Dive Brief:
- Tax deductible donations supporting the Alabama Accountability Act have decreased by more than half since 2013.
- While the scholarship program, which gives families tax credits for moving their children from failing public schools to successful public or private schools, is still in place, it was ruled unconstitutional in May by a judge and is currently the focus of an appeals case.
- The scholarship organization, which has only been around for two years, received $12.7 million in 2014 and $25 million in 2013.
Dive Insight:
The uncertainty of the program, and whether or not it will continue, has most likely contributed to the fall in donations. The act was created by Alabama's Republican-controlled legislature in February 2013 with the intention of promoting school choice to students stuck in schools with a poor performance history. Opponents of the act believe it diverts public funds to private schools.
Interestingly, it is exactly these tax deductible donations that brought the act into the limelight, and possibly to its end. The original act simply dealt with school flexibility. However, legislators soon introduced tax credits, which is why Circuit Judge Gene Reese deemed it unconstitutional, saying it placed focus on more than one subject by changing its original purpose — school flexibility — which he said should not have cost money. However, the promised tax credits to families who switch schools and businesses that donate scholarships have resulted in an estimated cost of $40 million each year.