GOP scholarship tax credit bills that Dems call ‘voucher schemes’ pass House and Senate

The Michigan Capitol in Lansing, Mich. is pictured.

LANSING, MI — The Michigan House and Senate on Tuesday each passed versions of legislation that would give tax credits to Michigan residents who contribute to a scholarship program for use in alternative, private and nonpublic education.

Senate Bills 687 and 688 and House Bill 5405 passed Tuesday morning through House and Senate education committees and were approved by the Senate 20-16 shortly after. The House voted 55-48 Tuesday afternoon on a separate, similar package.

Republican sponsors of the legislation say it would offer more flexibility and choices in education and would address disparities in educational options available to students.

Democrats on Tuesday blasted the legislation as an attempt to implement a voucher program and pointed to the state constitution, which requires Michigan to maintain and support a system of free, public elementary and secondary schools.

“No payment, credit, tax benefit exemption or deduction, tuition voucher, subsidy grant or loan of public money shall be provided directly or indirectly to support the attendance of any student at any nonpublic school,” said Sen. Dayna Polehanki, D-Livonia, reading from the state’s Constitution.

Polehanki addressed the bills again on the Senate floor Tuesday, calling the legislation “voucher schemes” and “blatantly unconstitutional.”

“(The bills) would send Michigan taxpayer dollars mainly to private and religious schools while giving generous tax benefits to wealthy donors,” Polehanki said.

Polehanki cited a Senate Fiscal Agency analysis that estimated the state’s general fund could take as much as a billion-dollar loss by the fifth year of the program should the proposal become law.

“My colleagues were unable to come up with what they would cut in the budget to make up for a billion-dollar revenue loss,” she said.

Under what’s known as the Blaine Amendment of 1970, the Michigan Constitution prohibits public dollars from being used for private schools. Legal efforts to undo the amendment have been unsuccessful.

Sen. Tom Barrett, R-Charlotte, on Tuesday applauded the Senate’s approval of the bills, saying they would give parents more options to support their children’s education in light of the pandemic.

“The pandemic of the last year and a half has created many unique challenges for educators, parents and students; and recently reported declines in statewide M-STEP scores are just another indicator that shows us more can be done,” Barrett said.

“I feel strongly that helping parents, who are primarily responsible for the education of their children, to gain access to the resources that will best benefit an individual child’s educational needs is vitally important to the future success of Michigan students.”

Senate Bill 687 would create Michigan Opportunity Scholarship Accounts that would be funded by donations from Michigan taxpayers.

The accounts could be used by families for education or learning expenses, including tuition and fees for public, nonpublic or online K-12 schools.

The plan prioritizes scholarships for students receiving free and reduced lunch, students in foster care and students with disabilities. Under the bill, any student in a household with an annual income within 200% of the free and reduced lunch program threshold would also qualify, meaning a family of four earning less than $98,000 per year would be eligible.

Senate Bill 688, sponsored by Barrett, would create tax credits for contributions to scholarship-granting organizations and the deduction of funds distributed to student opportunity scholarship accounts.

“The Let Kids Learn Plan will work side-by-side with our schools and educators to give parents better access to the educational tools their children need and provide students with greater opportunities to learn and be successful,” Barrett said. “It is a plan that all stakeholders can get behind.”

Several other states offer similar education accounts and tax-credit scholarships.

Under the House bill, the state would create Student Opportunity Scholarships, which could be used for tutoring, supplemental textbooks, career technical education, summer education programs or advanced classes for students who can’t currently access them.

“Every child deserves an equal shot at success, regardless of their family’s address or economic status,” said Rep. Phil Green, R-Millington. “These scholarships are the key to broadening opportunities for all children by putting parents in the driver’s seat of their education. Parents know better than anyone else what’s best for their children. This plan will allow them to make the best choices for their unique needs.”

Each approved bill will have to be OK’d in the opposite chamber before heading to Democratic Gov. Gretchen Whitmer’s desk, where they will likely be vetoed.

As the bills made their way through the Legislature on Tuesday, Democrats were quick to point a finger at former U.S. Secretary of Education Betsy DeVos, whose family has long backed attempts to clear the way for public dollars to be used for nonpublic education alternatives.

“Today, with little to no notice, the GOP controlled legislature jammed through a set of school voucher bills that would give taxpayer dollars mainly to private and religious schools while giving generous tax benefits to wealthy donors, i.e. Betsy DeVos,” said Michigan Democratic Party Chair Lavora Barnes in a statement. “This relentless assault on public education must end. Our students and our teachers deserve better. We will continue to fight against the Betsy DeVos anti-education machine and stand alongside our partners in public education.”

Republicans, meanwhile, took aim Whitmer for shutting down in-person learning last year amid the pandemic as they celebrated the legislation.

“We’re in support of this legislation because it provides students the opportunity to catch up on the learning loss created by Gretchen Whitmer and gives parents the flexibility and control to address their child’s unique challenges, especially after a tough year,” said Michigan GOP spokesperson Gustavo Portela.

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