Georgia's New Way to Fund Private Schools: What's the Catch?

Georgia has joined a federal tax credit program that allows individuals to donate to private school scholarships and receive the amount back as a tax credit. This is in addition to an existing state program with a similar mechanism.

Key Points

• Governor Brian Kemp signed up for the new federal program, making Georgia one of the states where supporters of private education can receive their money back from the government.
• The federal program offers a tax credit of up to $1,700 for every dollar donated to approved private school scholarship groups.
• Governor Kemp humorously remarked that signing the IRS form for this program was the happiest he's ever been.
• Lieutenant Governor Burt Jones, who is running for governor, stated that this will enable people to contribute more to private education.

Controversy and Criticism

• Some critics argue that these programs divert funds away from public schools.
• House Speaker Jon Burns, however, views it as a means to provide more resources to students in need.

Eligibility and Details

• The federal program is available to families earning less than 300% of the area's median income. In metro Atlanta, this means families earning less than approximately $246,000 per year can qualify.
• The state already has a similar program that offers a tax credit of up to $2,500 per dollar donated, with a cap of $100 million per year. Last year, this cost the state $88.8 million.

New State-Funded Program

• A new state-funded program, the Georgia Promise Scholarship, was launched last fall.
• Due to lower-than-expected enrollment, the state is planning to cut the budget for this program.