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Tax vouchers' quick start should not impede need for scrutiny
© St. Petersburg Times A lot of attention has been paid to Florida's school voucher program that moves kids out of "failing" public schools, and also to the "McKay Scholarship" program that pays for disabled kids to attend private school. But Florida's third and youngest voucher program is growing just as fast or faster. It is a booming enterprise, with a twist on the idea. Since Jan. 1, corporations in Florida have been allowed to reduce their state income tax payments by making donations to private school voucher programs. It's not a tax deduction, but a tax credit -- a company pays the state $1 less in income tax for every $1 it puts into vouchers. A company can reduce its tax bill by up to 75 percent. I used the term "private" voucher programs. But, of course, the recipients are getting money that otherwise would be in the state treasury, available for public use. So if these private programs aren't getting "tax" dollars, they're getting "almost-tax" dollars. As of early June, at least 17 corporations had notified the Florida Department of Revenue of $23-million in donations which they will not have to pay in taxes. (Tax returns are confidential so the state won't name them.) More money is in the pipeline. Total donations pledged to date add up to $30-million to $35-million. The overall limit for the first year of the program is $50-million, used up by corporations on a first-come, first-serve basis until the annual ceiling is reached. You might ask: Who is getting this money, and how do we check on it? These are reasonable questions. I am not sure the second one is answered well enough. Private schools do not get the money directly. Corporations make their donations to a state-approved list of private, nonprofit "scholarship" organizations. There are least a half-dozen on the current list, which is approved by the state Department of Education. To qualify, a scholarship organization has to fill out a one-page application and supply an IRS letter of determination as a nonprofit. Some groups on the list have existed for several years. Others have been formed more recently, as the voucher program has expanded. Some have colorful, informative Web sites and literature, encouraging parents to apply, and telling corporations how to donate. Donors can link directly to the Department of Revenue's Web site, and claim their tax credit with a click of the mouse. Each student can get up to $3,500 a year. One of the smart things that the Legislature did was start with economically disadvantaged students. Participating families must be eligible for the federal school lunch program. "Things look fantastic," Sally Simmons told me. She runs one of the largest organizations called Children First-Central Florida Inc. The group's advisory board includes Gov. Jeb Bush, Lt. Gov. Frank Brogan, and outgoing House Speaker Tom Feeney. Simmons expects to award tuition money to 4,000 families this fall. Many schools in her seven-county area around Orlando have expanded. The group's Web site lists hundreds of private schools. (If it matters, I counted the list for Orange County; there were 67 with obvious religious affiliations and 53 without.) In theory, there are checks and balances in the law. The Department of Revenue can audit corporations to verify their donations. The scholarship organizations are supposed to use 100 percent of donations for tuition, and raise their administrative costs elsewhere. But their application form says only that they agree to "provide" the state with an annual outside audit "conducted by independent certified public accounts." These days, that is not exactly reassuring. I believe many of the people involved so far are well-known, well-meaning and reputable advocates of school choice. But a lack of watchdogging will definitely be a problem as the program grows. When I asked the Department of Education to provide me with its criteria for approving and checking up on these groups, a spokeswoman referred me back to one of the scholarship groups for the answers! Even as we demand "accountability" for public schools, we embark on a transfer of public dollars into private hands without the same guarantee of it. It hardly seems too liberal to say, we ought to proceed conservatively. -- You can reach Howard Troxler at (727) 893-8505 or at troxler@sptimes.com.
 © 2006 • All Rights Reserved • Tampa Bay Times
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Times columns today Sara Fritz Gary Shelton Howard Troxler From the Times Metro desk |
