School Choice News

By Rep. Lee Slocum
There have been some significant developments on the School choice front in recent weeks. There is a new voucher bill, of course, but there is always a new voucher bill! However, this one is different. HB 1707 is different from other voucher bills submitted in New Hampshire in two respects. First, it is immune from the outcome of the Londonderry lawsuit. The value of a voucher is defined as the money available from the state for a student in a local district, including the money raised locally by the statewide property tax. If Londonderry wins its lawsuit, the amount available for vouchers would be the same throughout the state. If Londonderry loses, the value would be different for each district.

Second, the HB 1707 voucher program would only apply to growing districts. This restriction answers the concerns expressed by some that a voucher program would take away money from a district. Under HB 1707, districts would not shrink because of vouchers. Conceivably, districts would not have to grow either. Growth would be handled in the private sector for a fraction of the cost to taxpayers, that is, approximately $3,500 versus the average cost of a public school education of $11,000.

Another significant development involves SB 131, a voucher bill that was submitted during 2005 and was retained by the Senate. The Senate Finance Committee changed the bill into a tax credit bill. The bill was recently passed by the Senate, 14-9, and comes into the House with considerable momentum. Under SB 131 the state would set up a non-profit corporation similar to Healthy Kids or LCHIP that would have the authority to issue vouchers. The state would initially fund the corporation with up to $2 million, but most money would come from companies or individuals giving contributions. Credits on Business Enterprise Taxes would be given to corporations in exchange for company contributions. Credits on Interest and Dividends taxes would be given to individuals.

With both HB 1707 and SB 131, vouchers are given to the parents of a student and mailed to the school. The parent goes to the school and endorses the check over to the school. This is the Supreme Court tested method for ensuring that government is not providing support directly to religious schools. However, the SB 131 tax credit approach seems to provide a little more isolation in this regard. SB 131 also appeals to some because it does not involve use of Education Trust Fund money. It does use other state money, of course, but at substantial savings overall to the public.

A great article which deals with the pros and cons of tax credits versus a more direct approach can be found at http://www.hillsdale.edu/imprimis/2001/july/default.htm.

The governor has indicated that he will not look with favor towards a normal voucher bill. But, there is reason to believe he may be more sympathetic towards a tax credit bill. Stay tuned, we may have more choice available for New Hampshire students this year!