The Rich Get Richer: The Unequal Distribution of Public School Tax Credit Donations in Arizona

• In Event: 52.084 - Roundtable Session 20
  In Roundtable Session: 52.084-14 - Conversations in School Finance

Abstract

In Arizona, individuals can 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 2015. 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 and charter schools received in fiscal year 2012. Our analysis suggests that there are inequalities in the distribution of tax credit donations associated with the percentage of more advantaged students that schools serve. These dynamics suggest that there is a Matthew effect of cumulative advantage among Arizona’s schools.

Authors

• Jeanne M. Powers, Arizona State University

• Amanda U. Potterton, University of Kentucky