State’s Worst Schools Get Incentive to Lure Teachers

California’s lowest-performing schools won a small carrot to dangle before teachers who agree to serve with them five years, under a mortgage tax credit program approved Monday by an obscure state finance commission.

According to state Treasurer Phil Angelides, the $150-million program could provide about 4,000 teachers a tax credit of 15% of their mortgage interest, worth up to $1,800 a year.

“This takes a lot of people who might be at the edge and puts them at a place where they can buy a home,” said Angelides, chairman of the California Debt Limit Allocation Committee, which is offering the program.

Needy school districts or cities will have to apply for the credits, which may be coupled with down payment assistance and other homeowner incentives to draw teachers to their schools.

Gov. Gray Davis has proposed similar incentives for those who agree to teach at low-performing schools for five years, including $10,000 forgivable home loans, $30,000 bonuses to those who become national board certified in their specialty, and forgiveness of $11,000 in college loans.

Additionally, under Davis’ plan, top college graduates who become credentialed could receive another $20,000 for teaching at such schools.

“The idea is to marry this with other efforts . . . so that we have a menu of options for teachers,” Angelides said.

In practical terms, the tax credit is counted as extra monthly income when qualifying for a home loan.

The Extra Credit Teacher Home Purchase Program should be accepting applications by June, with the first credits issued by mid-August, Angelides said.

The Department of Education and the governor’s education secretary will work with the commission to decide what constitutes a low-performing school, the treasurer said.