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Gov. Hobbs Repeats False Claims About ESA Program In State Of The State Address

January 9, 2024

By Corinne Murdock |

Gov. Katie Hobbs is claiming that the state’s school choice program is rife with abuse and in need of serious reform. 

In her State of the State address on Monday, Hobbs claimed the Empowerment Scholarship Account (ESA) program lacks accountability and transparency, alluding to media reports of questionable and controversial expenditures — some of which were debunked previously.

“We have seen a steady stream of news coverage around unacceptable and sometimes downright outrageous use of taxpayer money under this program, including water park admissions, ski passes, and luxury car driving lessons,” said Hobbs. 

The Arizona Department of Education (ADE) issues quarterly reports on the ESA program; the latest was released several days prior to Christmas. These reports include the program award amount received by students, as well as the number of orders and reimbursements approved and rejected.

ADE also provides lists of allowable and disallowable expenses, both updated last March. The ADE debunked one of Hobbs’ claims of “outrageous” expenditures last summer. In a statement, ADE clarified that it rejects expenditures for water park admissions. 

An ABC15 review of 2022-23 ESA program expenditures found that ADE issued nearly 80 approvals for driving lessons and over 100 approvals for ski passes. However, that report didn’t distinguish whether those expenditures were made in 2022 under former ADE Superintendent of Public Instruction (SPI) Kathy Hoffman, or in 2023 under current SPI Tom Horne. The difference matters because, as Horne stated in November, similar “outlandish purchases” occurred under Hoffman, not him. 

“Approvals like those came during the prior superintendent’s administration led by a friend of the leader of Save Our Schools, and one of my first acts in office was to put an end to it,” said Horne.

As reported by AZ Free News last January, Hoffman’s administration of the ESA program was described as neglectful and improper. In addition to severe understaffing and hundreds of thousands of unfulfilled expense requests, the Horne administration discovered questionable expense approvals such as espresso machines.

Hoffman’s administration of the ESA program has been something that Horne has pointed out repeatedly in refuting claims of improper ESA program expenditures.

“The frivolous ESA spending approvals occurred under the administration of the Governor’s friend, Kathy Hoffman,” said Horne in another statement last month. 

As of Monday, over 73,200 students were in the ESA program. 

Hobbs’ criticism of the ESA program comes days after she announced a plan to effectively dismantle the ESA program. Monday’s speech made mention of several aspects of this proposed plan: fingerprint background checks for private school educators, a new audit authority for the auditor general specific to monitoring ESA expenditures, and requirement of attendance at a public school for at least 100 days to qualify for the program.  

The governor’s plan also aims to require private schools to accommodate Individualized Learning Plans and Section 504 Plans, prohibit private schools from increasing tuition costs at a rate higher than inflation, require private schools to meet certain education requirements, and require ADE to disclose which parental and student rights are waived upon entrance into the ESA program as well as graduation and chronic absenteeism rates. 

At least one of Hobbs’ proposals addresses a practice already in place, according to Horne: accountability in the form of manual reviews of purchases over $500 and rejection of non-academic expenditures. 

Horne explained in a statement that his staff reviews all expense requests, regardless of amount, leading to a rejection of over 12,000 purchase order requests and the suspension of nearly 2,200 accounts totaling $21 million due to public school enrollment.

“My job is to administer the ESA program in line with state law, and if changes are made, the Department of Education will follow them,” said Horne. “My office already reviews all expense requests regardless of amount, unlike the previous superintendent who approved many frivolous requests.”

That $500 threshold appears to be related to another false expenditure-related claim echoed by Hobbs from the activist group, Save Our Schools Arizona. The activist group implied in a viral post picked up by various media outlets that ADE approved an expenditure of over $500 for a Lego set.

“Contrary to a falsified document tweeted by Save Our Schools, no ESA parent has been reimbursed $500 to buy Legos,” said Horne. “To be clear, district, charter and ESA students are allowed to use Legos. The issue here is a pattern of lying. Save Our Schools admitted they fabricated a document to make it look like a parent made a $500 purchase when she did not. By doing so they have misled both the Governor and a prominent newspaper columnist, both of whom have retweeted this lie.”

Although the claim was debunked, Hobbs didn’t retract her viral accusation of ESA program mismanagement. 

“Your taxpayer dollars are being used to buy $500 Lego sets because partisan politicians refuse to place limits on school vouchers,” said Hobbs.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

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