| n 1997, Arizona passed legislation allowing for the creation of two statutes authorizing two education-related tax credits, one intended to provide lower-income families with tuition assistance for private schooling and a second credit directed toward extracurricular activities at public schools. Tuition tax credits are a relatively new mechanism intended to fund school choice by means of the tax system. The tuition tax credit approach for private schools is seen by proponents as much more far-reaching than charter school legislation and more politically realistic than the voucher approach, of which it is a close relative. Beginning with the 1998 tax year, Arizona taxpayers were allowed a full dollar-for-dollar credit of up to ;This study sought to summarize information surrounding the amount of diversion of funds from the state general fund to private and public schools, the equity of the distribution of such funds across family income levels, and the extent to which the tax credits are fulfilling their stated purpose of expanding school choice to low-income students and their families.;Contributions to the education tax credit program have grown rapidly, exceeding the expectations of proponents in the first five years of the program (1998–2002), the total tax revenue lost to any other governmental purpose was approximately... |
