Since 2000, New York City residents have observed the shut-down of 91 Catholic schools. These closures are typically the result of parents’ inability to pay tuition costs. This presents not only a problem to the would-be students, but to the public-at-large. The civic benefits provided through a Catholic education amount to a public good. Graduation rates for Catholic schools top those of public institutions, propelling more students to college, creating future community leaders. A robust civil society such as this is contingent upon strong educational institutions, for which it is critical to incentivize the public to invest.
The Education Investment Tax Credit bill would have curtailed this problem by providing a dollar-for-dollar tax credit for each charitable donation to any private or parochial school scholarship fund, including Protestant and Jewish institutions. However, the mandate perished in the back room of the state legislature, despite support from both parties as summer recess commenced. The use of an incentive structure would have provided up to $300 million to the neediest children in the state of New York. Half of this funding would have been designated to donations to public schools for the arts, music, and athletics so as to eliminate “pay-to-play” costs to parents.
This tax credit would not only have been an investment in the future of at-risk students, but an investment toward a community’s future. In this respect, New York residents would be incentivized to endow education philanthropy, in exchange for lower taxes. Individuals would have the autonomy to support private or parochial institutions of their choosing, empowering the individual to decide what is the best use of their assets. (more…)