Revisiting ETC issue
Nearly 14 years ago, the Education Tax Credit or ETC was approved into law with the intent to assist in the education of our children Marianas-wide. However good its intention, it also has shortcomings that leave the program rudderless and subject to abuse by the unscrupulous bunch.
For instance, published reports have it that some in the Korean language school may have made misrepresentations in their application for ETC status. This alleged anomaly demonstrates the lack of an instructive legal framework detailing how to secure ETC status or benefits or the obvious need for a set of rules mandating recipients of ETC funds for an explanation of fund proposed expenditure. In short, a more thorough legal requirement should be included for the application process.
The lack of a legal framework only raises more questions, i.e., how do donors secure assurance of equitable distribution of funds? How do donors know that teachers are in fact qualified to teach especially in private schools not subject to PRAXIS requirements as in the case of PSS? Shouldn’t a standard be set for this purposes including the school’s syllabus and courses being taught? How can donors be assured that their money is spent on pupils instead of lavish spending on items far removed from improving student performance?
The issues raised aren’t intended to complicate ETC qualifying status and collateral concerns as much as the refinement of the law that clearly discourages abuse of ETC. It should place priority in strengthening our collective efforts to ensure equitable distribution of funds covering as many students as possible over funneling more ETC money to schools that aggressively market their wares. Perhaps a governing body ought to pave the way for a sure-footed administration of ETC funds.
You see, there’s strong enthusiasm to assist on the part of donors but they want to ensure that the program isn’t abused. They are saying that their new home needs assistance too in, i.e., community-oriented programs to make these isles the ideal place as home for their children. So rather than chance abuse, it may be best to remit donations into the local treasury where greater is attained for everyone.
[B]Recommendation: [/B]
The Legislature, through its Legislative Bureau, could look into publications how the IRS provided procedures for similar programs, though designed for higher education.
It includes scholarships, fellowships, grants and tuition reductions; American Opportunity Credit; Lifetime learning credit: who is an eligible student, who can claim a dependent’s expenses; dealing with student loan; tuition and fees deduction; Coverdell Education Savings Account; Qualified Tuition Program—what the program is about, how much can you contribute, are distributions taxable?
The IRS publication explains tax benefits that are available for parents who are saving or paying education costs for their children. Although limited to higher education, reviewing the law, rules and regulations for purposes of improving ETC ought to discourage any exploitation of the program by unscrupulous businessmen who chance exploiting it for financial gains rather than the education of CNMI pupils.
It’s a good set of publication to review when revisiting the current law in hopes of ascertaining the purposeful intent of the law and in attaining fairness in the equitable distribution of ETC funds. It would be a step in the right direction. I know that generous donors are interested to see that their contributions are spent on students over lavish expenses that rob students of real quality education. It’s good to get on the ball before schools open early next month.
Any abuse would discourage donors from continuing their generous contributions and would likely prefer remitting their taxes to the CNMI coffers where it is used on an equitable basis or for improvements to make the Northern Marianas community a better place for everyone. We should congratulate the first legislator who steps up to the plate to improve the current ETC law. The time to do it is now before schools open their doors next month.
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[B]Erratic behavior of politicians [/B]
It is admirable when policy makers take the proactive role to improve the devastated economy with innovative policies designed to improve upon what has worked here even before the war. But this isn’t happening. In fact, both the administration is into instant gratification by pouting, through an expert, that casino could work here on Saipan.
They have ignored the downgrading of the federal government’s triple A rating that sent markets everywhere running for cover. It illustrates their penchant for instant coffee mindset over earning our trophies the old fashioned way. It boggles the mind that even the casino expert warned us not to expect large investors, a humble admission that our dreams of glitz and glamour would be but a pipe dream.
Furthermore, that we must not expect large investments in this industry confirms the quiet suspicion of our people that it isn’t going to work here on an exponential basis. Otherwise, the largest casino players from Vegas and Macau would have set up shop here a long time ago. They haven’t done that, given that their market study declares that the next venue is Japan! It look forward to making money from the 2.6 million wealthy Japanese who wish to dump some of their money somewhere closer to home. How many wealthy folks does the CNMI have? Five? Ten? Nothing can be further from the truth!
We may be poor, but I’m not ready to permanently ruin the peaceful and harmonious way of life in favor of decisions dictated by the corrupt few. Mamoble hit lau mañgontentu yan man-magof lokue’ tautauta gi dididi’ na guinahan niha. Finanaguen guelu para ta gosa finachucho’ta, ti finacho’chu’ yan disposion otru. Biba natibu!
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Delrosario is a regular contributor to the [/I]Saipan Tribune’[I]s Opinion Section[/I]