The 2010-11 NJ Legislature is considering the Opportunity Scholarship Act (A2810 S1872). If enacted, the law will establish a pilot program providing tax credits to corporations that contribute to a fund for scholarships for low income students in failing school Districts. It will benefit inner city Catholic schools. It will provide educational choice for parents of children in failing school districts enabling them to select public schools, charter schools, religious schools, or private schools.

The eligibility for the bill (in addition to living in a district with a failing school) will be limited to those at 250% or less of the poverty level. The program is not intended to have any negative effects on public education. The bill intends to give children an opportunity to have an enhanced educational experience. It is a very important component of an overall strategy that will be needed to solve the state’s educational needs.

The Legislature’s Office of Legislative Services has analyzed the bill and determined that it is revenue neutral. It will not require any new funding. It will work like this: Corporations will receive a tax credit for money donated to provide scholarships. The scholarships will cost considerably less than it now costs the school district to educate the student. The school district reimburses the State for the lost funding and therefore the program is revenue neutral to the state. The remainder of the per student funding will be available to the school district. This is actually a win/win for the school district: it has one less student to educate and after the scholarship is awarded, funds formerly used to educate the student will no longer be needed for his/her education and the district will retain the extra money. 

The Senate version of the bill (S1872) has been released by the Senate Budget Committee and is waiting a full Senate vote.

Actions needed: We need to have the Assembly version of the bill posted in the Assembly Budget Committee for hearing and a vote.

1. Contact your Assemblymen ask them to support the bill (A2810)

2. Contact Assembly Speaker Sheila Oliver (aswoliver@njleg.org, or call her East Orange District Office 973-395-1166) and urge her to post the bill. 

3. Assemblyman Louis D. Greenwald has been particularly supportive of the bill. Ask him to have the bill posted in his Committee. (asmgreenwald@njleg.org or call his Voorhees District Office 856-435-1247).

Governor Christie’s administration has been seeking ways which could channel hundreds of thousands of dollars to parochial schools by providing tax credits to companies that provide scholarships for students in districts with failing public schools who want to go to private school. A similar bill introduced in 2008, “Urban Enterprise Zone Jobs Scholarship Act” (A2897 S1607), languished in the legislature. The new bill is further along in the process and should be supported if we wish it to pass.