Traditional school voucher programs, which exist in 15 states and the District of Columbia, allow the government to pay private schools, many of them religious, directly. Tax credit scholarships, like the one that helps pay tuition for Ms. Kakayo’s daughter, are a newer and growing form of school choice. They allow individuals and corporations to receive credit on their state income taxes for donations to nonprofits that provide tuition aid to students. Iowa’s program, currently used by 11,000 students, has income limits — $73,800 for a family of four — and the average scholarship award is only $1,583.
Iowa is one of the states where legislators this year proposed education savings accounts, an even more expansive benefit. The accounts give parents state money each year — under one proposal, in the form of a $5,000 debit card — that they can use on private school tuition, home schooling costs, online education or tutoring.
