Friday, May 10, 2013

What Exactly is an "Abatement"

Moriah has a tuition abatement program that is separate from its scholarship program.  See link to last year's application here, or summarized after the jump.

Basically it allows middle income earners to get a little off from tuition by showing their tax returns but without having to go through the scholarship process that some find shameful.

To qualify you must have children in yeshiva (not necessarily in Moriah) from Pre-K thru high school and be making under certain amounts as follows:
1 Child & making less than $135K
2 Children & making less than $175K
3 Children & making less than $210K
4 Children & making less than $240K

[UPDATE: Those were last years minimums that are higher this year.  Now you can make up to $270K & get the abatement if you have 4 or more children]

I think the premise of the program is that if they simply lower tuition some of the "wealthy" parents will just pay the lower amount, without making up for it with any significant donations, and they will lose revenue.  If they just raised the threshold for scholarships some of the "middle class" parents would leave rather than have to apply for a scholarship and feel like they are taking tzeddakka.  This way its more of a sliding scale.  Sort of like the progressive income tax system we have where "middle class" families pay less than the wealthy & no one considers that charity.

The question is if you are getting 3K off per child & aren't donating you probably aren't paying your share.  So is that charity or just part of a progressive payment system?

Also, does this system allow those earning money "off-the-books" to get a reduction without any scrutiny beyond looking at their bogus W-2's?  Then again often full scholarship recipients don't get much scrutiny beyond their W-2's which are usually bogus when someone works off-the-books, but that's a separate topic.

One thing I like about the program is that they look at the total number of kids you have in yeshiva, not just the ones at Moriah.  So you don't get "punished" for sending different children to different schools.  All schools should adopt that policy for their scholarship programs.



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The Moriah School is committed to providing a quality Jewish education to those who seek it regardless of financial means. As such we offer financial aid to all families who complete the scholarship application process and qualify. However, for those families who require a more modest level of assistance and who would prefer not to complete the scholarship application process, we encourage you to consider our Tuition Abatement Program, which is based completely on gross income level and number of dependent children in yeshivot.

We certify that our family’s 2011 gross income from all sources did not exceed the amount indicated below. We are therefore applying to reduce our tuition obligation to the school in the amount per child indicated below. You must provide copies of you entire 2011 individual and business returns with all schedules and W-2 statement in order to be considered for the abatement. Please check the appropriate box below. If unearned income (e.g. interest & dividends) is more than 30% of total income, applicant is not eligible for abatement.

Comments (13)

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just getting by's avatar

just getting by · 620 weeks ago

I am not a Moriah parent but I think this is a great program. I tried to bring it to my legacy school years ago and they wouldn't do it. This program acknowledges that even if you make over $200K per year, 4 full tuitions is NOT realistic. I don't believe the other schools understand that - or at least the school we are at which gave us a terrible time granting scholarship even though we made even less than that. And we had to go through the humiliating process of filling out all those personal questions! This allows people a little break with some dignity. Thank Gd we don't need to ask for help anymore because I don't know how I could go through that humiliation again.
Share the load's avatar

Share the load · 620 weeks ago

I've said before that I think the best model for covering school costs should be a community program. Many people (myself included) believe that educating our children in a Jewish school should be a communal concern (to some extent). NNJKids does this somewhat, but not enough.

I believe a model like the JEC in Elizabeth has is a good one. Everything in the community there falls under the JEC banner - the shuls, the schools, kashrus - everything! In Bergen County, a committee should be established to run something similar. What if shul dues were raised for everyone, with a portion of the funds going to the schools? This would offset the tuition from parents, and would share the burden over the community. For people from other areas who send their kids there, let there be a different tuition schedule. In Elizabeth, kids in pre-school whose families are members in a JEC shul automatically get a huge discount on their tuition. Why can't something similar be set up in Bergen County?
2 replies · active 620 weeks ago
Elizabeth is a one school one shul town. That is why this works so efficiently with them.

BC is a 20+ shuls and 8 schools.....
Share the load's avatar

Share the load · 620 weeks ago

That's why you'd need shuls to participate. Make a deal between the shuls and the schools to give a lower tuition to paid members of those shuls.
I think Moriah is on to something. While overall, the costs for BC parochial education is not sustainable, it is an immediate reality check that even thought making 150 or 200k, and may not get a serious scholarship, but want parochial education, can possibly afford it, with the abatement program. I personally think the threshold should be higher than the current system, as the costs for BC are too high. Also, i think the abatement should be 5k, not 3k. It can be a step in the right direction of a reasonable solution while the more macro issues continue to be addressed.
What a world where people making $270k are deserving of communal support. Talk about flipping charity on its head.

I can see the commercial now:
"Right now there are families suffering. Families struggling to get by on only $270,000 of income. Families who after contributing to their 401(k), paying for 4 children to go to private school and sleepaway camp, hiring cleaning help, and paying their mortgage on their overpriced 4 bedroom, 3 bathroom home barely have enough to eat out at the local restaurants more than 5 times a month. Families who have to forego the sushi station at their child's bar/bat mitzvah. Families who haven't been able to fly to Israel in over 3 years and haven't been to Disney World in 2 summers. Families in which the children have to share an iPad and have a PS3, but will have to wait to Hanukkah for the Wii U.

But, you can do something. You can end this heartbreak. By contributing to your local yeshiva's tuition abatement program, you can make a difference. Every dollar counts. Your contribution can be the one that helps little Kinneret get that 12th Barbie or helps Yossi stay in the upgraded suite when the family goes away for Pesach. After all, wasn't it the Rambam who wrote in Hilchot Tzedaka that the greatest form of charity is to give to those that don't need it in the first place?
2 replies · active 620 weeks ago
Jim:

Substantively I don't disagree with much you've said, but i think the Moriah program tries to make the best of a bad situation (even if that wasn't Moriah's intent). This is the backwards world we live in. The reality is that a family with four kids in yeshiva isn't living large on 270K. One of my main complaints about tuition costs is that they almost definition force many families to not contribute or nominally contribute to what most of us consider true, deserving charities.

However, it seems that one potential good outcome of the great recession is that schools have had to seriously exam their financial side and figure out ways to keep tuition as low as possible. I'm estimating that over a 10 year period (between 1998-2007) tuition costs doubled. Then the recession hit and parents spoke out and schools realized that the days of automatic large tuition increases were over.
Teacher99's avatar

Teacher99 · 620 weeks ago

Jim:

I, for one, do not appreciate your sarcasm. Money is relative because we don't live in some backwater town, we live in Bergen County. Home prices, property taxes, kosher food, shul dues and tuition take a huge bite out of everyone's budget. Try paying over 100k/year in tuition (as I have for awhile) and see how far $250k gets you after taxes.

Hint: At 250k/year, I would be in bankruptcy. Sad, but unfortunately true. I applaud yeshivas for addressing this issue any way they can.
Home ownership in exclusive neighborhood, four kids in private school... looks pretty large to me...
Back to the previous post, YNJ bragging about keeping tuition flat for many years is 1) FALSE! They raised tuition by over $1000 5 years ago and as recently as three years ago raised it $350 2) Even if true, that's like saying I beat my wife for the first 20 years of our marriage, but look now - I have only occasionally beaten her over the past few years.
When's the next post? Tumor has it there is much to say....
1 reply · active 616 weeks ago
Rumor has it GD is opening a high school soon and that Heatid is in over their heads with all the kids needing services and real bullying with 4-6 year olds.

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