Tax credits for families promoted
January 15, 2009 - 10:00 pm
A policy analyst from the libertarian Cato Institute, based in Washington D.C., proposed a solution to Nevada's budget crunch that doesn't involve spending cuts or tax increases.
Andrew Coulson, speaking Wednesday at a forum organized by the Nevada Policy Research Institute, suggested Nevada could save between $590 million and $1.3 billion over 10 years by offering tax credits to families sending their children to private schools and to those contributing to scholarships.
The idea is to "make it possible for every parent, regardless of their income, to choose their child's school, regardless if it's public or private, secular or parochial, progressive or traditional," Coulson said at the forum at The Orleans.
The state would save with fewer children to educate, and Coulson contended that the state's share of per-pupil funding would increase as well.
"For every student who leaves, there's a little bit left over for those who stayed behind," Coulson said.
He estimated that each public school would gain $1,500 per student who left for private school.
Coulson calculated Nevada's per-pupil cost at $10,020, which includes capital costs for school construction and the total spending of all 17 school districts.
Because 85 percent of the per-pupil money goes directly toward educating the child, Coulson estimated that public schools would save the remaining 15 percent that is spent on marginal costs like heating and maintenance.
Not everyone at the forum was persuaded by Coulson's proposals.
Kevinn Donovan, a Clark County School District parent who attended the forum, said private schools could adjust their rates so that the tax credits wouldn't be much of a savings. He also wondered how private schools would be accountable for the money.
Coulson estimated a range of savings to account for a variety of assumptions, but said the proposal is "just not about the money."
It would break the monopoly of public education by giving families more choices. Coulson anticipated that more private schools would open to meet an increased demand.
"It's like any other business," Coulson said. "When you see a niche not being satisfied, you fill that niche. You don't need a program to start grocery stores."
More information can found at http://www.npri.org/events/education-policy-summit
Contact reporter James Haug at jhaug@reviewjournal.com or 702-799-2922.