Panel adopts amendment and advances controversial education tax credit bill
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Summary
The committee advanced HB 40-37 after adopting an amendment excluding students who receive STO scholarships; supporters say it expands family options, opponents warned of fiscal cost and incentives for higher‑income households to access public funds.
The committee considered House Bill 40-37, which would create a refundable education opportunity tax credit tied to a student allotment. After testimony for and against and a late amendment excluding students who receive scholarships or grants from school tuition organizations (STOs), the committee returned the bill with a due‑pass recommendation.
Sponsor Representative Michelle Pena said the credit would expand family choice and align funding to students. Opponents, including Joseph Palomino (Arizona Center for Economic Progress), argued the refundable credit — without an income cap or guardrails — could create substantial fiscal cost and benefit high‑income families who would otherwise not rely on public education. Michelle Jibben, speaking for Arizona Families for Home Education, urged an explicit statutory exemption for homeschool families who do not want public funds.
Trevor Lakey (Yes Every Kid) supported the measure as an option that could, in some cases, reduce use of existing ESA dollars and produce savings. The committee adopted an amendment to exclude children who already receive STO scholarships and advanced the bill; recorded committee tallies in the transcript show mixed votes (transcript records '5 ayes, 3 nos' with other roll‑call annotations).
