To view the net effect on state finances, we must combine the reduction in tax revenue with the direct expenditures for public schools. This results in a comparable figure to the total expenditures under the current system.

Table 10 outlines the reduced state public school expenditures that would occur if the UTTC plan were implemented. The first few columns show the per-pupil guarantee, the number of traditional public school and charter school students, and the state and local per-pupil revenue under the UTTC plan. The figure representing expenditures is still a large and growing number, but the growth is less than that which would occur if the current system were allowed to continue unchanged.

Table 10. Fiscal Impact of UTTC Plan
Year State Per-Pupil Grant Guarantee UTTC Plan: Traditional Public & Charter School Students UTTC Scenario: State & Local Per-Pupil Expenditures (millions) Weighted Average Tax Credit Per Alternative Student UTTC Scenario: Tax Credits for Alternative School Students (millions) UTTC Plan: Combined Impact of Revenue Loss and Direct State & Local Per-Pupil Expenditures (millions) Public School Expenditures Under Current System (millions) Savings Under UTTC (millions)
1998 $5,608 1,665,125 $9,338 - - $9,338 $9,338 $0
1999 $5,776 1,646,376 $9,510 $549 $141 $9,651 $9,700 $49
2000 $5,950 1,624,686 $9,666 $848 $253 $9,919 $10,077 $158
2001 $6,128 1,609,334 $9,862 $1,164 $387 $10,249 $10,468 $219
2002 $6,312 1,590,639 $10,040 $1,499 $555 $10,595 $10,873 $279
2003 $6,501 1,571,951 $10,220 $1,853 $756 $10,976 $11,295 $319
2004 $6,696 1,549,930 $10,379 $2,227 $1,002 $11,380 $11,732 $352
2005 $6,897 1,524,259 $10,513 $2,483 $1,230 $11,743 $12,186 $443
2006 $7,104 1,499,545 $10,653 $2,781 $1,502 $12,155 $12,658 $503
2007 $7,317 1,471,351 $10,766 $3,110 $1,830 $12,596 $13,147 $552
2008 $7,537 1,486,451 $11,203 $3,203 $1,901 $13,104 $13,656 $551

Adding the direct public school expenditures to the amount of tuition tax credits produces the total combined costs under the UTTC plan. The total costs grows from $9.3 billion in 1998 to $13.1 billion in 2008.