Who Benefits from $680 Million/Year in Business Tax Credits That Subsidize Private Schools? Tell your state senator: Pennsylvanians deserve to know!
Pennsylvania is facing difficult budget choices. Our public schools continue to need additional resources, working families are struggling to make ends meet, and lawmakers are debating how to address the Commonwealth's long-term structural budget deficit.
At the same time, lawmakers are considering whether to continue expanding Pennsylvania's private school tax credit voucher programs. Before they do, taxpayers deserve to know who benefits, how these taxpayer-funded tax credits are being used, and whether the programs are delivering results.
Under Pennsylvania's Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs, businesses receive state tax credits that reduce the amount they owe in state taxes. Since 2001, Pennsylvania has provided more than $3.5 billion in tax-payer funded support for private and religious school vouchers through the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. Today, they cost the Commonwealth $680 million in foregone tax revenue each year; revenue that could otherwise support public schools and other public investments.
When taxpayers hand over hundreds of millions of dollars in corporate tax breaks annually, they deserve transparency and accountability. Pennsylvanians should know where that money goes, who benefits, and whether these programs are achieving their intended goals.
Last month, the Pennsylvania House of Representatives passed House Bill 2632 with bi-partisan support in a 105-97 vote. The bill would not eliminate the EITC or OSTC programs. Instead, it would fund them at the current rate, prevent further expansion, strengthen oversight, require audits and reporting, and provide the transparency Pennsylvanians deserve before lawmakers commit additional public resources to these programs.
Tell your State Senator to support HB 2632 and put transparency, accountability, and responsible stewardship of taxpayer resources ahead of expanding private school tax credits.