The solution to tuition tax credit problems? Increase the tax credits

by David Safier

I could call this self parody, but for AZ legislators of the Republican persuasion, it's business as usual.

You probably remember that both the East Valley Trib and the Republic ran a number of investigative articles starting a few months back exposing all kinds of problems with the tuition tax credit system and the STOs that administer the money.

With no income limits on the taxpayer-funded scholarships, wealthy families can — and do — send their children to private schools on the government dollar. And some of them get 100% free rides, because they can get friends and relatives to "recommend" that tax credit donations are tagged for their children.

Meanwhile, some people running the STOs are making a heap of money off the 10% administration fees they can charge. Sen. Rep. Steve Yarbrough is  one of the prime suspects.

So what does the Republican dominated committee looking into these abuses do? It recommends that we raise the tax credits 50%, from $500 per person to $750 per person ($1500 per couple). Oh, and the state should look into the STO finances more carefully, even though there's no money allocated for that purpose.

The lone voice of reason on the committee was Tom Chabin (D-Flagstaff). So naturally, every one of his recommendations was voted down.

Republicans are trying to turn serious investigative work on its head and use it to increase the size of the tuition tax credit program without anything approaching serious reform. And who knows, they might get away with it.

NOTE ON NEWS COVERAGE: This story was covered well by the Republic, the Trib and the Guardian. The Star ran an article as well, but it was by far the weakest of the three. And given that the Star has ignored the story until now, their coverage once again proves to be woefully inadequate. (The Star report was written by Howard Fischer, who tends to be a thorough reporter. If this is his complete story, he fell down on the job this time. However, it's possible the Star edited his story from a more complete version.)