New bill trades tax credits for Promise scholarship

With state budget negotiators looking at the possibility of cutting or even eliminating the Michigan Promise scholarships that help tens of thousands of Michigan students go to college every year, one state legislator has submitted a bill to provide for a tax credit for those who might be left behind by cuts in the scholarship program. The Lansing State Journal reports:

The bill announced today by Republican Rep. Ken Horn of Frankenmuth would create an income tax credit to reimburse students if they don’t get as much money as expected through the Michigan Promise scholarship program.

Qualifying students are supposed to get up to $4,000 through the program, often starting with $500 installments each semester. But the program is in jeopardy because of Michigan’s budget problems for the fiscal year starting Oct. 1.

The problem is that this doesn’t actually help those students afford college because they would only get the tax credit after they’ve finished school and started working and thus paying taxes in order to use the credit. Plus, it would only lower tax revenue later on, which is the same problem precipitating the possible cuts in the scholarships now.