Private school aid added to tax bill

The Kansas Senate will consider later tonight or Saturday morning a new tax plan in HB 2109 that includes expansion of the private school tax credit originally contained in Senate Bill 270.

KASB strongly opposes this provision. The measure has been placed in the latest tax increase proposal as legislators deal with a $400 million budget hole facing an approaching deadline of state employee furloughs.

Several key legislators say they have put the expanded private school tax credit proposal into the larger tax measure in order to attract votes from legislators who may be opposed to the tax increase portion of the bill. In addition, the conference committee report would increase the state sales tax to 6.55 percent and cigarette taxes by 50 cents per pack while making other tax changes, including a requirement that cities and counties hold elections if property tax revenue growth exceeds the rate of inflation.

KASB testified against the scholarship bill, while the Wichita Catholic Diocese and Kansas Policy Institute testified in support of the program.

The tax credit program allows corporations to receive state income tax credits for contributions to “scholarship granting organizations” that give scholarships to certain students who wish to attend non-public schools. These schools are not required to be accredited, or participate in state assessments or other accountability programs, and in fact, could include home schools. Unlike public schools, participating private schools would not be required to accept all eligible students. As a result, it is the private school that has the real choice, not the parents.

The original SB 270 expanded the number of students who could receive scholarships, but does not expand the limits on the cost of the program. Only students who are eligible for free meals may quality for the scholarship. Currently, such students must be attending Title I Priority or Focus schools. The bill allows any free lunch eligible student attending a public school to quality.

If approved by the Senate, the conference committee report on this bill will go to the House for final approval.
June 5, 2015

KASB members are encouraged to contact their legislators
ASAP to voice concerns.

Follow @tomkrebs1 and @srothschild1 to monitor current happenings at the statehouse.