Michigan education board opposes federal tax credit scholarship program

Sign up for Chalkbeat Detroit’s free newsletter to keep up with the city’s public school system and Michigan education policy.

Michigan’s State Board of Education voted Tuesday to oppose the federal tax credit scholarship program that allows people to receive tax credits for donations they make to organizations that provide private school scholarships.

Congress approved the program last year as part of the federal budget bill. It provides up to $1,700 in annual tax credits for people who donate money to eligible scholarship-granting organizations that give students money for private school tuition, tutoring, and other educational expenses.

The State Board resolution urges Gov. Gretchen Whitmer to not opt into the federal program.

The eight-member board, which is controlled by Democrats, voted 6-2 to oppose the scholarships, with the two Republicans on the board voting not to oppose. The resolution is only an advisory. Whitmer has the power to opt Michigan into the program.

Around 30 governors, most of them Republicans, have done so already. While several Democratic governors have opted in or said they plan to, Democratic support has been slow. A spokesperson for Whitmer didn’t respond to a question about whether or when she will decide on the program.

Critics of the scholarships have said they are no different than giving parents publicly funded vouchers to send their kids to private school.

“It has been made clear that Michigan voters have already decided this in two votes,” said Pamela Pugh, the board president, referring to statewide votes in 1970 and 2000 that were clear in prohibiting public funds from going toward non-public schools. Michigan’s Constitution includes the prohibition.

“Public resources should strengthen public schools,” Pugh, a Democrat from Saginaw, said Tuesday.

The resolution says that public resources should serve schools “that are open to all children and accountable to the people of Michigan, not toward subsidizing private education systems that are not subject to the same public governance, transparency, admissions obligations, and civil rights protections.”

Supporters including board member Tom McMillin, a Republican from Oakland Township, countered the argument about Michigan’s Constitution prohibitions, saying there are “zero constitutional concerns.”

“We’re not talking about tax dollars,” McMillin said, who called support for the tax-credit scholarships “a no-brainer.”

Here’s what the Michigan Constitution says:

“No public monies or property shall be appropriated or paid or any public credit utilized, by the legislature or any other political subdivision or agency of the state directly or indirectly to aid or maintain any private, denominational or other nonpublic, pre-elementary, elementary, or secondary school.”

It goes on to say that “no payment, credit, tax benefit, exemption or deductions, tuition voucher, subsidy, grant or loan of public monies or property shall be provided, directly or indirectly, to support the attendance of any student or the employment of any person at any such nonpublic school or at any location or institution where instruction is offered in whole or in part to such nonpublic school students.”

Timothy Schmig, executive director of the Michigan Association of Christian Schools, noted that Indiana and Ohio have signed on to the program. If Michigan doesn’t, he said, there is concern that Michigan would “lose students and tax base moving to states that are tax friendly.”

Schmig was one of several people who urged board members to oppose the resolution. The board also heard from Susan Campbell from the Michigan Education Justice Coalition, which is urging Whitmer not to opt in to the program.The coalition is an education advocacy group made up of dozens of organizations across the state.

“Michigan has a long history of folks fighting to protect public education because strong public schools strengthen communities and give everyone, every child, the opportunity to succeed,” Campbell said.

Lori Higgins is the bureau chief for Chalkbeat Detroit. You can reach her at lhiggins@chalkbeat.org.