The Pennsylvania House Education Committee advanced Monday a bill to expand Pennsylvania’s Educational Improvement Tax Credit (EITC) program.
House Bill 800, which is sponsored by Speaker of the House of Representatives Mike Turzai (R-Allegheny), would expand EITC by providing an additional $100 million in additional tax credits for scholarship organizations. It would also increase the funding for these scholarships by 10 percent in any year in which 90 percent of the credits are claimed.
“Each year, the largest expenditure in Pennsylvania’s state budget is dedicated to primary and secondary education – more than $11 billion to support every public school in the Commonwealth,” Turzai said. “When added to local spending, we devote more than $30 billion annually to funding our public school districts. In return for this great investment, Pennsylvania boasts many of the best public schools in the nation, providing immense benefit to our students and our communities. But, for a variety of reasons unique to each individual, these great public schools are not always the right fit for every child or every family. This is why the EITC program is performing so well and needs to grow.”
The bill also makes several other changes to the program including increasing the household income limit by $10,000 and lowering the amount that can be retained for administrative costs from 20 percent to 10 percent. It also ensures that once a student qualifies, they remain eligible for the program through high school graduation, regardless of changes in family income.
“In the 2016-17 school year, more than 50,000 students were able to receive a scholarship to attend the school of their choice, but another 52,000 applications were denied due to current limits on the programs’ size and household income requirements,” Turzai said. “There is an equally unmet need among donors, with too few tax credits available for the many wanting to give. As of January 2019, businesses had applied for $180 million in tax credits beyond the current caps. With a limit of $210 million, the program’s annual budget is far too low, accounting for less than 2 percent of the state government’s appropriation for education.”
The bill now moves to the full House for a vote.