2010 Legislative Summary
The School Tuition Organization tax credit program was among those that were to be cut this legislative session. The House of Representatives successfully amended a bill, removing the STO program from the list of cuts. The amendment was then approved by the Senate. As of now, the STO program will remain capped at $7.5 million in tax credits each year. Thank you to all who took the time to voice their concerns to their legislators - you made a difference!
2009 Legislative Recap
Good news! On May 26, 2009, Governor Culver signed a bill which makes a tax credit available to ‘C’ corporations who contribute to nonpublic school scholarships. Previously only individual donors could receive the credit. This will help "
school tuition organizations" made up of Catholic and other accredited, nonpublic schools raise more funds to distribute in tuition assistance to low-income families. We appreciate the governor's and legislature's support for this program, which helps parents choose the school that best fits their child's learning needs.
A total of $7.5 million in tax credits is available for individuals and corporations this year. Those who donate to an STO receive a 65 percent tax credit on their Iowa tax return.
Unfortunately because of the state’s budget problems, funding was cut for textbook and transportation services to nonpublic school students. Funding for textbooks will be $625,634, a $64,351 cut from the previous year, and funding for transportation will be $7,845,479 in FY 2010, a cut of $759,235.
In addition, efforts were made to allow nonpublic schools to use state textbook funds to purchase instructional technology such as computers. The bill did not advance but there are indications from legislators that this will be a viable issue during next year’s session.
Iowa Advocates for Choice in Education
Iowa Advocates for Choice in Education is dedicated to expanding educational options to all Iowa families. It represents school choice supporters and the nonpublic school community in Iowa. The bipartisan organization works for legislation that removes economic barriers to choice and extends school choice to those who were previously without options in education.