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Parent Advocate
Volume 20, Issue 3 April, 2013

Nebraska Federation of Catholic School Parents

Nebraska Catholic Conference Affiliate Program

SCHOLARSHIP TAX CREDIT EFFORTS RESUME

On Jan. 10, Senator Bob Krist of Omaha introduced LB 14, the Elementary and Secondary Educational Opportunity Act, a bill designed to help families pay for more school options, through scholarship programs supported by a state tax credit. Senator Bill Kintner of Papillion co-sponsored this bill. The bill provides for a state income tax credit for donations to scholarshipgranting organizations, nonprofit entities established to provide scholarships to low and middle-income families. Eligible families would have to 1) reside in Nebraska; 2) satisfy the means test (household income within 300% of the federal free or reduced lunch standard); and 3) have one or more children who are either entering kindergarten or ninth grade, or transferring from public to private schools. On March 5, 2013, the Revenue Committee held a public hearing on LB 14. Proponent witnesses included: Kent Bieker (President of NFCSP) of Falls City, Fatima Rivera of Lincoln (Sacred Heart Parish), Paul Evans of Lincoln (Faith Lutheran School and Church), Rev. Ramon Decaen of Lincoln (Cristo Rey Parish), Heather Doxon of Lincoln (Faith Lutheran), and Jeremy Murphy, Nebraska Catholic Conference. Opponents included representatives of the Nebraska State Education Association (public school teachers union), the Nebraska Association of School Boards/ Nebraska Council of School Administrators, Nebraska Secular Advocates and the Lincoln PTA. Americans United for Separation of Church and State (Omaha chapter) submitted a letter opposing the bill. Kent Bieker emphasized that 12 states have tax-credit-supported scholarships and that Nebraska Catholic schools save state taxpayers $300 million annually by educating children. Fatima Rivera spoke of the 9,000 scholarships that are provided each year by the Iowa tax-credit scholarship program and testified that she loves the community of her school. Paul Evans spoke of the 37,933 students attending private schools in Nebraska and the $406 million per year this saves state taxpayers. Fr. Decaen spoke of Catholic education helping families to best educate their children and to meet their individual educational needs. He mentioned of Cristo Rey having ties to seven Catholic schools in Lincoln. Heather Doxon spoke as a single mother who could benefit from LB14 if it were passed. She spoke of private schools providing the best educational setting for many children, including her daughters. LB 14 was not selected as a priority bill. It is held by the Revenue Committee. As long as the Committee does not indefinitely postpone the bill, it will carry over to 2014. The committee could advance the bill to the full Legislature and it would start next years session ready for floor debate.
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BISHOP PRAISES CATHOLIC SCHOOLS FOR ROLE IN EVANGELIZING

Washington D.C., Jan 30, 2013 (CNA).- In a statement commemorating Catholic Schools Week, Bishop Joseph P. McFadden of Harrisburg, Pa., lauded Catholic schools for helping evangelize the nation. It is a challenging education in an atmosphere where Jesus Christ is the center, the chair of the U.S. Bishops' Committee on Catholic Education said Jan. 29. The unique atmosphere of our Catholic schools is a space and place where the New Evangelization can reach out to parents and children in a way that is respectful of the human person, presents the teachings of the Church, and supports family life. Bishop McFadden pointed out that the more than 6,800 Catholic schools in the U.S. reach 2 million students daily. He thanked the 151,000 people who choose to teach at these schools, giving a witness of love and commitment to parents and young people. He said Catholic schools in the U.S. have a rich history in supporting evangelization. The intention of Catholic education is to offer the life giving Word of the gospel in an environment that shows respect for the human person, the virtues of good citizenship and academic excellence. In this Year of Faith it is important to remember that our Catholic schools are centers for the New Evangelization for families of a variety of socio-economic backgrounds and diverse cultures, he said. He said the ethnic diversity at Catholic schools, as well as the 15 percent of non-Catholic pupils, creates a rich environment for catechesis and cultural diversity. Bishop McFadden also used his letter to thank the parents who choose Catholic schools and all those who support Catholic education.

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April 2013

FISCAL CLIFF DEAL MAKES COVERDELL SAVINGS ACCOUNTS PERMANENT

On Jan. 1, Congress approved a fiscal cliff deal in the American Taxpayer Relief Act of 2012. A major breakthrough was achieved in making Coverdell Education Savings Accounts (ESAs) permanent. These ESAs allow families (including parents, grandparents, and other relatives) to earn taxexempt interest on up to $2,000 in annual savings to be used for expenses, including tuition, associated with elementary, secondary or post-secondary education in public or private schools. Before this deal was reached, the authorization for Coverdell accounts was being extended in two-year periods. First enacted in 2001, Coverdell accounts are the first and only measure of federal tax relief that specifically helps parents with the costs of a childs education in a private elementary or secondary school. Religious schools are included. Although the benefits
(Scholarship continued from page 1)

provided by Coverdell accounts are modest, their historical significance is unmistakable. ESAs are named for the late Paul Coverdell, a Georgia Republican U.S. Senator.
How ESAs Work

TAX CREDITS FOR PUBLIC SCHOOL SUPPORTERS ONLY?

LB 547, a bill introduced by Senator Rick Kolowski of Omaha, proposes to create a state income tax credit for donations to public school districts for extracurricular activities and character education programs. The bill does not authorize credits for supporters of private school activities. Unlike some previous educational-expense tax-credit bills, LB 547 only allows for the credit if donors make cash donations to school districts. The character education would have to be provided after-school in order to qualify for the credit (character education is provided by Catholic schools during school hours). The limits on the nonrefundable credit would be $500 per individual or $1000 per married couple. Covered extracurriculars would include school-sponsored activities that charge a fee, band uniforms, equipment or uniforms for varsity athletic events, scientific laboratory materials, and in-state and out-of-state trips that are solely for competitive events. Obviously, private school students also participate in such activities and competitions at costs to the parents, who also pay tuition in addition to taxes to operate public schools. It would seem logical that a tax credit of this nature should be extended to donors to private school extracurricular activities and should not discriminate between schools. In fact, a stronger case can be made for tax credits for contributions to non-tax-supported entities. Parents incur these costs and dont really receive any significant economic relief for them. As Louisiana Governor Bobby Jindal has said, Let parents vote with their feet without having to sell their house to pay for private schoolTo oppose school choice is to choose an old, antiquated centralized approach that has no relevance to the modern age. To oppose school choice is to put the needs of adults and the status quo above the needs of children.
You can follow us on @nfcsp

The buildup of interest within the Coverdell accounts is tax free; neither the principal nor interest is taxable upon withdrawal if used for qualified educational expenses, which include tuition, fees, academic tutoring, afterschool programs, special-needs services, books, supplies, computers, uniforms, and transportation. Individual taxpayers with modified adjusted gross income under $95,000 and married taxpayers with MAGI under $190,000 can make the maximum allowable annual contribution to an ESA. At higher income brackets, the allowable contribution starts to phase out. Meanwhile...

The 12 states that have a tax-credit scholarship law similar to the LB 14 are: Alabama (just passed this year), Arizona, Florida, Iowa, Indiana, Georgia, Louisiana, New Hampshire, Oklahoma, Rhode Island, and Virginia. The rapid growth of programs throughout the country shows an emerging and growing sense of educational tax justice for parents who pay twice for education, both taxes and tuition. In Nebraska, that sense of economic recognition for parents sacrifices is still lacking. A fiscal analysis by Brian Gottlob, an educational-funding economist, showed possible savings to state taxpayers of $55-80 million over 10 years if LB 14 were passed. This fiscal analysis was distributed to members of the Revenue Committee. NFCSP members are encouraged to make contact with all members of the Revenue Committee to urge them to advance LB 14 to the full legislature for next year. Without broad support being shown for the bill, it will be terminated without any floor debate. Your help is needed!
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Federal Legislation Introduced

A bill to encourage contributions to private school scholarship programs by means of a federal tax credit has been introduced in the U.S. Senate by Sen. Marco Rubio of Florida. Education plays a central role in the 21st century knowledge economy said Senator Rubio. If we want our children to thrive economically, we need to equip students and families with the tools they need to succeed and make it in the middle class and beyond. Parental school choice is a critical piece in this, which is why I introduced the Educational Opportunities Act. This bill will incentivize investment in students and empower parents by allowing more educational opportunities, especially in lowincome households that would otherwise not be able to afford it. Its the kind of incentive that will help improve education in America and prepare our children for the jobs of tomorrow, without additional burdens on the American taxpayer.

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April 2013
Mailing Address

CONTACTING YOUR STATE SENATOR

To e-mail senators through the Nebraska Legislative webpage at http://nebraskalegislature.gov, use the legislators first initial plus their last name followed by @leg.ne.gov,
Dist. Senator 1 Watermeier, Dan 2 Kintner, Bill 3 Price, Scott 4 Pirsch, Pete 5 Mello, Heath 6 Nelson, John E. 7 Nordquist, Jeremy J. 8 Harr, Burke J. 9 Howard, Sara 10 Krist, Bob 11 Chambers, Ernie 12 Lathrop, Steve 13 Cook, Tanya 14 Smith, Jim 15 Janssen, Charlie 16 Brasch, Lydia 17 Bloomfield, Dave 18 Lautenbaugh, Scott 19 Scheer, Jim 20 Ashford, Brad 21 Haar, Ken 22 Schumacher, Paul 23 Johnson, Jerry 24 Adams, Greg L. 25 Campbell, Kathy Capitol Phone (402) 471-2733 (402) 471-2613 (402) 471-2627 (402) 471-2621 (402) 471-2710 (402) 471-2714 (402) 471-2721 (402) 471-2722 (402) 471-2723 (402) 471-2718 (402) 471-2612 (402) 471-2623 (402) 471-2727 (402) 471-2730 (402) 471-2625 (402) 471-2728 (402) 471-2716 (402) 471-2618 (402) 471-2929 (402) 471-2622 (402) 471-2673 (402) 471-2715 (402) 471-2719 (402) 471-2756 (402) 471-2731 Room 1404 1115 1202 1101 1004 2107 2004 1120 1523 2108 1114 2000 1208 1118 1403 1016 1206 1021 1117 1103 1018 1124 1529 2103 1402 City Syracuse Papillion Bellevue Omaha Omaha Omaha Omaha Omaha Omaha Omaha Omaha Omaha Omaha Papillion Fremont Bancroft Hoskins Omaha Norfolk Omaha Malcolm Columbus Wahoo York Lincoln Dist. Senator 26 McGill, Amanda 27 Coash, Colby 28 Avery, Bill 29 Bolz, Kate 30 Wallman, Norm 31 Kolowski, Rick 32 Karpisek, Russ 33 Seiler, Les 34 Dubas, Annette 35 Gloor, Mike 36 Wightman, John 37 Hadley, Galen 38 Carlson, Tom 39 McCoy, Beau 40 Larson, Tyson 41 Sullivan, Kate 42 Hansen, Tom 43 Davis, Al 44 Christensen, Mark R. 45 Crawford, Sue 46 Conrad, Danielle 47 Schilz, Ken 48 Harms, John N. 49 Murante, John

Senator ________________ District # ________ State Capitol P. O. Box 94604 Lincoln, NE 68509
Capitol Phone (402) 471-2610 (402) 471-2632 (402) 471-2633 (402) 471-2734 (402) 471-2620 (402) 471-2327 (402) 471-2711 (402) 471-2712 (402) 471-2630 (402) 471-2617 (402) 471-2642 (402) 471-2726 (402) 471-2732 (402) 471-2885 (402) 471-2801 (402) 471-2631 (402) 471-2729 (402) 471-2628 (402) 471-2805 (402) 471-2615 (402) 471-2720 (402) 471-2616 (402) 471-2802 (402) 471-2725 Room 1212 2028 1423 1522 1406 1528 1015 1017 1110 1401 2010 1116 1210 2015 1019 107 1012 1117 1000 2104 1008 1022 2011 1115 City Lincoln Lincoln Lincoln Lincoln Cortland Omaha Wilber Hastings Fullerton Grand Island Lexington Kearney Holdrege Omaha ONeill
Cedar Rapids

North Platte Hyannis Imperial Bellevue Lincoln Ogallala Scottsbluff Gretna

BILL RESTRICTING PRIVATE SCHOOL ACTIVITIES DANGEROUS PRECEDENT

LB 356, a bill introduced by Senator Russ Karpisek of Wilber, proposes to unnecessarily restrict private schools from participating in interscholastic extracurricular and cocurricular activities (including athletics and fine and performing arts) unless they admit all students with disabilities (as defined by state law). In order to be excluded from this proposed, excessively intrusive mandate, private schools would have to reimburse the resident public school for actual expenses in providing special education services and provide or pay for transportation services associated with special education services. This bill conflicts with state and federal laws directing the provision of special education services. This is a responsibility assigned by law to public school districts, for which they are paid federal and state funds. Any expectation that non-governmental schools should be coerced to provide special-education services is illogical and ignores the governmental mechanisms for delivery and funding. Perhaps Sen. Karpisek is unaware that two special-purpose Catholic schools, Villa Marie in Waverly and Madonna School in Omaha, were providing special education services for years before the federal law passed in 1975 (now known as the Individuals with Disabilities Education Act) required it. Villa Marie opened in 1964. Madonna School was open by 1970. Of students with disabilities attending Catholic schools, there are a range of varying disabilities, but perhaps the most common service provided through public school districts is speech therapy. It would be unfortunate for private schools and students to be punished for relying upon state and federal laws governing special education. The bill as written would disqualify Catholic schools (and other private schools) from participating in activities that are governed by the Nebraska State Activities Association (NSAA). Private-school participation in NSAA activities, allowing for competition between schools, is longstanding and should not be manipulated.

NFCSP: CELEBRATING OUR 20TH YEAR

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NEBRASKA FEDERATION OF CATHOLIC SCHOOL PARENTS Identity Unity Collaboration Empowerment Nebraska Catholic Conference Affiliate PO Box 94872 Lincoln NE 68509-4872

NON-PROFIT ORG. US POSTAGE PAID LINCOLN, NE PERMIT NO 985

BILL WOULD HAVE HIT PRIVATE SCHOOLS WITH COSTS

Under longstanding Nebraska law, retail purchases by private, parochial and denominational elementary and secondary schools are exempt from state and localoption sales and use taxes. Legislative Bill 405 proposed to terminate this exemption, as well as many others, including a similar one available to churches and religious organizations. In essence, LB 405 would have caused churches and private, parochial and denominational schools to incur the cost of sales tax on all retail purchases other than unprepared food. The other major element of LB 405 was its proposal to use the expanded sales-tax base as an offset for repealing the state income taxes. The Nebraska Catholic Conference, which represents the mutual interests and concerns of the three Diocesan Bishops, presented testimony to the Legislatures Revenue Committee in opposition to LB 405. NCC pointed out that LB 405, if enacted, would have shattered a public trust that has existed since the Nebraska Revenue Act was first enacted in 1967. Parent Advocate
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In recognition of providing an alternative an initiative to make taxation the subject to governmentally operated and funded of a special study committee of the Legschools, thereby saving taxpayers hunislature, to be known as the Tax Moddreds of millions of dollars in costs for ernization Committee. That idea is public education, privately operated now contained in LB 613, which is likeschools are relieved of the financial bur- ly to be enacted. Exemptions will no den of the sales tax. In response to LB doubt be included in the study. 405, several Catholic schools around the state calculated an annual cost of Catholic Schools Significant Role several thousand dollars. The financial impact would be especially harsh Total Nebraska Schools Pre-K-12 1,270 Government-Operated Schools 1,044 in terms of material costs for conPrivate Schools 226 struction and renovation projects. Catholic Schools 118 LB 405 also smacked of unfairness: purchases by public school Nebraska Enrollment Pre-K-12 339,382 districts, also exempt now, would Public School Students 272,479 have continued to be exempt. In othPrivate School Students 37,547 er words, the legislation proposed to Catholic School Students 29,356 make private schools pay sales tax on purchases made to carry out the same Omaha Archdiocese Grand Island Diocese 58 Elementary 6 Elementary essential educational function as pub18 High Schools 3 High Schools lic schools, which would continue to be tax-exempt. Lincoln Diocese Source: Nebraska Department of LB 405 was indefinitely post27 Elementary Education: Archdiocese of Omaha, Diocese of Lincoln, 6 High Schools poned by the Revenue Committee. Diocese of Grand Island However, the issues it raised sparked

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http://nebcathcon.org/education_issues.htm