The Distribution of Tax-Credit Donations to Traditional Public Schools in Arizona

• In Event: 35.081 - Roundtable Session 13
  In Roundtable Session: 35.081-20 - School Choice: Distributional Issues

Abstract

In Arizona, individuals are allowed to make contributions to public schools and receive a tax credit for the full amount they donated, up to $200 per individual taxpayer for tax year 2014. Because this program is a tax cut that is likely to benefit more affluent families, it is important to understand how these funds are distributed across schools. We assess the relationship between school characteristics and the tax credit donations traditional public schools received in fiscal year 2012. There are inequalities in traditional public schools’ capacities to solicit tax credit donations associated with the percentage of poor students they serve. The analysis will help us understand a relatively undocumented form of resource inequality within Arizona’s public school sector.

Authors

• Jeanne M. Powers, Arizona State University

• Amanda U. Potterton, University of Kentucky