Arizona School Tuition Organization Association







News Legislative Update by Steve Yarbourgh 2005 and 2006 were great legislative seasons for expanding school choice in Arizona. 2007 and 2008 look like seasons for litigation. The effort to prevent increased school choice through the individual scholarship tax credit enters year number ten in 2007. The ACLU lawsuit, repeatedly dismissed and appealed, will again be argued in the Ninth Circuit Court later this year. 2007.03 Judge Barton Dismisses School Choice Lawsuit In Victory For Children Statewide In a resounding victory for schoolchildren statewide, Maricopa County Superior Court Judge Janet E. Barton dismissed the lawsuit against the Arizona’s Corporate School Tuition Organization Tax Credit program this morning. The dismissal comes only two days after oral arguments were given by the program’s challengers and the Institute for Justice, who has been defending the tax credit scholarship. 2007.03 Arizona’s Private School Tax Credit Gives Hope to Families There are many school tuition organizations in our state working hard to reach out to families in need whose priority is to find the best education possible for their individual children. Financial restrictions often times make a first choice impossible, but thanks to the private school tax credit, families are now able to make their dreams a reality for their children. Election Year Activities – CAN WE? As sure as the monsoon season produces weeds in the front yard, an election year sprouts campaign signs at every street corner. STO’s, as 501(c)(3) organizations, are particularly challenged during an election year . What activities, if any, are permissible without jeopardizing tax exempt status? 2006.10 Constitutional Expert Calls Lawsuit “Borderline Frivolous” ASBA, ACLU Suit Against Corporate Tax Credit Rehashes Settled Issue On September 19 the Arizona School Boards Association and the Arizona Chapter of the ACLU filed a lawsuit against Arizona ’s new corporate tuition tax credit. The corporate tuition tax credit allows businesses to receive a tax credit for contributions they make to tuition scholarship organizations. The scholarships are designated for low and middle income families. Both groups filed a similar suit against Arizona’s individual tuition tax credit in 1999 and lost. 2006.10 Legislative Update The last legislative session featured the enactment of several high profile school choice measures. The corporate scholarship tax credit law was passed and then expanded from $5 million to $10 million per year plus a 20% annual increase during the five year life of the program. (SB 1404) 2006.10 Legislature Running Full Speed With the legislature running full speed and proposals rising and falling almost daily, it is a challenge to accurately discuss the status of school choice and the scholarship tax credit at any given moment. 2006.4 Sunset Tax Credit Review—2006 What is the Sunset Review that is takes place in 2006? Many are not aware of this provision that was added to all tax credits in 2002. HB 2186 was amended to make provision for the legislature to review tax credits. The private school tuition tax credit is scheduled for review this year. 2006.4 Taxing Logic After all this time, you’d think school choice opponents would get some new material. 2006.2 Law Created On March 29, 2006, Gov. Napolitano allowed the corporate scholarship tax credit to become law without her signature. Three previous versions of the bill had been vetoed. 2006.4 Excellent! Arizona School Choice Program Earns Top Score Arizona’s tuition tax credit scholarship program is one of the most accessible programs in the nation, according to a just-released analysis from the Friedman Foundation. 2005.10 Fight for Freedom Continues Summer is officially over and so is the work of writing legal briefs defending Arizona ’s School Choice Tax Credit against the ACLU’s spurious constitutional challenge. 2005.10 Scholarship Organizations and Recipients Ask Court to Dismiss Frivolous Lawsuit Last September, the Institute for Justice, on behalf of the Arizona School Choice Trust (ASCT), a scholarship-granting organization, and parents whose children receive scholarships from ASCT, asked Federal District Court Judge Earl Carroll to dismiss the ACLU’s frivolous legal challenge to Arizona’s Educational Tax Credit program. 2005.1 2005 Legislative Preview There are several high profile bills recently or likely to be introduced in the 47th Arizona Legislature which relate to school choice generally or the scholarship tax credit specifically. 2005.1 School Choice Under Attack in Arizona - Again Arizona’s tuition scholarship tax credit has been providing thousands of low-income families the means to send their children to the private school of their choice for seven years. 2004.9 Legislative Perspective Two thousand four marks the seventh year since ARS 43-1089 – the scholarship tax credit – became operational in 1998. 2004.9