Bills propose private funds for vouchers

4,000 kids would benefit
Wednesday, November 30, 2005 • BY JOHN MOONEY • Star-Ledger Staff

In what could be the first big legislative test for New Jersey's school voucher supporters, a pair of bills was filed that would provide privately funded scholarships for 4,000 children in four cities to attend schools of their choice.

The proposed Urban Schools Scholarship Act would create pilot programs in Newark, Orange, Camden and Trenton where low-income children could tap scholarships of up to $9,000 to attend private schools or public schools outside their district, backers say.

They would be funded entirely by corporate contributions that, under the new bills, would in turn qualify for state tax credits of up to $24 million the first year and $120 million by the fifth year of the pilot.

The tax-credit approach is a version of the better-known publicly funded voucher concept that has been debated nationally, and these bills are sure to be contested by powerful players on each side.

Aimed at the Legislature's upcoming lame-duck session, some of the state's top religious leaders, including Newark Archbishop John J. Myers, plan to press the proposal. The state's formidable teachers union is among those certain to fight it.

Acting Gov. Richard Codey's spokeswoman said yesterday Codey remains opposed to vouchers, although added he would not block hearings or a vote on the measures. Incoming Gov. Jon Corzine's office was even less committal, although as a candidate he also opposed vouchers.

But a big twist this time is the bills' backing from some prominent Democratic legislators, including state Sen. Joseph Doria (D-Hudson). A rally in support of the bills is planned for next Monday on the State House steps where Myers and the Rev. Reginald Jackson, president of the state's black clergy council, also are expected to attend.

"This is a splendid opportunity for the state to give evidence that it is committed to insuring that poor children have the same chance for a good education as any child in the state," Jackson said yesterday.

Filed earlier this month, the bills are the first serious attempt to bring a voucher-like program into New Jersey in several years and the first ever to have significant legislative backing.

In addition to Doria, the Senate bill is co-sponsored by state Sen. Robert Martin (R-Morris). The Assembly bill's co-sponsors are Assemblywoman Nilson Cruz-Perez (D-Camden), the late Assemblyman Donald Tucker (D-Essex) and Assemblyman Mims Hackett Jr. (D-Essex), the mayor of Orange.

Martin said he has already been confronted by the New Jersey Education Association about his sponsorship of the bill and conceded it may be tough to pass so quickly before the end of the year.

Former Gov. Christie Whitman and former gubernatorial candidate Bret Schundler both proposed school vouchers paid by public funds, but never could even find a single legislative sponsor.

"We had to break the mold, and I think this proposal has a better chance than most," Martin said last night. "We do need our public schools, but for some of them, I think there needs to be better incentive to improve that competition can provide."

While publicly funded vouchers get most of the attention, the use of tax credits to boost private scholarship funds is not new. Several states have similar programs in place that have provided tuition help to tens of thousands of children.

This proposal would be modeled after the Pennsylvania Corporate Tax Credit Scholarship Program that has provided scholarships to 25,000 students, advocates say.

Under the bills, corporations could write off contributions to either scholarship funds or education improvement organizations that would provide money for "innovative public school programs."

Total contributions eligible for tax credits would be limited to $24 million in the first year and $120 million in year five.

Only students in those respective cities would be eligible, and they would have to be from families earning less than 2.5 times the federal poverty level, or about $48,000 for a family of four. They could attend either private schools or public schools outside their hometowns, which typically charge tuition.

Participating schools would have to accept all students that apply and take the scholarship as full tuition payment. Elementary school students would receive up to $6,000, and high school students would qualify for up to $9,000. Typical tuitions can range from $4,000 to upwards of $20,000 a year.

The 190,000-member NJEA has been among the strongest critics of voucher programs and is seen as the chief reason that no such program has ever been proposed in the Legislature, let alone passed. The union claims vouchers would drain money and students from public schools, and that argument didn't change yesterday.

The tax-credit approach is "just another name for the same thing," said NJEA spokesman Steve Baker.

"We still feel very strongly against diverting public funds in any means, including through tax credits, to private education," he said. "Given the state's current budget situation, to offer tax credits out of the budget is especially inappropriate."


John Mooney covers education. He may be reached at jmooney@star ledger.com, or 973-392-1548.
© 2005 The Star-Ledger. Used by NJ.com with permission.

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