A bill that would provide state funding for the second-year expansion of full-day kindergarten was facing a veto before a deal was struck between the governor and Republican leaders to remove a “poison pill” provision that would have created a private school voucher program.

The bill still contains a corporate tuition tax credit program to provide scholarships to students wishing to attend private schools.

Before the legislative session began, Governor Napolitano said one of her top priorities was securing about $17 million in additional funding to allow more students at low-income schools to have access to the all-day K.

Currently, schools where 90 per cent of the students qualify for the federal free and reduced lunch program receive state funding for full-day kindergarten. The governor is seeking to lower the threshold to schools at which 80 per cent of students qualify for the federal program.

Republican leaders initially resisted providing the funding and the Legislature approved a budget in March that did not have any money to add to the program.

Recently, they had agreed to include the kindergarten expansion, but only if the plan included safeguards, such as requesting that all families that apply for the federal free and reduced lunch program provide documentation of their income to school districts.

They also amended the full-day kindergarten bill, H2782, to include a private school voucher program for 1,500 low-income kindergarten students whose families made less than 185 per cent of the federal poverty level. The student would have continued to receive the $3,500 voucher every year while enrolled in a private school and until he or she graduates high school. The program would have been fully phased in over 13 years, adding an additional 1,500 students each year. An appropriation of $5.5 million was initially included for fiscal year 2006.

As a condition of an agreement between Republican leaders and Ms. Napolitano on an overall budget for fiscal year 2006, the voucher portion of H2782 was expected to be removed, but details were not available at press time May 5.

However, the bill still does contain language that would establish a corporate tuition tax credit. Businesses could designate that up to $10,000 of their tax liability be contributed to a student tuition organization, or STO. An STO would then use the money to provide scholarships for students who qualify for free and reduced lunch prices to attend a private school. As of press time, scholarships would be capped in 2006 at $4,200 for grades K-8 and $5,500 for grades 9-12, but the maximum would increase by $100 each following year. The total amount of tax credits allowed for these tax credits in 2006 is $10 million, increasing by $5 million each year until it tops out at $55 million in 2015.

Governor: Vouchers Would Siphon Money From Public Schools

If the school voucher program remained on the bill, the governor said she would veto it.

Ms. Napolitano says that, contrary to what Republican supporters of the voucher program say, the concept is not school choice because not all students would have choices available to them.

She also said private schools operate under different rules than their publicly funded counterparts. In addition to being able to choose which students attend, the governor said private schools aren’t required to provide transportation for students, show academic attainment, meet federal No Child Left Behind requirements or hire certified teachers.

Despite assurances of a veto, the Legislature had pressed forward with the plan. It was narrowly approved by a 31-27 vote in the House on May 2.

After unsuccessful attempts by Democrats to gut the bill, the Senate adopted two Republican amendments and returned the measure to the House on a 16-13 vote May 4.

A floor amendment authored by Minority Leader Linda Aguirre, D-16, would have stripped the voucher and corporate tax credit provisions from the bill.

“If you strike this language, it is guaranteed to be signed by the governor,” she said.

Sen. Jorge Garcia, D-27, tried to add a requirement that students who receive vouchers must pass the AIMS test to receive a high school diploma.

The Senate adopted amendments from Majority Leader Tim Bee, R-30, and Sen. Robert Burns, R-9, that eliminated provisions in the bill, including requiring documentation for eligibility in the free and reduced lunch program and a variety of proposed standards for schools that receive full-day K grants.

Sens. Toni Hellon, R-26, and Carolyn Allen, R-8, split with their party and voted against the bill.

Backers Say Vouchers Will Aid Public Schools Through Competition

Supporters of the vouchers and corporate tax credits – all are Republicans – said the plan would increase the performance of public schools.

“There’s no greater mission than to get better performance out of the school system,” Sen. John Huppenthal, R-20, told his caucus May 3, “and the only way is providing progressively, steadily, gradually more places for parents [to send their kids]. Competition opens it up. This is a noble mission.”

However, during floor debate of the bill May 2 and 3, opponents said there are problems with the design of the voucher and tax credit programs.

Some opponents questioned the lack of regulation the state has over private schools. In order to continue receiving vouchers, a student needs to advance grade levels. Private schools aren’t governed by state regulations to determine if a student passes or fails a grade, Rep. Marian McClure, R-30, said, which could cause problems.

“Once government dollars follow the child into the private school,” she said, “the private school will find it expedient…that the child will advance any way, just so they can keep the dollars coming in from the state.”

Ms. McClure also said the lack of background checks for private school operators or teachers is troubling. In Milwaukee, which has a voucher program similar to the one approved by the Arizona Legislature, a convicted child molester opened a private school and was able to receive money from the government.

At press time May 5, the Legislature was expected to add reforms to the corporate tuition tax credit program, including requiring participating private schools to perform fingerprint background checks on teachers and publish results of norm-referenced tests, such as the Stanford 9 or Iowa Basic exams. —

Arizona Capitol Times Senate reporter Phil Riske contributed to this story.