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Bulletin, Progressive, Record, Reporter
Wednesday, May 18, 2011 5B
Wizen lack of i'..,.per standin00 becoJ.,., s justice denied
R
LEGAL MUSINGS
STEVE BRENNEMAN
steve@schoolpathways.com
Arizona Revised Statutes
section 43-1089 permits Ari-
zona taxpayers to claim a tax
credit of up to $500 for contri-
butions made to a school tu-
ition organization (STO). An
STO is a charitable organiza-
tion that provides scholar-
ships to students attending
private schools, including relb
gious schools.
A group of Arizona taxpay-
ers filed suit in federal district
court challenging section 43-
1089 as a,violation of the Es-
tablishment Clause of the
First Amendment, which gen-
erally prohibits state sponsor-
ship of religion. The plaintiffs
alleged theax credit permits
STOs "to ue State income-tax
revenues tqpay tuition for
students at]religious schools"
that may "¢]iscriminate on the
basis of religion in selecting
students."
The plaintiffs' theory goes
something like this. A tax
credit, unlike a tax deduction,
is a one-for-one reduction in
taxes due. The plaintiffs ar-
guedthat if an Arizona tax-
payer pays $500 to an STO and
receives a $500 tax credit in re-
turn, it is tantamount to the
taxpayer taking $500 of his or
her tax obligation and paying
it instead to the STO. Accord-
ing to the plaintiffs, this is the
same as if the government had
collected the $500 from the tax-
payer and paid it to the STO it-
self. Thus, the government is
supporting the STO, which in
turn is supporting religious
schools.
The district court dismissed
the case, concluding the plain-
tiffs failed to state a valid Es-
tablishment Clause claim•
However, the 9th Circuit con-
cluded otherwise and re-
versed.
The United States Supreme
Court granted review and re-
versed the 9th Circuit. Howev-
er, the high court did not
reach the merits of whether
the plaintiffs stated a valid
claim• Rather, the court
concluded the plaintiffs have
no standing to assert their
claim.
Standing?. This is legal-
speak for the plaintiffs are not
the proper parties to
challenge section 43-1089 in
court. Standing is concerned
with whether the party bring-
ing an action has a sufficient
interest in the outcome.
Courts do not deal in abstract
legal questions. They decide
actual controversies between
parties with adverse interests.
If my neighbor plays loud
rock music all the time that
bugs the crap out of everyone
in the neighborhood but me,
because I happen to like loud
rock music, I have no standing
to sue for a nuisance on behalf
of the others. They must do so
themselves. Nor would I have
standing to challenge a local
ordinance that discriminates
against women.
One might reasonably think
a taxpayer would have stand-
ing to challenge a law that per-
mits other taxpayers to pay
less tax. If one taxpayer were
permitted to pay less tax, an-
other taxpayer would be re-
quired to pay more. At least
that's the theory.
But the federal courts
generally don't buy it. Taxpay-
er status alone is not enough.
There are exceptions. In
Flast v. Cohen, the Supreme
Court permitted taxpayer
standing where the plaintiffs
alleged a federal law permit-
ting government to make di-
rect payments to religious
schools violated the Establish-
ment Clause.
In the Arizona tax case, a
majority of five justices of the
Supreme Court concluded the
plaintiffs did not have stand-
ing. Three concluded the Flast
v. Cohen exception does not
apply because ttie case does
not involve government pay-
ments but tax credits. Two
concluded the Flast v. Cohen
exception should never have
been created in the first place.
Four dissenting justices con-
cluded the exception does ap-
ply because granting a tax
credit is the same as making a
payment.
Although it is not really the
point of this discussion, the
devil perched on my left shoul-
der insists that I not move on
without a brief comment
about the dissenting opinion.
The basic premise of that
opinion is that a tax credit is
Veterans' state funding has been slashed
V:
M
:':::8:'i ....
.T TRAx
KE McLEOD
Division Dir ctor, Veterans Services
Last year, before the former
governor left office, he ap-
proved an increase of $11 mil-
lion in state funding for county
veterans services officers• Sad-
ly, the new governor's adminis-
• tration slashed the funding and
the budget was restored to the
historic level of $2.6 million.
The California Department of
Veterans Affairs and county
veterans service officers
(VSOs) haveunanimously
agreed that this is unaccept-
able and are collaborating to
restore the funding at the high-
er level.
Last week my director, Mimi
Hall, submitted an item before
the Plumas County Board of
Supervisors seeking approval
for a co-author request in sup-
port of Assembly Bill 1209. It
was approved and I forwarded
the document to the California
Association of County Veteran
Service Officers' legislative
representative in Sacramento.
Here is the latest news:
AB 1209, authored by Assem-
blyman Paul Cook (R-Yucaipa),
passed its first legislative hur-
dle April 26 by a vote of S-0 in
the Assembly Committee on
Veterans Affairs.
AB 1209 is sponsored by the
California Association of
County Veteran Service Offi-
cers and is the association's
primary legislative effort for
2011. AB 1209 seeks to restore
the funding for CVSO local as-
sistance (subvention), state
grants to counties for veterans
outreach programs, grants for
VSOs and Cal-Vet Connect/
Operation Welcome Home.
Our servicemen and -women
deserve better for their efforts
and commitment and more
needs to be done to improve
services in our communities
especially the rural ones where
39 percent of veterans reside.
Restoring the funding ap-
proved by former Gov.
Schwarzenegger will allow for
improved services and pro-
grams.
..... ;:, .j:::_
SCOTT TANNER
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the same thing as a tax pay-
ment. In other words, whether
the government allows the
taxpayer a tax credit of $1,000
or gives the taxpayer $1,000 in
benefits, the result is the
same. The taxpayer is $1,000
richer.
In other words, any money
you earn belongs to the
government. The government
can either let you keep some
of it by way of a tax credit or
give some of it to you in the
form of free health care or the
like.
Returning to the point of
this discussion, by finding no
taxpayer standing in the Ari-
zona case, the Supreme Court
has created a situation where-
by it is unlikely the law will
ever be challenged.
I.fa person who objects to a
law that grants tax credits
benefiting religious schools
does not have standing to chal-
lenge the law as a violation of
the Establishment Clause,
who does?
The significance Of the fore:
going should not be lost on
those who have been following
the challenge to Proposition 8
(the anti-gay marriage law).
As most of you know, a fed-
eral district court in San Fran-
cisco struck down Proposition
8 as a violation of equal pro-
tection. The case is currently
on appeal to the 9th Circuit•
An interesting fact, not
widely known outside legal
circles, is that the state attor-
ney general refused to defend
the law in court or pursue the
appeal. In effect, the state's
attorney, whose job it is to
represent the state in legal
proceedings, refused to defend
a law that was passed by a ma-
jority of the citizens of the
state.
The proponents of Proposi-
tion 8 are pursuing the appeal
instead. However, there is a
very good chance the 9th Cir-
cuit will conclude those par-
ties do not have Standing to
pursue the appeal. The propo-
nents must show they are
• harmed by the ruling over-
turning the law.
However, the district court
judge concluded straights are
not harmed when gays are
permiRed to marry.
There is every reason to be-
lieve the 9th circuit will con-
clude likewise.
I'm not here to defend
Proposition 8. However, it
should get its day in court.
If the proponents are ulti-
mately found not to have
stand-
ing, the state attorney general
will have been able to veto a
popularly enacted law simply
by refusing to defend it. There
is something fundamentally
wrong with this picture.
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