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* I told subscribers this morning about the governor’s hope to pass a $100 million private school “scholarship” tax credit bill, which is backed by the Chicago Archdiocese, among others.
Gov. Rauner said today he’s “excited and hopeful that as part of a compromise… that that would include tuition tax credits.” He didn’t answer a question about whether he would require those credits as part of a final deal. (The proposal that’s currently on the table does not allow federal tax deductions on top of the state tax credits, I’m told.) Background on that potentially controversial issue is here.
…Adding… From the Catholic Conference of Illinois…
The Scholarship Tax Credit is an initiative that seeks to create scholarships for low- and middle-income students so they can attend Catholic and other private schools. The grants would be created from corporate and individual donations to scholarship-granting organizations. To encourage these donations, corporations and individuals would receive a dollar-for-dollar state income tax credit for their contributions.
So, if you donate $20,000, your state income tax would be lowered by $20,000. That seems a bit much.
* One of the things I’ve been telling subscribers is that the Democrats really wanted to avoid reopening the budget talks. Gov. Rauner confirmed to reporters today that his amendatory veto of SB1 would require “a new appropriation line” for Chicago pensions. That means a new approp bill, which would give him an avenue to reopen the budget if the AV was accepted, and it almost undoubtedly won’t be.
Raw audio of the presser is here.
posted by Rich Miller
Tuesday, Aug 1, 17 @ 11:30 am
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This here scholarship tax credit will be a real hit with the working middle class.
Comment by Blue dog dem Tuesday, Aug 1, 17 @ 11:34 am
Typical. Disturbingly so.
Toss an overly encompassing AV into the mix–expected.
Then raise a new, $100 million proposal, at the last minute.
Moving the goalposts, as always. This from the guy who says the budget is $2 bil short.
Comment by Labghorne Tuesday, Aug 1, 17 @ 11:41 am
Another oops? From the AV.
(h) There is hereby appropriated from the Common School Fund to the Public School
Teachers’ Pension and Retirement Fund of Chicago, on a continuing monthly basis, the amount, if any, by which the total available amount of all other State appropriations to that Retirement Fund for the payment of State contributions under subsection (d) of Section 17-127 of the Illinois Pension Code is less than the total amount of the vouchers for required State contributions lawfully submitted by the Retirement Fund for that month under that Section 17-127.”; and
Comment by Juice Tuesday, Aug 1, 17 @ 11:42 am
I’m guessing the archdiocese has never read Article X, sec. III of the Illinois Constitution.
Comment by Ash Tuesday, Aug 1, 17 @ 11:47 am
Rauner seems unwilling to accept his own school funding formula unless he gets a budget hostage crisis in exchange for the legislature agreeing with him. It’s certainly an interesting approach.
Comment by AC Tuesday, Aug 1, 17 @ 11:55 am
I’m Catholic, we sent all three of our children to parochial schools, and I served for several years on the Commissions/School Boards for those institutions.
Private school tax credits and any public funding of private schools is bad public policy and horrible religious education policy. These proposals divert attention from providing the resources and focus needed to repair and enhance free public schooling that’s available to all regardless of your financial condition or social status. I don’t care where in the state you live - Chicago, the collars or Downstate - education remains the key to financial and social progress.
From the private school perspective, these credits and other public funding will come with “strings” attached - strings that will affect what you teach, who you hire, etc. The lure of “free” money will affect decisions made on curriculum, whether it’s overt or more subtle.
On a personal level, I shudder to think that I’m considered by the Governor to be part of his base that he’s pandering to with this proposal.
Comment by Johnny Tractor Tuesday, Aug 1, 17 @ 11:57 am
Article X, sec. III is very clear. Has the governor or any of the superstars read the constitution?
Comment by Flynn's Mom Tuesday, Aug 1, 17 @ 12:00 pm
===Article X, sec. III is very clear===
The state provided subsidies to private schools for years, via books and even, IIRC, transport.
Comment by Rich Miller Tuesday, Aug 1, 17 @ 12:02 pm
CPS’ most recent pension contribution was $676M.
I…do not see how the AV itself is NOT a “bailout” of CPS.
To be clear if Rauner wants to do that, sure! Even if CPS lost the pension levy that’s still a net $400M gain which would basically stabilize the district.
But Republicans who vote against overriding this veto are definitely going to see DPI mail for voting for a Chicago bailout
Comment by Will Caskey Tuesday, Aug 1, 17 @ 12:06 pm
Public school choice? I’m all in. Private school credits? Not a fan.
Comment by lake county democrat Tuesday, Aug 1, 17 @ 12:08 pm
== I shudder to think that I’m considered by the Governor to be part of his base==
It’s probably safe to stop shuddering…
Comment by A guy Tuesday, Aug 1, 17 @ 12:12 pm
Did he not blunder on votes needed to”accept” his handiwork? 36 in Senate 71 in House. Hmmmmm
Comment by Annonin' Tuesday, Aug 1, 17 @ 12:12 pm
==I’m guessing the archdiocese has never read Article X, sec. III of the Illinois Constitution.==
ILSC has held the religious clause of the Illinois Constitution to be in line with the Edtablishment/Free Exercise clauses of the US Constitution. Vouchers were found to be be constitutional over a decade ago.
Comment by Anonymous Tuesday, Aug 1, 17 @ 12:32 pm
Annonin’- After listening to the watching the presser, I’m wondering if Rauner was actually banking on a simple majority all along. I’m really wondering who gave him the idea that a simple majority was all it would take, and he could go ahead with the AV because surely the Senate and House would be able to easily override without any R votes. He was totally taken aback when the reporters “schooled” him on reality. Bet there was some colorful language after the presser.
Comment by Anon221 Tuesday, Aug 1, 17 @ 12:34 pm
The school superintendents have done a great job!
Any funding will be delayed months, and Illinois may get vouchers (sorry, tax credits) which supts. actively oppose.
When you get in bed with Rauner and Purvis, work to turn around Will Davis, Manar and Lightford, and embrace last-minute House changes to benefit CPS, you get SB 1.
Comment by winners and losers Tuesday, Aug 1, 17 @ 12:38 pm
==I’m guessing the archdiocese has never read Article X, sec. III of the Illinois Constitution.==
ILSC has held the religious clause of the Illinois Constitution to be in line with the Edtablishment/Free Exercise clauses of the US Constitution. Vouchers were found to be be constitutional over a decade ago.
Yes, because you aren’t appropriating the money straight from GRF. Under their proposal, they want dollar for dollar. So if you donate 1 million, you get a credit from the state for 1 million off your taxes. That’s how they get around the problem of direct appropriation. However, today way more people understand what tax credits do the general revenue fund of the state. Most people get that its spending. So while he says the budget is still 2 billion short, we still owe 1 billion to schools across the state, and we have a supposedly small surplus to be used to pay debt service on getting rid of a huge chunk of 15 billion in backlog, this Governor now wants us to divert more general revenue funds to private schools.
Great. What in the world could be wrong with that?
Comment by Sideline Watcher Tuesday, Aug 1, 17 @ 1:02 pm
The existing IL Education Expense Credit is overly generous. Pay at least $2250 in private school tuition, get a $500 (22%) tax credit. Even better with the increase to $750 (23%) on $3250+ tuition.
To put that in perspective, saving $750 in taxes is equivalent to a deduction of more than $15,000.
Comment by thechampaignlife Tuesday, Aug 1, 17 @ 1:48 pm
So Rauner wants to fund schools only if he gets his voucher program.
Cool. Let’s play the game then.
Vouchers can only get used at schools that play by the rules and held to the same standards of public schools.
Simple things like guaranteeing an education for ESL and special ed. students. Any guess how many charters will fulfill that guarantee? Their business plans can’t handle it.
Comment by Dee Lay Tuesday, Aug 1, 17 @ 2:06 pm
The rank-and-file parishioners in the Chicago Archdiocese wont be happy when they realize the tax credit doesn’t apply to the school tuition they’re paying — that’s the way it’s being sold to them. This program is designed to provide a tax shelters for the wealthy and defacto school vouchers for the poor. Nothing in this for middle class taxpayers.
Comment by Anon414 Tuesday, Aug 1, 17 @ 2:51 pm
You already get a tax deduction for contributing to scholarship funds. Supersizing it to become a tax credit is just plain greedy.
Comment by Century Club Tuesday, Aug 1, 17 @ 4:02 pm
Rich, you recall correctly re:private school transportation costs. For a number of years, parents of private schoolers could be reimbursed for a portion of their expenses (mileage-based
formula IIRC) incurred in transporting their kids to private schools. The approp was around $9 million and reimbursements were not huge, maybe $100-125 for a family in Springfield with kids in private grade and high schools.
Comment by Arthur Andersen Tuesday, Aug 1, 17 @ 4:05 pm