Tuition tax credits boost choices.
Author | Cunningham, Josh |
Position | TRENDS & TRANSITIONS |
Interest in tuition tax credits continues to grow. Twelve states now offer the credits-also known as scholarship tax credits--which fund private school scholarships for low-income students. Although similar to traditional school vouchers, these scholarships are managed by private, nonprofit organizations rather than government. In tuition tax credit programs, individuals or corporations donate money to organizations that award scholarships for tuition, fees and other private school expenses. The state awards a tax credit to donors.
Proponents believe that because they increase competition in education, student achievement in all schools will improve. Tuition tax credits also have the potential, proponents say, to save states money by moving students from public to private schools, as long as the savings from the shift is greater than the cost of the tax credit.
That appears to be the case in Florida, where the Legislature's non-partisan Office of Program Policy Analysis and Government Accountablility estimates tuition tax credits will save the state $57.9 million in FY 2012-13. The credits will cost Florida $229 million, but the state should save $286.9 million in per pupil funding to public schools, the office says. Some critics, however, believe...
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