Testimony of John L. Cattelan

Director

Connecticut Federation of Catholic School Parents

H.B. 6348, An Act Concerning Corporation Business Tax Credits

Finance, Revenue and Bonding Committee

February 29. 2008

Senator Daily, Representative Staples and members of the Finance, Revenue and Bonding Committee, thank you for the opportunity to testify today.  My name is John Cattelan and I am the Director of the Connecticut Federation of Catholic School Parents, and I am representing Parents for Education Reform, a coalition of private and religious schools, Mayors and other organizations. 

I am here today to discuss H.B. 6348, An Act Concerning Corporation Business Tax Credits.  I am requesting the committee consider the creation of a tax credit for C Corporations that donate to scholarship funds.  

With the state of Connecticut facing a budget crisis, this proposal will save the taxpayers of Connecticut up to $5 million a year.  Private and religious school enrollment has decreased by 3% for the 2008/09 school year, costing the taxpayers of Connecticut approximately $20 million.    I would like to note that the private and religious schools in Connecticut already save the taxpayers of this state over $700 million a year.  This doesn’t include the cost of new construction or the hiring of additional teachers when one of our schools closes or students transfer.  

Only students from distressed municipalities would be eligible for the scholarships and scholarships would only be provided to middle and lower-income students whose family income does not exceed three times the income requirements for the free lunch program.  In addition, only students entering kindergarten or transferring to a private, religious or out of district public school would be eligible for the scholarship.  This is how a cost savings is realized.   Students would be eligible to attend a private, religious or out-of-district public school.  The program would be capped at $5 million per year.

For your information 5 states have such a program – Arizona, Florida, Pennsylvania, Rhode Island and most recently Georgia.  Just recently, the Florida Legislature’s well-respected research arm, the Office of Program Policy Analysis and Government Accountability estimated their tax credit programs saved taxpayers $38.9 million last year. 

Let me be clear about one thing, this is not a voucher program and would in no way take away funds from public schools.    That is why you see a very impressive list of mayors, including Mayor DeStefano and Mayor Finch and organizations such as the CT NAACP and MetroHartford Alliance supporting this proposal.