Final Days of the 109th Congress

• VICTORY: Educator Tax Deduction - The "tax extender" legislation (H.R. 6111) enacted in the final days of the 109th Congress included a two-year extension of the $250 above-the-line tax deduction for educators' out-of-pocket classroom supply expenses. The deduction, which expired at the end of the 2005 tax year, has now been extended for the 2006 and 2007 tax years. Inclusion of the educator tax deduction in the extender bill was by no means assured. NEA worked closely with the offices of Senators Collins (R-ME) and Warner (R-VA), both of whom are strong supporters of the educator tax deduction and were instrumental in securing the extension. 

NEA will continue to push in the 110th Congress for an increase in the deduction amount. 

• VICTORY: School Modernization Bonds - The tax extender legislation also included a two-year extension of the NEA-supported Qualified Zone Academy Bond (QZAB) program.  QZABs assist school districts in rural and urban communities by providing a financing mechanism to renovate buildings and invest in equipment and technology. Investors receive a federal tax credit equal to the amount of interest payable on the bonds, thereby relieving local taxpayers and municipalities of the interest burden. The program had expired at the end of the 2005 tax year, but has now been extended for 2006 and 2007.
   
• Education Funding - The 109th Congress failed to complete action on the Labor-HHS-Education appropriations bill for fiscal year 2007, choosing instead to pass a long-term continuing resolution (CR) funding programs at their FY06 levels. The CR will be in effect until February 15, 2007. 

A CR at FY06 levels was perhaps the best possible outcome for education funding, given that proposed House and Senate bills for FY07 both contained significant cuts in funding for key education programs. Funding decisions for FY07 will now be made by the new 110th Congress. 

• DC Vouchers - The tax extender bill included an NEA-opposed provision raising the income cap for families participating in the voucher program for the District of Columbia. The program currently serves families with incomes up to 185 percent of the National Poverty Level (NPL). The change raises the limit to 300 percent of NPL. Approximately 75 families would be impacted by the increased limit. NEA opposed the provision given our long-standing opposition to the underlying voucher program and our belief that funds would be better spent on strategies proven to maximize student achievement.

• Rural Education - Despite efforts by NEA and the National Forest Counties and Schools Coalition, the 109th Congress failed to reauthorize The Secure Rural Schools & Community Act, which provides a guaranteed payment to counties and schools in timber-dependent areas. NEA and our coalition partners had pushed for inclusion of the reauthorization in a number of vehicles moving at the end of the session. We will continue to advocate in the 110th Congress for reauthorization and funding of this critical program.