Tax Breaks: At What Cost to Maryland Students?

The Maryland House of Representatives is advancing a bill, known as Broadening Options and Opportunity for Students and Teachers and introduced by Del. Keith E. Haynes (D-Baltimore City),which will encourage private school scholarships. Ovetta Wiggins of The Washington Post reports, “Under the bill, the state Department of Commerce would receive donations from companies that would be placed into a fund. The businesses would get a tax credit of 70 percent of the donation. The money in the fund would be used to provide scholarships to students who are eligible for free and reduced-price meals (FARM). At least 5 percent of the student population would have to be disadvantaged in order for a school to be eligible.”

“The Senate version of the bill, known as the Maryland
Education Tax Credit, would give a 60 percent tax credit for donations from
companies to a so-called student assistance organization that provides
private-school scholarships. The bill has been introduced for the past 10 years
and won the support of then-Gov. Martin O’Malley (D). It advanced in the Senate
in the past, but not in the House.”

“In the Senate, several Democratic lawmakers tried
nearly a dozen times to amend the bill. The amendments included requiring an
audit of the program, placing a sunset provision on the tax credit, and ensuring
that 45 percent of the students attending the school are eligible for free and
reduced-price meals. None of the amendments succeeded.”

Sean Johnson, assistant executive director with the
Maryland State Education Association, “said the programs, which would be
allotted $15 million under the Maryland Education Tax Credit and $50 million
under the BOOST program for disadvantaged students, would divert money away from
public schools and other state needs.”

In Maryland, the statewide percentage of FARM-eligible students is 45.6%, nine times the 5% required for eligibility. Private School Review notes that the student:teacher ratio is 9:1 in Maryland’s private schools. According to MSDE, the instructional staff was 68.5 per 1,000 pupils
or 14.6:1 in 2014. However, numerous primary and secondary public schools in
Baltimore County and throughout the state have classes with over 30 students.
Why is Maryland’s legislature not endorsing tax breaks for supporting Maryland’s
public schools?

Reports