A new state program that offers scholarships to students to leave their low-performing schools has helped fewer students than originally promised.
The state's Department of Community and Economic Development has approved $10 million in business contributions, and $2.7 million has been reported as being distributed. The program allows for the annual approval of $50 million in contributions, for which businesses receive tax credits.
In Lackawanna County, students from George Bancroft and John F. Kennedy elementary schools in Scranton and Mid Valley High School in Throop were eligible for the program, which was to provide scholarships of up to $8,500, or up to $15,000 for special education students.
Eligibility
Students who live within the boundaries of public schools that rank in the bottom 15 percent based on the combined math and reading scores on 2010-11 standardized tests, and from families with incomes below $60,000, plus $12,000 for each dependent member of the household, are eligible to apply.
After the program was signed into law by Gov. Tom Corbett in July, the state made $50 million in tax credits available to businesses. Tax credits are applied against the tax liability of a business for the tax year in which the contribution is made.
The Diocese of Scranton did not receive scholarship money until after the school year started. Since then, 42 students have been given scholarship awards with the $35,000 the diocese received, diocesan spokesman Bill Genello said.
Mid Valley Superintendent Randy Parry said six incoming high school freshmen left the district to go to Holy Cross High School. He said he was unaware if they received scholarships, and students have left the district for a Catholic high school in previous years as well.
Scranton Superintendent William King said he was unaware if Scranton students received scholarships and left the district.
Business contributions
Since the program's inception in July, DCED has approved about $10 million in business contributions. Businesses have 60 days from the date of approval to make the contributions and 90 days from the date of approval to report the contributions to the department. As of last week, $2.7 million had been reported as being distributed.
"As is the case with any new program, the administration anticipated that it would take time getting the program up and running," said Theresa Elliott, DCED spokeswoman.
Ms. Elliott compared the scholarship program with the state's Educational Improvement Tax Credit program, in which businesses can donate to state-approved education organizations and receive tax credits. The EITC program started at a cap of $30 million and now has a $100 million cap.
"We are confident that as we make businesses more aware of the new program and interested businesses budget for it, the new program will be equally as successful at our EITC program," Ms. Elliott said.
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