Tax Savings from the Tuition Tax Credit

Table 11 on the next page summarizes the fiscal costs under the two systems. Both begin at about $9.3 billion in the year 1998 and grow to over $13 billion ten years later. However, under the UTTC plan, the savings from the reduced number of students in the government school system more than outweigh the reduced tax revenue due to the UTTC. Thus, on net, taxpayers will save between $50 million and $550 million a year under the UTTC plan. This represents a total of over $3.4 billion in the first 10 years alone and over $550 million each year thereafter. These savings may be used to lower individual and business taxes, to fund additional educational programs, or to address other state budget priorities.