Lin Smith

Linden SmithEconomistPricewaterhouseCoopers LLP

Linden Smith Economist PricewaterhouseCoopers LLP Contact: linden.c.smith@us.pwcglobal.com

Vague, yes, but worth much more analysis before the Legislature decides whether to adopt the controversial policy, said Lin Smith, director of PricewaterhouseCoopers' National Economic Consulting Group. Last year, the legislative fiscal analyst concluded that tuition tax credits would not hurt the public education budget. Smith questioned that conclusion, and recommended that lawmakers take more time to study the legislation's implications on state revenues, public and private schools and charitable organizations. "While you might be revenue-neutral at the state level, you're far from revenue-neutral at the local school level," Smith told the House Republican Caucus on Tuesday."A lot of people are going to be hurt by the legislation, and you can start with the local schools and their employees." Rep. Jim Ferrin, sponsor of the tuition tax credit measure before this year's Legislature, said the school boards association should spend its money on finding ways to absorb a projected 140,000 additional school-age children in the next decade. He said he already knew the association and other education groups opposed his tax credit bill -- legislation he says is the only way to accommodate such growth by diverting some of those students to private schools.

These and other biases make it difficult to compare the relative cost of the two loan programs, according to author Lin Smith, an economist with PriceWaterhouseCoopers. "Federal budget estimates are inadequate for the purpose of evaluating the relative economic costs of the loan programs," Smith said. "As a result, the use of such estimates to measure program efficiency could distort policy decisions. Smith has performed budget scorekeeping in the public and private sectors for more than 30 years, including service with the Joint Committee on Taxation of the U.S. Congress and with the U.S. Treasury.