Private-school scholarship program off to slow start

Lynn Anidi found the private school for her son. And then she lost her job.

Faced with losing the educational opportunity she wanted for 12-year-old Michael, Anidi was at a loss. Until the phone rang.

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MIKKI K. HARRIS /mkharris@ajc.com

Michael Anidi, 12, takes a brief break from basketball practice at Pathway Christian School in East Point.

Jill Watkins, academic advisor at Pathway Christian School in East Point, called to say they had a solution: a scholarship from the Georgia GOAL Scholarship Program.

“It’s giving Michael a chance to be in a small-school setting again, a small school with good teachers and faith where he’s learning what he needs to learn to advance to high school,” said Anidi, 45, who lives in south Atlanta. “Everyone there is wonderful and we’re really happy he’s getting a good education.”

Georgia GOAL is one of 10 student scholarship organizations created in the wake of legislation approved early this year creating tax credits for individuals and corporations that donate to groups that offer scholarships for children to attend private schools.

Michael Anidi is one of the first students in the state to benefit; most of the organizations are still in the planning and start-up phase. Georgia GOAL has thus far funded about 40 scholarships, while the Georgia Christian Schools Scholarship Fund has offered partial scholarships to about another two dozen.

None of the other five organizations contacted by The Atlanta Journal-Constitution have yet to award grants to students. Some are actively raising money and hope to offer scholarships by year’s end. Others are just getting organized and are further behind. Efforts to reach the remaining three scholarship groups were not successful.

The legislation, sponsored in the Georgia House by Rep. David Casas (R-Lilburn), was created to offer parents new options for their children’s education. But it was also a tax bill and the state has set aside $50 million a year for the tax credits. Taxpayers or corporations who give to a scholarship organization can get a dollar-for-dollar credit against state income taxes. For example, a married couple who gives $2,500 can take $2,500 off their annual state tax bill — the most allowed for couples. Individual taxpayers are capped at $1,000 a year and corporations can take a credit of up to 75 percent of their total state tax liability.

The economic recession gripping the state and nation has chilled contributions, lawmakers and administrators at scholarship organizations said, and that $50 million cap is no danger of being reached this first year. But, all remain optimistic.

Ziad Minkara, the director of the Liberty Scholarship Foundation, has yet to offer a scholarship. He’s putting his own money and time into creating the fund, because, he said, “It’s a beautiful concept and a great idea.”

“When this bill came into existence, I said it’s an excellent idea,” Minkara said. “You’re giving the money to the parents and they’re the most qualified to decide how to spend it and where their children go.”

But, he said, “It’s been rough going. I do believe it will be a lot easier next year. More people will understand what the concept is all about and hopefully once the economy turns around, people will start giving more. People normally are generous.”

The program’s regulations have built-in delays. Because there is a cap on the total amount of tax credits the state will award, each donor must file a specific form with the Department of Revenue and get pre-cleared to give to a particular scholarship fund. Revenue checks to be sure there is room left under the cap. Once approved, a donor gets notified by the department and has 30 days to make the donation to guarantee themselves the credit.

To get a scholarship, a student must first apply to a private school. The school and the family then contact a scholarship organization in search of a grant.

All of this has taken time and it’s taken time to teach donors about the tax credit opportunity, said state Rep. Earl Ehrhart (R-Powder Springs). Ehrhart was a co-sponsor of the bill and serves as the — unpaid — CEO of the Georgia Christian Schools Scholarship Fund.

“It’s a little bit of a learning curve,” said Ehrhart, chairman of the powerful House Rules Committee. But, he said, the end result will be worth it, once parents and donors and schools are educated about the program.

That’s why, he said, he became involved with the GCSSF.

“For me it’s a labor of love,” he said. “I want to give back to the kids in the community. I want to show you can raise this money and benefit these kids who may not have the opportunities for private education.”

The intent of the legislation was, as Ehrhart said, to provide private school opportunities to students whose parents might not be able to afford the tuition. Most of the organizations are focused on this, although not all. Some offer (or plan to offer) grants to students based on merit, not need.

Some organizations are also partnering with specific groups of schools. Ehrhart’s group, for example, works only with Christian schools. G.R.A.C.E. Scholars is affiliated with the Archdiocese of Atlanta and the Archdiocese of Savannah and works with Catholic schools and families. The ALEF Fund works with Jewish schools and families.

This kind of partnering is allowed under the law, which only prohibits a scholarship organization from limiting grants to students of one school.

There are kinks to be worked out in the system, however. One requirement in the law is that scholarship organizations report each year to the Department of Revenue a list of donors and the amount of money each contributed and the size of the each donor’s tax credit. That could violate privacy and tax laws, according to a spokesman for the Revenue department.

“We are very restricted on what we can give out in terms of tax information,” said Charles Willey. “I don’t know how that will be reconciled. That, to me, will be a tough nut to crack.”

Ehrhart and others are aware of the issues and expect some changes in the coming legislative session.

But the result so far has been more than positive, Ehrhart said.

“In 20 years if I’ve done anything legislatively I’m really proud of, it’s this,” he said.