Accountability Concerns Surface at Moscow Town Hall on Tax Credit

Moscow residents voiced accountability concerns during a town hall meeting on Wednesday regarding Idaho’s new tax credit aimed at subsidizing private education. The gathering, hosted by the Mountain States Policy Center (MSPC) at the 1912 Center, focused on the implications of House Bill 93, which allocates $50 million in state funding to help families cover costs associated with nonpublic schooling, including homeschooling.

The tax credit, effective from January 15, 2024, offers families up to $5,000 to offset educational expenses. MSPC, a nonprofit organization that promotes free-market principles, conducted the meeting to provide clarity on the tax credit’s rules and application process. MSPC President Chris Cargill addressed questions about the program’s accountability measures.

Cargill emphasized that the tax credit is directed to families rather than educational institutions. Consequently, House Bill 93 does not mandate that schools meet specific performance standards. Families benefiting from the tax credit must maintain a “portfolio of evidence” documenting their child’s educational progress, particularly for those not enrolled in accredited schools. This portfolio should reflect advancements in subjects such as science, math, social studies, English, and language arts. While transcripts from private schools can contribute to this portfolio, the criteria for assessing educational growth among homeschooled children remain less defined.

To gauge the program’s effectiveness, the state’s Legislative Services Office plans to distribute surveys to participating families. Cargill reminded attendees that misuse of the tax credit could lead to audits and potential tax fraud charges. Families must provide receipts for their expenses, and homeschooling parents cannot claim the credit for personal compensation. “You cannot just take this money and go on a trip to Hawaii with it,” Cargill stated.

Approximately 8,000 students are expected to participate in this program, which is exclusive to Idaho residents whose children are not enrolled in public schools. The introduction of House Bill 93 has sparked considerable debate, particularly among public school advocates who argue that it diverts taxpayer funds away from public education. Many attendees at the town hall echoed this concern.

The Moscow School District is actively challenging the tax credit program through a lawsuit, claiming it violates the state constitution. According to the lawsuit, the Idaho Legislature is obligated to “establish and maintain a general, uniform and thorough system of public, free common schools.” In response, Cargill defended the tax credit by noting that the allocated funds are relatively minor compared to the overall budget for public K-12 education. He pointed out that tax credit funds and public education expenditures are distinctly categorized within the budget.

When questioned about Idaho’s ability to finance such a program amidst a $58 million budget deficit, Cargill highlighted the state’s increasing tax revenues, despite a decrease in federal funding. The tax credit operates on a first-come, first-served basis but prioritizes families with a modified adjusted gross income not exceeding 300% of the federal poverty level.

As the program prepares to launch, the ongoing conversation about its implications for public education funding continues to unfold, reflecting the complexities inherent in educational policy and funding in Idaho.