Colorado lawmakers have been working to close a budget gap of more than $1.5 billion, and programs students and families rely on are under pressure. At the same time, a new federal tax credit gives Colorado a chance to bring substantial philanthropic dollars into education without drawing from the state’s general fund.
The Education Freedom Tax Credit allows taxpayers to receive a federal tax credit of up to $1,700 annually for charitable contributions to scholarship-granting organizations that support K-12 students. Essentially, the program encourages private giving to step in where public funding is falling short, at no extra cost to taxpayers.
The tax credit’s flexibility makes it especially powerful. Nonprofits can provide scholarships of any amount for a range of education-related expenses beyond tuition. One student may receive $1,000 for after-school tutoring, while another could receive $5,000 for special education services that supplement what they receive at their public school. Other eligible expenses include enrichment programs, transportation, advanced coursework fees, and career and technical education, to name just a few.
These wraparound services for public school students are often the first to go when budgets tighten, even though they’re the very programs that help students catch up, stay engaged and think about what comes next. Just this year, the Joint Budget Committee cut funding for before- and after-school programs serving thousands of students across the state and reduced support for a math and science tutoring initiative aimed at closing gaps that still persist from the pandemic.
This tax credit could replace — and significantly expand — funding for state-subsidized programs now on the chopping block.
A new Common Sense Institute (CSI) analysis finds that even modest participation could generate substantial funding for Colorado students. If only 5% of eligible taxpayers participate, the program could generate $164 million annually for education-related expenses; at 10%, roughly $329 million.
Even as scholarships can support families attending private schools, CSI’s analysis finds the program could also direct more than $66 million to public school students in just the first year — supporting academic interventions, after-school enrichment, career-connected learning and more.
This is not just good for families. It is also an investment in Colorado’s workforce. By 2031, 73% of jobs will require some postsecondary education, according to CSI analysis, yet only 66.5% of Colorado-born adults meet that threshold — leaving a gap of more than 79,000 people. The state can close that gap by expanding access to educational opportunities that ensure students from diverse backgrounds develop the skills needed to succeed in a rapidly changing economy.
Importantly, the Education Freedom Tax Credit does not prescribe a single model of schooling. It creates new resources that help students access tutoring, advanced coursework and special education services from whatever learning environment they are in.
Ready Colorado has long supported policies that prioritize student outcomes and encourage innovation. Programs that empower families to choose the best learning environment for their children put students — not systems — at the center of education.
For Colorado, this program is a natural fit. Over the past 30 years, the state has embraced school choice. According to a Ready Colorado study, nearly 40% of public school students, about 347,000, attend a school other than their residentially assigned one. Families across the state are already navigating a range of educational options; this program simply gives them more tools to make those choices work.
The opportunity to strengthen our education system with philanthropic dollars that serve all students, whether in public, private or homeschool settings, is one of the most compelling we’ve seen in years.
Even more, Colorado’s economy will get a boost along with its students. If 10% of eligible households participate, the program could support 8,000 jobs and generate billions in economic activity through 2031. But those benefits depend on whether Colorado will take full advantage of it.
Gov. Jared Polis recognizes the importance of high-quality educational opportunities and the potential of the Education Freedom Tax Credit to bring additional resources to learners across Colorado. That is why he opted the state into the program. The legislature appears to support that decision as well. Lawmakers recently made the right call to postpone indefinitely legislation that would have introduced significant barriers for the program.
Yet the leading Democratic gubernatorial candidates have expressed opposition to the tax credit, with U.S. Sen. Michael Bennet signing onto a congressional bill to repeal it. Colorado is currently on the right track to encourage taxpayers to direct their hard-earned dollars toward students rather than the IRS. But if Colorado fails to create a clear pathway for these contributions to reach classrooms — or backs away from participation — we risk losing these funds to other states.
In a year defined by budget cuts, Colorado can either put these dollars to work for its students or watch them flow to other states that will.
Brenda Dickhoner, of Littleton, is the president and CEO of Ready Colorado, where she leads policy initiatives to expand school choice, improve student outcomes and empower families.
The Colorado Sun is a nonpartisan news organization, and the opinions of columnists and editorial writers do not reflect the opinions of the newsroom. Read our ethics policy for more on The Sun’s opinion policy. Learn how to submit a column. Reach the opinion editor at opinion@coloradosun.com.
Follow Colorado Sun Opinion on Facebook.
Hence then, the article about opinion colorado should make the most of a new federal education tax credit was published today ( ) and is available on Colorado Sun ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Opinion: Colorado should make the most of a new federal education tax credit )
Also on site :