education of all children in the Nation. It would provide desperately needed aid to all nonpublic schools, including those operated by the Catholic Church. It would return to many less affluent parents a real choice in determining the type of education that their children will receive. And it would assure the continuation of the tradition of private investment in education which has long brought into the schools people and money which would, in the absence of the nonpublic schools, have to be provided by the already overburdened public elementary and secondary schools. A tax credit will be of particular advantage to the low- and middleincome taxpayer. A tax credit which is a direct reduction from income tax liability provides a greater benefit than an itemized tax deduction. A deduction benefits higher income groups more than middle-income groups. For example, a $100 deduction benefits a taxpayer in the 14percent tax bracket only $14; whereas a taxpayer in the 70-percent tax bracket would derive a tax benefit of $70 for a $100 deduction. In contrast, a tax credit reduces the taxpayer's tax liability $1 for each $1 of tax credit regardless of his tax bracket. A tax credit would also enable those taxpayers who do not itemize their deductions to obtain the deductions since it would be subtracted from the final tax liability. Also there are judicial and constitutional limitations on providing public funds to nonpublic schools. This legislation to provide tax credits for the expenses of tuition would be wholly permissible. We cannot permit our nonpublic school to die. Monopoly in education stifles innovation and creativity. We must reverse the current trend. Enactment of this legislation will be a giant step toward achieving this objective. Mr. BURKE. Thank you, Congresswoman. Are there any questions? On behalf of the committee, we wish to thank you for your appearance here today. With your background on the school committee of Boston and on the Boston City Council you are well acquainted with the problems of the property taxpayers. I believe you are considered an expert on this problem and you have made an excellent statement here today. I would like to ask you one question. I understand in the city of Boston approximately 40,000 students are attending private schools. If these schools close, assuming an average of about 500 students for each school, that would mean we would have to build about 80 school buildings in Boston to just house these students who were in private school, is that correct? Mrs. HICKS. You are correct, Congressman Burke, and the impact of the closing of the schools would be so great the city of Boston would go into bankruptcy. We are having great difficulty meeting the demands of the public schoolchildren in getting a building program into operation. Actually, the financial impact would be great, and the overcrowding which now exists in the schools would even be worsened, so the situation would be critical in a city that is in dire need of having more aid brought to them. Mr. BURKE. I heard an unconfirmed rumor that on November 15 the public schools of Boston will face the possibility of closing, because understand they have borrowed up to the limit allowed by the law 83-453-72-pt. 3- 4 and have not sufficient money to run for the rest of the year unless something is forthcoming. Mrs. HICKS. Yes, $52 million has been withheld from Boston for failure to comply with the racial imbalance law. If something isn't done immediately, Boston certainly will be in a crisis financially and educationally. Mr. BURKE. I understand the property tax rate was announced the other day; what is the increase in the tax rate per thousand of assessed value? Mrs. HICKS. $196.70 per thousand. The impact if we close the private and parochial schools in Boston, that is the nonpublic schools, would be an increase of $20 on the tax rate which would bring it up to about $216.70. Today that has become unbearable. Mr. BURKE. What is the unemployment situation in Massachusetts; 7 or 8 percent? Mrs. HICKS. Just about one of the highest in the country. Unemployment is a serious problem in the whole State of Massachusetts. Mr. BURKE. If the tax rate went up another $20, this would mean more industries closing down, higher unemployment, higher welfare, all kinds of problems that we would be unable to cope with; is that correct? Mrs. HICKS. Yes, and not only that, but it would also prevent new businesses from coming into Massachusetts because of the higher tax rate and new business would produce new jobs. Thus, an increased tax rate has a many-pronged attack on the finances of Boston caused by the closing of parochial and nonpublic schools. Mr. BURKE. This is something we cannot postpone for future years; it is a problem we face in the immediate times. Mrs. HICKS. Yes. The situation is very critical in all the great cities across the country, and I think if Congress does not act on this, they have done a great disservice to the people, particularly those living on fixed incomes. It is almost impossible for them to maintain their homes where we have had such a low building program because of the impounding and freezing of funds by the President. This freezing of funds has been reflected in our building program, and that is why we have to keep many of our senior citizens in the homes they now own. They will be unable to stay there if the taxes are increased any further amount. Mr. BURKE. The committee appreciates your appearance. Mr. BURKE. Our next witness is Hon. Congressman William J. Keating, of Ohio. Mr. BETTS. I would like to welcome our colleague from Ohio. I notice in looking over his statement he has dwelt on some legal aspects of this proposal, and I would like to inform the committee that Mr. Keating comes to us with a distinguished career as a common pleas judge in Hamilton County, Ohio, I am sure with this judicial experience as a background he will be able to present a statement which will be immensely beneficial to the committee. I thank you for your appearance here, Bill. STATEMENT OF HON. WILLIAM J. KEATING, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO Mr. KEATING. Thank you, Congressman Betts. I am grateful for your remarks. Mr. Chairman, it is always an honor to appear before this distinguished committee. As with other problems that have come before you, the question of aiding nonpublic schools has reached a crisis situation. On January 19, 1972, I introduced legislation that would allow for a $100 tax credit for parents who are sending their children to nonpublic schools. It is not my intention today to enter into a debate on whether the credit should be $100 as in my bill or $200 as in the chair man's bill; but instead on the principle and the need for immediate help to save pluralism in our Nation's educational system. In 1965 there were approximately 6,300,000 students attending nonpublic schools in grades one through 12. Five years later that number had dropped to 5,500,000. In the Cincinnati area that I represent the largest number of nonpublic schools are associated with the Cincinnati archdiocese. During the 1967 school year there were 195 schools in operation with a total enrollment of 92,125. During the 1971 school year the number ofschools were down to 177 and the enrollment down to 75,119. In the State of Ohio last year, 40,000 students left the nonpublic school systems. As the office of education estimates that it cost $850 per pupil, the 40,000 students cost the taxpayers of Ohio an additional $34 million. These additional students strain the already overcrowded public school system. As more and more nonpublic schools are forced to close their doors we face a situation where only the rich will have freedom of choice in the important matter of their child's education. Today more school systems are in serious trouble due to financial problems and overcrowded conditions. Recent court decisions in Texas and California over the question of property taxes being used for school financing indicate that the future is going to be difficult. If the number of nonpublic school students who are forced to enter the public schools continues to increase, we will only experience greater difficulties in our public schools. What we need to do is to reverse the trend and provide diversity and choice in education. When State legislatures first started to look into the area of assisting nonpublic schools by supplying transportation and essential materials there was considerable controversy. But now the need is apparent, and this was seen in the Ohio legislature when a tax credit bill was passed without a single vote in opposition. The effectiveness of the Ohio tax credit bill is still in doubt since the Ohio statute is currently being reviewed by a Federal court in Ohio. A similar statute in Minnesota has been ruled constitutional. Let me for a moment turn to the legal question that is involved with this issue. There are those who desire an early demise to the nonpublic school system and feel that any assistance is a major threat to the public school system and unconstitutional. This view greatly limits. the role that nonpublic education should play in our society. As a lawyer, former judge, member of the House Judiciary Committee, but most important a parent, I do not share this opinion. The court decisions in the field have laid down two basic tests for aid to be constitutional: One, that the aid is secular in both purpose and effect; and two, a criteria that was made clear in the decisions of last fall, excessive entanglement. The tax credit would be secular in that it would go directly to the parent, and be for the education of his child. The fact of the matter is that there is no such thing as Jewish algebra, or Lutheran chemistry, or Catholic economics. The basic skills that our children receive in school have nothing to do with sectarian beliefs. Mr. Chairman, I would like to insert into the record at this point the cost-per-pupil budget of the Catholic school system in the State of Ohio. It shows that only 3.41 percent of the total budget was spent on religious instruction. State of Ohio-secondary schools-Catholic school system 1. Total instructional_ (a) Secular__ (b) Religion. 2. Administrative. 3. Debt services.- 4. Capital expenditures_ . 5. Plant operation and maintenance_ 6. Other operating expenses__ 7. Faculty residence_ 8. Food programs, health services, and transportation-- Percent 53. 86 3. 41 14. 50 2. 10 3. 54 12. 54 3. 89 3. 55 6. 04 There are those who would argue that the mere presence of religious objects in the school make the education sectarian. Yet if we were to take this argument to its logical conclusion, no Federal money could be given to the construction of a home or hospital that displays religious objects. The tax credit legislation does not establish a religion, but merely makes it possible for any citizen to freely exercise his free choice of belief. The other criteria spelled out in the Lemon decison last fall is entanglement. The Pennsylvania statute that the court ruled unconstitutional provided for payment directly to the schools are required the schools to maintain detailed accounting procedures that separated the cost of secular and religious expenses. The Rhode Island statute that the court ruled against provided for payments directly to the teachers and directed the State Commissioner of Education to require eligible schools to submit financial data which shows how much was for religious activity. Rhode Island further forbids teachers being paid under the act to teach religious courses. The tax credit does not have these entanglements. The credit is given directly to the parent, and the only requirement for the school is that they maintain records as always for taxation purposes and that they meet the antidiscrimination laws of the land. The President's Commission on School Finance, pointing to the fact that one in 10 school age youngsters attend nonpublic schools, recommended the enactment of constitutionally allowable aid to nonpublic schools. If one looks at the policies of the nations in the free world, the overwhelming majority do not cut off funds for the study of secular subjects in schools where children can also study religion and moral values. Today in England, a substantial proportion of the schools remain private and are able to continue because of legislation which enables them to receive public financial support. In France under General De Gaulle the General Assembly passed legislation to give financial assistance to private schools. In Germany today, nearly 55 percent of West German students attend denominational schools. These and other countries in the free world permit tax dollars to go to non public schools. If no action is taken in the United States, there will be a monopoly in the education field. Whenever there is a monopoly there is usually a lack of creativity, a lack of innovation, and a lack of excellence. We cannot allow this to happen in an area of education that is so important to the future of our Nation. Tax credit bills that have been introduced in the Congress will not challenge or destroy the significance of public education. The economic benefit will improve both the public and nonpublic sectors. As we search for new methods of school financing, this type of legislation is necessary and appropriate. It is my hope that this committee will make the enactment of this legislation a high priority. I would like to attach to my comments the "Nonpublic Schools Tuition Costs in Cincinnati and Hamilton County." Mr. BURKE. Without objection, it is so ordered. (The document referred to follows:) NONPUBLIC SCHOOLS TUITION COSTS IN CINCINNATI AND HAMILTON COUNTY Mr. KEATING. I thank the committee and the chairman for your courtesy. Mr. BURKE. Any questions? Mr. Pettis? Mr. PETTIS. No questions, but I would like to commend my colleague for his statement, and particularly for the logic that he pursues in this matter of aid by comparing it to other Federal programs. Mr. KEATING. Thank you. |
