The Parental Choice in Education Initiative was defeated by California voters in a statewide special election in November 1993. The stated purpose of the initiative was to enable parents to choose their children's schools. This document summarizes the provisions of the initiative, analyzes its policy and fiscal impact, and reviews supporting and opposing arguments. Legal issues and the roles of the legislature, school districts, and state board in implementation of the initiative are also examined. Proponents of the voucher initiative argue that it reduces the ills of monopoly; creates healthy competition; promotes economic equality; eliminates double payments (of tuition and taxes); reduces the burden on private schools; establishes a simple funding scheme; and encourages private innovation and diversity. Opponents charge that the initiative undermines the public school system; may discriminate in admission policies; provides inferior services in low-income areas; unfairly benefits the wealthy; facilitates state support for religious instruction; increases costs to an unknown degree; and does not assign administrative and fiscal accountability. Lists of supporters and opponents are included. (LMI)