Gov. Lynch has “real concerns” about education tax credit proposal, Nashua Telegraph, Landrigan, 5/23/12

posted May 23, 2012, 12:18 PM by Bill Duncan

CONCORD – A legally valid way to direct private donations to support private schools is on its way to the desk of a dubious Gov. John Lynch.

The state Senate today endorsed House changes made to their own bill that would make New Hampshire the ninth state in the country to give business owners a tax credit for making donations to a nonprofit scholarship program.

The credit would be for 85 percent of those donations against either the 8.5 percent tax on corporate profits or the .75 percent business activity tax.

Those scholarships, an average of $2,500, would go to parents wanting to send their child somewhere other than the assigned public school.

The final proposal would save the state a little money and reduce state aid to local school districts by $3.4 million in the first year.

Lynch’s office said the governor has “real concerns” about the bill but declined to say if he would veto it.

“You are using essentially public money for private education and what would this mean for revenue both at the state and local level,” Press Secretary Colin Manning said of the concept. “These schools have mostly fixed costs whether there are 30 kids in the classroom or 29.”