Opinion: Could a New Federal Tax Credit Help Washington Students?

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Every parent wants their child to have the support they need to succeed in the classroom and beyond. Any teacher will tell you that every child learns differently, and that needs vary from student to student. Some kids require additional tutoring to master reading or math, while other families need help affording technology or school supplies. Still others are looking for SAT classes or other college readiness support. Too often, there are simply not enough resources available to meet every child’s needs.

What if Washington could help all of these students without raising taxes or taking money from the state budget?

Next year, a new federal program offers exactly that. But to participate, Gov. Ferguson must opt Washington in by Dec. 31. More than 30 governors have already signed up — including Democratic governors from New York and Colorado. Now is the time for Washington parents to encourage Gov. Ferguson to say yes.

Here’s a quick rundown of how the program works.

Last year, Congress passed the Federal Scholarship Tax Credit. This new program enables eligible taxpayers to contribute up to $1,700 annually ($3,400 per household) to approved education nonprofits. Because it’s a tax credit, taxpayers get all of that money back, making it, in effect, a “free” contribution.

Nonprofit organizations will then use these contributions to grant scholarships to eligible K-12 students. Unlike the taxpayer contributions, scholarships can be for any amount. Scholarships can cover a wide range of education-related expenses, including academic tutoring, college test prep, after-school enrichment, transportation, tuition, technology and services for students with disabilities.

The opportunity is significant and extends beyond the traditional school day. For an elementary student struggling to read at grade level, a scholarship could cover tutoring. For a high school student, it could cover a laptop or SAT prep. For a student with disabilities, it could help their family afford specialized services. For families who have chosen private schools, it could cover tuition.

All students — from every school — stand to benefit from this program. And given that 90 percent of students attend public school (including mine), those students should benefit the most. 

Because it does not cost taxpayers to contribute, the expectation is that as many as 30 percent of Washingtonians will participate. Under that estimate, Washington could generate as much as $1.5 billion annually in scholarship contributions under this program. Just $1 billion could provide year-round tutoring for 500,000 Washington students. 

But unless the governor opts in, Washington students will not benefit from these scholarships. Not only will we fall behind other states, Washington tax dollars will flow out of state, since Washingtonians can use the tax credit to support programs in states that do opt in. In other words, Washington students will miss out, while these resources flow to other states or back to the federal government.

This program would not replace the state’s responsibility to fund public schools. Instead, these scholarships are an additional resource to fill gaps and address students’ unique needs. At a moment when education budgets are being cut, and the cost of everything is going up, we have an opportunity to bring over a billion dollars to our students, all without reducing existing public school funding.

Parents should have a voice in this decision. The question we should all be asking is: Should Washington make these additional resources available to support families?

I believe the answer is yes. If you agree, consider sending a letter to the governor through this link at optinwa.org. 

Our children deserve every opportunity to succeed. Let’s make sure Washington doesn’t leave money on the table.