Education tax credit equity proposed

Every year the Legislature seems to get an earful from public school officials asking for a stable source of funding. But private schools, by their nature, usually grapple with their funding issues off the Capitol grounds.

However, Tom McCarver, former director of education for the Archdiocese of St. Paul and Minneapolis, told the House Taxes Committee April 14 that the cost to educate each student is increasing faster than the ability for some families to pay.

“When we can’t have families able to afford tuition, we make up for that by asking for financial help” from outside sources, he said. “Four or five years down the road, and we will not be able to make it.”

Rep. Paul Thissen (DFL-Mpls) proposes one solution — HF3586, which would encourage people to donate to foundations that fund public and private schools or programs that enroll low-income students. Single filers could deduct up to $10,000, married couples up to $20,000 and corporations up to $100,000. The state would cap the program at $10 million per year. The donations would be 100 percent tax deductible.

But critics say the bill could send taxpayer money to religious institutions. René Lara, legislative action specialist for Education Minnesota, said the bill proposes to take money that would have gone into the General Fund and refund it for donations to private schools. Currently 40 percent of the General Fund already goes to fund public education in the state, he said. “So it could conceivably result in a 100 percent redirection to private schools. It takes money away from K-12.”

Thissen said all schools would be better off under the proposal.

“We clearly don’t fund public schools — any of our schools — enough. This would draw private money into the system,” he said. “For every 75 cents, we’d be bringing in another dollar.”

The committee laid over the bill for possible inclusion in its omnibus bill. Sen. Dan Larson (DFL-Bloomington) sponsors the companion, SF2951, which awaits action in the Senate Taxes Committee.