December7, 8 & 12, 2023:
Funding Our Children’s Future
Amidst House Democrats efforts to cut funding from the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs, the Republican Policy Committee embarked on a series of hearings to put faces to the funding and champion education throughout the Commonwealth. Spanning across Bishop Canevin High School in Pittsburgh, Holy Family University in Philadelphia, and the Capitol in Harrisburg on December 7th, 8th, and 12th respectively, these hearings served as a platform for impassioned testimonies from parents, students, and representatives of educational institutions. Their voices resonated in a unified call to expand access to EITC and OSTC funding throughout the Commonwealth. The hearings' aim was clear: to shed light on the profound impact of these programs in empowering families, providing alternatives beyond ZIP code-determined schools, and advocating for the future of Pennsylvania's children.
Introduction to EITC/OSTC Funding in Pennsylvania:
Pennsylvania’s Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs serve as crucial lifelines for students across the Commonwealth. Designed to provide alternatives to a child’s failing public school, these programs ensure educational equity by offering scholarships to K–12 students and educational institutions. Businesses are encouraged to provide funding for eligible Pennsylvania educational institutions and students, and in return receive a significant tax credit. In the 2021–22 school year, these initiatives facilitated 77,640 scholarships, averaging $2,583 for EITC and $1,853 for OSTC. Despite the remarkable demand evidenced by nearly 139,000 scholarship applications, more than 63,000 student applications remained unfunded due to arbitrary program caps, underscoring the pressing need for expanded funding. Notably, students in every county in Pennsylvania benefit from EITC/OSTC funding, but the current caps hinder the programs’ full potential to meet the demand and serve all eligible students.
The table below shows existing EITC/OSTC funding alongside the funding increase within HB301
| EITC |
2022-2023 |
HB301
2023-2024
|
Scholarship Organizations
|
$263,000,000.00 |
$325,000,000.00 |
Educational Improvement Organizations
|
$44,500,000.00 |
$54,500,000.00 |
Pre-kindergarten Scholarship Organizations
|
$20,500,000.00 |
$30,500,000.00 |
Economically Disadvantaged Schools
|
$12,000,000.00 |
$60,000,000.00 |
| Total EITC Amount |
$340,000,000.00 |
$470,000,000.00 |
| |
|
|
OSTC
|
|
|
Opportunity Scholarship Organizations
|
$65,000,000.00 |
$85,000,000.00 |
| Total OSTC Amount |
$65,000,000.00 |
$85,000,000.00 |
| |
|
|
| Total EITC/OSTC tax credits |
$405,000,000.00 |
$555,000,000.00 |
Common Themes: A Call for Expansion and Awareness
The heart of these hearings lay in the shared experiences and impassioned pleas from parents, students, and educational program representatives. Their stories revealed common threads: the stark reality that without EITC/OSTC funding, families are tethered to underperforming public schools solely determined by their ZIP codes and personal income. This limitation, coupled with dissatisfaction with local public schools, drives the collective pursuit of alternative educational avenues.
The testimony shared with the Policy Committee emphasized the critical need to expand outreach for these programs, as many families remain unaware of the transformative opportunities offered by EITC/OSTC scholarships. Additionally, the hearings illuminated the diverse array of educational institutions benefiting from these funds, including libraries, pre-K programs, high schools, and youth organizations, all of which emphasized the inefficiencies and complexities in accessing these crucial funds.
The Committee recognized the urgent need to break down barriers hindering the expansion of EITC/OSTC funding and increase the availability of EITC/OSTC funding, echoing the sentiments expressed by the families, students, and educational institutions. The hearings' collective insights underscored that funding students, not systems, remains the cornerstone for ensuring an equitable and promising future for Pennsylvania's children.
Pittsburgh:
In Pittsburgh, parents and educational institutions illuminated the indispensable role of EITC and OSTC funding, underscoring the pivotal support these programs provide.
An educational institution does not need to be a K-12 school to receive EITC funding. Many opportunities for education exist outside of the school day, and outside of our children’s classrooms, and these opportunities must be supported as well. Chris Watts, President and CEO of Boys & Girls Clubs of Western Pennsylvania (BGCWPA), shared how BGCWPA operates as an Educational Improvement Organization (EIO) to provide resources and education to children and families in Western PA.
Chris Watts exemplified the impact of EITC funding, noting that BGCWPA received $140,000 in the last year, amounting to 2% of their annual budget. Though the funding represents a nominal 2% of the total budget, 100% of the funding goes directly towards youth programs. This funding, totaling more than $250,000 over three years, directly bolsters youth programs, including summer camps, STEAM classes, and career development initiatives. Furthermore, through EITC funding BGCWPA offers a “Career Works” program which connects youth with career coaching, internships, job shadowing, and occupational skills.
Without EITC funding BGCWPA would struggle to maintain their pre-K programs, as these programs are the most difficult to fundraise for. Raising funds for EITC through cooperation with local businesses has not been challenging for BGCWPA, as many businesses see the arrangement as almost “too good to be true”, and efforts to expand this revenue stream will be pursued further in coming years. With that being said, it was noted that the largest obstacle to receiving and utilizing EITC funds stems from the wait for state approvals and required paperwork, which should be simplified and streamlined for the ease of both our educational institutions as well as generous businesses.
Michael Joyce, Principal at Bishop Canevin High School which hosted the Pittsburgh hearing, shed light on how EITC directly benefits his students. Tuition subsidies via EITC, constituting 12-28% of a student's tuition, enable families to access a quality education that is otherwise out of reach. For 60% of Bishop Canevin students, EITC funding is instrumental in affording this educational opportunity, with tuition averaging $15,000 per student—a figure challenging for many families but lower than PA public-school per-student costs.
The voices of parents like Ruth Alicea and Cassie Smith further emphasized the crucial nature of EITC/OSTC support. Ruth, a parent with a child enrolled in Leadership Christian Academy along with a child enrolled in her local public school, highlighted how OSTC funding facilitated a different path for her children's varied educational needs. Similarly, Cassie Smith, residing in rural Indiana County, stressed that without EITC/OSTC scholarships, alternative educational choices would be financially unfeasible for her family.
Philadelphia:
In Philadelphia, the resounding testimonies continued to amplify the critical role of EITC and OSTC funding in supporting educational institutions and empowering families. Testifiers from various educational organizations and parents shared compelling narratives, further solidifying the significance of these programs across the state.
Zakiyyah Boone, CEO of Wonderspring Early Education, highlighted how EITC funds directly impact her Pre-Kindergarten programs, supporting hundreds of young children. Wonderspring Early Education receives EITC funding as a Pre-Kindergarten Scholarship Organization (PKSO) and uses the funding to subsidize the cost of providing childcare for families in need. These funds bridge the gap for families ineligible for existing subsidized programs, enabling full-time employment while ensuring educational continuity for their children during summer breaks to combat the "summer slide."
Christi Buker, Executive Director of the Pennsylvania Library Association, underscored the multifaceted utilization of EITC funds by public libraries. Public libraries throughout the state, currently 42 in total, work to receive EITC funds as Educational Improvement Organizations (EIO). As the success of the EITC program spreads, and the funding possibilities increase, more libraries are becoming interested in involving themselves in this educational opportunity.
Despite EITC funding only constituting 2% of library budgets, this funding represents a staggering 80% of the resources allocated for children's programs. Programs supported by our local libraries include free book distribution, STEM clubs, summer programs, and music lessons. However, the PA Library Association emphasized the need for a smoother process to access EITC funds for libraries and businesses alike.
The powerful accounts of parents like Floyd Faria and Ryan Haney echoed the sentiments expressed in Pittsburgh. Floyd, fleeing religious persecution in Pakistan, sought safety and quality education for his daughters in Philadelphia. EITC/OSTC scholarships offered a lifeline, sparing them from concerns about bullying, safety, and negative influences in public schools, enabling them to flourish academically. Floyd profusely thanked the Policy Committee for their support of expanding EITC, and shared that access to EITC enabled his family to “live the American dream.”
Ryan Haney desires to provide his children with the same educational opportunities he received as an alumnus of Archbishop Ryan High School. He stressed the historical reliance of Philadelphia communities on alternative educational avenues due to the longstanding challenges faced by the city’s public schools. For middle-income families like his without access to traditional financial support or tuition supplements, EITC/OSTC scholarships are essential.
Harrisburg:
In Harrisburg, the final day of hearings encapsulated the overarching impact of EITC and OSTC funding through compelling testimonies from educational representatives and families, further fortifying the imperative need for continued support and expansion of the scholarship program.
Lori Milach, Public Services Director at Dauphin County Library System, shared the pivotal role of EITC funding for her library. As an EIO, the Dauphin County Library System uses EITC funding to address the "summer slide" by providing resources during crucial summer months when children are outside of the classroom. These funds further enabled the distribution of over 3,000 FREE books to families, fostering home libraries and supporting classroom learning aids, including supplies for diverse programs. Some of the programs supported by these funds include computer programing, robotics, culinary courses, sewing classes, and more. Without EITC funding, these programs and resources would not be available to Harrisburg students.
The personal accounts shared by students and parents highlighted the transformative effect of EITC/OSTC scholarships on individual lives. Myles Slade-Bowers, a graduate of Bishop McDevitt High School and an EITC/OSTC recipient, defied the odds of a vision disorder, excelling in an environment tailored to his needs thanks to these scholarships. Myles has now devoted himself to advocating passionately for similar opportunities for other students facing educational challenges.
Joshua Quartmon, a parent from The Samuel School, revealed the struggle between desiring homeschooling and balancing career demands. With three young children homeschooling was too difficult for the Quartmon family, yet they had no desire to expose their children to their local failing public school. The EITC/OSTC scholarships provided a lifeline, allowing access to quality education for his children that would have otherwise been financially unattainable. Furthermore, with the extra time and financial resources provided through the OSTC scholarships provided to their children the Quartmon’s could continue their path to become small business owners.
Chad Weaver, another parent from The Samuel School, stressed the significance of raising awareness about EITC/OSTC scholarships, emphasizing the need for increased efforts to inform both parents and educational institutions about these accessible funds. The Weaver family was only made aware of these scholarships through the research of Chad’s wife, a paralegal, and otherwise believed that a quality education was unaffordable and unattainable for their child. Many families, just like the Weavers, are not aware of the EITC/OSTC scholarships unless informed through a school they express interest in. Through these scholarships, Chad's daughter has not only met but surpassed their family's educational expectations.
The diverse and poignant testimonies on this day in Harrisburg reinforced the universal significance of EITC and OSTC funding. These narratives resonated the theme of personalized education, breaking barriers for children facing various challenges and financial constraints. Their stories emphasized the need for expanded awareness and accessibility to these transformative scholarships for students and families across Pennsylvania.
Conclusion:
The resounding message from parents, students, and educational institutions echoed the critical importance of these programs in transforming lives and providing access to quality education. The testimonies unveiled common themes resonating across the state: the dire need for alternatives beyond failing public schools, the transformative impact of EITC/OSTC scholarships on students' lives, and the crucial support these funds offer to diverse educational institutions—from libraries to pre-K programs and high schools.
The Committee learned that EITC/OSTC funding isn't just a financial resource; it's a lifeline, enabling families to access educational choices tailored to their children's needs. Parents and students from various counties in Pennsylvania voiced their gratitude for the opportunities provided through these scholarships, underscoring the necessity for increased awareness and streamlined processes for funding access.
Thanks to the advocacy of the Policy Committee and the compelling testimonies received during the hearings, there was a substantial and far-reaching achievement: a $150 million increase to the EITC/OSTC program. Despite initial Democrat opposition, the reality of EITC/OSTC's profound impact on Pennsylvania's educational landscape prevailed. The hearings' insights, and the advocacy of the testifiers, were instrumental in highlighting the tangible benefits of these programs, emphasizing that funding students, not systems, is paramount for a brighter future.
The Republican Policy Committee recognizes that this increase in funding signifies a step towards better educational opportunities for Pennsylvania's families. EITC and OSTC scholarships hold an indispensable role in fostering a more equitable educational landscape and help to ensure that when a public school is failing students need not fail alongside it.