The Arizona Republic and the East Valley Tribune have each published their respective analysis on private school tax credits, school tuition organizations (STOs), how they are meeting the spirit or intent of the tax credit legislation, transparency of programs and costs, and the players/organizations involved.
Why do these investigations matter?
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HB 2288 was signed by Governor Brewer on July 13, 2009. This bill allows the maximum corporate tax credit limit to grow 20% into perpetuity. The 20% increase provision effectively doubles the amount of private school tax credits every four years.
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FY2007 $10 million
FY2008 $12 million
FY2009 $14.4 million
FY2010 $17.2 million
FY2011 $20.7 million
FY2012 $24.8 million (no end cap)
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This is money that is redirected away from the general fund and into private and often religious organizations. Read AEN’s earlier analysis of HB2288 and the cost to Arizonans, “Brewer & Legislature Send More Tax Dollars to Private Schools”.
In light of this bill and various other bills which cut funding to public education, these investigations hold a light to those elected representatives — current and former — who have ties to and appear to benefit from these tax credit programs thanks to their influence in the legislature. While it doesn’t appear illegal, there is little doubt that upholding their constitutional obligation to public education has fallen second to funding private interests.
The Arizona Republic Investigation by Pat Kossan & Ronald J. Hansen
Tuition-aid program benefits wealthy families, raises worry
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Expenses hard to track for tax-credit groups
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Tax-credit work raises ethical questions
Schools under scrutiny for financing private schools with taypayer dollars.
October 19, 2009: One of the most prevalent arguments in support of Arizona’s private-school-tuition tax credits is that they save the state money by shifting students from public to private schools. An Arizona Republic analysis, however, found that rather than saving the state money, the credits likely resulted in a net loss for the state budget. Tuition tax credits drain state money:
October 20, 2009: Lawmaker has questions for tuition groups
October 14, 2009: GOP-led panel hears testimony on STO program, Az Capital Times
October 24,2009: Private school tax credits ruled illegal
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The East Valley Tribune Investigation by Ryan Gabrielson and Michelle Reese **UPDATED**
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Rigged Privilege: A 3-part investigation into Arizona’s private school tax credits program
The East Valley Tribune will cover this story in three parts:
Part one: Private school tax credits rife with abuse and School tuition organizations unaccountable ~ August 1, 2009
Part two: Schools teach parents how to skirt the law and Charity survived indictments to help poor ~ August 4, 2009
Part three: Some charities most generous to executives and Tax credit sponsor’s vision unrealized
A live chat with the reporters was held on Monday, August 3rd, Wednesday, August 5th, and Friday August 7th.
Tax credit sponsor’s vision unrealized, East Valley Tribune, June 15, 2010
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Horizon Interviews Pulitzer Prize Winner Investigative Reporter Ryan Gabrielson
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Related AEN Posts & News Articles:
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Tax Credits & STOs: Overview
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Related news articles on tax credits & STOs
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Public Education and our Arizona Constitution
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Public Education, The Arizona Constitution & The NO TAX Pledge!
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Tags: arizona education, Arizona private schools, School Tuition Organization, Steve Yarbrough, Trent Franks
I just read all of these articles and all I can say is “WOW!!!” Time to call our elected representatives and give them an earfull. It’s bad enough that bill opened up millions of corporate dollars to private schools only, when we see the revenue to the general fund shrinking. Now it appears all but ONE STO/private school (both Catholic) have failed to diversify their student population, as was the spirit of the legislation. And the biggest is Rep. Yarbrough’s Arizona Christian School Tuition Organization. AND he started a private high school, too? Profiteering isn’t becoming of a Christain, fella.
Take it from a Sunday school teacher, it’s time Rep Yarbrough crack open his Bible and take a lesson from Zacchaeus.
Please, please tell me that Yarbrough can get thrown in jail for this. And Bob Stump…who just so happens to collect $57,000 for his ‘charity’ work collecting multi-millions of dollars for Yarbrough’s STO during the year when he just so happens to run for Corporate Commissioner?
ARIZONA – ENOUGH IS ENOUGH!!!
I just spent the last hour-and-a-half wading through all this information/links. I was never too involved in politics before the funding for my children’s public school was effected. Now, I feel like maybe ignorance is bliss…except that I’m so fricking mad that this BS is going on! Really…why am I shocked that these corrupt politicians are using the loopholes of the law to pad their pockets…and that greedy STOs are violating federal laws? But I am. I am really horrified. I want to vote all the yahoos out of office that voted for these bills. And shame on Jan Brewer for signing the corporate expansion bill!!!! First, she was for public education, and then last week she flip-flopped and now I hear about this. Honestly, my 6 year old could make better fiscal choices than those in office!!!
The newspaper articles you included here are excellent. I would recommend them for anyone else.