If truth is the first casualty of war, then Florida School Boards Association executive director Wayne Blanton may have been suiting up back in June. His Capital Dateline interview then with Steve Wilkerson described tax credit scholarships for low-income students as a financial drain not only on public schools but on all state government services.
Blanton, a seasoned educator, knows better. So let’s assume the association’s planned lawsuit against the scholarship, to be announced today, was his motivation.
Blanton’s financial assertion is short enough to quote in full:
“We are not a big fan of those type of scholarships. There’re a couple of reasons. No. 1, it’s taking a substantial amount of money every year away from public schools. But the bigger issue, I think, is over the next two years those corporate scholarships are going to siphon off about 2 to 2 ½ billion dollars from the state. Now making my assumption earlier that we get 36 percent of that, for every $1 billion that would be $360 million that public schools do not get. But then there’s over $600 million that doesn’t come into the state at all. It doesn’t come in for child care, it doesn’t come in for health services, it doesn’t come in for the Division of Family Services and things of that nature, it doesn’t come in for corrections. Those dollars not coming into the state are not just detrimental to public schools, it’s detrimental to a lot of other services the state is trying to deliver and has a hard time getting those dollars to them now. So I think we’ve got to take a real close look at that in the big picture – not just education but how those dollars are disappearing from a lot of other entities.”
Readers should be aware that I’m the policy director for Step Up For Students, a nonprofit that co-hosts this blog and helps administer the scholarship that Blanton calls into question. But his misstatements are at such odds with the fiscal reality that they are rebutted by basic state revenue reports and fiscal evaluations.
Let’s begin with the “siphon.” Under state law, the amount of tax credits that can be used toward contributions for the scholarship is capped every year. The Department of Revenue is responsible for overseeing the cap, and here is the link to its latest calculation. The maximum possible amount for scholarships in the next two years is in fact $805.1 million – not $2.5 billion. That’s one-third the amount that Blanton claimed.
Now let’s look at how the loss of those dollars is “detrimental” to all those public services, including schools. Continue Reading →