Mississippi News

Mississippi Legislature Passes Private School Tax Credit Bills Amid Education Policy Deadlock

Legislation related to school choice in Mississippi has largely stalled this session, but bills expanding a state tax credit program for private school donors have passed both chambers of the Legislature and are headed to final negotiations, according to lawmakers.

The Children’s Promise Act, enacted in 2019, allows donors to receive dollar-for-dollar tax credits worth up to 50% of their state tax liability. Since 2020, it has provided funding to private schools and foster care organizations. Half of the credits are designated for donations to foster care services, while the other half support private or specialized schools serving foster children, students with disabilities, or those eligible for free or reduced-price meals.

House Ways and Means Chairman Trey Lamar, a Republican from Senatobia, has long sought to increase the program’s funding cap, which is currently set at $18 million annually. An attempt this year to raise the cap to $40 million by 2028 through House Bill 1944 failed. However, an amended version passed by the Senate removed the cap increase but added provisions for more tax credits for special-purpose schools, creating three categories of eligible organizations and allocating an additional $6 million for those schools.

Senator David Blount, a Democrat from Jackson, proposed an amendment to exclude private schools from the program, arguing it would benefit nonprofits serving foster youth and students with disabilities instead. That amendment was defeated by a narrow margin. The bill now proceeds to negotiations, where further changes are possible, as noted by longtime Senator Hob Bryan, who expressed concern over the state’s tight budget and the shifting priorities on public funds and private school support.

This bill’s passage coincides with a broader education policy debate in Mississippi. While proposals allowing parents to use state tax dollars for private school tuition have failed, bills increasing teacher pay remain active. Additionally, a Senate-passed bond bill, House Bill 4067, includes language related to the Children’s Promise Act and could see amendments during negotiations. Lamar indicated he has filed the legislation multiple times due to the program’s critical importance across the state.

Despite legislative efforts, the state’s education policy remains in flux, with some lawmakers questioning the fiscal implications of diverting public funds to private and specialized schools amid a tight budget. Lamar defended the measures, calling the Children’s Promise Act a beneficial piece of legislation that does no harm, despite opposition from some legislators concerned about fiscal responsibility.

Source: Original Article