BOISE, Idaho — Democratic leaders at the state level are calling for additional oversight of the Parental Choice Tax Credit program, otherwise known as House Bill #93.
In Idaho, students ages 5 to 18 in K-12 schools can receive up to $5,000, while those ages 5 to 21 with a disability may receive up to $7,500 to help pay for "eligible nonpublic school expenses."
Senate and House minority leaders, Melissa Wintrow and Ilana Rubel, signed the letter, which requests that the Idaho State Tax Commission "pause all advance payments related to the Idaho Parental Choice Tax Credit program until sufficient oversight measures are in place to prevent the misuse of public funds."
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In their letter, the two leaders claim that the program allows "advance payments of public money before any proof of qualified educational expenses are provided."
As the bill is currently written, Idaho parents are eligible to receive "a one-time advance payment if your modified adjusted gross income doesn’t exceed 300%" of the 2024 poverty level, which, for a family of 5, amounts to a total family income of $109,740/year.
However, there is currently no evaluation mechanism in House Bill #93 to identify if advanced payments are fraudulent before they are dispersed. Instead, the law is written so that instances of fraud may only be punished retroactively if the state discovers that tax fraud occurred after the fact. The bill simply requires parents "affirm under oath that the information submitted in the form is true and accurate."
In the letter, the minority leaders cited instances of fraud regarding similar school choice programs in states like Arizona, Florida, and Wisconsin as reasons to establish "upfront accountability mechanisms."
In Arizona, they claim voucher funds were used "to buy kayaks, ski passes, SeaWorld tickets, and over $1 million in Lego sets." They also pointed to other instances of fraud that included a fake private school in Florida defrauding the state government of "over $1.3 million" and the serial misuse of funds by the Idaho Home Learning Academy.
Rubel and Wintrow suggest legislators pause all advanced payments until the Idaho State Tax Commission implements a system to verify vendors and expenses that fall under the "qualified expenses" portion of the Parental Choice Tax Credit program. They recommend that the disbursment pause should stay in place until the following conditions are met:
- A system for pre-verifying vendors and expenses is implemented;
- A method for auditing receipts and invoices is established before or shortly after disbursement;
- A fraud prevention and recovery mechanism is in place, with clear consequences for misuse;
- Reporting requirements are published and enforced in a transparent, public-facing manner; and
- Court challenges are completed. Currently this policy rests upon shaky constitutional foundations.
In closing, the letter states, "Idaho taxpayers deserve better than to have their hard-earned dollars put at risk. They deserve a robust system of accountability."
