Jamie Gass

Education tax credits don’t cost taxpayers a cent

/0 Comments/in , /by Jamie Gass and Charles Chieppo
Share on Facebook
Share on Twitter
Share on
LinkedIn
+

This op-ed has appeared in WGBH News, The Providence Journal, and Worcester Telegram & Gazette.

In a republic based on the consent of the governed, there is a strong public interest in having an educated citizenry. Yet in Massachusetts, the cradle of public schooling in America where the state constitution directs us to “cherish” education, we seem to dole out incentives for just about everything except education.

Consider the Race Horse Development Fund. Since 2014, the commonwealth has spent nearly $80 million to subsidize a horse racing industry that’s dying from the increasing availability of other forms of gambling. Since most of the fund’s money comes from a tax on Plainridge Park Casino revenue, it amounts to a transfer from gamblers, who tend to be low income, to wealthy race horse owners.

State taxpayers paid at least $80 million in fiscal 2019 for a film tax credit designed to encourage producers to make movies in Massachusetts. But a 2014 state Department of Revenue report cast doubt on the profitability of these credits. It found that only about a third of the spending generated and jobs created by the credits occurred in Massachusetts, and most of those jobs lasted less than three months — some for just a weekend. When you add it all up, the commonwealth paid well north of $100,000 for each job created.

All told, a state commission found that these so-called tax expenditures — exemptions, deductions, credits and deferrals designed to encourage certain activities or limit the burden on certain types of individuals or endeavors — accounted for about $26 billion in foregone revenue in 2013, or nearly two-thirds of the entire state budget at the time.  Many tax expenditures are well-founded, but it makes you wonder exactly what the commonwealth encourages and discourages, and how much it costs.

The U.S. Supreme Court’s recent ruling in Espinoza v. Montana Department of Revenue may make it possible for Massachusetts to encourage education tax credits — and it wouldn’t cost taxpayers a penny.

Our nation’s founders clearly envisioned public support for a range of both religious and nonsectarian school options. That educationally pluralistic vison was widely accepted until the mid-19th century, when the Irish Potato Famine triggered a flood of Catholic immigrants to the United States. In a response based on nativism and anti-Catholic bigotry, during the mid-to-late 1800s, many states adopted so-called Anti-Aid Amendments to their constitutions that barred public support of the Catholic schools to which many Irish immigrants sent their children. Sadly, in 1855, the Know-Nothing Party made Massachusetts among the first states to adopt such an amendment.

Montana was another of the nearly 40 states that adopted an Anti-Aid Amendment.  There, Kendra Espinoza, a suddenly-single mom, sought a better education for her two daughters. In public schools, one daughter was bullied and the other struggled academically. Both would later thrive using Montana’s education tax credit program to attend a religious school.

The Montana Supreme Court cited the state’s Anti-Aid amendment when it invalidated the tax credit program, denying Espinoza access to funding her children needed.  But this June, the U.S. Supreme Court struck down the amendment as an example of unconstitutional discrimination against religious school parents who were benefiting from the credit.

Nearly 300,000 largely poor and minority students in 18 states, including Rhode Island, benefit from education tax credits. Under these programs, most of which are need-based, individuals and businesses receive tax credits for contributions to scholarship-granting organizations, which then provide scholarships that students use to attend the public, private or religious schools of their choice. More than 90% of parents with students in choice programs say they are satisfied with them.

It’s hardly a radical approach. While the programs grant tax credits for private donations, state and federal governments provide direct grants and loans to students who choose to go to Notre Dame, Yeshiva or a public university.  America’s choice-driven higher education system is the envy of the world.

An education tax credit program would, for example, allow more students to attend the commonwealth’s excellent Catholic schools, which have similar demographics but consistently outperform public schools, despite spending far less. Amid the pandemic, 4,000 more students are attending Archdiocese of Boston schools.

Espinoza makes education tax credit programs possible for many more students. If one is enacted in Massachusetts, it’s a pretty safe bet that it’ll deliver more bang for the buck than the Race Horse Development Fund or state taxpayers subsidizing Hollywood.

Charles Chieppo is a senior fellow and Jamie Gass is director of education research and policy at Pioneer Institute, a Boston-based think tank.

Get Updates on Our Education Research

Lipan Apache Tribe’s Pastor Robert Soto on Native American Heritage Month & Religious Liberty

This week on “The Learning Curve," co-hosts Gerard Robinson and Cara Candal talk with Pastor Robert Soto, a Lipan Apache religious leader and award-winning feather dancer who has successfully upheld his Native American cultural heritage and religious liberties in federal courts. As the country celebrates Native American Heritage Month, Pastor Soto shares his personal journey as a religious leader and describes the Lipan Apache Tribe.

Chan Zuckerberg Initiative’s Dr. Bror Saxberg on Learning Science & School Reform

This week on “The Learning Curve,” co-hosts Gerard Robinson and Cara Candal talk with Dr. Bror Saxberg, MD, Vice President of Learning Science at the Chan Zuckerberg Initiative. Dr. Saxberg describes his groundbreaking work in the area of learning science and understanding how “working memory” and “long-term memory” can help improve academic excellence and equity.

Award-Winner Prof. David Reynolds on Abraham Lincoln & American Civil War Culture

This week on “The Learning Curve," co-hosts Gerard Robinson and Cara Candal talk with David Reynolds, a Distinguished Professor of English and History at the Graduate Center of the City University of New York. He is the author of Abe: Abraham Lincoln in His Times, selected as one of the Top Ten Books of the Year by The Wall Street Journal and The Washington Post. Professor Reynolds shares what teachers and students alike should know about the culture of Civil War America, primary education in that era, and the wide variety of influences on Lincoln’s thinking and leadership.

CRPE’s Robin Lake on COVID School Closures & Learning Loss

This week on “The Learning Curve," co-hosts Gerard Robinson and Cara Candal talk with Robin Lake, director of the Center on Reinventing Public Education (CRPE), a non-partisan research and policy analysis organization developing transformative, evidence-based solutions for K-12 public education.

Maine Tries to Ignore a Clear Supreme Court Ruling on Education

As the U.S. Supreme Court takes up Carson v. Makin, the facts are clear. Maine has chosen to subsidize private education. As such, it cannot disqualify all religious schools from receiving public dollars under its school choice program.

Prof. Raymond Arsenault on the 60th Anniversary of the Freedom Rides & Civil Rights

This week on “The Learning Curve," co-hosts Gerard Robinson and Cara Candal talk with Raymond Arsenault, the John Hope Franklin Professor of Southern History at the University of South Florida, and author of several acclaimed and prize-winning books on civil rights, including Freedom Riders: 1961 and the Struggle for Racial Justice. He shares how he became interested in researching, writing, and teaching about the Civil Rights Movement.

Time for State Action on Troubled Boston Schools

Given the failures of both appointed and elected school boards, perhaps the time has come to have the state Department of Elementary and Secondary Education appoint the members of the Boston School Committee. Patience might be warranted if the Boston Public Schools were improving. But we have waited for decades, and they are only getting worse. Holding adults in the system accountable was a cornerstone of the Education Reform Act. If not now, when?

Match Charter Public School Founder Mike Goldstein on School & Teacher Prep Reform

This week on “The Learning Curve," co-hosts Gerard Robinson and Cara Candal talk with Mike Goldstein, the founder of the MATCH Charter School and MATCH Teacher Residency in Boston.

Study: After Years of Steady Increases, Homeschooling Enrollment Rose Dramatically During COVID

After steadily increasing for years, the number of parents choosing to homeschool their children skyrocketed during the pandemic, and policy makers should do more to acknowledge homeschooling as a viable option, according to a new study published by Pioneer Institute.

ASU’s Julie Young, Virtual Schooling Pioneer, on Digital Learning during COVID-19

This week on “The Learning Curve," co-host Cara Candal talks with Julie Young, ASU Vice President of Education Outreach and Student Services, and Managing Director of ASU Prep Academy and ASU Prep Digital. They discuss the implications of COVID-19’s disruption of American K-12 education and the future of digital learning.

UChicago’s Dr. Leon Kass on Genesis, Exodus, & Reading Great Books

This week on “The Learning Curve," guest co-host Jason Bedrick and co-host Gerard Robinson talk with Dr. Leon Kass, MD, the Addie Clark Harding Professor Emeritus in the Committee on Social Thought and the College at the University of Chicago. Dr. Kass describes the important pieces of wisdom and humanity people today can still learn from reading the Book of Genesis, the topic of his 2003 work, The Beginning of Wisdom.

NYT Best Seller Dr. Kate Clifford Larson on Fannie Lou Hamer & the Mississippi Civil Rights Movement

This week on “The Learning Curve," co-hosts Cara Candal and Gerard Robinson talk with Dr. Kate Clifford Larson, a New York Times best-selling biographer of Harriet Tubman and Fannie Lou Hamer. Kate shares why she has written about these historical African-American figures, and how she thinks parents, teachers, and schools can draw on their lives to talk about race.

Valhalla Foundation’s Nancy Poon Lue on STEM Access & Equity

This week on “The Learning Curve," host Gerard Robinson talks with Nancy Poon Lue, incoming Senior Director at the Valhalla Foundation, where she will be leading their K-12 math funding initiatives. Nancy shares her recent work with the EF+Math Program, some of the challenges America has faced in ensuring students have a strong grounding in math and science, and the kinds of results she aims to achieve for kids in all ZIP codes. 

Yale’s Pulitzer-Winning Prof. David Blight on Frederick Douglass, Slavery, & Emancipation

This week on “The Learning Curve," Cara Candal and guest co-host Derrell Bradford talk with David Blight, Sterling Professor of American History and director of the Gilder Lehrman Center for the Study of Slavery, Resistance, and Abolition at Yale University. He is the author of the Pulitzer Prize-winning biography, Frederick Douglass: Prophet of Freedom.

UVA Prof. E.D. Hirsch, Jr. on Core Knowledge, Equity, & Educating Citizens

This week on “The Learning Curve," co-hosts Cara Candal and Gerard Robinson talk with Professor E.D. Hirsch, Jr., founder and chairman of the Core Knowledge Foundation, professor emeritus at the University of Virginia, and acclaimed author of the books, Cultural Literacy: What Every American Needs to Know and How to Educate a Citizen: The Power of Shared Knowledge to Unify a Nation.

Human Rights Advocate Kristina Arriaga on Cuba, Religious Liberty, & Cancel Culture

This week on “The Learning Curve," co-hosts Cara Candal and Gerard Robinson talk with Kristina Arriaga, president of Intrinsic, a strategic communications firm, and former vice chair of the U.S. Commission on International Religious Freedom. Kristina shares her family’s experiences fleeing Castro’s communist regime in Cuba and other hardships, and how her background has shaped her commitment to religious liberty.

The Institute for Justice’s Michael Bindas on the SCOTUS, Carson v. Makin, & Expanding School Choice

This week on “The Learning Curve," co-hosts Cara Candal and Gerard Robinson talk with Michael Bindas, a senior attorney with the Institute for Justice (IJ). They discuss IJ’s 2020 landmark U.S. Supreme Court win in Espinoza v. Montana Department of Revenue, and its implications for state Blaine Amendments, bigoted legal barriers that have blocked religious liberty and school choice for over a century, as well as the Maine school tuitioning case, Carson v. Makin, which was recently granted certiorari.

Civil Rights Leader Bob Woodson on 1776 Unites & Race in America

This week on “The Learning Curve," co-hosts Cara Candal and Gerard Robinson talk with Robert Woodson, Sr., founder and president of the Woodson Center that supports neighborhood-based initiatives to revitalize low-income communities, as well as author and editor of the May 2021 book, "Red, White, and Black."