NEW ULM — A proposed education-related tax credit met with enthusiastic support from some local educators during a public forum Thursday in New Ulm.
But wider support for the measure will be tougher to garner.
Authored in the House by Rep. Paul Thissen, DFL-Minneapolis, and in the Senate by Linda Scheid, DFL-Brooklyn Park, the Equity and Opportunity Educational Tax Credit is aimed at encouraging donations to school foundations and nonprofits that benefit low-income students. The measure proposes limits for both individual and corporate donors as well as a statewide cap of $10 million.
Thissen, who hosted the gathering with a small number of mostly private-school educators, said the proposed tax credit balances the need to provide opportunities to low-income students with the need to leverage private dollars during challenging economic times.
“The achievement gap is one of the most serious challenges we are facing in this state,” Thissen said. “This legislation is about equity.”
Thissen admitted, however, that the measure will generate plenty of resistance. He acknowledged that many public school officials have not “come around” on the idea, but stressed public school foundations would have equal opportunity to generate donations.
Thissen also acknowledged the tax credit would act like a $10 million expenditure on the state budget, which makes for a tough sell when state lawmakers are facing a biennial deficit of more than $5 billion.
“Any tax credit would reduce the amount of money coming into the state,” said Kirk Schneidawind, associate director of government relations for the Minnesota School Boards Association.
“That’s where the argument is.”
The proposal is based on a successful program in Pennsylvania that began six years ago. Starting with a $30 million statewide cap, Pennsylvania dispensed $75 million in contributions in 2007.
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Tax credit faces uphill fight
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