Social Agenda

You have to admire a bill that reduces voter control over the taxes they pay, gives a tax break to corporations and sets bad educational policy.

Here’s the bill:

BR 200 - Representative Mike Harmon (12/14/07)
AN ACT relating to the enhancement of educational opportunities for all students in Kentucky. Create various new sections of KRS Chapter 141 to establish a nonrefundable educational scholarship tax credit program for corporations, limited liability pass-through entities, estates, trusts, or fiduciaries that contribute to scholarship organizations that provide educational scholarships to eligible students, establish a family education tax credit program for individuals who directly pay for tuition and other educational expenses of eligible students who are dependents of the individual; define terms; establish maximum credit amounts; direct the Department of Revenue to promulgate regulations and publish lists; amend KRS 141.010 to exempt amounts received as scholarship grants from "adjusted gross income"; amend KRS 141.0205 to establish the order in which the nonrefundable family education tax credit and the educational scholarship tax credit is applied against tax imposed by KRS 141.020,141.040, and 141.0401; apply the credit beginning with the 2008 tax year; and create a new section of KRS 157.611 to 157.665 to authorize local school districts to levy a nonrecallable nickle for debt service and new facilities if student population decreases.

This is a backdoor approach to school vouchers. Here is a conservative view of school vouchers and a liberal view. Neither side seems to be real excited about the idea.

While the Commonwealth is strapped for bucks, which may include school districts, Harmon wants give away up to $60,000,000.00 per year with an automatic 5% increase every year.

(a) An educational scholarship tax credit program is hereby established.

(b) For tax years beginning after December 31, 2007, and before January 1, 2009, the total aggregate amount of all tax credits provided under this section shall not exceed sixty million dollars ($60,000,000) per fiscal year.

(c) For tax years beginning after December 31, 2008, the cap established in paragraph (b) of this subsection shall be increased by five percent (5%) each fiscal year.

But Harmon is crafty; he wants to remove the objections of the Educational Establishment to this back door approach to school vouchers so he allows districts to raise taxes without the taxpayers having any input or recourse.

Local school districts that have experienced a decrease in student population during a five (5) year period may levy an additional tax on real property of five cents ($0.05) per one hundred dollars ($100) of assessed value for debt service and new facilities in addition to the five cents ($0.05) levied under the school construction funding program provided in KRS 157.620. The tax rate levied by the district under this provision shall not be subject to a recall vote as provided in KRS 160.470(8) and shall not be equalized by state funding.

The main purpose of the bill is not to create an educational opportunity but rather to funnel public money to private and home schools. The bill is more about pushing a social agenda than educating children and it’s bad legislation.