The best way to support and expand the Opportunity Scholarship Fund (OSF) is for schools administrators, parents and donors to tell legislators how they feel. This page provides information to share with lawmakers.
IT IS TIME TO RAISE THE TAX CREDIT CAP!
OSF provides life-changing opportunities to lower-income K-12 students who would not normally receive a pathway to specialized education.
OSF has provided over 2,900 scholarships to Oklahoma students since 2014. These scholarships are only possible through generous donations from individuals and business leaders in our communities. It is vital we raise the tax credit cap so that we can help more students and donors get the full credit they are owed each year.
In the 2019 legislative session, OSF will be watching several pieces of legislation, including Senate Bill 180, Senate Bill 407 and House Bill 2621. These bills will help ensure donors continue to receive the credit incentive and increase the number of scholarships we can provide to lower-income Oklahoma families.
Each of these bills is an independent effort to raise the tax credit cap for donations from $5 million to at least $25 million.
WHY DOES RAISING THE CAP MATTER?
OSF was notified in February the state’s scholarship granting organizations exceeded the tax credit cap for 2017. The tax credits for donors will be 86.5 percent of the amount of credit earned with their 2017 donation. Raising the cap will allow donors to continue to receive the full tax credit benefit for their donation.
WOULD RAISING THE TAX CAP HELP THE STATE’S BUDGET
An updated study conducted by Oklahoma City University economists in 2018 revealed for every $1 of tax credit issued to donors, the Oklahoma state budget saved $1.39, a 15-cent increase from 2017 results. Looking ahead to fiscal year 2019, with additional state funding for teacher compensation and classroom funding, the fiscal return to the state is expected to be $1.51 of savings for every $1 of tax credit issued; $3.16 from all funding sources.
Raising the cap could save the state up to $15 million!
The fiscal impact to the state is determined by the tradeoff of tax revenue and the state’s per-pupil expenditures for common education.
OSF is good for Oklahomans and good for the state budget.