NEPC Review: Qualified Education Expense Tax Credit: Economic Analysis (Georgia Department of Audits and Accounts, June 2023)
EXCERPT
A recent report from the Georgia Department of Audits and Accounts examines the monetary costs and benefits of the state’s Qualified Education Expense Tax Credit (QEEC). The QEEC is a type of voucher policy that provides a public subsidy for families to pay for private school tuition. Data show the tax credit results in $81 million of forgone state tax revenue per year. The report argues the QEEC provides a net fiscal benefit for Georgia’s state budget based on an estimate that the vouchers cause almost 20,000 students per year to choose private schools instead of public, thus removing the cost of educating those students from state and local budgets. However, because the report relies on unrealistic assumptions, its suggestion that program benefits outweigh costs is tenuous and risks misleading state education leaders. Instead, state leaders should invest educational dollars in policies that have a positive return on in- vestment and therefore help, rather than harm, state and local budgets.
