Considered a national leader in tailored, successful school choice programs, Arizona offers more school options than any other state. In addition to a corporate tax credit program, a scholarship for students with disabilities, an individual tax credit program, and a program for displaced students, Arizona also has a strong charter school law.
For Parents
How to apply for a scholarship under the Individual School Tuition Organization Tax Credit:
Students are awarded scholarships mainly on the basis of financial need, though some School Tuition Organizations benefit students in a specific location or private school system. Parents should see the Arizona Department of Education website (http://www.ade.az.gov/) and http://www.revenue.state.az.us/researchstats/schooltaxcredit.htm for a list of participating STOs.
How to apply for a scholarship under the Corporate School Tuition Organization Tax Credit:
Eligible students will come from a household with income that does not exceed 185 percent of the income limit required to qualify for the federal free or reduced-price lunch program ($70,676 for a family of four in 2007). The student will have attended a public school in the previous year or be entering kindergarten. Parents should see the Arizona Department of Education website (http://www.ade.az.gov/) and http://www.azdor.gov/ResearchStats/2006%20corporate%20school-credit%20report.pdf.
How to apply for Scholarship for Pupils with Disabilities:
Students with special needs who have attended a public school the previous year and have been issued an Individualized Education Program (IEP) are eligible. Parents should visit http://www.azed.gov/ess/StateFedInitiatives/AZScholarship.asp if interested in applying for their child.
How to apply for a Displaced Pupils Choice Grant:
These grants are available on a first-come, first-serve basis to students who have been in the foster care system at any time before high school graduation. Children in foster care who already attend private schools are also eligible for the grant. Parents should visit http://www.azed.gov/DisplacedPupilGrants/Default.asp if interested in applying for their child.
More Information on Arizona School Choice Initiatives
Arizona’s Individual School Tuition Organization Tax Credit provides scholarships for a wide range of children to attend the school of their parents’ choice. The program allows taxpayers to take a personal income tax credit for donations to School Tuition Organizations (STOs). The cap on credits is $500 for individual donors and $1,000 for married persons filing jointly. STOs are required to use 90 percent of the contributions for educational scholarships for students to attend a private school that best meets their needs. Eligible schools are any private school in Arizona that meets state requirements for nondiscrimination policies. In 2007 individuals donated over $54 million dollars for children to use to attend the school that best met their educational needs. In the 2007-08 school year, 27,153 students are participating, with an average schlolarship of $1,788.
The Arizona Corporate School Tuition Organization Tax Credit enables corporations to receive tax credits on a first-come, first-serve basis for contributions to School Tuition Organizations (STOs). Ninety percent of these contributions are used as scholarships for students to use at the school of their choice. These grants may be redeemed at private schools that meet Arizona requirements for nondiscrimination policies and teacher background checks. The schools must also administer and make available to the public the test scores of its students on a nationally standardized achievement test. Scholarships are capped at $4,400 for students in grades K-8 and $5,700 for those in grades 9-12, with limits increasing by $100 each year. For fiscal year 2009, the statewide tax credit cap is $14.4 million, and there is a 20% annual increase until 2011. Donations total nearly $12 million in 2008 (when there was a cap of $12 million), and 1,947 students received scholarships for the 2007-08 school year, with an average scholarship of $2,374.
Arizona’s Displaced Pupils Choice Grant Program awards scholarships to foster care children. The scholarships can be used to pay tuition at any private school that is registered with the state department of education. The program is currently capped at 500 scholarships a year, with a maximum scholarship amount of $5,000. In the 2008-09 school year, 228 students are participating. In the 2007-08 school year the average scholarship payment was $3,929.
Children with special needs specifically benefit from Arizona’s Scholarship for Pupils with Disabilities. The program allocates $2.5 million to provide grants to children with disabilities across the state who have been issued an Individualized Education Program. The students may apply for and use these grants to pay tuition at any private school for handicapped pupils in Arizona that meets the state’s requirements for nondiscrimination policies. Individualized Education Programs are written statements for providing special education services to a child with a disability that include the child’s present learning levels, measurable annual goals and benchmarks for evaluating progress towards those goals, requirements for the student’s high school graduation, and the specific special education services needed to ensure a quality education for the child. The amount of the grant is for either:
The cost of the chosen school’s tuition and fees or actual per pupil cost, whichever is greater, or
The amount prescribed for the particular student under their Individualized Education Program. Although there is no enrollment cap on students, the number of grants awarded will be determined by the number of students who apply.
In the 2008-09 school year, 211 students are participating, with an average scholarship of $9,308.
Brewer signs bill on new Ariz. school tax credits Gov. Jan Brewer has signed into law a bill creating new business tax credits for donations that will allow foster and disabled children to attend private schools.
Arizona High Court Rejects Private School Vouchers The state Supreme Court on Wednesday overturned two school voucher programs, ruling they violated the Arizona Constitution's prohibition against providing state aid to private schools.
Report: Arizona No. 1 in voucher programs In the annual report released Tuesday by the Alliance for School Choice, Arizona ranked No. 1 in the number of programs available to students that allow them to receive funds to attend a private school.
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