Page 12: Tax Credits, continued

Pennsylvania’s tax credit program has expanded every year. In 2001 the state set aside $260 million for K-12 scholarships, and in 2006 the number climbed to $36 million. Scholarship organizations increased from 74 to 192. The number of grants rose from 18,656 to 30,245. The entire amount set aside in the state budget for this program used to take months before it was exhausted, but so many companies apply now that the fund is gone the first day. Since its inception, $26 million has been donated to the Educational Improvement Tax Credit (EITC) Program from over 2,000 companies.

It should be mentioned that there is a provision in the law which allows one-third of the total EITC money (presently $18 million) to be used for educational improvement organizations to fund innovative programs in public schools. This portion of the bill has garnered additional support for tax credits from a variety of agencies and organizations traditionally opposed to any form of school choice.

One example of the transforming nature of tax credits on Catholic education is demonstrated in the Diocese of Pittsburgh’s Catholic schools. This system of schools serves 28,000 students in 115 separate schools, twelve of which are secondary. Since the EITC Program began, $2.1 million has been donated each year for a total of $14 million over six years. This includes interest earned. During this time, 32,000 grants from a low of $100 to a high of $3,500 and an average of $500 have been awarded. In 2003 Pennsylvania added a pre-kindergarten tax credit fund which has $5 million in the budget. The Diocese of Pittsburgh, with over 80 pre-kindergarten schools, was able to receive an average of $500,000 a year. In 2006 every eligible pre-kindergarten parent received full tuition for their child. The pre-kindergarten program is a feeder for the Catholic elementary school, so this is a really positive factor in maintaining Catholic elementary schools.

High school enrollment in the Pittsburgh Catholic schools in 2002-2003 registered a 3.7% drop. As tax credits became available for tuition assistance, enrollments in 2006-2007 were up 3.4%. This increase is even more dramatic if you factor in the rapid decline in the general population for this geographic area of Western Pennsylvania.