‘Comptroller Projects Budget Shortfall for City,’ ‘Paterson’s Tax Cap Plan May End Up Costing City’

Two recent articles in the Sun caught my attention: “Comptroller Projects Budget Shortfall for City” [New York, July 28, 2008] and “Paterson’s Tax Cap Plan May End Up Costing City” [New York, July 24, 2008].

There is an unspoken link between these two columns, one that can help both the governor and the city.

The Educational Tax Incentives Act (S.3627-A/A.6432-A) is a forward-thinking legislative proposal introduced in Albany by State Senator Serphin Maltese and Assemblyman Dov Hikind. Among its features is a provision to give a substantial tax credit for voluntary donations to public education entities in New York State.

Based on projections by the New York State Department of Taxation and Finance, this bill could help New York City public schools raise tens of millions of dollars annually. This would be money that the city would not have to provide, thus easing the pressure on the budget.

At the same time, every school district in New York State would be encouraged to solicit similar tax-advantaged donations. A provision to help low-wealth districts is included in the bill.

Thus, New York City taxpayers would not have to come to the rescue of suburban and upstate districts. For the suburban and upstate districts, the money collected under this bill would be voluntary donations, and thus not limited by any tax cap.

The bill also allows a somewhat less generous tax benefit for New Yorkers who donate to private scholarship funds. This can keep open those nonpublic schools that might be in danger of having to close.

Over the past several years dozens of nonpublic schools have shut their doors, with many of their former students having to continue their education at taxpayer expense. The Maltese-Hikind bill can help halt this dangerous and very costly trend, thus saving New York taxpayers millions of dollars each year.

The senate appears ready to approve the Educational Tax Incentives Act. Now is the time for Governor Paterson and Assembly Speaker Silver to look beyond the special interest groups that oppose any meaningful reform and to declare their support for this measure, for the good of New York City, the rest of the state, and all New York taxpayers.

TIMOTHY MULHEARN

President

United New Yorkers for Choice in Education

Hempstead, N.Y.