Arizona Education Network

In another blow to fiscal responsibility in AZ, four bills have successfully passed out of the House Ways and Means Committee in recent weeks, which would expand the private school tax-credit program if adopted. Three of these bills would increase private school tax-credit contributions allowing an approximate loss of $60 million to Arizona’s general fund, and would require nearly 8,000 students to transfer from a public school to a private school in order for these programs to be, at best, budget neutral.

Arizona Education Network takes a closer look at the private school tax credit program and its history in order to understand the evolution of the program, the issues that have been raised and the potential changes in the future.

The Arizona Republic reported that private school tuition tax credits that are earmarked for individual students may be in violation of federal law.

A bi-partisan task force met in the House today for a second hearing covering investigations of School Tuition Organizations (STOs) and reform of the private-school tax credit program.

On Wednesday 10/21/09, the full 9th U.S. Circuit Court of Appeals affirmed its April 2009 decision that the Arizona School Tuition Organizations Program for private schools is unconstittutional.

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.

Personal and Corporate Tax Credits & STOs: What they are and how they work.

Recent Articles related to School Tax Organizations in Arizona and Legislative Conflict-of-Interest