No rules yet on Oklahoma's new private school tax credit, but they're coming

Rodney Burchett, head of school at Life Christian Academy, is preparing for a significant growth spurt at his Choctaw private school, where enrollment is currently about 130 students.

“I think we have the possibility next school year of being close to capacity,” said Burchett, who defined capacity at about 230 students. “I think a lot of those (new students) will be from families making $100,000 (a year) or less.”

That’s the kind of growth supporters of a new tax credit for private school students envisioned when they pushed through one of the most significant overalls of Oklahoma education earlier this year.

Beginning next year, families with children in a private school will receive a refundable tax credit to use for tuition. A household making less than $75,000 a year will be eligible for $7,500. The tax credit shrinks the more money a household makes, with a floor of $5,000 available to families making more than $250,000. A $1,000 tax credit will be available for each home-schooled child regardless of income.

More: Why some Oklahoma parents who homeschool their children are not in favor of state support

Critics of the tax credit — both Democrats and Republicans — claim it will mostly subsidize the tuition of affluent families already sending their children to large private schools.

"This year’s voucher scheme siphons money directly out of our public schools and uses it to help pay for private institutions," said state Sen. Carri Hicks, an educator and Oklahoma City Democrat.

Tuition at some of the state’s largest and more notable private schools can top $25,000 a year, making the tax credit just a small discount for lower-income families who likely won’t be able to afford the remaining balance.

But it’s the state’s smaller private schools — with tuition closer to $6,000 and $7,000 annually — that could see the biggest impact.

“We do expect to see about a 10% (annual) growth rate because of the tax credit,” said Andy Wilkins, headmaster at Oklahoma Bible Academy in Enid, which currently has about 200 students.

“I think (that growth) will really be more from that working class, lower middle-class group because our tuition is only $8,500, so to get a 7,500 tax credit makes us very accessible.”

Tax Commission expects to release details later this month

Several private school leaders told The Oklahoman they don't expect to see much growth this upcoming school year as the details about how the tax credit will be disbursed are not yet known. The state Legislature tasked the Oklahoma Tax Commission with establishing rules and unveiling an "advance" payment program so families can pay private school tuition that may be due before the April tax filing deadline.

Tax Commission officials haven't said whether those advance payments will be available this coming school year, although the agency warned lawmakers earlier this year that the program presented unique and costly administrative challenges.

“We expect to have a full list of FAQs (Frequently Asked Questions) compiled for both press and parents by mid-August,” Emily Haxton, a spokesperson for the commission, told The Oklahoman in a statement last week.

The bill also requires the Tax Commission to work with the Oklahoma State Department of Education to verify a student claiming the credit isn’t still enrolled in a public school.

State schools Superintendent Ryan Walters said the Education Department also will promote the tax credit program to parents on its website, which already has been updated with pro-school choice information since Walters became superintendent in January. However, the agency’s “School Choice” web page still referred to the tax credit bill as a proposal experiencing "ongoing deliberation" in the state Senate as of July 31. The state House, Senate and governor signed off on the bill earlier this year.

Some private schools working with low-income families to delay tuition

Several private schools already are promoting the tax credit to parents with a link to the website of the American Federation for Children, a conservative organization that advocated for the tax credit program.

“Private school is now a financially viable option for every family in Oklahoma,” the AFC’s webpage states, although it also claims less than half of all counties in the state have a private school.

More: Behind the 'grassroots' movement for Oklahoma school vouchers championed by Ryan Walters

Burchett, at Life Christian Academy in Choctaw, said his school has been working with some parents on delayed tuition payments with the understanding that the tax credit eventually will become available.

"We are kind of taking a small gamble that those who qualify for tuition discounts for our school and can't afford to pay (for the first semester) are going to get the tax credit, so we are allowing some of those parents to spread out what they would owe for the (first) semester," Burchett said.

Many of the state's largest private schools with much higher tuition — including Heritage Hall and Casady — declined to comment on the tax credit program, saying they still were waiting for the state to unveil specific rules.

Wilkins, headmaster of Oklahoma Bible Academy in Enid, said he still was waiting to hear more details from the state but believed the new program will open private education to more parents who previously couldn't afford it.

"As an educator, I'm really excited because I see this as a huge step for Oklahoma," Wilkins said. "This is a way to support both (private and public), and that’s what the other states that have a good education system do very well. Public, charter, private and religious, just an all of the above approach."

This article originally appeared on Oklahoman: Oklahoma Tax Commission working on private school tax credit details