Greg Marrero Student Counselor, Graduate Student Services | Edward J. Bloustein School of Planning and Public Policy
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E. F. Cullerton | Jun 17, 2024

New Jersey withdraws controversial private school tuition tax credit plan

Lawmakers introduced the "New Jersey Student Support Act" in early April, aiming to allow students to attend private schools at public expense. Last week, sponsors withdrew their bill after what they described as overwhelming opposition from stakeholders. The bill never reached a committee vote.

The proposed legislation would have allocated $37.5 million annually in tax credits for scholarships, which critics labeled as school vouchers—a mechanism used nationwide to divert funds from public schools and privatize education.

The bill intended to establish a program within the Department of Treasury to provide tax credits to taxpayers contributing to organizations that award scholarships to nonpublic school students. Residents could have used these funds for private school tuition. This money would otherwise support state programs and services, including K-12 public schools, healthcare, and property tax relief. Eligibility was set for families with household incomes not exceeding 2.6 times the federal income guidelines for reduced-price lunch.

Opponents argued that despite the absence of the term "voucher" in the bill, it essentially constituted a private school voucher program. Julia Sass Rubin, an associate professor at Rutgers University's Edward J. Bloustein School of Planning and Public Policy, stated there are three types of vouchers: direct vouchers, savings accounts, and tax credits—the latter being the most common form nationwide.

“There’s no difference," Rubin said. "It’s just a mechanism difference in terms of how you set up the pay structure. You’re taking public dollars and you’re directing them to private and religious education, which is what a voucher is.”

Advocates like Borst viewed the bill as an attack on public schools and a push towards privatizing education.

“Once you open the door policy-wise to vouchers in the state they tend to expand dramatically going forward," Rubin noted. "They become a substantial tax on the state budget and on the public school system."

Rubin cited Arizona's experience where a school voucher program grew from $57 million in 2012 to $218 million by 2022 after offering families approximately $7,000 annually for private school tuition—resulting in some private schools raising their fees significantly.

An open letter urged New Jersey lawmakers to consider other states' experiences as cautionary tales regarding school vouchers.

“They don’t work; they become exorbitantly expensive; they hurt public schools; and they lead to discrimination," Rubin emphasized. "The real question is: Why would you promote this bill?”

Most sponsors were Democrats traditionally supportive of public schools nationally. Rubin suggested this was initially surprising but understandable given New Jersey's transactional political landscape driven by political machinery.

Ultimately, she attributed lawmakers' withdrawal of support to overwhelming criticism from various advocacy groups beyond just public school proponents—including immigrant justice supporters, LGBTQ+ advocates, fair housing activists, and environmental protectors.

However, lawmakers such as Swain and Gopal indicated interest in continuing discussions on school choice without immediate legislative action.

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