June 27, 2018

Pennsylvania Budget Expands Successful Scholarship Tax Credit Program

Pennsylvania’s newly-enacted budget expanded the Educational Improvement Tax Credit (EITC) program from $135 million to $160 million. It also increased the annual income eligibility level from $75,000 to $85,000. Both of these steps are important to expanding parental choice in education to more families in the Keystone State.

A recent report in the Journal of School Choice by Dr. Martin Lueken of EdChoice showed that the EITC saved the state more than $1 billion over its first 10 years. Using the average scholarship of about $1,500 and calculating short-run variable costs for district schools, Dr. Lueken calculates the state is saving more than $6,000 per scholarship student.

By expanding this program and allowing even more families to participate, lawmakers in Harrisburg have made a great choice for the state budget and for the common good.

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