Kansas panel approves expanding tax credit program for private school scholarships

A program that offers tax credits for scholarships to private schools would be greatly expanded under a bill approved Monday by a House committee.

The program began in 2015 for low-income students in public schools. Corporations received a 70 percent income tax credit for donations to scholarships for students moving from public to private schools.

Under proposed changes to the program, approved 11-6 by the House Education Committee, both corporations and individuals could use the tax credit, and it would be boosted to 90 percent.

Also, more students would be eligible for the scholarships: those in families with household incomes up to 185 percent of federal poverty limits, or about $45,000 for a family of four, and students already enrolled in private schools. The proposal now goes to the full House for consideration.

Rep. Kasha Kelley, R-Arkansas City, said House Bill 2457, amended by the committee Monday, improved the low-income scholarship program for students trapped in failing schools.

“For this particular group of children, choices are muted,” Kelley said. “We are still focusing on a group of kids, albeit a small group, who are not having success in the schools they’re in.”

But Rep. Sue Boldra, a Hays Republican, questioned how legislators, who so carefully scrutinize accredited Kansas public schools, could include no such scrutiny for private schools.

“Do we not need to know how they are spending their money?” Boldra said.

Opponents criticized the tax credit as overly generous to donors and costly to the state. The state Revenue Department estimated $8.5 million in tax credits for fiscal year 2017.

“It’s $8 million today but what’s it going to be in the future?” said Rep. Ed Trimmer, D-Winfield.

Backers said the revenue cost was small, particularly in light of giving families more school options.

“We have fantastic schools,” said Rep. Amanda Grosserode, R-Lenexa. “We also have some failing schools. By nature of a ZIP code, a kid can be stuck in a failing school.”

A recent Kansas Department of Education report said 149 students have been deemed eligible for scholarships under the program.

This story was originally published February 8, 2016 at 6:18 PM with the headline "Kansas panel approves expanding tax credit program for private school scholarships."