katie hobbs
Hobbs Announces Plans To Dismantle ESA Program

January 3, 2024

By Daniel Stefanski |

Mere days before the start of the 2024 Arizona legislative session, the state’s Democrat governor is finally telegraphing her primary plan for the months ahead – though her proposal is likely dead on arrival with the Republican-led House and Senate chambers.

On Tuesday, Governor Katie Hobbs issued a press release to reveal “her plan to increase accountability and transparency in the ESA voucher program.” The governor’s plan has eight elements, including “increasing student safety, protecting rights for students with disabilities, requiring accountability for taxpayer dollars, expanding auditor general authority, prohibiting price gouging, raising educational standards, establishing program transparency, reinstating eligibility requirements.”

In a statement, Governor Hobbs said, “The ESA program lacks accountability and transparency. With this plan, we can keep students safe, protect taxpayer dollars, and give parents and students the information they need to make an informed choice about their education. Arizonans deserve to know their money is being spent on educating students, not on handouts to unaccountable schools and unvetted vendors for luxury spending. My plan is simple: every school receiving taxpayer dollars must have basic standards to show they’re keeping our students safe and giving Arizona children the education they deserve.”

Hobbs’ announcement was followed by two volleys from leading Arizona Republicans. House Speaker Ben Toma immediately highlighted his opposition to the governor’s announcement, saying, “Empowerment Scholarship Accounts are wildly popular with Arizona parents because they leverage private sector solutions to offer the best educational opportunities for their children. Meanwhile, Governor Hobbs and Democratic Party legislators now seek to strangle ESAs and private education with bureaucracy and regulation. I won’t allow that to happen.”

The state’s schools chief, Superintendent Tom Horne, also issued his own statement, focusing on the governor’s proposition to mandate “accountability” for user purchases in the ESA program. Horne said, “One proposal stands out because it’s already in place: The governor recommends a manual review of ESA purchases over $500. My office already reviews all expense requests regardless of amount, unlike the previous superintendent who approved many frivolous requests. In 2023, we rejected several thousand ESA applications for lack of adequate documentation and suspended almost 2,200 accounts totaling $21 million because the student was enrolled in a public school. We’ve also rejected more than 12,000 ESA purchase order requests.”

Other legislative Republicans shared their sentiments against Hobbs’ proposals. Senator Jake Hoffman posted the following to his “X” account: “Let’s be very clear… Katie’s half cocked attempt to destroy an invaluable parental choice option via ‘death by a thousand cuts’ is DOA at the Capitol. The Arizona Freedom Caucus will make sure of it.”

Representative Jacqueline Parker added, “Nothing lacks more accountability & transparency than the government school system. ESA’s are an extremely successful & equalizing solution, so of course democrats want to mess it up.”

Arizona’s universal ESA program has long been a significant point of contention between members of the two major political parties in the state, though legislative Republicans scored a huge victory in 2023 when they negotiated a budget compromise with Hobbs that left the historic school choice opportunities completely unscathed. After news of the budget agreement hit the wires, many Democrats and education interest groups levied their disappointment and disapproval over the governor’s inability to extract any concessions with the program. Hobbs spent the rest of the year picking fights with Horne over the stewardship and leadership of ESAs in an attempt to win back political capital, leading to this announcement just ahead of the commencement of the upcoming session.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

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