Links to useful information concerning Tuition Tax Credits:

2001 People For the American Way Foundation (PFAW) report:
A Model to Avoid: Arizona's Tuition Tax Credit Law

Glen Wilson's (Education Policy Studies Laboratory at Arizona State University) analysis of Arizona's Tuition Tax Credit Law: click here

2002 PFAW Foundation report:
Misplaying the Angles: A Closer Look at the Illinois Tuition Tax Credit Law

2003 PFAW Foundation Report:
Unaccountable By Design: Corporate Tuition Tax Credit Schemes Drain Millions from States

VOTE NO ON
ARTICLE 24

Reject Carcieri Tuition Tax Credits

What Article 24 Does

• Creates a corporate tax credit for businesses that contribute money to private and parochial school scholarship funds
• The maximum annual corporate tax credit is $100,000
  
  • The tax break is 75% of the contribution for a one year contribution
  • The tax break is 90% of the contribution for a two year contribution
• The maximum state corporate tax break for this program is $1,000,000
• The tax break would become effective January 1, 2007

Why Oppose Budget Article 24

SIPHONS MONEY FROM PUBLIC SCHOOLS

State budgets are finite. Giving money to corporations that give money to private school organizations means there is less money available for other programs. If the General Assembly has money available to direct towards education, it should properly fund public schools. Less general revenue because of tax breaks means less money available for public education. We must also recognize that, once enacted, there will be considerable pressure to raise the $1,000,000 cap and allow tax credits for individual contributions, not just corporate contributions.

WHY ENACT MORE TAX BREAKS FOR THE WEALTHY?

This year appears to be the year to take care of the wealthy and well connected. The Assembly is considering cutting taxes for the wealthy by enacting a flat tax. Tax breaks are being generated for biotechnology companies. Governor Carcieri adds this proposal to the mix, reducing corporate taxes while State worker positions are cut and social service providers are devastated. If money is available, the Assembly should restore program cuts to the poor before it cuts taxes for corporations.

PRIVATE SCHOOL SUBSIDIES ARE NOT NECESSARY

This bill serves no significant purpose other than to give tax breaks to private school programs. The tax credits will not generate new businesses. The tax breaks will not foster new programs, nor will they provide significant relief to impoverished individuals. Why should the General Assembly promote public policy to encourage, through tax policy, a move from public schools to private schools? There is simply no public purpose to justify such an expensive proposition.

NEED TO FIX BUDGET INEQUITIES, NOT CREATE NEW INEQUITIES

The Carcieri budget gives few new dollars to urban schools. For example, he proposed a 1.7% increase in State education aid for Pawtucket and 2.1% for Providence while providing a whopping 17% increase to his home town of East Greenwich. The State already provides considerable support to private schools such as transportation, textbooks and special education. Instead of expanding public subsidies of private schools, the Assembly should address budget inequities created by the Governor.