The Legislature has just passed House Bill 93, which will exempt most families who take advantage of the $5,000 per student tax credit from paying any state income tax whatsoever. If their tax liability is less than the $5,000 subsidy, the state is required to send them a payment to make up the difference. In the words of the bill, “If the credit exceeds the tax imposed by [the income tax], the excess credit amount shall be refunded to the taxpayer.” So, they get out of paying any income tax and get a bonus payment to boot. That fits nicely into the having-their-cake-and-eating it-too category. It is now up to Governor Little to veto this taxpayer boondoggle.
The subsidy bill would drain $50 million from the state treasury during the first year. Based upon what has happened in other states, that drain would likely increase to a torrent in future years. About 90% of that taxpayer money would go to subsidize religious teaching. And, by the way, Idaho’s Constitution strictly prohibits public money from being used to support any form of religious education. Every legislator has been informed of the prohibition, but some have turned a blind eye to the Constitution.
One of the most preposterous arguments in favor of the subsidy bill was made by Senator Scott Grow on February 8. He said that private school families “have been subsidizing our public school system,” and “it seems fair to me that we can return some of the tax money that they’ve been paying.” If the Senator would consult the Idaho Constitution, he would find that Idaho’s founding fathers expected families who educated their kids in nonpublic schools to pay the full cost. And, why should private and religious school parents, except for the wealthiest, be able to use our roads and every other governmental service provided by the state without having to pay a dime in income tax? Some would call that freeloading. If some legislators want to subsidize religious schools and excuse private school families from paying income tax, they ought to take the lawful route by amending the Constitution.
HB 93 does not meet the standards laid out by Governor Little. He stated: “Just like we do with every taxpayer dollar that is spent in government, we will ensure there is oversight in school choice. Why? Because accountability in government is an Idaho value, and it is what taxpayers demand and deserve.” Quite to the contrary, HB 93 specifically states: “A nonpublic school shall not be required to alter its creed, practices, admissions policy, or curriculum in order to accept students whose payment of tuition or fees stems from a refundable tax credit under this section.” That certainly flies in the face of the Governor’s standards. Additionally, the subsidy bill has no requirement that teachers be certified or that they undergo a background check.
If the Governor is true to his word, he will veto HB 93. If he gets cold feet and fails the majority of Idahoans who oppose giving an income tax holiday to families educating their kids in private/religious schools, there is an effective remedy available to voters.
Those who have lived in Idaho for over a decade may remember that Idaho voters used their constitutional power of the referendum to defeat three detested education laws back in 2012. The so-called “Luna Laws” were vetoed by a substantial majority of voters that year in a referendum election. I believe that the people would similarly defeat a bill requiring all taxpayers to pay the education expenses of a small minority of Idahoans who do not presently send their kids to public schools.
The Baptist News reports that voters in Colorado, Kentucky and Nebraska rejected private/religious school raids on their respective state treasuries last year. An expert quoted in the news report said, “Vouchers have never survived a direct vote by voters.”
Sixty-five percent of voters in deep-red Kentucky voted against school vouchers. The measure was voted down “in each and every one of Kentucky’s 120 counties.”
Those who realize that subsidizing private/religious schools will mortally wound Idaho’s public school system must begin gearing up for a referendum vote on HB 93. It is a taxpayer boondoggle that will benefit a few at the expense of the great majority. Idahoans, the time is at hand to exercise your power to veto bad legislation.
