The start of the 2022-23 school year marks the dawn of new educational opportunities for students across Montana. The Tax Credit for Qualifying Educational Contributions program will send its largest number of scholarship recipients ever to quality, K-12, nonpublic schools this fall. For these students, the beginning of this school year means a new beginning. In other words, new opportunities to succeed academically and pursue your dreams.

We are thrilled with these students and can’t wait to see what they achieve. As staunch believers in state legislatures, we also know that there is still much work to be done.

Like many other states, Montana’s scholarship program is made entirely by private donations from businesses and individuals to state-approved, non-profit Student Scholarship Organizations (SSOs). Individual or corporate taxpayers who contribute to these organizations receive a state tax credit of $1 for every dollar they contribute, providing strong incentives to support educational opportunities for disadvantaged students.

These contributions will be used for scholarships for K-12 nonpublic school students. Priorities are usually based on economic need. For example, ACE Scholarships, Montana’s largest SSO, offers scholarships to students whose income levels are below 250% of federal poverty guidelines, or about $69,000 for a family of four.

Until recently, the program was plagued with unnecessary restrictions. For example, the law restricted donors from giving more than $150 a year. Considering that the average tuition fee for nonpublic schools in Montana is $6,000 to $8,000 per year, it would take about 50 donors to fully cover the tuition fees for one student. . educate children

This was not an efficient way to run the program and as a result only a handful of students received a meager scholarship in the first few years of the program.

HB 279, enacted in 2021, addresses many of these issues. The annual giving limit for businesses and individuals has been increased from $150 to $200,000, allowing for larger donations from generous donors and helping to fund students in need and contribute to the program. Offer stronger incentives. We have also removed scholarship size limits, allowing us to provide more meaningful scholarships to struggling families.

Additionally, because the cost of this program is significantly lower than the total cost of public education, these scholarships reduce the tax burden on the education system and provide more resources for students who choose to attend public schools. .

The program is currently capped at $1 million in 2022, with plans to expand to $2 million next year. It then increases by 20% each year that SSO is able to raise 80% of the cap.

These changes are proving vitally important for hundreds of Montana children.Entering the 2022-2023 school year, about 250 new scholars will pass HB 279 without Start your educational journey at a new school that you would never have reached. From there, it’s up to them to write their own success. story.

As we watch these students grow in their new surroundings, we hope one day to bring the same opportunity to many other children who are still waiting for help. We are excited that the semester will bring the first round of Montana scholarships under our newly expanded program. I am grateful for the opportunity to play a role in making their educational dreams a reality.

The House Education Committee is chaired by Rep. Seth Berglee of R-Joliet. R-Lockwood Rep. Sue Vinto is the Majority Leader and a member of the House Education Committee.