By GARRY RAYNO, InDepthNH.org
CONCORD — If the Children’s Scholarship Fund — NH, which administers two state scholarship programs, had an affiliated non-profit incorporated in New Hampshire, lawmakers would be able to better track how taxpayer dollars are used, a House committee was told Wednesday.
House Bill 483 would require the administrator of both the Education Tax Credit and the Education Freedom Account programs to be incorporated in New Hampshire.
Currently the Children’s Scholarship Fund — NH is incorporated under the nonprofit’s headquarters in New York City so there is no separate IRS 990 filing for its New Hampshire operation, just for the national organization.
The 990 filing includes such things as executive and staff salaries, as well as where money is allocated, particularly for administrative costs.
With a New Hampshire filing, argued the bill’s prime sponsor Rep. David Luneau, D-Hopkinton, lawmakers would know if the New Hampshire money that funds the grants and scholarships is used for the state programs or if the money is going to other states the organization serves.
Luneau told the House Ways and Means Committee that in the 20 odd other states where the Children’s Scholarship Fund operates, they have established affiliates, the only exception being New Hampshire.
But opponents of the bill called it a backdoor attempt to shut down both the business tax and the EFA programs.
Former Rep. Packy Campbell, a Farmington Republican, said the bill would violate the constitution’s commerce clause that forbids a state from blocking an out-of-state business from doing business in New Hampshire as well as other legal provisions.
He called the bill bad public policy that would effectively eliminate both programs.
Campbell said it is a false narrative that the programs lack transparency noting there is ample information readily available, with regulations on how the money is spent, adding the money is not just given to the parents to spend as they see fit.
“This is a Trojan horse, a backdoor attack to kill this program,” Campbell said. “If you want to destroy this program, file legislation to revoke the program, don’t be cute about it.”
Earlier, Luneau said his intent is not to kill the programs.
The company is involved in school funding in New Hampshire so it should be incorporated in New Hampshire like it is in 20 other states, he said.
He noted the company does business in New Hampshire very differently than it does in the other 20 states, as New Hampshire has clearly defined such things as eligibility and allowed uses for the state money.
If the company were incorporated in New Hampshire, “we would have the visibility and the transparency we need,” Luneau said, “like the other 20 states who are doing this.”
The committee did not make an immediate recommendation on the bill. A similar bill was killed in last year’s session.
Garry Rayno may be reached at garry.rayno@yahoo.com.
