Tuition tax credits equal big savings?

As much as $1.3 billion in 13 years, study shows

Utah could save big money — as much as $1.3 billion over 13 years — by offering tax credits for private school tuition, a Utah State University professor indicated Tuesday as part of a long-awaited, politically neutral study on the issue.

The study, presented to legislative leaders, found a tuition tax credit could save Utah public schools money by enticing families to send their children to private, instead of public, schools.

"Tuition tax credits could save the state some money. . . . It sounds like tuition tax credits are a well-justified policy," said Roberta Herzberg, USU associate professor of political science, who co-authored the study with Chris Fawson, USU economics professor and vice provost for academic and international affairs.

"Given the circumstances going into the future, we do need to come to grips with (educational) costs facing us. . . . Doing nothing, I don't think, is a real option going forward."

The statements, made at a Legislative Management Committee meeting, dealt a blow to public education officials' stand that tuition tax credits would drain school dollars. But they're not giving up the fight, state associate superintendent Patrick Ogden said.

"We're not ready to endorse the concept at this point in time," he said. "There's a lot of information there we need to digest."

The study can be viewed at deseretnews.com/pdf/USU_tuition_tax_credits.pdf.

Tuition tax credits are a perennial hot-button issue on Utah's Capitol Hill. Lawmakers have been warming to the idea, which also interests Gov.-elect Jon Huntsman Jr.

Opponents have said tuition tax credits would drain public school dollars, as state income tax revenues go to schools and colleges. Some also have complained they only would help the elite and those in urban areas.

But supporters say they would create more choices for parents and ease growing pains from an extra 145,000 schoolchildren expected in the next decade.

The legislative fiscal analyst's office has tried to determine tax credits' effects. It has found they would save Utah schools money, mainly because a tax credit would be less than what is being spent to educate students. Sending a student to private school means one less child to educate, and his remaining money would be spread around to everyone else in public schools.

But opponents shot holes in that rationale, which hinged on having huge numbers of students switch to private schools in a state where about 3 percent of students — about 14,000 — choose that option.

Lawmakers decided to hire an outside, neutral party to study the issue and inform debate.

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