A two-year-old program allowing Georgians to redirect part of their state income taxes to private school scholarships is sending millions of dollars to some of the state’s most exclusive academies, and more private schools are signing up to participate.
Westminster Schools, Woodward, Pace, Paideia and other elite schools say they are adding hundreds of thousands of dollars to their financial aid coffers — more than $1 million in the case of Westminster — through the Georgia Tax Credit Scholarship Program.
The program provides a dollar-for-dollar tax credit to people or corporations who donate to scholarship funds earmarked for use by a specific school. The school then uses the money to offer tuition aid to a public school student seeking to switch.
Some private schools that had been reluctant to join the program are joining, saying they can’t afford not to amid tough economic conditions and growing demand for financial aid. More than 300 now participate statewide.
“We held out until this year mostly because of the philosophical question of whether or not to accept money from the state when the state’s schools are suffering as they are,” said Chris Pomar, admissions director at Holy Innocents’ Episcopal School in north Atlanta. “We finally signed on to bank some money for financial aid.”
Backers of the program say it helps private schools -- including many smaller and less-exclusive ones -- draw public school students who couldn’t afford tuition, while also helping schools boost diversity.
“A lot of schools have a mission of creating a population that is economically and racially diverse, but because of the current economy they have not been able to achieve those goals,” said John Panessa, executive director of Apogee Georgia Choice Scholarship Fund, a non-profit that awards scholarships to some schools in the program. “These dollars are allowing them to do just that.”
Critics argue that the program deprives the state of revenue and subsidizes private schools.
“We certainly have no bone to pick with private schools; they do a great job,” said Tim Callahan, spokesman for Professional Association of Georgia Educators, which represents 80,000 teachers. “With the severe underfunding of public education, we don’t want to see more dollars leave schools.”
The two gubernatorial candidates take opposing views. Democrat Roy Barnes has said he’d work to repeal the program if elected, while Republican Nathan Deal supports it. The legislation creating the program passed in 2008 along party lines, with Republicans in favor and Democrats opposed.
Here’s how it works: Donors contribute to schools of their choice and earn dollar-for-dollar credit against state income taxes, up to a maximum $1,000 per individual and $2,500 per couple. Corporations can claim up to 75 percent of their tax liability. Donors also can also claim the amounts as regular charitable deductions on federal taxes, though that tax break is not as great.
The donations pass through one of more than 30 non-profit Student Scholarship Organizations that partner with schools to award them.
Donations are capped at $50 million annually, and in 2009 totaled about $25 million. Officials expect that figure will rise to between $35 to $40 million this year as the number of participating schools and donors increase.
Georgia GOAL Scholarship Program, the biggest of the scholarship-awarding organizations, said the number of schools receiving scholarships this year was 91, up from 56 the year before.
Georgia GOAL, along with Apogee and GRACE Scholars, which funds scholarships to Catholic Schools, all say the bulk of contributions come from individuals.
Under the law, the only criteria for scholarship recipients is that they attend, or be eligible to begin attending, a public school. There is no household income limit.
Georgia GOAL, however, issues voluntary guidelines recommending that its schools offer the awards to students eligible for free or discounted lunch, with an $88,000 cap on household income. GOAL’s guidelines also suggest an income-based range for the amount of the scholarship relative to tuition, from as little as 5 percent to as much as 85 percent, with a cap of $10,000.
Georgia GOAL President Lisa Kelly said partner schools “overwhelmingly” follow the guidelines, and she said the average family income for scholarships awarded so far is just under $48,000. Half went to families earning less than $36,000, and about 42 percent went to minorities, she said.
She also said Georgia GOAL also follows the Georgia Independent School Association’s mandates that scholarships are not to be used to recruit athletes.
Westminster , which partners with Apogee, raised a little more than $1 million through the program in 2009 to help students this year. Pace Academy received $650,000, which helps fund tuition for a dozen students through their graduations.
The Paideia School raised $180,000 in 2009, which helps cover tuition for three high school students through graduation.
“It is a gift horse, and we try not to look them in the face,’’ Paideia headmaster Paul Bianchi said.
Woodward Academy, The Lovett School and Holy Innocents enrolled in the program this year.
“We have had e-mail blasts; we have mailed forms to alumni and grandparents,” Woodward president Stuart Gulley said. “We are hoping to see an uptick in participation between now and the end of the calendar year.”
Some school officials said they didn’t want to miss the opportunity in case political support erodes.
Private school parents say the scholarships are needed to provide academic opportunities for ambitious kids from families who can’t afford tuition.
“There is a great need,” said Krisindra Hall, a single mom struggling to keep her daughter at Woodward. The daughter, Cierra Saylor, isn’t eligible for a tax credit scholarship because she enrolled before Woodward began participating, but her mother said she is an example of the type of student who benefits. Saylor previously attended DeKalb County schools.
“For some people, the public school system works, for us, it didn’t,” Hall said. “My daughter wants to go to Cambridge University. I want her to be able to do the work when she gets there.”
Kimberly McKoy, whose son attends Holy Innocents’ with financial aid, said she supports the program but added it would be difficult for her family to write a check for $2,500 even if the money comes back later.
“I think it’s a good idea,” she said, “if you are kind of wealthy.”
Travis McKoy, a freshman at Holy Innocents’ who transferred from a private school, did not qualify for a scholarship but receives other aid.
“Public school wasn’t an option for me, especially in Clayton County,” he said.
The program also helps smaller private schools keep enrollments up.
The Georgia Independent School Association reports that enrollments fell 2.9 percent in 2010, but school officials say the drop would have been worse without a general boost in financial aid, including the tax credit program.
At Hopewell Christian Academy of Norcross, where enrollment has fallen to 142, school officials want to offer scholarships to make the $6,500 tuition more affordable. Bishop William L. Sheals used his pulpit recently to sell Hopewell Missionary Baptist Church members on donating through the tax credit program.
“This is a way to bless the academy and pay your state income tax,” he said. “It’s a win-win.”
THE PROGRAM AT A GLANCE
Total money donated under Georgia’s Tax Credit Scholarship Program
2008: $6.2 million
2009: $25.4 million
2010, projected: $35 to $40 million
Money and scholarships awarded through top organizations
Georgia GOAL Scholarship Program Awards:
2009-2010
- $3.1 million to 56 schools
2010-2011
– $6.6 million to 91 schools
GRACE Scholarship Awards:
-2009-10
$189,543 to 19 schools
20010-11
$2,344, 112 to 34 schools
Apogee Georgia Choice Scholarship Awards:
2009-10
$1 million in scholarships for at 40 schools
2010-11
$4.3 million in scholarships at 70 schools
About the Author
The Latest
Featured
