!!!!Tuition!Tax!Credits:!! A!Threat!to!Montana3Based!Education!Solutions!
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1 TuitionTaxCredits: AThreattoMontana3BasedEducationSolutions Proposalsfortuitiontaxcreditsreallocate criticalstateinvestmentinpublicschoolsin ourcommunities,costthestatemillionsof dollars,andarenotaviableoptionformontana families,students,andcommunities.whentax benefitprogramswereimplementedinother states,studiesshowedthattheseprograms failedtoimproveaccesstohigh<quality educationorsavethestatemoney.instead, tuitiontaxcreditsdivertfundingawayfrom publicschools,jeopardizingthestate sability toencourageimprovementsandinnovation withinpublicschools.montana sstrongpublic schoolsystemalreadyprovidesvaried opportunitiesforchildrenofallbackgrounds, helpingtocreateawell<trainedworkforceand prosperousstate.inmontana,tuitiontax creditswouldreducethestate sabilitytofind state<basedsolutionsforimprovingour educationsystem,threateningthebenefitsour publicschoolsprovidetothewider community. PrivatizationLegislation February2015 KeyFindings Tuitiontaxcreditsdivertstatefundingfrom publicschoolstoprivateschools. TheAmericanLegislativeExchangeCouncil (ALEC)draftsschoolprivatizationbills withoutconsideringmontana sneeds. Mostrecipientsofthesetaxcreditprograms alreadyattendprivateschools.these programsdonottendtohelplow<income studentsaccessprivateschools. Despiteclaims,statesdonotsavemoneyby implementingtaxcredits.infact,these programscancostthestatemoney,because aschool sfixedcostsarenotreducedwhena studentleavesthepublicschoolsystem. Thereisnoprovenacademicbenefittothose whoreceivetaxcreditsforprivateschools. BecauseMontanaisaruralstate,many studentswouldnotbeabletoaccessprivate schoolsandutilizetaxcredits. Schoolprivatization,alsocalled schoolchoice, isatrendyissueinthedebatesaroundpublic education.supportersarguethatfamiliesshouldbeabletoselecttheschooltheirchildrenwill attend<publicorprivate.tomakethispossible,proponentsoftensupportthefollowing privatizationlegislation: Tuition'Tax'Credits Taxpayersreceiveacreditonstatetaxesforeducationexpenses. Tax'Credit'Scholarships' 'Taxpayersreceiveacreditontheirstatetaxesfordonationsmadeto privateschoolscholarshiporganizations. Voucher'Programs' Parentsusepublicfundstopayforprivateschooling.Sinceschool vouchersoftenraiselegalchallenges,advocateshavebegunproposingtuitiontaxcreditand taxcreditscholarshipsasalternatives. InMontana,currentlegislationaimstoenactanonrefundabletuitiontaxcreditthatreducesan individual sstateincometaxliabilityuptothefirst$1,000ofqualifyingeducationexpensesmade toprivateandout<of<districtpublicschools. 1 Proponentssuggestthatthislegislationincreases
2 schoolchoice andeducationalopportunitiesbymakingprivateeducationmoreaffordable. Howeverthetruthis,Montananscan alreadysendtheirchildrentoschools oftheirchoice.infact,92%of Montanafamiliesmadethechoiceto sendtheirchildrentopublicschools. 2 Onceinpublicschools,thereare furtheroptionstopersonalize children seducationalopportunities basedontheirneedsandinterests, includingcurriculumandcareerpaths,advancedplacement,anddistancelearningcourses. Privatizingeducationonlydrawsfundingawayfromasuccessfulpubliceducationsystem. ALECDrivesPrivatizationLegislation TheAmericanLegislativeExchangeCouncil(ALEC)isadrivingforcebehindschoolprivatization legislation.partofalec s limitedgovernment agendaincludestheprivatizationofpublic educationthroughtaxcreditscholarshipprograms,schoolvouchers,andcharterschools. 3 ALEC drafted schoolchoice legislationforstatelegislatorsacrossthecountrytopresentassolutions fortheirstate. 4 However,ALEC sprivatizationlegislationdoesnotfactorinmontana sstrong publiceducationsystemnordoesitaddressmontana<specificchallengesoropportunities. MontanaPublicSchoolsAreWorking MontanaPublicSchoolsareStrong Supportersofschoolprivatizationfailto acknowledgethatmontanapublicschools arealreadystrongandprovideaquality educationtostudentsfromall socioeconomicbackgrounds.school privatizationproponentsclaimthat legislationcanhelpaddressafailing publicschoolsystemandprovide opportunitiesforlow<incomestudents. However,in2013,Montanaranked6 th in thenationfork<12studentachievement, andthenationalassessmentof EducationalProgresssciencescores rankedmontana1 st inthecountry. 5 In 2014,85.4%ofhighschoolstudentsinthe stategraduatedontime, 6 placingmontana 12 th inthecountryforgraduationrates. 7 [Privatization]-proponents-have-co3opted-the-term- school-choice -with-all-its-benign-implications-and-thesuggestion-that-somehow-we-don t-have-it-right-now.-infact,-we-are-free-to-send-our-children-to-any-school-wewant What-the-debate-is-really-about-is-reallocatingpublic-money-for-private-education.- - 9'BozemanDailyChronicle.January5 th,2015 Graduation 85.4%ofMontanapublichighschoolstudents graduateontime. Montana sgraduationrateis12 th highest nationally. AcademicPerformance Montana8 th graders averagenaepmathand readingscoresrank6 th inthenation. Average8 th gradenaepsciencescoresare ranked1 st inthenation. PublicSchoolSpending Montanaspendsanaverageof$850lessper studentcomparedtonationalaverage. Montana sefficientpubliceducationsystem savestaxpayers$123millionannually. Page% %2
3 Montanaspends$850lessperstudentthanthenationalaverage,savingtaxpayersabout$123 millionannually. 8 Thisreflectsanefficientandqualitypubliceducationsystem. ThereareschoolsandstudentsinMontanathatfacesignificantchallenges,andprivateschoolsare notnecessarilythesolution.socialandeconomicfactors likeisolationandmultigenerational poverty havegreaterimpactsonstudentperformancethanaschoolitself.movingstudentsto newschoolswouldnotfixtheserootsocioeconomicissues. 9 Montanaisalreadyaddressingmanyofthebarrierstostudentsuccess.Forexample,theOfficeof PublicInstructionimplementedaprogramcalledSchools'of'Promise,designedtotargetstruggling schoolsbyimprovingteacherperformance,connectingschoolsandcommunities,andincreasing supportforstudents. 10 Focusingonthewholecommunityoffersaculturallyappropriatewayof addressingstrugglingschoolsandacknowledgesthestructuralproblemsattherootof underperformance.unlikealec sprivatizationlegislation,schools'of'promiseisamontana<based solutiontoaddresstheneedsofunderperformingschoolsinthisstate. Montanavoterssupportthestate spublicschoolsystemandareconfidentinitsabilitytoeducate theirchildren.inarecentsurvey,66%gavetheirlocalpublicschoolsanaorb,88%declaredthat theywanttheirchildrentohaveawell<roundedpubliceducation,andthemajorityofvoters suggestedthatstatespendingshouldbeprioritizedtofundk<12publiceducation. 11 Montana publicschoolsoutperformthemajorityofpublicschoolsinthecountry,andmontanansare confidentintheeducationpublicschoolsprovidetheirchildren.redirectingstatefundingfrom publicschoolstoprivateschoolswillonlyhurtourthrivingpubliceducationsystem. TaxCreditsRewardHigher3IncomeFamiliesandHurtPublicSchools Legislationofferingtaxcreditsforprivateschoolsdoesnotsavestatesmoney,butinstead,forces schoolstodomorewithless.theselegislativeproposalsrestontheideathatfamiliessavethe statemoneybyenrollingtheirchildrenintoprivateschoolsratherthanpublicones.however,this logicisflawed.inreality,taxcreditscostthestatemoney,atthesametimeriskforcingschoolsto surviveonsmallerbudgets.statesdonotsavemoneywhenstudentstransferschools,because publicschoolscannotreducecostsatthesamerate.schoolshavetwotypesofcosts variable costs,suchasbooks,whichchangebasedonthenumberofstudents,andfixedcosts,likebuilding maintenanceandutilities,whichdonotchange.whenstudentstransferoutofapublicschool,that school svariablecostsdecrease,buttheirfixedcostsdonot.aschoolcannoteliminateateaching positionifoneortwostudentsswitchschools.therewouldneedtobeasignificantmigrationof studentsawayfrompublicschoolstodecreaseoveralloperatingcosts.sincethebarriersto attendingprivateschoolsaregreaterthantuitioncostsalone,taxcreditshavenotcreateda significantchangeinpublicschoolattendance. 12,13 Inshort,taxcreditsdrainpublicschoolfunds withoutsignificantlyreducingoperatingcosts,forcingschoolstomakedowithlessfunding. Furthermore,theprimaryusersofsuchtaxcreditsarestudentswhowouldhaveattendedor alreadyattendprivateschools,regardlessofwhetherornottheirparentsreceivedataxcredit. Page% %3
4 Thus,moneyisredirectedfromthepublicschoolsystemtofundtheprivateschooltuitionsthat parentscanalreadyafford.forexample,inarizona,only5%to15%ofstudentsreceivingtax creditscholarshipswerenewlyenrolledinprivateschool. 14 EveninGeorgia,whichlimited scholarshipstopreviouslyenrolledpublic<schoolstudents,theprogramdidnotgreatlyincrease privateschoolenrollment. 15 EvenafterArizonaenactedtaxcreditscholarshipsinthelate1990s, thestatelostabout$4,000foreverystudentthatusedthescholarshiptotransfer.inthefirstthree yearsoftheprogram,arizonasawa$74.3millionlossinstaterevenue. 16 Sincetheprogramdid notcausealargenumberofstudentstoleavepublicschools,arizonasavednomoney.instead,the statefootedthecostoftuitionforthosealreadyabletoaffordprivateschool. 17 TaxCredits:ManyMontanansWouldn tbenefit InMontana,withitslargerural population,taxcreditsarenotaviable option,andtheydonotaddressthe factorsthatdeterminewhatschools studentsattend.infact,31ofmontana s 56countiesdonothaveprivateschools, andovertwo<thirdsofthe122private schoolsinmontanaarelocatedinjust eightcounties(figure1). 18 Thus, Montanastudentsinruralcommunities wouldnothaveequalaccesstotax credits. Althoughnonrefundabletaxcredits reduceanindividual sincometax liability,theyalsoleaveoutlow<income Figure1:Studentsdon thaveequalaccesstotaxbenefitsinrural communities Source:NationalCenterforEducationalStatistics families.thesetypesofcreditsdonottakeintoaccountthefactthat,whilelow<incomefamilies maynothaveahighenoughincometoincurstateincometaxes,theystillincurpayrolltaxes. Therefore,nonrefundablecreditsaremorebeneficialtomoderate<tohigh<incomeindividualsand families.atuitiontaxcreditsetat$1,000wouldonlycoveraportionofthecostsassociatedwith attendingprivateschools,includingtuition,fees,uniforms,andtransportation,doinglittletohelp thosewhocannotaffordthisoption. PrivateSchoolsProvideNoIncreasedAcademicPerformanceandLittleOversight Beyondaccessibilityissues,taxcreditsfailtoincreaseacademicperformance.Ina2007study,the CenteronEducationPolicyfoundthatprivateschoolstudentsdidnotperformanybetteron achievementtestsinreading,science,ormath,andwerenomorelikelytoattendcollegethan publicschoolstudents,whenconsideringfamilybackground. 19 Thisstudysuggeststhatfactors Page% %4
5 Page% %5 outsidetheschoolenvironmentaremoreinfluentialonstudentperformancethanschool placement.taxcreditsdonotaddressexternalfactors,andthusdonotbenefitstudentswhoneed themostassistancetoachievesuccess.likewise,thecenteroneducationpolicyfoundthat vouchers,amorecontroversialprivatizationalternative,donotimpactstudents academic performance. 20 WhileprivateschoolsdoreceiveaccreditationbytheMontanaBoardofEducation,theyarenot consistentlyheldtothesameoversightandaccountabilitypracticesaspublicschools.proposed tuitiontaxcreditlegislationinmontanawouldrequireprivateschoolstoadministernationally< recognizedstandardizedtestsandreportresultstostudentsandtheirparents;however,thereis nolanguagethatrequiresprivate schoolstobeheldaccountableby schoolboardsorthepublic.this directlygoesagainstmontanans desireforpublicoversightfor privateschools. Accordingtoarecentpoll,the majorityofmontanavotersoppose taxbenefits,liketuitiontaxcredits, fortuitionpaidtoreligiousprivate schools.specifically,itshowed67% opposetaxbenefitsifprivateschoolsarenotheldaccountablebycommunity<electedschool boards,and74%areagainsttaxcreditsifprivateschoolsarenotsubjecttopublicscrutiny practiceslikeopenmeetings. WiththecurrentproposedtuitiontaxcreditlegislationinMontana,thereisnoguaranteethat oversightofprivateschoolsandthequalityofeducationtheyprovidewouldbeheldtothesame standardaspublicschools. Conclusion Statesthatimplementedtaxcreditprogramshavenotmettheirgoalsofsavingmoneyorallowing lower<incomestudentstoaffordabettereducation.inreality,taxcreditsdivertpublicfundsto privateinstitutionswithoutimprovingaccesstohigh<qualityeducation.thereisalsonoevidence tosuggestthatprivateschoolsoffersuperioreducationalopportunities.inshort,taxcreditswould failtoincreasetheseopportunitiesformontanastudents.insteadofprivatizingourpublicschool system,montanashouldfocusonmeasuresthatcontinuetoimprovethepublicschoolsalready benefitingstudentsinthestate. Montanan sopposetaxbenefitsforprivateschools 54%ofMontananvotersopposetaxbenefitstothosefor religiousprivateschools. 67%opposetaxbenefitstoprivateschoolsthatarenot heldaccountablebycommunity<electedschoolboards. 74%opposetaxbenefitsifprivateschoolsdonothave someformofpublicscrutinyinplacesuchasopen<and< publicmeetingsand/orpublicparticipationstatutes. Source:MontanaVotersPoll.ZogbyAnalytics.2014
6 Page% %6 1Montana63 rd LegislativeSession.ProposedHouseBill MontanaPublicEducationCenter.School'Choice'in'Montana:'Well'Protected,'Freely'Exercised.January, mt.org/resources/documents/mt<pecspotlightonchoicee<version_000.pdf 3MatthewLadneretal.Report'Card'on'American'Education.'Ranking'State'K912'Performance,'Progress,'and'Reform.'American LegislativeExchangeCouncil RichardKomerandClarkNeily.School'Choice'and'State'Constitutions:'A'Guide'to'Designing'School'Choice'Programs'Reference' Guide.InstituteforJusticeandAmericanLegislativeExchangeCouncil.April, th grademath,readingandsciencetestscoresfromthenationalassessmentofeducationalprogress(naep).the'great'work'of' Montana s'public'schools.montanaschoolboardsassociation.volume11.october, GraduationMattersMontana.Graduation'and'Dropout'Report'2014.MontanaOfficeofPublicInstruction. al&utm_source=facebook.com&utm_campaign=buffer 7America shealthrankings.high'school'graduation:'united'states The'Great'Work'of'Montana s'public'schools.montanaschoolboardsassociation.volume11.october, CenteronEducationPolicy.Are'Private'High'Schools'Better'Academically'Than'Public'High'Schools?October, OfficeofPublicInstruction.Montana'Schools'of'Promise'Fact'Sheet ZogbyAnalytics.Montanavoterpoll.CommissionedbyMontanaPublicEducationCenter.September, mt.org/news/documents/zogbyreleasefinal_000.pdf 12GlenY.Wilson.The'Equity'Impact'of'Arizona s'education'tax'credit'program:'a'review'of'the'first'three'years.march, SouthernEducationFoundation.A'Failed'Experiment:'Georgia s'tax'credit'scholarships'for'private'schools GlenY.Wilson.The'Equity'Impact'of'Arizona s'education'tax'credit'program:'a'review'of'the'first'three'years.march, Georgia slegislationrequiredenrollmentinapublicschoolratherthanattendance,allowingfamiliestoenrollstudentsinpublic schoolandthenswitchtoprivateschool,enablingthemtoreceivethetaxcreditscholarship.southerneducationfoundation.a' Failed'Experiment:'Georgia s'tax'credit'scholarships'for'private'schools GlenY.Wilson.The'Equity'Impact'of'Arizona s'education'tax'credit'program:'a'review'of'the'first'three'years.march, UtahFoundation.School'Choice:'Experiences'with'Vouchers'and'Tuition'Tax'Credits'in'Other'States.January, Thevastmajorityofprivateschoolsarelocatedincountieswithmetropolitanareas Cascade,LewisandClark,Lincoln, Missoula,Yellowstone,Flathead,GallatinadSilverBowcounties.NationalCenterforEducationStatistics.SearchforPrivate Schools. 19CenteronEducationPolicy.Are'Private'High'Schools'Better'Academically'Than'Public'High'Schools?October, AlexandraUsherandNancyKober.Keeping'Informed'about'School'Vouchers:'A'Review'of'Major'Developments'and'Research. CenteronEducationPolicy,July,2011.
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