If we assume that the UTTC plan takes effect in 1999 (the 1999-2000 school year), a maximum tuition tax credit of only 10 percent of the average public school per-pupil revenue ($5,776 for 1999) provides a maximum tax credit that year of $578. The dollar amount of $578 is 21 percent of the average alternative school tuition in that year ($2,174). Thus, the parent receiving a tuition tax credit for that student experiences a 21-percent decrease in the relative cost of alternative schools versus traditional public schools. Using a price elasticity demand of -1.0, we would expect a 21 percent increase in demand for alternative schools.

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