Arizona’s School Choice Landscape Navigates Declining STO Donations and Rising ESA Usage

Arizona’s school choice is in flux with declining STO donations and increasing ESA usage affecting scholarship availability and funding sources for students.

Arizona’s School Choice Landscape Faces Challenges with Decline in STO Donations and Rise in ESAs Usage

Recent data shows a decline in both donations to School Tuition Organizations (STOs) and scholarships for students marking a significant change in Arizona’s school choice landscape, according to the report of Axios Pheonix.

The rise in Empowerment Scholarship Accounts (ESAs) usage is directly linked to the drop in STO funding, posing a challenge to Arizona’s long-standing school choice programs.

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(photo: Fronteras Desk)

Arizona’s School Choice, STO Donations Decline as ESAs Gain Traction

STOs rely on tuition tax credits, while ESAs draw from the state’s general fund to support private school tuition and other educational expenses.

STO stakeholders agree that ESAs are a major factor in the decrease in donations, despite some situations where STOs offer more financial support.

While students can’t use both STOs and ESAs simultaneously, the expansion of ESAs is seen as a positive step for school choice in Arizona.

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Insights on STOs, ESAs, and Tuition Tax Credits

Different tuition tax credit-based scholarships show varied trends, but there’s hope that tuition tax credits will remain a good option for many students.

Stakeholders expect further changes as families navigate between STOs and ESAs, hoping for stability in STO funding and a diverse range of educational choices.