By Uriel Heilman, JTA
Each year, when Frank Halper is faced with the state tax bill for his accounting business in Providence, R.I., he has a choice.
He can write a check for the amount owed by his company or, as part of a state tax credit program, he can send a check to a foundation that provides tuition scholarships to students at Providence’s two Jewish day schools. His tax bill will be credited for 90 percent of the contribution.
For the last five years or so, his firm has opted for the latter.
“We’re in favor of supporting these schools,” Halper said. “We feel Jewish education is the future of the Jewish people.”
Tax credit programs are among the growing number of ways that private Jewish day schools and yeshivas nationwide are collecting hundreds of millions of dollars of taxpayer dollars annually. The money is helping to defray operating costs, provide teacher training, assist students with tuition bills and enhance educational offerings.
A decade ago, few Jewish schools were aggressive about pursuing federal and state funding. But as day school tuition rates have climbed, outpacing inflation and the ability of recession-weary parents to pay, schools have become much more effective not only at accessing government money but in lobbying state government for more.
“The financial crisis of 2008 had a huge effect on tuition and affordability — I think that was really the game changer,” said Darcy Hirsh, director of day school advocacy at UJA-Federation of New York, which in October 2011 became the first federation in the country to create a position for day school advocacy. “Families that were able to afford day school are no longer able, and schools’ financial aid has grown tremendously over the last five years.”
Cincinnati Hebrew Day School students attending a rally for school choice in front of the Ohio Statehouse in Columbus, April 10, 2013. Photo: Agudath Israel
The Haredi Agudath Israel of America has long taken the lead in lobbying for government aid for Jewish schools. Two years ago it was joined by the Orthodox Union, which began hiring political directors in a half-dozen states to organize Jewish schools and lobby legislators.
In New York, the state with the largest day school population, Agudath Israel and the OU have been joined in their lobbying efforts by an unusual coalition that includes UJA, the Sephardic Community Federation, the Jewish Education Project and Catholic groups.
While media attention has focused on the alleged abuse of government funding programs by Jewish schools, suspect allocations represent just a trickle of the government funding flowing to Jewish schools.
The methods used by private schools to get government money differ from state to state and range from the complex to the Byzantine.
In Rhode Island, the tuition scholarship tax credit, which is available to families with incomes of less than the federal poverty level, is capped at $1 million statewide and open only to corporate donors. The credit is calculated at 75 percent for a single year and 90 percent if they donate for two, up to a maximum of $100,000 annually. The statewide cap is usually reached annually on July 1, the first day applications may be submitted.
In Florida, a similar program last year was capped at $229 million.
In New York, a lobbying effort two years ago resulted in legislation extending an exemption from a transportation payroll tax of 0.34 percent to private and religious schools — a seemingly small change, but one that saved an estimated $8 million per year.
“Figuring out how to do better at this is going to be one of the big keys to the whole tuition crisis,” said Rabbi Binyamin Krauss, principal of SAR Academy, a large Jewish day school in Riverdale, NY, where tuition and fees can run as high as $30,800 a year. “We’re looking to provide a quality education, Jewish and secular, and I think the solution will have to be to increase revenues. Government funding is going to need to be a major piece.”