Obama tax credit proposal could provide free tuition in Florida

By Scott Travis | South Florida Sun-Sentinel

November 17, 2008

College tuition costs for Florida residents could become significantly cheaper, or even free, if a campaign proposal from president-elect Barack Obama becomes law.

During his campaign, Obama and his running mate, Joe Biden, said they planned to create a new American Opportunity Tax Credit, which would be worth $4,000 a year. In exchange, students would have to annually complete 100 hours of community service.

"I will make a deal with every American who has the drive and the will but not the money to go to college: If you commit to serving your community or your country, we will make sure you can afford your tuition," Obama said at an Oct. 27 speech in Canton, Ohio. "You invest in America, America will invest in you."

The credit would cover two-thirds of the cost of tuition at the average public university, according to Obama campaign materials. The cost of public universities in Florida is roughly $3,600 to $4,000 per year. This means students here might be able to get free tuition for four years. It's unclear how the proposal would affect pre-paid tuition or Bright Futures scholarships.

Congress would also have to approve the proposal.

"Whenever Congress passes a bill, there are always regulations that go with it, and it's possible it could be scaled back," said David Hawkins, director of public policy and research for the National Association for College Admission Counseling.

The plan excites students such as Sapna Talati, 20, of Boca Raton, a junior at Florida Atlantic University, who is also president of the College Democrats.

"I think under the current administration, students don't feel like they're receiving anything back," Talati said. "If students receive a tax credit for carrying out civic duty, it might motivate them to become better members of the community."

Under Obama's plan, tax credits would be fully refundable, so low-income families who don't pay enough in taxes to benefit from the full tax credit could still get $4,000.

During the campaign it was estimated the cost of the tax credits at $10 billion a year.

An Obama adviser told The Associated Press in September that Obama's education proposals would be paid for by cutting other federal programs, contracting and procurement reform, and eliminating spending on special projects pushed by members of Congress.

But the hefty price tag could delay the project, Hawkins said.

"I think some of the first legislation to come out from Obama will be aimed at fixing the economy on a large scale," he said. "Something with a large price tag could be branded as overreaching. I would guess this would be something that could come later once the economy improves and has beefed up the federal revenue stream."

Norman Tripp, a member of the Board of Governors, the policy-making body for state universities, has been looking for ways to make college more affordable.

Tripp said he wonders how well colleges would enforce the community service component.

"I get where they're coming from, but I don't think that is the answer," Tripp, a Fort Lauderdale resident, said of Obama's proposal. "It sounds like a feel good thing. The devil's in the details."

Information from The Associated Press supplemented this report.

Scott Travis can be reached at stravis@SunSentinel.com or 561-243-6637.