staff will promote you to “panelist” so that you can be seen and heard by members of the committee. Please watch for the promotion and accept it when it appears on your screen. When the chairs call your name, please unmute and turn your video on, and begin speaking. You will have three minutes to testify.

 

Zoom/in person

When you are called, you may begin with “Madam Chair/Mr. Chairman” as appropriate “and members of the committee.” 

(In long hearings various members may take turns chairing the meeting, If you are not sure who is currently chairing the hearing simply listen to the testimonies before yours begin. Alternatively simply begin “Honorable members of the Committee…”)

Introduce yourself very distinctly so it is clear for the record. Mention your name, town of residence, and the number and title of the bill on which you’ll be speaking. (HB 5101 AN ACT ESTABLISHING A TAX CREDIT FOR EDUCATIONAL ACCESS AND OPPORTUNITY SCHOLARSHIPS.)

Start your testimony by stating you support the bill and then explain your reasoning.

Keep your remarks clear and concise. Be sure not to exceed any announced time limits.

When you finish, remain attentive for a moment in case committee members want to ask questions. If you are participating in the public hearing via Zoom, you will be dismissed by the committee clerk or co-chair and removed from the hearing. You may continue to watch on CT-N or YouTube Live.

Thank you!