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Article published Apr 13, 2005
New
study knocks wind out of school choice sails
COLUMBIA -- Gov.
Mark Sanford's plan to give families tax credits to send their children to
private schools isn't sunk, but it is taking on water.The "Put Parents in
Charge" proposal took a direct hit Tuesday in the form of a study by the state's
Board of Economic Advisors that concluded the legislation would cost the state
about $201 million a year when fully implemented in five years.The BEA also said
the plan would provide little help for families with less than $35,000 in
taxable income and could force school districts to raise property taxes to
offset a reduction in state funding.The report stopped the Ways and Means
Committee -- which was expected to vote Tuesday on whether to send the bill to
the full House -- dead in its tracks.And it had some of its strongest supporters
backtracking."Education is important, but unless we see some savings somewhere,
something to take the placeof the money it would drain, I can't support it,"
said Rep. Shirley Hinson, R-Goose Creek, a co-sponsor of the bill.During a news
conference two months ago, Hinson said the bill would not take money from public
education or the state. On Tuesday, she acknowledged that might not be the
case."This bill has been sold as something that will not hurt public schools and
will save the state money," Hinson said. "This (BEA study) is very
contradictory, obviously.""Put Parents in Charge" would allow families to claim
tax credits to cover costs of sending their children to private schools, another
public school or for home schooling. Families with less than $75,000 in taxable
income and two exemptions would be eligible for the credits. The income cap goes
up by $5,000 for each exemption.To have $75,000 in taxable income, a family
would have to earn more than $90,000.The BEA study, which was requested by Ways
and Means members, said the plan would slightly increase per-pupil spending,
something supporters have said all along. It also could reduce the state
appropriation for education by about $31 million a year when fully implemented
-- funding that would have to be made up at the local level."We don't want
another tax shift," Hinson said. "That translates into a tax increase, and that
translates into a no."The study also concluded that families at the upper end of
the income limits would receive the most benefit.Will Folks, a spokesman for
Sanford, said that Scholarship Granting Organizations would provide help for
low-income families."That's what the SGOs are all about," Folks said. "They
would provide scholarships to the neediest students without costing the state
anything."The BEA, however, said scholarship tax credits would comprise about
$86 million of the $201 million cost to the state when the plan is fully
implemented. Individuals and businesses could donate money to the SGOs and
receive a tax credit for 100 percent of the money.The BEA's study is in stark
contrast to one conducted by Clemson economist Cotton Lindsay.Lindsay's study,
paid for by the S.C. Policy Council and the Legislative Education Action Drive
-- an Illinois-based tuition tax-credit advocate -- would give the state a
surplus of $931 million a year when fully implemented and would allow school
districts to spend $1,419 more per student.Another study, conducted by Harry
Miley, who was an economic adviser to former Govs. Carroll Campbell and David
Beasley, concluded that Sanford's plan would cost the state's schools $350
million a year when fully implemented. That study was paid for by the S.C.
School Boards Association and the S.C. Association of School
Administrators."(The BEA study) supports our constant concerns about the
potential impact of this legislation," said Steven Hamm, a lobbyist for the
Association of School Administrators.House Speaker Pro Tem Doug Smith,
R-Spartanburg, the bill's primary sponsor, said he had not seen the BEA study
and declined to comment.Folks said the legislation is about more than
money."What the (BEA) study doesn't address is where your loyalties are," Folks
said. "Are your loyalties with the individual child or with the system? The
governor's loyalties are with the individual child."Robert W. Dalton can be
reached at 562-7274 or bob.dalton@shj.com.