The Many Names of School Vouchers, March 2001



The Many Names of School Vouchers, March 2001

American Federation of Teachers,

There have been various programs, with various names, designed for the purpose of using public funds to pay for all or part of the costs of students' tuition at private or religious schools. Proponents of such programs say that they increase "school choice" or "parent choice." Opponents point out that such "school choice" is limited by the fact that private and religious schools get to choose their students; parents may choose a particular private or religious school, but that school does not have admit their children. Critics also note that "parent choice" leaves out the rest of the American public--the majority of whom do not have school-age children--who would foot the bill but who would have no way of knowing how their tax dollars are being used because private and religious schools, unlike public schools, typically do not have to report to the public about, for example, how they spend their funds or how well their students are achieving.

The AFT supports parents' right to send their children to private or religious schools but opposes the use of public funds to do so. The main reason for this opposition is because public funding of private or religious education transfers precious tax dollars from public schools, which are free and open to all children, accountable to parents and taxpayers alike, and essential to our democracy, to private and religious schools that charge for their services, select their students on the basis of religious or academic or family or personal characteristics, and are accountable only to their boards and clients.

In recent years, advocates of public funding of private and religious schools have argued that "school choice" and the ensuing "competition" between public and private schools will improve public schools and student achievement. The evidence does not support this argument.  In contrast, the research clearly indicates that reducing class size or adopting scientifically based reading programs, for example, improves student achievement.

Below are definitions of various types of vouchers and tax credit or deduction programs that are now being considered in Congress or state legislatures.

Private School Vouchers: Taxpayer dollars that are used to pay for all or part of the cost for students to attend private and, often, religious schools. Typically, the money comes out of funds for public schools. Private and religious schools have the option to decide whether or not to participate in voucher programs. If they choose to participate, they nonetheless retain the right to decide whether or not to admit a particular voucher student. (Also known as: private school choice; school choice; parent choice.)

Low-Income Private School Vouchers: Taxpayer dollars that are used to pay for all or part of the cost for students from low-income families to attend private and, often, religious schools. Typically, the money comes out of funds for public schools. Private and religious schools have the option to decide whether or not to participate in the program. If they choose to participate, they nonetheless retain the right to decide whether or not to admit a particular voucher student. Some low-income voucher programs may require participating private or religious schools to charge voucher students no more than the amount of the voucher; other programs may allow participating schools to require voucher students to pay the difference between the voucher amount and the school's tuition. (Also known as: opportunity scholarships.)

Tuition Tax Credits: A designated amount of money taxpayers may take as a credit on their state or federal income taxes for expenses associated with sending their children to private or religious schools; often, the credit is also available for public school expenses. However, the lion's share of the benefit would go to families who send their children to private or religious schools because their schooling expenses are higher than the educational expenses of families who send their children to public schools. Tuition tax credits are worth more than tuition tax deductions, and they typically benefit wealthier families more than other families. Tuition tax credits also lead to a loss of state or federal tax revenue and thereby can lead to a reduction in funding for public schools or other vital public services.

Tuition Tax Deductions: A designated amount of money taxpayers may take as a deduction on their state or federal income taxes for expenses associated with sending their children to private or religious schools; often, the deduction is also available for public school expenses. However, the lion's share of the benefit would go to families who send their children to private or religious schools because their schooling expenses are higher than the educational expenses of families who send their children to public schools. Tuition tax deductions are of no value to individuals or families who cannot take deductions on their federal or state income taxes (typically, lower income taxpayers), and therefore they benefit wealthier families almost exclusively.Tuition tax deductions also lead to a loss of state or federal tax revenue and thereby can lead to a reduction in funding for public schools or other vital public services.

Charitable Tuition Tax Credit: A designated amount of money taxpayers may take as a credit on their state taxes for contributions made to a private, non-profit entity that provides vouchers for students to attend private or religious schools. This approach masks state funding of private and religious schools as support for charitable giving, but in effect it is state funding of private and religious schools and akin to vouchers.

Education Savings Account (K-12): An investment account, akin to a Roth IRA, where money to pay for public, private, or religious school expenses can be saved. The account provides tax-free earned interest provided it is used for tuition or other education expenses. Education savings accounts generally benefit more advantaged families, especially those who already have children in private schools.

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