Idea to expand education tax credit put forward

Lawmakers got an earful Friday about why so many of the state’s populations of color are facing huge challenges as they try to even the economic playing field. Some of the nearly 70 testifiers talked about causes, while others laid out the successes their current programs are having in addressing the problem.

The Legislative Working Group on Economic Disparities was formed after Gov. Mark Dayton called for the issue to be part of a special session and proposed $15 million to kick-start any initiative.

At its first meeting last week, the group came to a consensus that the economic disparity problem is too complex to deal with in a special session, but that it should be a priority for the upcoming regular session set to begin March 8.

Sen. Bobby Joe Champion (DFL-Mpls), who co-chairs the working group with Rep. Jim Knoblach (R-St. Cloud), put forward a 57-page proposal last week to help the state begin to address the economic disparities.

Knoblach said addressing economic disparities will require a multi-faceted approach, with legislation on subjects addressed by several standing legislative committees; but he has an idea that is targeted enough to be acted on in a special session, if called.

He proposes expanding the state’s current education tax credit to:

• allow the credit to be increased to reflect inflation, phasing out at $47,500 per household instead of the current $33,500, and annually be adjusted for inflation thereafter:
• align expenditures eligible for the credit to the list of those eligible for the existing state education tax deduction which would result in private school tuition being eligible for the tax credit; and
• increase the existing refundable education tax credit from $1,000 per student to $3,500.

Knoblach said the House Republican majority would be willing to consider school choice proposals provided they help students of disadvantaged families attend a public or private school of their choice.

“We recognize this is a complex issue and will require a multi-faceted response,” Knoblach said. He said the working group should meet as often as necessary to have proposals ready for the 2016 session.