The Georgia legislature is currently considering a scholarship donation tax credit program that would allow individuals and businesses to give money to non-profit scholarship granting organizations that make it easier for parents to afford independent schooling for their kids.


In arguing against the bill, the head of the state’s public school employee organization, Jeff Hubbard, had this to say: “Our opposition is [to] taking state funds, taxpayer income, and giving it over to private schools.”


Umm.… The thing is, state funds and taxpayer income are not interchangeable terms, however much public school employee organizations might wish them to be. You see, you aren’t entitled to all taxpayer income — or even to all state funds — but just to those funds appropriated by the state in taxes and then allocated to the business of running public schools. When taxpayers claim a tax credit for a donation to help low income kids, no money ever enters the state’s coffers. So you see, these are in fact private funds.


For a good discussion of all this, see the Arizona Supreme Court’s ruling in Kotterman v. Killian (.pdf), upholding that state’s scholarship donation tax credit program, in part, on the grounds that the donated funds are not state money.