School choice advocates are celebrating a victory in Harrisburg! Governor Tom Corbett signed the tax code bill that expands the existing Educational Improvement Tax Credit (EITC) program, eliminates the delay for some companies that wish to contribute, and creates another category of tax-credit supported scholarships called EITC 2.0 targeted at students in neighborhoods with perpetually underperforming public schools.
Send a thank you message to your state legislator for voting YES on school choice
Both EITC 1.0 and EITC 2.0 programs are funded by companies that contribute to scholarship organizations in exchange for a tax credit. The longstanding EITC 1.0 program has helped tens of thousands of students attend the school of their choice, including Catholic schools. The EITC 2.0 program will help thousands more by creating special scholarships particularly for income eligible students in the lowest performing 15% of public schools.
This legislation also authorizes school districts to elect to establish their own scholarship grant program, using the state subsidy, for students who want to attend nonpublic schools or public schools in other districts.
“It took political courage in a tough budget year to invest in educational reforms for low and middle income families,” said Dr. Robert J. O’Hara, Jr., executive director of the Pennsylvania Catholic Conference (PCC). “But the students and parents who will benefit are grateful to legislators and the governor for the chance to pursue a better future immediately.”
The state budget allocates $100 million for EITC ($25 million more than last year) and another $50 million for the new EISC program.
Sean McAleer, PCC’s director of education, commended Governor Tom Corbett, Lieutenant Governor Jim Cawley, Senate President Pro Tem Joseph Scarnati (R-Jefferson), Senate Majority Leader Dominic Piliggi (R-Delaware), Sen. Jeffrey Piccola (R-Dauphin), Sen. Anthony Williams (D-Philadelphia), Speaker of the House Sam Smith (R-Indiana), House Majority Leader Mike Turzai (R-Allegheny), Rep. Jim Christiana (R-Beaver) and Rep. Mike Vereb (R-Philadelphia) for their leadership. “But the real champions of school choice are the members of our Catholic Advocacy Network,” he said. “Thousands of concerned parents, teachers, parishioners, taxpayers and students took their civic responsibility seriously and contacted state lawmakers in support of school choice.”
The Bishops of Pennsylvania declared school choice to be a defining social justice issue of our society. This expansion of EITC moves Pennsylvania one step closer to a system of education that truly reinforces that parents – not the state – are the primary educators of their children.
Who qualifies for scholarships?
EITC 1.0 scholarships are available to students with a household income of $60,000 per year plus $12,000 per dependent. So a family of four making up to $84,000 per year may qualify for an EITC scholarship Next year the base income increases to $75,000 per year and $15,000 per dependent. These scholarships are available to all families, regardless of where they live.
EITC 2.0 or EISC scholarships are reserved for students who live within the geographic boundary of one of the 15% lowest performing public schools. Families earning less than 185% of the federal poverty line (or about $43,000 per year for a family of four) and families in certain financially distressed school districts are given a priority. Scholarships may be awarded up to $8,500 ($15,000 for special education students), but not to exceed actual tuition and fees.
What companies can get a tax credit?
Companies that do business in Pennsylvania and pay certain taxes (search “EITC” at www.newpa.com for a complete list) may receive a tax credit for their contribution to a scholarship organization. The tax credits awarded to businesses will be equal to 75 percent of their contribution amount, which can be increased to 90 percent upon the business committing for two years. Businesses may receive a maximum credit of $400,000 this year and $750,000 next year ($200,000 for Pre-K contributions). All companies compete for the tax credits by submitting their applications on the same deadline (July 1). A lag-period for pass-through entities has been eliminated.
When does the program start?
Immediately. Students may apply for scholarships now to attend the school of their choice this fall.
Who do we thank?
School choice advocates should thank Governor Tom Corbett and Lieutenant Governor Jim Cawley, but also these local lawmakers. If you legislator is on this list, visit, call, write or email him or her through the Catholic Advocacy Network.
LEGISLATORS WHO VOTED IN FAVOR OF SCHOOL CHOICE
ALLENTOWN DIOCESE
Representatives
- Mike Tobash
- Jerry Knowles
- Justin J. Simmons
- Thomas R. Caltagirone
- Marcia M. Hahn
- Neal P. Goodman
- Joe Emrick
- Julie Harhart
- David M. Maloney
- Jennifer L. Mann
- Doyle Heffley
- Jim Cox
- Ryan E. Mackenzie
- Mark M. Gillen
- Dante Santoni, Jr.
- Gary Day
Senators
- Judith L. Schwank
- Bob Mensch
- John C. Rafferty, Jr.
- David G. Argall
- Lisa M. Boscola
- John T. Yudichak
- Patrick M. Browne
ALTOONA-JOHNSTOWN DIOCESE
Representatives
- Richard Allen Geist
- Dick L. Hess
- Jerry A. Stern
- Bryan Barbin
- Frank Burns
- Kerry A. Benninghoff
Senators
- John N. Wozniak
- Richard A. Kasunic
- Jake Corman
- John H. Eichelberger, Jr.
ERIE DIOCESE
Representatives
- Patrick Harkins
- Martin T. Causer
- Florindo J. Fabrizio, Jr.
- Brad Roae
- Kathy L. Rapp
- Curtis G. Sonney
- Matt Gabler
- Donna Oberlander
- Scott E. Hutchinson
- Richard (Dick) R. Stevenson
- Michele Brooks
- Sam Smith
Senators
- Jane M. Earll
- Donald C. White
- Robert D. Robbins
- Mary Jo White
- Joseph B. Scarnati, III
- John N. Wozniak
GREENSBURG DIOCESE
Representatives
- Donna Oberlander
- George Dunbar
- Eli Evankovich
- Jeffrey P. Pyle
- Dave Reed
- Mike Reese
- Peter J. Daley, II
Senators
- Kim L. Ward
- James R. Brewster
- Richard A. Kasunic
- James Ferlo
- Donald C. White
- Timothy J. Solobay
HARRISBURG DIOCESE
Representatives
- Karen Boback
- Kerry A. Benninghoff
- Bryan Cutler
- John C. Bear
- Kurt A. Masser
- Scott W. Boyd
- Thomas C. Creighton
- Gordon R. Denlinger
- Fred Keller
- Todd Rock
- Stephen Bloom
- Keith J. Gillespie
- Mauree A. Gingrich
- Glen R. Grell
- C. Adam Harris
- David S. Hickernell
- Robert W. Kauffman
- Mark K. Keller
- Seth Grove
- Dan Moul
- Ronald S. Marsico
- Susan C. Helm
- David Millard
- Ronald E. Miller
- Sheryl Delozier
- Will Tallman
- John D. Payne
- Lynda Schlegel Culver
- Stanley E. Saylor
- Scott Perry
- Eugene DePasquale
- Ryan P. Aument
- Rose Marie Swanger
Senators
- Jake Corman
- John H. Eichelberger, Jr.
- Richard Alloway
- Jeffrey E. Piccola
- Lloyd K. Smucker
- Patricia H. Vance
- Michael L. Waugh
- Michael W. Brubaker
- John R. Gordner
- Gene Yaw
ARCHDIOCESE OF PHILADELPHIA
Representatives
- William F. Adolph, Jr.
- Stephen E. Barrar
- Marcy Toepel
- Margo L. Davidson
- Paul I. Clymer
- Thomas Murt
- John T. Galloway
- Mike Vereb
- Gene DiGirolamo
- Maria Donatucci
- Duane Milne
- Joseph T. Hackett
- Michael F. Gerber
- Robert W. Godshall
- Kate M. Harper
- Tim Hennessey
- John Lawrence
- William F. Keller
- Brendan Boyle
- Thomas H. Killion
- Tim Briggs
- Michael P. McGeehan
- Todd Stephens
- Marguerite Quinn
- Nicholas A. Micozzie
- Ed Neilson
- Bernie O’Neill
- Kevin J. Boyle
- Scott A. Petri
- Thomas J. Quigley
- Nick Miccarelli
- Warren Kampf
- Madeleine Dean
- Dan Truitt
- John J. Taylor
- Katharine M. Watson
- Frank Farry
Senators
- Andrew E. Dinniman
- Edwin B. Erickson
- Larry Farnese
- Stewart J. Greenleaf
- Vincent J. Hughes
- Shirley M. Kitchen
- Daylin Leach
- Charles T. McIlhinney
- Bob Mensch
- Dominic F. Pileggi
- John C. Rafferty, Jr.
- Michael J. Stack, III
- Christine M. Tartaglione
- Robert M. Tomlinson
- Michael W. Brubaker
- LeAnna M. Washington
- Anthony H. Williams
PITTSBURGH DIOCESE
Representatives
- Peter J. Daley, II
- Scott E. Hutchinson
- Richard (Dick) R. Stevenson
- Michele Brooks
- Jim Christiana
- Paul Costa
- Anthony M. DeLuca
- Martin Michael Schmotzer
- Brian L. Ellis
- Marc J. Gergely
- Randy Vulakovich
- Jaret Gibbons
- Rick Saccone
- John A. Maher
- Daryl D. Metcalfe
- T. Mark Mustio
- Daniel J. Deasy, Jr.
- Dom Costa
- Robert Matzie
- Harry A. Readshaw
- William C. Kortz, II
- Brandon P.Neuman
- Matthew Smith
- Michael R. Turzai
- Jim Marshall
- Adam Ravenstahl
Senators
- Jay Costa , Jr.
- Wayne Fontana
- James R. Brewster
- James Ferlo
- Timothy J. Solobay
- John R. Pippy
- Richard A. Kasunic
- Donald C. White
- Robert D. Robbins
- Mary Jo White
- Elder A. Vogel, Jr.
SCRANTON DIOCESE
Representatives
- Matthew E. Baker
- Michael Peifer
- Tarah Toohil
- Garth D. Everett
- Sandra J. Major
- Tina Pickett
- Mario M. Scavello
- Karen Boback
Senators
- David G. Argall
- Lisa Baker
- John Blake
- Lisa M. Boscola
- Patrick M. Browne
- John T. Yudichak
- Joseph B. Scarnati, III
- John R. Gordner
- Gene Yaw
JULY 2012 PCC Column by A. B. Hill, Communications Director of the Pennsylvania Catholic Conference – the public affairs arm of Pennsylvania’s Catholic bishops and the Catholic dioceses of Pennsylvania. Stay up-to-date with Catholic news and issues at pacatholic.org, www.facebook.com/pacatholic, and www.twitter.com/pacatholic.