This study seeks to inform the debate over a proposal in Nebraska to give tax credits for contributions to organizations that provide scholarships to K-12 private schools. The study constructs a model to determine the fiscal impact of tax-credit scholarships on the state and on local school districts. The author estimates the impact that tax-credit-funded tuition scholarships will have on the distribution of students between public and private schools in Nebraska by estimating the likely transfer of students from public to private schools depending on the average dollar value of scholarships. The author uses these estimates to model the impact tax-credit scholarships will have on state education aid to school districts and to calculate the break even rate of "transfer," or the number of public school students that would have to transfer from public to private schools in response to the scholarship program, in order to make the tax credit fiscally neutral from the perspective of Nebraska state government. The author uses district-level expenditure and enrollment data to estimate the percentage of expenditures that vary with changes in enrollment levels across school districts in Nebraska and compare the revenue and expenditure impacts of tax-credit scholarships on school districts to determine the net impact of tax-credit scholarships on district finances. In addition to allowing Nebraska to expand educational opportunities to lower- and middle-income families and improving the equity of its education system, a tax-credit-funded scholarship program would generate fiscal benefits for local school districts, increasing the available resources for students who remain in public schools. Because much of their revenue does not vary with enrollment, school districts would retain much of the funding associated with students who use scholarships to transfer from public to private schools. The overall impact on public schools would be to increase the financial resources available per student. Depend a few key program design elements, it could also result in fiscal savings to the state budget. (Contains 11 tables, 10 figures and 19 notes.)