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First Round Debate Begins On Tax Credit-Funded Scholarships For Private Or Religious Schools

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     The Nebraska Legislature opened debate Monday on State Senator Lou Ann Linehan’s latest attempt to authorize what she calls “Opportunity Scholarships,” tax-credit funded scholarships to help children attend private or religious schools.

    The bill would give taxpayers who donate to a qualified organization a dollar-for-dollar tax credit, up to $100,000 or half of their income tax liability, whichever is less.

     Linehan told her colleagues public schools do a good job for many students, but some need a different approach and that giving more students the chance to attend private or religious schools would improve public schools, through competition.

     Priority for scholarships would go to students from low-income families, those denied school choice transfers, and special education students.

     Also getting priority would be students being bullied or in foster care, and children with parents in the armed services or with a parent killed in the line of duty.

     One line of attack by opponents was the dollar-for-dollar tax credit, a level far above all existing programs. A person owing at least $200,000 in taxes and donating $100,000 for a Linehan scholarship would claim a $100,000 tax credit. 

     The same person giving $100,000 to public school foundation would get a maximum tax deduction of $6,600 – 15 times less than they’d get under Linehan’s proposal. 

    Opponents also objected to public tax dollars being spent for religious education, since Catholic schools require some religious courses. 

      They also complained that Catholic schools in the Omaha archdiocese have policies that discriminate against gay and transgender students. 

      Three more hours of debate are expected today, followed by 2 tomorrow – at which point supporters can file a cloture motion to cease debate and take a first-round vote on the bill itself.