Time is ripe to pass education tax credits

Parents bring children into this world with great anticipation of the joy and wonderment of watching their children blossom into unique and precious gifts.

At the same time, raising children brings great challenges, such as the constant worry and struggle in seeking to meet children's needs, and to prepare them for the future.

Parents have the unique and inimitable right and responsibility to rear their children. They do so not only by providing a loving home and instilling faith and values, but also by directing their children's education.

Options

Whether they enroll their children in public schools, charter schools, independent or religious schools, or educate them at home, parents strive to do all they can to provide their children with the greatest educational advantage possible, often at tremendous financial sacrifice.

However, far too many families whose children attend public schools simply cannot afford to obtain the supplemental educational programs and services that they know their children need.

Likewise, many families who enroll their children in a religious school find it extremely difficult to keep up with rising tuition. And for many low-income families, a religious school education is too often unobtainable. In those cases, it is not only children, but also society as a whole that suffers.

Tax credits

For those reasons, my brother bishops and I have been advocating education tax credits to assist parents and schools in providing for education. We believe such tax credits can help all parents meet the educational needs of their children, regardless of where they are educated.

Let me offer a brief primer on this issue:

* What are education tax credits? Typically, they are divided into two categories. Firstly, there are tax credits for personal expenses, such as when a family has to pay for instructional materials, tutoring, school tuition, educational software or special education services. The family would get a tax credit to help offset those expenses.

Secondly, there are donation tax credits that give corporations and individuals a tax incentive to make donations to a school or to an organization that supports education through scholarships, after-school programs etc.

* Is specific legislation being proposed in New York State? Yes. This year, Gov. George Pataki's proposed budget calls for a refundable income tax credit of up to $500 per student in grades K-12 for expenses incurred by parents who live in low-performing school districts.

Eligible expenses include tutoring, summer instruction and other supplementary instruction, as well as tuition at religious and independent schools.

In addition, State Senator Martin Golden and Assemblyman Vito Lopez have introduced a far more generous education tax credit bill for personal expenses. Their legislation provides tax credits that range up to $3,500 per child for families earning the least and up to $1,100 per child for working middle-class families.

In addition, Senator Serphin Maltese and Assemblyman Dov Hikind are sponsoring legislation to encourage corporate and individual donations to schools and scholarship organizations.

* Who will benefit from education tax credits? Education tax credits for personal expenses benefit parents of children who attend public, charter, independent or religious schools, or are educated at home. The greatest benefit is directed toward families with the lowest income.

In New York State, more than 80 percent of parents (including Catholics) enroll their children in public schools, and so the greatest number of tax credits will go to families of public school children.

Donation tax credits will benefit children in any school that receives increased donations from corporations and individuals. Likewise, greater private school scholarships will be made available through donation tax credits.

* What is the difference between a tax credit and a tax deduction? Tax credits are typically more generous. A credit is a reduction of the amount of taxes owed. A tax deduction is a reduction of the income on which taxes are paid.

For example, let's say an individual earns $50,000. If his tax rate is seven percent, he owes $3,500 in state income tax. A $3,000 tax credit means he would pay only $500 in income tax, a savings of $3,000. However, a $3,000 tax deduction means he pays seven percent on $47,000 of income, or $3,290 -- a savings of only $210.

* Are education tax credits the same as vouchers? No. Vouchers are used to enable parents of public school children to choose another school. Historically, vouchers have been given only to low-income families, families of children in low-performing public schools, or families of special-needs children.

Tax credits, on the other hand, can help all parents offset expenses for their children's education, regardless of where they attend school.

* Are education tax credits constitutional? Yes. In 1983, the U.S. Supreme Court, in Mueller v. Allen, upheld a Minnesota law that provides a tax benefit to families for their personal education expenses, such as instructional materials, tuition and transportation.

Education tax credit laws have also been enacted in states such as Arizona, Illinois, Iowa, Pennsylvania and Florida.

* Won't education tax credits weaken the public school system? No. Parents who enroll their children in the private and religious schools of our state not only pay taxes to support public schools, but also shoulder the extra burden of tuition, which amounts to more than $3 billion each year.

It costs more than $14,000 annually on average to educate a child in the public schools of New York. Thus, the parents of the 500,000 children in the independent and religious schools of our state save taxpayers more than $7 billion annually.

Assisting more parents to choose religious and independent schools through education tax credits will actually save the state significant money and enable even greater financial support of public schools.

Catholic education

It is no secret that many Catholic schools nationally, statewide and in our Diocese are struggling to remain accessible to families. In the last ten years, 127 Catholic schools have closed across our state, 38 last year alone. In our Diocese, we have closed or merged nine schools in the past five years.

The primary reason for this distressing trend is that rising tuitions -- created by the significant cost increases necessary to provide for a well-rounded academic program -- are placing Catholic schools beyond the pocketbook of many low- and middle-income families.

That is most unfortunate, because I believe a Catholic school education is more needed today than perhaps at any other time in our nation's history.

God and school

In preparing young people to become doctors, lawyers, nurses, social workers, teachers, priests, religious, businesspersons, scientists, financiers, musicians, athletes, computer analysts or whatever else, and in giving them the knowledge base to achieve those goals, we have often forgotten to teach them how to live humanly and wholesomely in our technocratic society.

We have forgotten to teach them how to make the best use of their leisure time. We have forgotten to teach them how to relate to one another.

And, most especially, we have forgotten to teach them about God, the source and reason for our existence, without whom our lives can never achieve their ultimate purpose and meaning.

Relevance

Yes, our Catholic schools are more relevant today than ever, given the forces of secularism, moral relativism, individualism, consumerism and hedonism swirling all around us. Catholic schools serve to combat those insidious influences by integrating religious truths, moral values and prayer into a holistic approach to living and learning.

If our Catholic schools are to remain viable, however, they require the support of the entire Catholic community. This support can be financial, but it can also come from advocacy for public policies -- such as education tax credits -- that assist parents and benefactors to have a choice in education.

That is why a major Education Tax Credit Rally has been scheduled for Feb. 14 at the Capitol in Albany. We will be joining with advocates from all over the Empire State to bring to the attention of our elected representatives this "win-win" public policy initiative for all schools, all children and all parents.

I urge every member of our community to join in this and similar initiatives to enact education tax credits in New York. I also urge you to join our Catholic Advocacy Network at www.nyscatholic.org, or by sending your name, address, parish and e-mail address to Catholic Advocacy Network, New York State Catholic Conference, 465 State Street, Albany 12203.

Participation in these activities can ensure an enriched education for future generations.

(2/2/06) [[In-content Ad]]