Bishops Want Tax Dollars Diverted

The East Valley Tribune
By HOWARD FISCHER
CAPITOL MEDIA SERVICES

Arizona’s two Catholic bishops came to the Capitol on Thursday to urge lawmakers to let corporations divert tens of millions of dollars of tax payments to organizations that give scholarships to private and parochial schools.

Sen. Gabrielle Giffords, D-Tucson, called the measure bad public policy. “The state, in my opinion, shouldn’t be taking taxpayer dollars and putting them into these institutions,” she said. Giffords said these schools can discriminate on who is admitted based on religion.

Bishop Thomas J. Olmsted of the Phoenix diocese acknowledged the legislation eventually could reduce state tax revenue by $55 million a year. However, every child in Catholic schools means one less child in public schools, saving money for the state, he said.

Bishop Gerald Kicanas of the Tucson diocese said the money received from tax credits goes to a worthwhile goal: Educating children.

The Senate Finance Committee voted 5-2 for the legislation the pair support. The measure now goes to the full Senate.

Current law allows individuals to reduce state income taxes by $500 a year - $650 for couples - on a dollar-fordollar match for donations to tuition scholarship organizations. That resulted in nearly $29.5 million in donations and a commensurate decrease in state tax revenue, with nearly half going to Catholic schools run by the Phoenix and Tucson dioceses.

Supporters hope expanding those credits to corporations will generate more.

SB1176 lets corporations reduce their tax bills by at least $10,000 for their donations. To limit the revenue loss, the legislation would cap total credits at $10 million next year.

That cap would rise by $5 million a year, to $55 million in 2015.

Recipients would have to use 90 percent of money from corporate donations to aid students whose parents meet certain income limits. For a family of three, that’s less than $53,600 a year.

Sen Gabrielle Giffords, D-Tucson, called the measure bad public policy.

“The state, in my opinion, shouldn’t be taking taxpayer dollars and putting them into these institutions,” she said.

Giffords said these schools can discriminate on who is admitted based on religion.

Olmsted predicted this is the year the legislation, which has failed several previous times, will pass.