The Alabama Supreme Court on Monday rejected a constitutional challenge to a scholarship program that bears striking similarity to Florida’s Tax Credit Scholarship for low-income students, which was challenged in August. The Alabama ruling comes six months after the New Hampshire Supreme Court also rejected a challenge to tax credit scholarships in that state.
Not surprisingly, school choice advocates in Alabama were pleased. Said Chad Mathis, chairman of the Alabama Federation for Children: “We are thankful to the justices of the Alabama Supreme Court for seeing this lawsuit for exactly what it was – a veiled attempt by Alabama Education Association (AEA) to keep the status quo in education and prevent parents from making decisions that best suit their children.”
The AEA, Alabama’s teachers union, challenged both the procedure by which the Alabama law was passed in 2013 and the constitutionality of the program. The constitutional issues were based on the union’s argument that the scholarship funds were the equivalent of state appropriations – a claim that closely tracks the Florida case, which was filed by the Florida Education Association and other groups. Florida’s tax credit scholarship program is administered by organizations like Step Up For Students, which co-hosts this blog and employs the author of this post.
By alleging the scholarship funds were in fact government appropriations, the AEA said the program improperly used money from the Alabama Education Trust Fund on nonpublic schools and to support religious schools.
The union’s lawyers wrote that a tax-credited scholarship contribution “channels to charitable organizations monies that otherwise would have gone to the public (and) is the functional equivalent, in all respects, of an appropriation to such charitable institutions that are not under the absolute control of the State.”