Tax Breaks for Wealthy Contributors to Private or Public Schools?

March 2, 2016. The education tax credit proposals currently being discussed have significant drawbacks as outlined in FPI’s new brief.

Both the governor’s proposal and the senate’s represent misguided tax policy for a number of reasons:

  • The PCEA represents a radical and unwise departure from existing state tax policy because it provides an unprecedented proportion (75 or 90 percent) of tax reduction relative to a contribution. It has the potential to lessen charitable contributions for a wide range of worthy causes.
  • Because of how the allocation of credits is administered and the fact that the education tax credit skirts limits on charitable contributions for high-income taxpayers, there is nothing to prevent a situation where all or the lion’s share of credits go to a relative handful of wealthy donors, corporations, or financial partnerships.
  • The state is essentially delegating its spending authority to private individuals, departing from the well-established and constitutionally sound basis for allocating state education aid and potentially in violation of section 7 of Article 7 of the state constitution that requires all appropriations to be “distinctly specified.”

PDF of Full Brief

PDF of Press Release Issued by Coalition

Briefing on Mayor de Blasio’s FY 2017 Preliminary NYC Budget

March 10, 2016. On Thursday morning, March 10, 2016, the Fiscal Policy Institute will present its annual New York City budget briefing to the Economic Justice and Social Welfare Network at the Federation of Protestant Welfare Agencies (FPWA). The briefing presentation will be from 10:00 a.m. to 11:30 a.m. The briefing is open to the public. To register for this free event, please click here.

The topics to be covered during the briefing include:

  • An overview of the Mayor’s Preliminary FY 2017 Budget proposal.
  • The social and economic context in New York City at the beginning of 2016.
  • The impact on New York City and its budget of the Governor’s proposed FY 2017 Executive Budget.
  • Discuss the outlook for and the prospective impact of an increase in the state minimum wage to $15 an hour.