Eye On Illinois: Lawmakers will decide if tax break program can continue

The Invest in Kids Scholarship Tax Credit program will end Dec. 31 unless lawmakers intervene during the fall veto session, which begins today.

This column lacks the space to tackle every aspect of that complex issue and especially the political rhetoric, which has only grown hotter since Gov. JB Pritzker last week announced he would consider approving an extension if the General Assembly acts.

We also can largely divert from the annual conversation about the legislative schedule, what should be confined to a “veto session” and so forth. Although different from rants about what is allowed during lame duck days, the commentary falls under the useful umbrella of noting we might all be better served if the state had tighter rules about what lawmakers can do when (and how).

The facts are this: lawmakers created the program in 2017 while passing landmark public school funding reform. Invest In Kids gives up to $75 million per year to private school vouchers. The money comes from donors – individuals and businesses – who get 75 cents of every dollar, up to a million, back in the form of a state income tax credit. Donors cannot take a tax credit if they claimed any portion of the contribution as a federal income tax deduction.

Capitol News Illinois, in its veto session preview, summarized the present reality: “In recent days, behind-the-scenes discussions have taken place between advocates and legislative staff on possible changes to the program that would satisfy critics … reducing the maximum amount of tax credits available and incentivizing scholarship funds to target students from the most disadvantaged areas of the state.”

Should the program sunset as scheduled, wealthy donors would not be barred from continuing to support private education, they would just reap less of a personal benefit. Their contributions, as in the past, would carry the same incentives as donations to all other causes.

There are no shortage of groups looking for help: homeless shelters, mental health providers, hospital foundations, disaster relief agencies, food pantries, churches, Scouts, cheerleaders, the tuba player across the street…

In our community both the public high school and K-8 districts have nonprofit “foundations” constantly raising money, which only makes sense given public universities work just as hard to increase their endowments as private colleges. And sure, some of the people who give to those groups oppose low-income or high density housing that might diversify the student body at these highly rated public institutions, but there we go approaching the nuance.

Invest in Kids supporters know the program meets their needs, or else they’d not fight so hard for preservation. Whether it’s good for the state budget – or fair to everyone else in need – rests in lawmakers’ hands.

• Scott T. Holland writes about state government issues for Shaw Media. Follow him on Twitter @sth749. He can be reached at sholland@shawmedia.com.