By Staff Reporter |
The group seeking to end Arizona’s universal school choice program declared that it doesn’t have to disclose the percentage of out-of-state funds.
A complaint filed in April alleged the Protect Education, Accountability Now Committee (PEANC) falsely advertised that only 9% of contributions came from out of state.
PEANC’s ballot initiative, the Protect Education Act, would impose an income cap limiting enrollment in Arizona’s school choice program, Empowerment Scholarship Accounts, and eliminate funding rollover.
PEANC claimed in a response submitted on Friday and obtained by AZ Free News that Arizona law only requires the percentage of out-of-state contributors, not out-of-state contributions.
The section of Arizona law at issue (A.R.S. § 16-925) states the following:
“In addition to the disclosure required by subsection A of this section, a political action committee that makes an expenditure for an advertisement shall include a disclosure stating: […] The aggregate percentage of out-of-state contributors as calculated at the time the advertisement was produced for publication, display, delivery or broadcast. The disclosure shall state ‘paid for by _____’ as prescribed by subsection A of this section, followed by ‘with _____% from out-of-state contributors’ with the blank to be filled by the aggregate percentage prescribed by this paragraph.”
Counsel for PEANC argued in its response letter that, while nearly $4.5 million of its $4.6 million in net contributions did come from Washington, D.C. labor organizations, only 9% of all contributors to PEANC were from out of state.
“This text requires disclosure of the aggregate percentage of out-of-state contributors — i.e., based on contributor counts — not dollar amounts or ‘aggregate funding,’ and that percentage is calculated ‘at the time the advertisement was produced,’” stated PEANC’s counsel, Barton Mendez Soto. “The word ‘contributors’ refers to the people or entities making contributions, not the dollar amounts of their contributions.”
PEANC’s counsel said their interpretation accurately reflected what they dubbed the “contributors-percentage metric” represented by the statute.
The complainant, Jack Pannell, filed his complaint with the secretary of state after he observed a disclaimer on the bottom of PEANC’s website claiming that out-of-state contributors accounted only for 9% of total funding.
An archived version of the site captured in early February reflected an out-of-state contributions disclosure that totaled 50%.
Major Arizona-native donors to the PEANC came nowhere near the millions posted to PEANC’s finance reports; these donors include Arizonans For Quality Education (AFQE), $50,000; Nita and Phil Francis, $25,000; and the Arizona Education Association, $10,000.
Approximately 99% of AFQE’s funding has been tied to “shadow sponsors,” meaning unnamed corporations and LLCs. The remaining funds, less than half of a percent, came from an individual named Christopher “Chris” Kotterman on behalf of the Friends of ASBA, an affiliate of the Arizona School Boards Association.
Kotterman has served as Gov. Katie Hobbs’ senior policy advisor since late 2024.
The Protect Education Act would need about 256,000 signatures to make the ballot. The petition-filing deadline is July 2.
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