Panel advances bill to raise parental choice tax‑credit cap to $300 million after heated debate

Chairman Caldwell presented HB 3705 proposing to raise the cap on the parental choice tax credit to $300 million, with an escalator that would increase the cap in subsequent years only if demand previously filled the cap. He told members the escalator would not automatically increase the cap without demand.

Opponents pressed the sponsor on whether the credit disproportionately benefits private schools, whether it drives up private school tuition, and whether the program encumbers future legislatures. Representative McCain urged members to vote no, saying public education should be the priority and warning that private schools have raised tuition in response to school‑choice incentives: “I would ask that you vote no on this bill.” Representative Waldron warned the proposal could “encumber future legislatures” and noted concerns about private schools not being held to the same accountability standards.

The sponsor said the parental choice tax credit is funded from a separate fund and “does not impact” the common education budget; he also argued the program increases parental options and has strong public demand, citing substantial increases in approved applications and asserting the state can pursue both public school funding and choice programs.

After debate, the committee opened the roll. The final tally was 7 ayes and 4 nays and the bill was advanced out of subcommittee. Members requested continued oversight and discussion in the broader budget process going forward.

Next steps: HB 3705 advances to the full committee or floor for additional consideration; members indicated interest in continued review of program impacts and budget implications.