When Georgians hear about private‑school scholarships funded by redirected state income taxes, many assume the program must cost the public treasury. In fact, the opposite is true: an official 2023 analysis by the Georgia Department of Audits and Accounts (DOAA) shows the Qualified Education Expense (QEE) Tax Credit Program produces a net annual saving of $56.5 million for state and local budgets. Below is a plain‑English look at how those savings occur, why they matter for families and communities, and what you can do—whether you’re a parent or a taxpayer—to keep the momentum going.
Why Scholarships Can Save Money
Every public‑school student represents real per‑pupil spending. When that student switches to an accredited private school with the help of a GOAL scholarship, most of that public‑school cost disappears, while the state issues only a tax credit (not a cash outlay) to the donor who funded the award. The difference between foregone tax revenue and avoided spending is the source of the $56.5 million surplus.
Meet the “Switcher Rate”
Economists call the percentage of scholarship recipients who would otherwise attend public school the switcher rate. The DOAA report calculated that if just 67 % of scholars were switchers, the state would break even. Georgia GOAL’s own ten‑year student database shows an 87 % switcher rate—well above the breakeven point—driving the large surplus confirmed by DOAA.
Local governments benefit, too: with fewer pupils to educate, school districts retain local revenue that now stretches further for the children who remain.
Crunching the Numbers
Using the DOAA model, GOAL analysts found that in 2021:
- State savings reached $24.2 million after accounting for $81 million in tax credits.
- Local savings totaled $32.2 million, the result of lower enrollment pressures on district budgets.
The combined $56.5 million is equivalent to hiring nearly 800 new public‑school teachers or funding two medium‑sized high schools—without raising a dime of new taxes.
Beyond Dollars: Academic & Social Dividends
While the fiscal story grabs headlines, the human impact is even bigger:
- Higher test scores and college attendance among scholarship recipients, according to multiple longitudinal studies cited in the DOAA review.
- Lower taxpayer costs over time as better‑educated graduates rely less on public assistance and contribute more in earnings and taxes.
In other words, the QEE program is not only budget‑friendly; it is future‑friendly.
How the Tax Credit Works for Donors
Any Georgia taxpayer—individual or business—can apply in minutes to redirect up to $2,500 (single), $5,000 (married), $25,000 (pass‑through owner), or 75 % of state tax liability (C‑corp/trust) to student scholarships. Approved donors send their contribution to GOAL within 60 days and claim a dollar‑for‑dollar credit when they file next year.Because the statewide cap ($120 million) has filled on the first business day for several years, accountants advise clients to submit their application before January 1 to ensure approval.
How Families Benefit
GOAL has awarded over 82,000 scholarships averaging $4,508 each since 2008, with nearly half of recipients coming from families of color and 79 % earning below $48 000 in adjusted gross income. These scholarships let parents choose from 231 participating private schools—often unlocking smaller classes, specialized programs, or mission‑based education that was otherwise out of reach.
Keeping the Savings (and Opportunities) Flowing
Legislators set the tax‑credit cap, and donors decide how much of it gets used. The DOAA report makes a compelling case for eventually raising the cap so more students can switch and more savings can accrue.
If you pay Georgia income tax: consider redirecting a portion of next year’s payment—it costs you nothing extra and expands scholarship access while maintaining the state’s positive fiscal balance.If you’re a parent seeking options: the first step is to apply for a GOAL scholarship at a participating school; awards are need‑based and can follow your child through graduation.
Take Action Today
- Secure your 2026 credit by submitting the quick online application with GOAL this fall.
- Share this article with friends who might assume the program drains public coffers.
- Advocate for policies that lift the cap, ensuring savings—and opportunities—grow each year.
Redirected taxes, wiser spending, and stronger student outcomes: that’s a triple win Georgia can bank on.
Sources: Georgia Department of Audits and Accounts, “Analysis of the Qualified Education Expense Credit Program,” 2023; internal Georgia GOAL scholarship dataset, 2015‑2024.