Report shows $19.3M in Oklahoma's private-school tax credits went to wealthier households

Yahoo

25-02-2025

A mandated report released by the Oklahoma Tax Commission with little fanfare shows that about 21% of the tax credits issued as part of the Parental Choice Tax Credit program for spring 2025 went to families making more than $250,000.
The report, dated Jan. 14, noted 7,723 such families received up to a $5,000 credit, the maximum for that income level, for a total of $19.3 million of taxpayer money. By contrast, Oklahoma families with an income of $75,000 or lower received $27.1 million. The report said 8,116 families in that category received credits of up to $7,500.
A total of $91.7 million in tax credits were awarded, less than the cap of $100 million.
Legislators approved the program in 2023 and it was officially launched that December. Under the program, any family whose children attend private schools can claim between $5,000 and $7,500 annually, with priority given to families with household incomes of $150,000 or less.
Online news outlet Oklahoma Voice was the first to report on the tax credit findings.
Since its implementation, the program has been plagued with issues, ranging from lax oversight of accreditors of private schools to tax credits instead being used to pay recipients' debt, among others. Critics have said the program takes away money that could otherwise be spent on public school and gives it to parents who already can afford to send their children to private schools.
'Private school vouchers are just an un-Christian scam to de-fund our public schools,' state Rep. Jacob Rosecrants, D-Norman, posted on X. Added state Rep. Melissa Provenzano, D-Tulsa, on Bluesky: 'The Oklahoma Parent Choice Tax Credit has been fraught with error since inception.'
The Tulsa World reported earlier this month the Tax Commission chose to end its agreement with Merit International, a vendor that had administered the program during its first year. The World also reported the state agency now is trying to claw back $5 million from 1,855 Oklahoma taxpayers the Tax Commission believes had students who didn't attend an approved private school for the entire period for which it approved the tax credit.
Senate Pro Tem Lonnie Paxton, R-Tuttle, said the tax commission has done a great job implementing the program as designed. He said he filed several bills to help streamline the process and figure out how to make it better.
He said the discrepancy in numbers came from when the tax credits became available to other families. The funds were prioritized to lower income families and when they became available to higher income families, they applied and received the funds, Paxton added.
'I am supportive of the program and believe it empowers parents who may have children in a situation that isn't working for them or their needs,' he said in an email. 'We are making continued changes to the process to make it more efficient and easier for lower income families to access these funds. Our first priority needs to be those who need it the most financially.'
Paxton added that as the program grows, the share of students from low-income and middle-class families who benefit is expected to increase. There are also provisions in statute to prioritize schools like Positive Tomorrows and Cristo Rey, which historically serve lower income populations, he added.
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House Speaker Kyle Hilbert, R-Bristow, said the program had overwhelming interest from families seeking different education options for their children.
"As with any law, we must continue to monitor implementation to ensure it is easy for families to access the educational opportunities they want for their children," he said.
Meyer Siegfried, spokesperson for Gov. Kevin Stitt, said the report confirms thousands of families are using the tax credit to access the best education for their children.
'The program is open to all Oklahoma taxpayers, because every parent should have education freedom, no matter their zip code or income level,' he said in an email.
Lawmakers placed a $200 million cap on the program for 2024-25 and a $250 million cap for 2025-26. Some, including state schools Superintendent Ryan Walters, have called for that cap to be removed. Senate Bill 229, authored by Sen. Julie Daniels, R-Bartlesville, would remove that cap starting in 2026-27. Daniels' bill has been assigned to the Revenue and Taxation Committee, and then to the Appropriations Committee. It hasn't yet been heard.
At least one state that has implemented a no-cap school choice program has run into significant financial issues. News outlet ProPublica reported last July that Arizona's school voucher program, often seen as a model for other states like Oklahoma, contributed to a $1.4 billion budget shortfall.
A large portion of the shortfall was due to spending on vouchers, according to the Grand Canyon Institute, a nonpartisan fiscal and economic policy think tank. The institute said the cost of the uncapped program in Arizona went from an estimate of about $65 million to about $332 million, with another $429 million expected for 2025.
This article originally appeared on Oklahoman: Wealthier Oklahoma households got millions in private-school tax credits