VACostCutting

Thursday, January 22, 2009

Still don't believe us that school choice saves money??

We have said it again and again and again, school choice saves money- something our friends over at School Choice Virginia will agree with.

Florida, a state that has been a national leader for educational reforms and greater parental school choice, has recently taken a look at the fiscal impact of their corporate tax credit scholarship program.

A study, conducted by the Florida Office of Program Policy Analysis and Government Accountability (OPPAGA), released in December 2008, concludes that "The Corporate Income Tax Credit Scholarship Program Saves State Dollars."

The OPPAGA "is a special staff unit of the Legislature created by state law under the oversight of the Joint Legislative Auditing Committee. OPPAGA examines agencies and programs to improve services and cut costs when directed by state law, the presiding officers, or the Joint Legislative Auditing Committee."

From the report summary:

  • The corporate income tax credit scholarship program produces a net savings to the state. We estimate that in Fiscal Year 2007-08, taxpayers saved $1.49 in state education funding for every dollar loss in corporate income tax revenue due to credits for scholarship contributions. Expanding the cap on tax credits would produce additional savings if there is sufficient demand for the scholarships. The Legislature may wish to consider expanding the program when the level of tax credits awarded approaches the cap and there is a sufficient waiting list of students who could use the scholarships.
  • Including insurance premium tax credits in the scholarship program would broaden its funding base and increase the probability that the tax credit cap is reached. Currently, not all insurance companies in the state have an incentive to participate in the program.

School choice saves money, and helps kids. Sounds like a smart investment to us!

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