Page 24 - AASBO Winter 2019.indd

HOW THE LEGISLATURE TAKES MONEY been accepted into a quali ed school under either program, the

CONTINUED FROM PAGE 23 parents or guardians have no choice. ey must endorse the check
or warrant to the quali ed school,” omas explained.
ESAs were created in 2011. Parents must sign an agreement
Tax credits came along in 1997 with the establishment of Student that they will provide education in at least reading, grammar,
Tuition Organizations. “ ey lacked votes for passage until a mathematics, social studies and science, and that they will
separate program to bene t public schools was created,” omas not enroll a student in a school district or charter, will release
said. districts and charters from all obligations to educate the
The program provides for a tax credit for fees paid for student, and will not accept a scholarship from a student tuition
extracurricular activities; allows a $500 tax credit for an individual organization.
and $1,000 for a married couple; can carry the credit for up to ve An attempt to ban ESAs was rejected by the Arizona Court of
years if the credit would exceed tax liability; can get credit in lieu of Appeals.
a federal deduction; and cannot direct funds to a dependent of the omas identi ed annual moves by the Legislature to expand
taxpayer. the ESA program, until 2017 when a bill to eventually open the
omas explained that an STO must be nonpro t and must give program to all public school children was referred to the ballot, led
at least 90 percent of received funds in the form of scholarships to by a citizens’ organization, Save Our Schools Arizona. e law, as
students. Proposition 305, was soundly defeated by voters in November 2018.
“ is is important,” omas said. “ ey can take 10 percent o “ e e ect is that it doesn’t prevent the Legislature from enacting
the top for administrative expenses. at drives the growth of these another ESA program,” omas said. “ e Voter Protection Act does
and is a potential revenue source.” not work in the negative.”
What’s more, receiving schools cannot discriminate based on Thomas said he expects other attempts to expand ESAs,
race, color, handicap, familial status or national origin, but can but added: “Hopefully there is a pause at the Legislature – the
discriminate based on religion, omas said, and there are no people have spoken – at least for a couple of years to stop those
penalties in law for non-compliance. conversations.”
ASBA and other education organizations challenged the omas pointed out that $186 million goes toward tax credits
constitutionality of the law, claiming a violation of the Establishment and vouchers – money from the General Fund that is not available
Clause of First Amendment to U.S. Constitution, to no avail. e for K-12 education.
Arizona Supreme Court ruled in 1999 that tax credits are legal “ ere is a connection between school choice and the lack of
and that the di erence between a deduction and a tax credit is funding for public schools,” omas said. “And there are no two
“constitutionally insigni cant,” regardless of the di erence in e ect, ways to look at it.”
omas noted. Anabel Aportela, ASBA/AASBO Director of Research, said the
In 2006, the Legislature passed a tax credit program for growth of school choice includes charters and open enrollment
corporations. Donations cannot go to benefit any particular and has led to a decline in funding for
individual student, must be limited to students from low income district schools. During the past 20 years, the
households, and corporations can still be anonymous, but there are challenges public education has faced resulted
no enforcement provisions, omas said. ASBA challenged the law in the growth of choice – not more money.
twice, but lost. ere is a pecking order for money from the
In 2009, vouchers were challenged unsuccessfully on the General Fund, Aportela said, adding: “Who
grounds that the money ows directly from the state to a private gets the rst bite of the General Fund apple?
school. It was argued that because the checks or warrants rst e tax cuts, then ESAs, charter schools, and
pass through the hands of parents is immaterial. “Once a pupil has whatever is left funds school districts.” Anabel Aportela

24 THE EDGE | WINTER 2019