Education

Here’s how the school choice tax credit could affect public schools

North America / United States0 views1 min
Here’s how the school choice tax credit could affect public schools

California's public schools have seen a decline in enrollment but an increase in funding, suggesting that fewer students don't necessarily mean less funding. A new federal tax credit program allows states to redirect income tax to nonprofits that provide private school tuition stipends, but its impact on public schools is debated.

California's public schools have lost around half a million students in the last decade, yet funding has increased as the state implemented a new funding formula. This trend is relevant as governors consider participating in a federal school choice tax credit program. The program allows Americans to redirect up to $1,700 of their income tax to nonprofits that provide private school tuition stipends. States can choose to participate, with nearly every Republican governor opting in. The tax credit could also fund extra programming in public schools, such as after-school care or tutoring. Experts say it's unclear how successful public schools will be at accessing this funding.

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