(HARRISBURG, PA – October 10, 2009) – After months of hearings, negotiations, rallies, press conferences and testimony, a budget for FY 2009-2010 has been passed by the General Assembly and signed by the Governor.
Unfortunately for thousands of students and families all across Pennsylvania, the highly popular and successful Educational Improvement Tax Credit (EITC) Program will be cut by $15 million in FY 2009-2010, taking the total tax credits available through this program to $60 million -- with $38 million dedicated to scholarships, $15,600,000 dedicated to innovative educational programs in public schools and $6,400,000 dedicated to pre-Kindergarten scholarships.
Preliminary reports from the Department of Community and Economic Development show that tax credits in the now-$60 million EITC Program will be exhausted immediately.
“The Governor and the Legislature are increasing spending for our public schools. The EITC Program is first and foremost a program designed to improve educational opportunities for Pennsylvania’s children,” says Andrew T. LeFevre, executive director of the Harrisburg based, REACH Alliance. “I am disappointed that the EITC Program, a program that many in the Legislature have called the best educational initiative passed in Pennsylvania in the past 15 years, was cut at a time when many families are struggling to find a school that works best for their child.”
The EITC Program, enacted in 2001 by former Governor Tom Ridge, has become the national model for corporate tax credit programs. It provides a tax credit of up to 90 percent for companies that donate to non-profit scholarship and educational improvement organizations. The statistics in this last school year are staggering: more than 44,000 children received EITC scholarships, more than 3,600 Pennsylvania companies have participated in the EITC since its inception and they have donated almost $420 million to participating organizations.
Every year, more and more families apply for scholarships and are turned away because there’s just not enough money. With the $15 million decrease, over 6,000 students will lose their scholarships to the school that best fits their educational needs. In addition, hundreds of innovative educational programs at work in our public schools face a loss of funds that will jeopardize their ability to enhance student’s educational experiences.
While this funding cut will freeze out hundreds of businesses in the only Pennsylvania tax credit program that provides a direct benefit to children and families, the real tragedy will be the thousands of students who will not be able to attend a school that meets their educational needs because they lose an EITC scholarship.
“While we are saddened by the cuts the Legislature have made,” says LeFevre, “we thank those Senators and Representatives from both parties who fought to not only keep cuts equal, but fought for a fully-funded Educational Improvement Tax Credit (EITC) Program.”
Founded in 1991, the REACH Alliance is the Commonwealth’s leading grassroots coalition seeking to educate the public on the benefits that school choice can bring to Pennsylvania’s children. The REACH Alliance represents individuals, business, religious, civic, taxpayer and non-profit organizations committed to educational achievement through choice. For more information, please visit www.paschoolchoice.org.
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