Tax-credit bill could be boon to public, private schools
UNIONDALE — Advocates of nonpublic school aid are hopeful about a bill — passed last year by the state Senate — to encourage donations for public schools and nonpublic school scholarship funds.
“This is a bill that would benefit everyone,” said Tim Mulhearn, president of United New Yorkers for Choice in Education, which proposed the bill. The New York State Senate approved it by 55-7 in 2011 with strong bi-partisan support.
If enacted, the tax credit would offer incentives for donations for public schools along with tuition assistance programs for nonpublic schools, such as Tomorrow’s Hope Foundation, which assists children going to Catholic schools on Long Island.
The bill calls for a 60 percent tax credit from both personal and corporate state income taxes for donations to any public school, including charter schools, public school district, or public school educational foundation, or for donations to tuition-assistance or scholarship funds for students attending religious or independent schools.
A person donating $1,000 would pay $600 less in state income taxes, Mulhearn explained. A tax credit differs from a tax deduction, which allows a taxpayer to deduct the amount of a donation from his or her taxable income. “Also, a tax credit, unlike a tax deduction, can be used by a taxpayer who doesn’t itemize.”
“It’s going to be brought up for a vote for this year in the next few weeks,” said Jerry Kassar, chief of staff for Brooklyn Senator Martin Golden, who introduced the bill.
“I always begin each year with guarded optimism,” Mulhearn said, “but this year I’m more optimistic” that both houses would pass the bill.
“We’re hopeful for a couple of reasons,” said Jim Cultrara, director for education for the New York State Catholic Conference, which represents the eight state dioceses on public policy issues.
For one, the bill frames the issue differently. “In the past, opponents of tuition tax credits argued that they would take money from public schools,” Cultrara said. This proposal benefits both systems without diverting money from either.
In addition, Cultrara said, there is strong bi-partisan support, with the bill passing overwhelmingly in the Senate last year, and signs of bi-partisan support in the Assembly.
Mulhearn noted that only a few weeks ago, 13 Assembly Democrats had co-sponsored the bill. The number has since jumped up 23 as well as three Republicans.
In addition, “we have Governor Andrew Cuomo who seems to be interested in genuine educational reform. We hope to persuade him that this is positive education reform.”
Under the bill, the 60 percent tax credit would go for any donation up to $10,000 for an individual taxpayer and up to $25,000 for a corporation. There is also a personal tax credit up to $75 for parents who purchase materials for homeschooling and for school personnel for out-of-pocket costs for classroom supplies and materials, Mulhearn said.
“With state aid to public school districts across the state reduced, school boards are considering ways to make up for lost money,” Mulhearn noted. “This bill will allow school districts to make up some of the shortfall through voluntary donations rather than tax hikes — especially in light of the two percent tax cap imposed by the state.”
“I met with one public school administrator who told me that if this bill becomes law, he will go out into the community and seek donations for technology and other projects that might otherwise not be in the school budget.”
Granting these credits, Mulhearn predicted, would foster the growth of more scholarship funds to benefit nonpublic schools.
“This bill will help stabilize the nonpublic school sector” by increasing donations, he continued. If fewer Catholic schools are forced to close, “that will reduce the strain on public school systems and on the taxpayer.”
Mulhearn said that two secular educational reform groups and several Jewish organizations have supported the bill and he expects other organizations will in time.
“We’re hoping that people who see the value of this bill will call the governor’s office,” he continued, “as well as writing to their legislators — particularly in the Assembly.”
“As more people become aware of the bill,” Cultrara predicted, “they will see the benefits and support will grow.”
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