AEN's Recent Legislative Update ~ February 19, 2009

Arizona Legislature Punts Decision on Funding for Education, Vital Services to Voters

On Tuesday, May 18, 2010 voters will decide whether to approve a temporary one-cent sales tax in a special election (the sales tax would repeal automatically on July 1, 2013). The revenue, generated over three years, would be apportioned between education and other vital services; two thirds of the proceeds would go toward education and the other third would fund health and human services and public safety.

The Legislature could have chosen to increase revenues rather than put this to voters, but in Arizona a two-thirds majority is required to raise any tax and the votes aren't there, thanks to the 31 legislators who have signed an oath to Washington special interest lobbyist Grover Norquist, promising to never raise taxes in Arizona - no matter what the situation.

Arizona Education Network is involved in a state wide discussion to support passage of the temporary sales tax to fund education. We will update you as soon as we know more.

To learn more see:
Arizona legislature punts decision on funding for education, vital services to voters

AZ Legislature Called into Sixth Special Session **Updated 2/12/10**

Public Education, The AZ Constitution & The No Tax Pledge!

In Budget Deficit, Legislators Want to Send Money to Private Schools

In another blow to fiscal responsibility, the House Ways and Means Committee voted to expand the private school tax credit program, tripling the amount of tax dollars that can be diverted from the general fund to private schools (HB 2664).

Already, $55 million a year is diverted from the general fund to support private schools.

The new limits would be $3,000 for a married couple, instead of $1,000, and $1,500 for an individual, up from $500. Remember that the public school tax credit limit is $400 per couple and $200 for an individual.

Legislators were supposed to be addressing the concerns raised by two separate newspaper investigations in 2009 that found numerous problems with Arizona's private school tax credit program, Rigged Privilege: An Investigation into Arizona's Private School Tuition and The Tuition Tax Credit: Tuition-aid benefits wealthy families, raises worry.

The House Ways and Means Committee also voted to extend the deadline for submitting tax credits to private schools to April 15 from the current Dec. 31 deadline. The tax-credit legislation now moves on to the full House.

To learn more see:
Legislators propose private schools tax credit increases while Governor proposes cutting funding to GED funding

Arizona's Private School Tuition Tax-Credit Program: How We Got Here and Where are We Going?

Researcher: Tax credits cost state millions


Tell Us Your Stories: How are education cuts affecting you?

The Legislature has already cut Arizona public education funding with more cuts expected. We want to know how these cuts are affecting your student, their classroom and your school. Send us your stories, your videos, your view and we will post it on a new section of our website. We will also be featuring individual stories in our newsletter. We want to hear your voice! Click here to send us your story


Take Action NOW!

• Call, write or email members of the House and tell them to vote against legislation expanding the private school tax credit program, go to: Legislator Contacts
• Write a letter to the editor and make your opinion known about state funding of education and/or the proposed expansion of the private school tax credit program.
     o Write a letter to the Arizona Daily Star
     o Write a letter to the Arizona Republic
• Forward this email to five friends, relatives, neighbors or colleagues and ask them to sign up to receive these updates. Education supporters can make a difference, but we must stay informed and take action.


Take care,
Ann-Eve, Melissa, MaryLee and your AEN team

PS. Check us out at:
• http://www.arizonaeducationnetwork.com/
• Follow us on Twitter, AZEducationNet
• Join us on Facebook!

AEN is a non-partisan, all-volunteer, nonprofit organization that exists to provide factual information and advocacy for public education.

With fiscal house on fire, private-school tax credits are irresponsible

With fiscal house on fire, private-school tax credits are irresponsible
By MaryLee Moulton

As Rome burns, our state Legislature continues to fiddle away. Faced with a burgeoning budget hole and no solution in sight, the legislative leadership last week proposed a way to deepen — yes, deepen — our state debt.

It involves funneling even more state tax dollars to private schools and helping line the pockets of the middlemen who profit handily by skimming 10 percent of tax-credit dollars as they are diverted to private schools.

A House committee appointed by House Speaker Kirk Adams, R-Mesa, allegedly to investigate abuses of the private school tax-credit system, instead last week released recommendations to expand rather than reform the program, which two separate newspaper investigations have found to be rife with abuse.

The newspapers found that the program, which was established to help pay poor kids' tuition at private and parochial schools, primarily benefits the wealthy, who receive a taxpayer-funded subsidy to pay for their children's elite and costly education. This comes at the expense of all other Arizonans, who are suffering job losses, closed state parks and woefully underfunded public and charter schools because of the state's budget crisis.

The private-school tax credit program has diverted $380 million from the general fund since its inception in 1997. This year alone — at a time when the state is talking about talking about issuing IOUs because it can't pay its bills — $55 million of your tax dollars will walk out the door with no benefit to average Arizonans.

Your state tax dollars will also continue enriching Rep. Steve Yarbrough, R-Mesa, the primary sponsor of legislation expanding private-school tax credits and the beneficiary of those tax dollars as head of the largest School Tuition Organization. Legislators have already refused to declare that Yarbrough has a blatant conflict of interest that should be illegal; instead of cracking down on his industry, the House panel voted to help him expand it.

Incredibly, rather than voting to restrict this program to only the financially needy, the House panel voted to recommend increasing the amount that taxpayers can direct to private schools from $500 to $750 for an individual and $1,000 to $1,500 for a couple.

How can any responsible legislator faced with a budget deficit of more than $3 billion recommend increasing a tax credit that is not limited by financial need? In the recent special session, the Legislature cut an additional $144 million to public schools mid-year. This is on top of the $133 million in cuts in January 2009. More cuts are on the way. Keep in mind that Arizona is already 50th in the nation in per-pupil spending on K-12 education.

Every Arizonan should contact their state legislator and demand they follow the fiscally responsible path. Insist that any scholarship offered through tax credits is means tested. Tell them to introduce legislation to reduce the 10 percent taken off the top to a more reasonable 3 to 5 percent. Finally, tell them they will be held accountable if they expand special interest tax breaks when Arizona has a $3 billion deficit.

Arizonans must take action to force our legislators to be fiscally responsible.

MaryLee Moulton is a co-founder of the Arizona Education Network. E-mail MaryLee Moulton at marylee@arizonaeducationnetwork.com