Gov. Kathy Hochul vowed Thursday to make more than 2.7 million New York public, parochial and private school students eligible for “freedom scholarships” despite opposition from the powerful teachers union.
The Education Freedom Tax Credit approved by Congress and President Trump last year provides a 100% federal tax credit for donations of up to $1,700 annually to approved scholarship-granting organizations.
The nonprofit groups would then offer scholarships, which families from all schools could use to defray tuition costs.
She also claimed families with incomes up to $500,000 could benefit from the program.
Public school students are also eligible for scholarships to cover tutoring, after-school programs or transportation costs.
“Governor Hochul’s priority is making sure every student receives an education that best meets their needs, which is why she wants the federal scholarship tax credit to benefit all New York students,” Hochul spokesman Johan Allon said.
“These credits have the potential to expand academic opportunity for public and private school students across our state without diverting resources from public schools or state and local budgets. All stakeholders should work together to ensure this program can be implemented to maximize benefits for all New York schools, including our public schools.
But leaders of the teachers unions and other public school advocates — including the NAACP and the NYCLU — claimed the program is a back-door privatization scheme aimed at siphoning taxpayers dollars from public schools.
“It’s a bad thing for all the children in our state that go to public schools,” said United Federation of Teachers President Mike Mulgrew during a Wednesday press conference at union headquarters in Manhattan.
“It’s a bad thing when we’re going to take taxpayer dollars and give it to folks with no accountabilty. None.”
Under the law, the governor of each state has to decide whether to opt-in or opt out of the program.
Mulgrew then led a chant, “Public Schools Schools Shout, Hochul Opt-Out!”
American Federation of Teachers president Randi Weingarten claimed the program is meant to “take money out of public schools.”
But Democrat Hochul, who is seeking re-election to a second term and is backed by the teachers unions, said she disagrees with organized labor on the scholarship program.
Hochul said she will opt New York into the program because it benefits all students — public and private. She earlier told top advocates for Catholic and Jewish schools that she backed the program.
The governor’s office also said the unions are factually incorrect.
The tax credit is funded by private donations and is not a voucher program. Taxpayer-funded vouchers can typically only be used toward tuition at non-public schools whereas the federal tax-credit scholarship can be used by eligible students in public schools.
Hochul’s office said the program will not divert public funds away from public schools. It is funded by donations from private individuals, not state or federal funding, so no funds are diverted from public schools.
Donors to a scholarship granting organization will receive a federal tax credit equal to their contribution, an incentive to give. The only cost is measured in foregone lost federal tax revenue via the credit, the governor’s office said
Students whose family income is within 300% of the area median income are eligible for scholarships through the program. Children from low-income families will be eligible for funds to pay for educational support they would not otherwise have access to, Hochul’s office said.
Backers of the program said the union opposition shows its members don’t care about kids.
“Teachers unions are supposed to put students first. Today’s press conference is further proof they are not – and that they’re not telling New Yorkers the truth about this program, said Sydney Altfield, CEO of the Teach Coalition representing Jewish and Catholic schools.
“More than two million New York students could benefit without taking a dollar from the state budget. Claims that this would drain public schools are flat-out false — and those repeating them know it.
“Ask any parent: sending a child to school isn’t free. Supplies, transportation, technology, tutoring and after-school care add up – especially during an affordability crisis,” she added. “This program could put money back in the pockets of families struggling with those costs. If the unions get their way, New York won’t just leave federal aid on the table — hardworking families will be left footing the bill yet again.”
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