State tuition policy decisions in response to the Taxpayer Relief Act of 1997: The case of California

This study investigated, through a case study analysis, how the state of California responded to the Taxpayer Relief Act of 1997 (TRA 1997). Findings indicated that TRA 1997 worked in the way that was intended by federal policymakers and did not have a significant impact on price setting in California's public higher education institutions. This finding is contrary to the predictions of numerous social scientists. That is, the students who were eligible and took advantage of the tax credits found their education more affordable. Thus, a significant conclusion of this study is that TRA 1997 is in fact directly flowing to students in California, consistent with the goal of TRA 1997---to increase affordability to higher education for middle-income students. Price increases clearly are not undermining this goal in California.