Issue Spotlight: The Tax Tab for EITC Scholarships
Individual taxpayers are footing the bill for $9 out of every $10 of corporate contributions for private and parochial school scholarships made through Pennsylvania’s Educational Improvement Tax Credit (EITC).
The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC), however well-intentioned, divert desperately needed funds from Philadelphia public schools ("Scholarships offer lifeline to Pa. students," Oct. 10).
In addition to passing a state budget, the General Assembly is moving legislation to change the rules for charter school authorization, expand the Educational Improvement Tax Credit, provide additional funding for distressed schools and establish new standards for teacher evaluations.
A state program billed as providing corporate contributions to private and religious school scholarships receives $9 out of every $10 from state taxpayers, according to a new analysis from the Pennsylvania Budget and Policy Center.
Expanding the Educational Improvement Tax Credit (EITC) now will drain more state revenue away from public schools at a time when many are laying off teachers, cutting kindergarten or prekindergarten, and eliminating courses, PBPC researchers write in a new analysis.