Wednesday, January 23, 2008

CONTACT: Alessandra Soler Meetze, Executive Director, ACLU-AZ at 602-418-5499 (cell) or 602-650-1854 (office)

PHOENIX – At a hearing on Thursday, January 24th before the 9th Circuit U.S. Court of Appeals, constitutional law professor Paul Bender will argue that the state-run tax credit program allowing individuals to withhold tax payments and redirect them to private, sectarian schools violates the U.S. Constitution’s ban on government-funded religion.

Bender, a professor at Arizona State University’s Sandra Day O'Connor College of Law, will argue on behalf of the American Civil Liberties Union of Arizona, which filed a federal lawsuit in 2000 challenging the constitutional of Arizona’s Education Tax Credit Program. In 2006, more than 70% of all individual tax credit contributions —or $50 million – could have been spent on education, but were instead used to directly support private, sectarian schools.

Aside from the legal arguments relating to government subsidy of religion, the ACLU also believes the individual tax credit program undermines public education by funneling cash that would have otherwise ended up in the state’s general fund.  Approximately 54% of the general fund is spent on education. 

Unlike tax deductions for charitable giving where both the government and the individual share in the costs, a tax credit provides a dollar-for-dollar reduction for those who utilize it – $500 for a single individual and up to $1,000 for married couples. For this reason, taxpayers using Arizona’s private school tuition tax credit do not incur any private cost whatsoever and there are virtually no limits on how proceeds from this credit may be used.

Although taxpayers claiming this credit may not designate their contribution for their own dependents, friends and neighbors can swap deductions to ensure they’re own children benefit. The end result is the program benefits mostly medium income families with students already enrolled in private schools. It is estimated that approximately 76 percent of the private school tuition tax credit grants are going to current private school students, despite arguments from legislators that this program helps get poor children out of failing public schools.

What: Appeals court hearing in ACLU lawsuit challenging a state-run tax credit program that gives individuals tax breaks and funnels millions in taxpayer dollars from state coffers to private, sectarian schools.

Who: Paul Bender, ASU Professor of Law and volunteer attorney, will argue on behalf of the ACLU of Arizona. Marvin Cohen, a partner at the law firm Sachs Tierney, is also attorney of record in this case (though he won’t be arguing on Thursday).

When: 10:30 a.m. Thursday, January 24, 2008

Where: U.S. Court of Appeals for the Ninth Circuit, 125 S Grand Ave., Pasadena, CA 91105. 626-229-7250

Why: To challenge an unconstitutional government program that forces taxpayers to finance religious institutions in total disregard for the U.S. Constitution’s prohibiting aid to religious institutions.

Contact: Alessandra Soler Meetze at 602-418-5499 (cell) or 602-650-1854