Tax credits for private school tuition plan scrapped

June 17, 2024

Lawmakers introduced the “New Jersey Student Support Act” in early April. Their goal was to allow students to attend private schools at public expense.

Last week, after what they said was overwhelming opposition from stakeholders, sponsors pulled their bill. It never came up for a vote in committee.

The bill would have directed New Jersey to spend $37.5 million in tax credits per year for scholarships, which critics said were school vouchers, a tool used across the country to divert money from public schools and privatize education…

The bill would have established a program in the Department of Treasury to provide tax credits to taxpayers contributing to an organization that awards scholarships to nonpublic school students. Residents would have been able to use this money to pay for their children to attend private school.

This is money that would otherwise be directed to state programs and services, including K-12 public schools, health care and property tax relief. Families with a household income that does not exceed 2.6 times the federal income guidelines for reduced price lunch would have been eligible.

Opponents said that even though the word “voucher” isn’t used in the bill, the program is a private school voucher program. Julia Sass Rubin, an associate professor at the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, said there are three types of vouchers: direct vouchers, savings accounts and tax credits. Tax credits, as proposed in the New Jersey bill, is the most common voucher form in the country, she said.

“There’s no difference. 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,” Rubin said…

Borst and other advocates in New Jersey said they view 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 and they become a substantial tax on the state budget and on the public school system. We see this in state after state,” Rubin said.

In Arizona, a school voucher program started with $57 million in 2012 and grew to $218 million by 2022. After the state gave families roughly $7,000 a year to spend on private schools, some private schools began raising their tuition by thousands of dollars, according to The Hechinger Report.

The open letter urged lawmakers to look to other states as a warning of what could happen if New Jersey opened the door to school vouchers.

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

Most of the bill’s sponsors were Democrats, who are known nationally as being supportive of public schools. Rubin, whose research interests include education policy, said while this was initially surprising, it makes sense in the context of how the Legislature works. She said New Jersey politics are largely transactional and driven by a political machine.

Ultimately, she said the criticism likely became too overwhelming for lawmakers to continue supporting the bill. In addition to public school advocates, opponents also included supporters of immigrant justice, LGBTQ+ people, fair housing and protecting the environment.

Still, lawmakers and advocates said this might not be the end of the school-choice discussion in New Jersey. Swain and Gopal both expressed interest in continuing the conversation without a bill on the table.

NJ Spotlight News, June 17, 2024

Recent Posts

NJ Postsecondary Employment and Earnings Dashboard Now Available

The New Jersey Statewide Data System is pleased to release its updated Postsecondary Employment and Earnings Dashboard. This dashboard uses linked, longitudinal administrative data from the Office of the Secretary of Higher Education and the New Jersey Department of...

Rutgers MHA ranked #26 in 2026 by U.S. News and World Report

The Rutgers Master of Health Administration program (MHA) program has been ranked #26 in the nation in the 2026 U.S. News & World Report rankings, climbing two spots from last year and continuing a steady rise from #32 in 2024 and #28 in 2025. “We are incredibly...

Chen et al. Use Google Street View to Verify Cannabis Retailers

Evaluating the Use of Google Street View to Visually Verify the Locations of Cannabis Retailers in the United States Extracted from Websites, 2015–2018 Abstract Our ability to advance public health and policy responses to cannabis legalization is limited by a lack of...

“Work Trends RU” Podcast with Steve Reynolds

Steve Reynolds of Independent Colleges and Universities of New Jersey Guests on Work Trends RU Podcast In the latest episode of Work Trends RU, host Dr. Carl Van Horn speaks with Steve Reynolds, president and CEO of Independent Colleges and Universities of New...