No STO oversight

by David Safier

The Republican-created Private School Tuition Tax Credit Committee met, in part to counter the Dem-created panel looking into the STOs as well as the scholarships they give out. Much of the testimony was from a hand picked group of parents who get scholarship money. They love their scholarships, of course. No surprises, and not much valuable information.

But testimony by Georganna Meyer, chief economist at the state Department of Revenue, "who has administered the tax credit programs since their inception," should raise a few eyebrows. She said she only knows what the STOs tell her, which isn't much, and there may be STOs out there she doesn't know about. And she has no authority to do anything to any STOs that aren't abiding by the rules.

STOs are required to file an annual report with the Arizona Department of Revenue stating the amount of donations collected, how many donations they received, the number of scholarships awarded, how many dollars in scholarships were paid out and which schools received the scholarships. They do not have to report any information on which students receive scholarships.

Meyer pointed out that the numbers she reports annually are based on the STOs she knows about.

"There may be STOs out there that I do not (know about)," Meyer said.

She also said she doesn't have any regulatory authority over STOs, other than that they're required to report to her.

"If they don't, I nag them," she said. "But there you go; that's my authority."

Chabin asked a series of questions about penalties for any violation of the laws by the STOs or if anyone had any authority to regulate them. The answers all pointed to no one having any power of oversight.

Jen Darland, who brought the problems with the STOs to light, emailed me about the meeting. She said Meyer seemed frustrated with her lack of oversight, and admitted she doesn't have any experts in the federal 501c3 rules and regulations that govern nonprofit organizations. So if these STOs are violating the nonprofit rules, as some most likely are, Meyer and her crew don't even know enough to call the STOs on it. Not that it would do any good, since she lacks the authority to do much.

Ladies and gentlemen, I give you Deregulation, Republican style!