Higher Tax Credits for Private Schools

| July 13, 2015

Children’s Action Alliance (CAA) Newsletter:

July 9, 2015

Piggy Bank with Holes

Private schools are celebrating. This week Arizona corporations broke a record for the time it took to make maximum donations for private school tuition tax credits. Corporations committed to donating nearly $51.6 million for private school tuition scholarships instead of paying that amount in state taxes. That means $51.6 million subtracted from state revenues. The maximum tax credit amount was reached July 6, just 5 days after the Department of Revenue began accepting applications.

While public school budgets are being cut, the maximum allowed for private school tax credits grows by 20% every year. This year’s amount is $8.6 million higher than last year.

Chart: Cap on Corporate Donations for Private School Tuition Has Grown by $41.6 Million in 9 Years

This may be good news for private school students and the student tuition organizations that administer these scholarships. But it is not good news for the over 1 million students enrolled in Arizona’s public schools. When these students return to school next month, they will still face crowded classrooms with too few desks and supplies, outdated textbooks and technology, and severe teacher shortages while many state lawmakers say the state can’t afford to do better.

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Category: Education

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