A Model of State and Local Finance: Assumptions

To analyze the effect of tuition tax credits on taxpayer finances, a model of state and local financing of public schools in the state of Michigan was developed. The model incorporates both the current system, and the proposed Universal Tuition Tax Credit. Although the model does not take into account all the complicated and intricate financial conditions involved in a public school system, it captures the most significant dynamics. It can be used to predict reliably what will happen should the people of Michigan adopt the UTTC.