Education Tax Credit Scholarships

Texas State Representative Ken Paxton sent a recent communication talking about "opportunities to balance our State budget without raising taxes while also ensuring that we are able to adequately fund our essential functions of government." In it, he talks about education tax credit scholarships: 

One idea that has been very successful in other states has been an education tax credit scholarship program. This program provides tax credits to businesses that offer scholarships for students attending poorly performing schools so they may improve their educational opportunities at another school. In Florida, for example, the education tax credit scholarship program has provided families the ability to transfer their children to better performing public schools or private schools by providing scholarship opportunities. The majority of the students who take advantage of this program are low-income families that cannot afford private schools or tutoring on their own.

Since Florida implemented their education tax credit scholarship program in 2001, student test scores have improved across the board, and there are more students graduating from high school. In addition, Florida has saved nearly $140 million in their education budget over this time. Ten other states have similar education tax credit scholarship programs, including Arizona, Pennsylvania, and Minnesota. Each of these states has shown similar improvements in education outcomes and budget savings.

If this can improve educational opportunities for needy students and do it in a cost-effective manner, it is a win-win for all and an idea worth considering.