HB 1 lets Kentucky participate in a new federal tax credit program that helps families access more education options for their kids. Here’s the important part: this doesn’t cost the state a dime, and it doesn’t cost taxpayers a dime either. It’s a dollar-for-dollar federal tax credit, up to $1,700, for donating to a scholarship organization. The donor gets that money back on their federal taxes. No state funds are involved, and no dollar is diverted from a public school budget. HB 1 simply designates Kentucky’s Secretary of State to administer the state’s participation.
These scholarships aren’t just for private school tuition. A student who stays enrolled in their public school can use this money too, for tutoring, school supplies, and other support. For a lot of struggling public school districts across Kentucky, this could mean real new dollars flowing in to help their students. And because these funds can cross state lines, I envision poor school districts not only getting their own residents to participate and give them $1,700 per taxpayer, but I see them marketing this to taxpayers from California to New York.
HB 1 was Sponsored by Rep. Kim Moser, with more than a dozen House co-sponsors, including me. The Governor vetoed the bill, and the General Assembly overrode that veto, passing it 77-14 in the House and 31-5 in the Senate.
Kentucky families deserve options, and this one doesn’t cost our public schools a cent, it might just bring some in.
