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.