Arizona School Tax Credit Program
Doug Stutzman
Arizona’s school tax credit program should be praised by policymakers at the National and State level. Survey after survey indicates that parents want to choose a quality school, and this choice should be available to all. It is appropriate to give parents a choice to use their own tax dollars towards the cost of a private school.
With Arizona’s Private School Tax Credit, families of all income levels are given access to private schools and are able to choose a quality education. Many parents recognize that public education is insufficient for our children. Take for example, the great debate surrounding the AIMS test. Lawmakers, teachers, and schools cannot even agree that high school graduating students need to know basic educational studies before granted a diploma. Can you imagine this same debate if applied to the CPA exam? Or the Bar exam? Or the Medical Board exam?
Imagine the debate, “Well, it appears that 20 percent of those sitting for the exam are not going to pass, do you think that we should eliminate the standard or reduce the requirements?” What about the same debate in business? Is it conceivable that a job applicant be disqualified because of his/her family’s income level? Again, let’s run the school systems like a free-market business and improve everyone’s opportunity. The answer isn’t taking away incentives and requiring family’s to pay twice: once to support an outdated public school system, and twice to pay private school tuition.
I sincerely disagree with the flaws stated in the article by Lawrence C. Mohrweis published in AZ CPA (March/April, 2005).
Flaw Number One: No Income Test For Financial Need. As stated above, why should a tax-payer-sponsored scholarship program be designed with family income caps? To be “fair,” most families’ pay taxes, therefore, families should be given the choice to send their children to any school: low-income, middle-income, or high-income. Why is it fair to take taxpayer’s money and apply it only to low-income students? Arizona should be hailed and celebrated for recognizing that regardless of income, scholarships can be awarded! Let’s expand the program, increase the credit, and give all families school choice.
Flaw Number Two: Specific Child Programs. The Arizona program allows friends and families to assist students of all income-levels by donating to a private school tuition organization. Many private schools may be located in “wealthy suburban areas.” But the article doesn’t define “wealthy” for us. It also doesn’t elaborate that students come from all parts of cities and rural areas. Just because the school may be located there, doesn’t mean that only “wealthy” children attend. As the president of a private school’s Governing Board, a member of the Finance Committee, a member of the Tuition Assistance Committee, and having the privilege to serve on three committees for a private school tuition organization, I promise you that private schools are not just for high-income families. Many lower-income and middle-income families make sacrifices to send their children to a private school with high academic standards.
Flaw Number Three: No Regulatory Enforcement. I think this is a benefit. Our hard-earned tax dollars will not be wasted on undue scrutiny of these organizations.
Flaw Number Four: Potential Abuse of the 10 Percent Rule. Do other non-profit organizations operate on such slim margins? What about our government entities?
Due to the growing number of donors, dollars and recipients, it appears that Arizona taxpayers support a pro-choice schools program. We are grateful for the current program and pray that it will not only continue, but also expand to help even more families.
Doug Stutzman, CPA - Tempe, Arizona
