There are several types of school choice. Following is a brief synopsis of the most common forms:
Tax Credits/Tax Deductions
Education tax credits allow families to recover some of the expenses incurred in choosing a non-government-run school for their child’s education.
Direct Tax Credits/Deductions
Empowering parents to claim a tax credit or tax deduction off their state income taxes for approved educational expenses, including books, supplies, computers, tutors, and, in some cases, tuition and transportation. Tax credits are dollar-for-dollar refunds for approved expenses. Tax deductions typically provide only a percentage of a refund for approved educational expenses. Most programs include income caps, which vary from state to state, and restrictions on the amount a parent can claim.
Examples: Minnesota, Iowa, Illinois
Scholarship Tax Credits
Tax-deductible contributions are collected from individuals and/or corporations, the revenues of which fund scholarship granting organizations. These organizations then give scholarships to children to cover the cost of private school tuition, tutoring and, in some cases, transportation. Typically, but not always, laws require that eligible families meet certain income criteria. Also, families must meet guidelines established by individual grant giving organizations.
Examples: Florida, Pennsylvania, Arizona
School Vouchers; School vouchers represent state funding for a child’s education; Universal School Voucher Programs
Allowing all parents, regardless of their income, where they live or any other criteria, to direct all or part of the funds set aside for education by the government to send their children to a school of choice, whether that school is public, private or religious. In effect, separating the government financing of education from the government operation of schools.
Example: Sweden
Means-Tested School Voucher Programs
Enabling poor families who meet specific income criteria, typically around 185% of the federal poverty limit, to direct funds set aside for education by the government to pay for all or part of tuition at the public, private or religious school of their choice.
Examples: Cleveland, Milwaukee, Colorado
Failing Schools, Failing Students School Vouchers
Allowing parents whose children are doing poorly in school or whose children attend failing public schools to direct the funds set aside for education by the government to send their child to a better performing public, private or religious school.
Examples: Florida’s A+ Program, Colorado
