Six years ago, Arizona policymakers created a revolutionary school choice program by allowing a $500 dollar-for-dollar income tax credit for contributions to organizations that give students scholarships to attend private elementary and secondary schools. In 2001, the Cato Institute published a study evaluating the first years of the program and analyzing its potential impact. This paper is a follow-up to that study, assessing the recent trends in the program, its impact on Arizona's educational system, and identifying potential reforms.

The Impact of Tuition Scholarships on Low-Income Families:
A survey of the parents of children receiving scholarships and those on the waiting list suggests that a significant number of Arizona families with incomes below $30,000 is benefiting from school choice policies. Survey results show that parents who are able to exercise school choice are generally more satisfied with their children's educations. More than 80 percent of parents choosing private schools had overall satisfaction ratings of A, whereas less than 20 percent of parents with children in public or charter schools expressed equal satisfaction. The median parental satisfaction grade for private schools was A, while charter schools and public schools scored median grades of B and C, respectively. The findings also suggest that many more low-income families wish to participate, and believe their children would be better off if they had the opportunity to choose different schools.