July 1, 2008 11:41AM

Tax Revenue Tanking? Act Now on Education Tax Credits and Watch Your Savings Grow!

With a sluggish economy and rising costs for everything, state and local governments are facing serious budget problems. It’s clear that there’s a lot of spending that they should simply cut outright. But politicians hate doing that.
But there is one way to save billions of dollars without cutting a single program or budget; broad‐​based education tax credits.


fiscal impact analysis of our Public Education Tax Credit from our own Andrew Coulson and economist Anca Cotet was released today that shows the potential savings for 5 states.


Education spending makes up about half of most state budgets and is the biggest item at the local level, so we expected major savings from our broad‐​based program. But the totals surprised even us.


Here are the pretty stunning highlights:


Illinois saves $5.1 billion in the first 10 years and $1.6 billion every year after the program has been in operation for 15 years.


New York saves $15.1 billion in the first 10 years and $4.8 billion every year after the program has been in operation for 15 years.


South Carolina saves $1.1 billion in the first 10 years and $350 million every year after the program has been in operation for 15 years.


Texas saves $15.9 billion in the first 10 years and $5.4 billion every year after the program has been in operation for 15 years.


Wisconsin saves $9.3 billion in the first 10 years and $3.2 billion every year after the program has been in operation for 15 years.