Did you know that you, or your company, can help students like Calvin by donating a portion of what you already owe in state income taxes to a program that funds scholarships for low-income families in Alabama?

“When my son Carlos was in the fifth grade, he was constantly bullied and I wanted to desperately put him into a private school,” wrote Nyenya Webster of Montgomery in Alabama Daily News. Every day was a struggle, she added. “I was at a loss as to what to do to help my son.”

Then Webster learned about the tax-credit scholarship program created in 2013 by the Alabama Accountability Act that serves roughly 4,000 low-income, mostly minority Alabama students.

She applied, and Carlos received a scholarship to attend Success Unlimited Academy in Montgomery.

“Success Unlimited has been a lifesaver for my son,” Webster wrote. “He … is now considering college. My son never talked about going to college before Success.”

For those who want to help other Alabama families break the cycle of poverty through education, it’s a no-brainer.

“For a donor, it doesn’t cost them anything,” said Warren Callaway, executive director of Scholarships For Kids, one of the scholarship granting organizations funded by the program.

That’s because a tax credit is different from a charitable contribution. When you make a charitable contribution to a non-profit organization, you deduct a portion of that on your income tax. However, a tax credit allows you to take a dollar for dollar reduction in your state income tax.

“Basically, donors are redirecting some of their state income tax liability to a [scholarship granting organization],” Callaway said. “So, if you give $100 to us, you can reduce your state income tax by $100.”

Who benefits from the donation?

“The average household income for these students is under $30,000 so these are families that would have no other way of choosing the school that is best for their child,” said Ryan Cantrell, director of state strategy and political affairs for the American Federation for Children, during an interview of the 1819 podcast.

Higher-income families have always had school choice, Cantrell said, but “it’s the low-income families who get stuck with no options in under-performing schools or schools that don’t work for their child.”

There are $30 million in tax credits available and, so far, only about a third have been claimed, according to the Department of Revenue’s My Alabama Taxes website.

Here’s how you can reserve your tax credit before the December 31, 2019, deadline:

Step 1: Estimate how much income tax you or your business will owe Alabama next year by checking how much you paid last year. Individuals and corporations can donate up to 50 percent of their tax bill, and while individuals are limited to $50,000, corporations are unlimited.

Step 2: Visit the My Alabama Taxes website and follow instructions for reserving an Alabama Accountability Act tax credit.

Step 3: Send a check to one of the seven scholarship granting organizations in Alabama within 30 days.

Step 4: When you do your taxes next year, fill out an Alabama Department of Revenue Schedule AATC form to reduce your income tax bill by the amount you donated.

For more help, individuals may call the Alabama Department of Revenue at 334-353-0602 or 334-353-9770, and corporations may call 334-242-1200.

You’re already going to have to write a check for your state income taxes. Why not control where some of that money goes, especially when it has the power to change lives?

“It was a relief that nobody would understand,” said mother-of-five Alleane West in an Alabama Opportunity Scholarship video about the program’s impact on her family. “You know, you’re a single mom with boys trying to not make them a statistic.”

Watch:

Rachel Blackmon Bryars is a senior fellow at the Alabama Policy Institute. Connect with her at rachel@alabamapolicy.org or on Instagram @RachelBlackmonBryars.

Myth #1: Scholarships steal money from public schools

The Alabama Accountability Act “has directly siphoned more than $140 million from Alabama’s cash-strapped K-12 classrooms,” wrote the Alabama Education Association in a September 2018 edition of the teacher’s union magazine.

But public school systems aren’t actually losing money.

They are now collecting more money to educate fewer students with the biggest budget in a decade. Overall, the state’s multi-billion dollar education trust fund has grown since the scholarships were first offered, even while enrollment has steadily decreased.

Last year alone, tax revenue that funds the education budget grew by nearly half a billion dollars – about three times as much as the scholarship program has spent in six years combined.

Also, it costs roughly $9,500 annually to educate a student in public school, according to budget data.

But it only costs about $6,500 to educate the same child in private school, which includes the costs of administering the scholarships, according to Warren Callaway, executive director of Scholarships For Kids, one of the largest scholarship granting organizations in the state, and a member of the recently formed Alabama Accountability Act Coalition.

“It’s a great deal for taxpayers,” Callaway said. “They’ve given us $146 million and we’ve provided $200 million in education. The cost of education is not fixed because [public schools] don’t have to educate the child we have taken off their hands.”

Myth #2: Even high performing schools that don’t have any students transferring out on scholarship still “lose money”

“The highest performing school districts lose revenue at the same rate as all other districts,” according to the teachers’ union article. “It does not matter if you have no failing schools in your district. It does not matter if you have no scholarship recipients in your district. All school systems are still penalized under the [program].”

Callaway says this is “bogus.”

“The AEA tells Mountain Brook City, arguably the best system in the state, that they’ve lost $834,956 due to the Accountability Act,” Callaway said. “That’s hogwash. They haven’t lost a dollar.”

Callaway examined state budget data showing Mountain Brook enrollment has largely been static, while state spending on students has gone up. In effect, they’ve received more money than years prior despite the AEA’s claims they’ve lost money.

Myth #3: A University of Alabama study proves school choice doesn’t work

A state-commissioned study conducted by the University of Alabama’s Institute for Social Science Research found that students using the scholarships performed about as well, on average, as their public school peers.

Critics believe this proves school choice doesn’t help students improve academically.

But advocates claim this indicates a huge achievement since research shows poverty strongly correlates with poor academic performance. The study showed low-income scholarship students often did better academically than their low-income public school counterparts.

“We’ve taken kids who you would predict would be on the bottom side of the bell curve of achievement and we’ve gotten them to the mean,” Callaway said. “I would put the headline of that study, instead of ‘They scored average, ho-hum,’ I would say ‘They scored average, exclamation point!’”

Myth #4: The program should be repealed because not all scholarship recipients are zoned for failing schools

Students zoned for failing schools are awarded the scholarships first, and any remaining funds are then given to other disadvantaged families in schools that are generally close to the bottom 6th percentile — the state’s definition of a failing school.

“Would you want to send your child to a 7th percentile school or an 8th percentile school?” Callaway asked. “The answer is no. Those are still low performing schools.”

Overall, there’s a lot about education besides school choice that Alabamians can celebrate this week.

Our recently released state report card revealed district and school improvement last year, with more As, Bs and Cs, and fewer Ds and Fs than the year before.

Our First Class Pre K program continues to succeed and draw national attention.

And Montgomery will open its first charter school this year.

None of these achievements, including school choice, would have happened without new ideas and reform.

“The Accountability Act wasn’t an initiative to take the place of public education, it was just intended to show there is an alternative way of doing things and to upset the status quo,” Callaway said.

No doubt the families celebrating their life-changing opportunity this week thank God that it did.

Rachel Blackmon Bryars is a senior fellow at the Alabama Policy Institute. Email her at Rachel@alabamapolicy.org or connect with her on Instagram @rbryars.

Truth is, Alabama is now collecting more money to educate fewer students. Overall, the statewide education budget has grown since the scholarships were first offered. Meanwhile, enrollment has steadily decreased over the past five years, reports AL.com.

Of these three systems in particular, each have received significant funding increases while two saw decreases in the number of students they served.

According to an analysis of state budget data performed by Ryan Cantrell, a school choice advocate who helped craft the scholarship program:

–Mobile’s share of state funding increased by nearly eight percent since 2014 while its enrollment shrank by six percent from last year.
–Montgomery’s funding has increased by five percent while its overall student population decreased by more than seven percent.
–And Baldwin’s share of state education dollars increased by a whopping 22.5 percent.

Even a rural system like Tallapoosa County, whose board also called for the scholarships to be repealed, has seen its funding grow by seven percent while its enrollment shrank by nearly four percent since 2013, according to Warren Callaway, executive director of Scholarships For Kids.

As for the scholarships? The program represents only one-half of one percent of the state’s multi-billion-dollar education trust fund, which we just learned grew by $428 million, or nearly seven percent, over last year, according to AL.com.

Still, some school system officials claim that keeping 99.5 percent of an ever-growing budget for business as usual isn’t enough.

They want it all.

“We’re tight. Things are short,” said Montgomery Public School Board member Melissa Snowden in a WSFA report. “You know we have a lot of needs and so every bit counts.”

We’ve heard from the school boards, but what do parents and students think of the scholarships?

Ask Mobile County resident and mother-of-five Alleane West.

“It was a relief that nobody would understand,” West said in an Alabama Opportunity Scholarship video about the program’s impact on her family. “You know, you’re a single mom with boys trying to not make them a statistic.”

West’s oldest son, Nick, used the scholarship to attend McGill-Toolen High School where his classmates named him “Most Likely to Succeed.” He earned a 32 on his ACT and a full scholarship to the University of Alabama in Huntsville.

“It is hard when you are a parent trying to raise men, and to keep them away as much as possible from what is really out there,” West said.

Ask a Montgomery County parent.

“When my son Carlos was in the fifth grade, he was constantly bullied and I wanted to desperately put him into a private school,” wrote Nyenya Webster in Alabama Daily News, adding that the scholarship “has been a lifesaver for my son.”

“He graduates in two years and is now considering college,” she said. “My son never talked about going to college before …”

And ask a parent in Baldwin County, where you’ll find no failing schools and relatively few scholarship recipients, but where bullying is still a painful reality like anywhere else.

“To witness what this opportunity has done for my son emotionally, has been the best experience I could have as a parent,” said Lauren Hunter, who pursued a scholarship when she learned what her son was enduring at his old school. She said he feels “safe” and has flourished in Catholic school.

Despite the successes that families have experienced, David Tarwater, who offered the resolution shortly before his term recently ended on the Baldwin County Board of Education, believes the program is “stealing money” from students.

“There’s no way to fix it,” he said in a Lagniappe article. “We’re asking for this thing to die and to die a quick death.”

But if this program dies, so may the dreams of thousands of low-income Alabamians who seek nothing more than to put their children in the best learning environment possible – a choice that higher incomes families have always had.

Remember the parable Nathan told King David? A rich man had a great many sheep, yet took a poor man’s only beloved lamb to feed a visitor.

Ask yourself: since Alabama public education gets the overwhelming lion’s share of a growing state budget, and low-income scholarship recipients get only one half of one percent … who is who in the parable?

Rachel Blackmon Bryars is a senior fellow at the Alabama Policy Institute. Contact her at rachel@alabamapolicy.org.