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January 2005• Vol. 35 No. 2
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Tuition Tax Credits: Questions & Answers

What are Tuition Tax Credits?

Tuition tax credits would allow individuals and corporations a tax credit for all or part of the tuition they pay for students attending private schools. (Proponents claim this will relieve pressure on public schools by providing an incentive to send students to private schools.)

Why is the Utah Education Association Opposed to Tuition Tax Credits?

Few Utah Students Benefit

Tuition tax credits only benefit students who are fortunate enough to be accepted by a private school and who are able to afford the remainder of the tuition. Unlike public schools, private schools can be very selective, excluding students with special needs or low academic performance. Additionally, private schools do not provide the same services many students depend on in the public schools, like transportation to and from school, and free textbooks and supplies.

Fixed Costs Remain

Utah public schools serve the entire community. America 's public education system provides the foundation upon which our democratic nation thrives. Even if some students leave the public schools for private schools, most fixed costs will remain. This means that if tax dollars are cut to benefit a select few, the rest of us will be forced to cover the remaining costs.

Subsidizing Private Schools with Public Dollars is Wrong

Private and religious schools are great options for some students and parents. However, it is not fair to promote and subsidize private and religious instruction with public dollars. In this era of increased school accountability, it is also counter-productive to fund a system that is not held to any public accountability standards. While many states have large private school sectors without government subsidies, Utahns have overwhelmingly chosen public schools for their children. In fact, in over half of Utah 's 40 school districts, not one parent has chosen to send a student to private school.

We Need to Provide Public Schools with the Resources they Need

Over 97 percent of Utah students attend public schools. Instead of diverting scarce education dollars to programs for a select few, we should focus our efforts on providing our public schools with the resources they need to implement common sense reforms. We know what works to help raise student achievement – reducing class size, higher academic standards, research-based instructional programs, high quality professional development for teachers and extra help for struggling students. Our children and our schools deserve proven programs with a track record of effectiveness – not gambles on tuition tax credits.

Have Tuition Tax Credit Programs Worked in Other States?

Arizona , Illinois , Pennsylvania , and Minnesota have all lost money. Arizona lost $115 million during the first four years of its program. In 2002, Illinois lost an estimated $65 million in revenue due to its credit, and that year cut education funding by almost exactly that amount — $64.5 million. Pennsylvania lost $86 million and Minnesota lost $227 million due to tax credit legislation and a 1997 decision to expand the state's existing tax deduction policies.

The latest Utah version of tuition tax credit legislation surfaced during the 2004 session of the Utah Legislature and would have provided tax credits to individuals who pay private school tuition and corporate tax breaks to businesses contributing to scholarship granting organizations.

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