My wife and I have two daughters. Over the years, we have tried public school, private Christian school, and homeschooling. To be honest, there were strengths and weaknesses in all those options. That is why I believe parents have both the right and the responsibility to weigh those options and choose the educational path that is best for their children.
HB1 would allow Kentucky to opt into the federal tax benefits included in the 2025 Final Budget Reconciliation Bill. This provision of the bill is known as the Educational Choice for Children Act. But to participate, a state must choose to opt in.
It would allow individuals or businesses to donate up to $1,700 to an approved Scholarship Granting Organization (SGO) and receive a non-refundable tax credit on their federal returns. In other words, if you owe $1,700 in federal taxes, it eliminates your tax bill. If you owe less than the donation, it just eliminates the tax, but you don’t get the difference back.
Those who say that this money can only go to non-public schools are misrepresenting the bill. HB1 is designed to give parents more options in how they educate their children. So yes, it could go to scholarships for children in households whose income is less than 300% of the median income to go to a private school.
Some argue it will take money from public schools, but it could also be argued that in many cases it will bring more money to public education.
These SGOs, depending on how they are set up, can provide scholarships for private school tuition, tutoring, curriculum, instructional materials, special education services, transportation, and other qualified educational expenses.
But wait, traditional public schools can also benefit if they charge tuition for specific programs including public pre-K, after-school academic programs, and/or specialized fee-based courses.
And remember, this is a reduction in federal taxes and in no way impacts funds collected by the state for public education, but instead increases the opportunity for more money for both public and private education.
So, what about those who say we shouldn’t opt into the program? My guess is they are the same people who wanted me to vote for expanded gaming when I was in the General Assembly. They argued that expanded gaming benefited education and that people were just crossing state lines and all that money was being lost when it could benefit Kentucky.
Well, guess what? If we fail to opt into this opportunity, that doesn’t stop someone who lives in Kentucky from donating to an SGO in another state that has opted in, and the donor would receive the same federal tax credit.
So, much like the gambling comparison, why would we want valuable educational dollars to leave Kentucky and educate children in another state? And you don’t even have to roll the dice or guess an over/under to keep the dollars here.
When this bill passes and becomes law, as I hope it will, be sure to reach out to your school boards to insist they investigate how these newfound dollars can help your children.
Unlike gambling on our future, this is a win-win to help elevate the education of all children while keeping more of our tax dollars in the state instead of just sending dollars to the federal government and wondering what happened to them.
So, HB1 is a friend of all education, public and private, and I look forward to seeing our children receive more resources to help them succeed.