By Staff Reporter |
The coalition behind a ballot initiative to roll back the universality of Arizona’s school choice program is facing a campaign finance complaint.
On Thursday, the Protect Education Accountability Act Now Committee (PEANC) was made subject to a complaint, reviewed by AZ Free News. PEANC was accused of falsely claiming that out-of-state contributors amounted to a mere nine percent of funding.
PEANC filed the ballot initiative, “Protect Education Act” last month. If approved, the initiative would impose an income cap on enrollment in the Empowerment Scholarship Account Program, among other restrictions to include an elimination of funding rollover. The Protect Education Act superseded an earlier version, the “Protect Education, Accountability Now Act.”
In order to make the ballot, the initiative will need nearly 256,000 signatures. PEANC reported gathering over 150,000 signatures during a virtual press conference on Friday.
The complainant, Jack Johnson Pannell, cited a disclaimer posted to the bottom of PEANC’s website. That disclaimer reflects PEANC’s total out-of-state contributors account for only nine percent of its total funding.
Arizona law requires political action committee advertisements to disclose the aggregate percentage of out-of-state contributors as calculated at the time the advertisement was produced for publication, display, delivery, or broadcast.
Pannell’s complaint called for a declaration that PEANC violated Arizona campaign finance disclosure law and an action against the committee.
Pannell said on X that Arizona families deserve the truth behind PEANC. Pannell is the founder of Trinity Arch Prep School for Boys, a microschool.
“More than 100,000 families are choosing great options for educating their children,” said Pannell. “It’s a cheap shot to accuse hardworking people of cheating the system. It just ain’t true.”
Contrary to this disclaimer, campaign finance records reveal that 98 percent — $4.5 million, or nearly all of PEANC’s $4.6 million in funding — have come from special interest groups in Washington, D.C.
That $4.5 million came from the National Education Association in four allotments delivered throughout February and March. The first payments from the NEA (over $2.3 million) came on February 13 — exactly a week after PEANC registered their website domain.
The earliest available archived version of the site captured on February 12 reflected an out-of-state contributions disclosure totaled at 50 percent.
Other major donors included the Arizonans For Quality Education ($50,000), Nita and Phil Francis ($25,000), and Arizona Education Association ($10,000).
The chairman of Arizonans For Quality Education (AFQE) is the Arizona School Boards Association (ASBA)’s former executive director, Justan Rice, now the Libertas Institute director of state government affairs. Its treasurer is ASBA’s current executive director, Ellen White.
99 percent of AFQE’s funding has come from “shadow sponsors”: unnamed corporations and LLCs. The remainder of the funding, less than half of a percent, came from Christopher Kotterman on behalf of the Friends of ASBA.
Kotterman became a senior policy advisor for Gov. Katie Hobbs in late 2024.
Phil Francis is the retired chairman and CEO of PetSmart; Nita Francis formerly chaired the Valleywise Health Foundation board.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
