STOs can’t find enough low income scholarship recipients

by David Safier

I have to admit I'm a bit amazed by this.

The Republic's Ronald Hansen and Pat Kossan have picked up the story of School Tuition Organizations (STOs) handling corporate tuition tax credit money not giving out the required 90% of the contributions they receive as scholarships. The reason the STOs give is priceless.

Some organizations said the shortfall is in part because the state's scholarship-eligibility rules limit which students can get the aid based on income and the amount of aid each student can receive.

The tuition tax credit money individuals give isn't tied to income. It can be used as scholarships for millionaire's children. But corporate tax credits have to go to people with limited income. I won't say poor, because a family of 4 making up to $75,467 qualifies. And yet they say they can't find enough families wanting their kids in private school to spend all their money.

If you went back to the arguments for the original tuition tax credit bill, you'd see impassioned Republican legislators pleading for a level playing field where low income children are given the opportunity to participate in private school education. And now STOs say they can't find enough people making under $75,467 who want their kids to go to private school to spend all the money they've collected.

To be fair, I should add that corporate scholarship money has to go to children who aren't already in private schools, since it's designed to bring in new students rather than subsidize those already there. That raises the bar a few inches. But either the STOs and the private schools aren't doing much active recruiting, or there isn't an overwhelming desire among poor and middle income people to have their children in private schools.

It would be so much easier if they could just give the tax dollars to rich kids.