Tuition Tax Credits

In a disturbing development, the 2007 budget includes $1 million in tax breaks to businesses making donations to scholarship organizations that provide financial aid to students attending private and parochial schools. This back-door tuition tax credit scheme was condemned by the Affiliate and teachers’ unions, but after years of languishing in Finance Committee, the proposal was included in the 2007 budget bill and passed overwhelmingly. The timing of its approval was especially ironic, given budget cuts this year for children on health care and the decline of anticipated state aid for public education in a number of municipalities.