Emerson famously noted that “a foolish consistency is the hobgoblin of little minds.” Opponents of Arizona’s school choice program seem determined to field legions of such monsters.
Exhibit A: the reporting of Craig Harris. Harris has over the years repeatedly filed anti-school choice stories which were riddled with errors. His latest salvo against Arizona’s popular Empowerment Scholarship Accounts (ESA) program is no exception.
In 2018 and 2019, Harris published articles in the Arizona Republic claiming charter schools underperformed district schools and faced mass closures, but both stories relied on flawed research—including counting schools that only went through 9th grade or had already closed as having 0% graduation rates and relying on “research” by anti-charter school activists that misunderstood basic accounting concepts.
More than six years later, the predicted mass closures have never materialized, and National Assessment of Educational Progress data actually showed Arizona charter students outscoring district peers by roughly two grade levels.
But Harris, unlike the students, doesn’t seem to have learned his lesson. These days he has fixated his efforts against Arizona’s ESA program—and the results are just as edifying.
With an ESA, parents can purchase a wide variety of educational goods and services using 90% of the state money that their child would have received at their local district school. The parent-managed accounts have state oversight to keep transactions focused on allowable education expenses. The program is wildly popular with Arizona families, with over 100,000 students participating.
However, the ESA program is not so popular with special interest groups tied to school districts and their allies in the press.
Now at Channel 12, Harris has produced misleading stories about Arizona’s ESA program, including claims that parents use accounts for “babysitting“—based on a since-corrected error by the Treasurer’s Office—and that families are “subsidizing vacations,” when in reality they’re purchasing tickets to museums, zoos, and aquariums, which are allowable educational expenses also used by public schools. The program uses risk-based auditing to detect fraud, the same widely accepted method used by the IRS and recommended by Arizona’s Auditor General.
In his latest salvo against ESAs, Harris has produced a so-called “analysis” claiming that 20% of ESA purchases constituted a misuse of funds—a huge jump from the less than 1% rate of misuse previously detected by the Arizona Auditor General.
Misuse of funds in publicly funded programs is a serious problem which the Arizona Department of Education has taken great pains to minimize in the ESA program. Harris, however, is once again playing games and tricks with the data.
First, Harris’s claim of that 20% misuse is based upon an examination only of a small portion of total ESA purchases—384,478 of the 1.8 million total ESA transactions since December 2024, or about 20% of the total. This smaller group of purchases had been selected by the Arizona Department of Education for additional scrutiny via risk-based auditing, so it’s not a random sample that one could use to extrapolate about rates of misuse in the ESA program generally.
In other words, among the 20% of ESA purchases flagged for additional scrutiny, 20% were found to be misspending. But 20% of 20% amounts to only 4% of total purchases. Harris’s claim that 20% of ESA purchases were misspending is a gross exaggeration.
In fact, even the supposed 4% misuse rate itself is an exaggeration, as it is 4% of total transactions, not 4% of total spending. The most recent data from the Arizona Department of Education show more than half of ESA funds are spent on private school tuition, so the rate of misspending is likely less than 2% of total spending—a rate of improper payments that is well below a variety of programs found in programs which ESA opponents support, such as Medicaid (7.4%), food stamps (9.3%), and unemployment insurance (14.4%).
Tears for Fears’s hit song “Everybody Wants to Rule the World” includes the line, “One headline—why believe it?” If the headline is followed by a Craig Harris byline, be very careful before you believe it as you are not getting the whole story—maybe even a false story.
Matthew Ladner is a Senior Advisor for education policy implementation and Jason Bedrick is a Research Fellow at the Heritage Foundation’s Center for Education Policy.
Responding to a letter issued by Arizona Democrat Attorney General Kris Mayes, Arizona Superintendent of Public Instruction Tom Horne issued a statement that Mayes is “misleading the public with claims she has leveled at the management of the Empowerment Scholarship Account (ESA) program.” In an 8-page letter with 12 pages of testimony from the Arizona Department of Education’s John Ward in the case of Velia Aguirre v. State of Arizona, Mayes outlined an investigation from her office, making allegations regarding the Department of Education’s use of a risk-based audit approach, which echoes a similar exchange between Horne and Governor Katie Hobbs in December 2024.
Mayes directly critiqued Horne and the ADE writing in part:
“Your failure to appropriately monitor ESA spending has created an untenable situation. Again, I do not want to disrupt the process for ESA holders who are following the law, but this cannot continue. Accordingly, you must act immediately to develop and implement appropriately rigorous purchase review standards and risk-based audit procedures so that ESA families may access their funds in a timely manner and public funds are not spent illegally. The Department’s purchase review and audit standards should employ appropriate controls to safeguard public funds. These controls, and any automatic payment thresholds, should consider the level of risk associated with different categories of expenses, vendors, methods of payment, and individual ESA holders.”
Mayes went on to cite a 12 News report that “the Department has automatically approved [$]1.2 million ESA purchases since the automatic approval policy took effect in December 2024.”
As Matt Beienburg wrote in an op-ed for AZ Free News, the Arizona Capitol Times issued a retraction of its initial report that “Education department under fire for approving $124M in improper ESA [education savings account] purchases,” clarifying with a formal correction that “an inaccurate dollar amount,” was reported. However, no similar retraction has been issued by 12 News as of this report.
"Facts don't lie, even if the media does."
Here are two MAJOR lies 12News "reported" in its bogus ESA attack 👇
❌ Dollar amounts were exaggerated up to 100 times!
Beienburg notes that blatantly inappropriate purchases such as iPhones, televisions, and other non-educational items “haven’t been approved, as the State Board of Education’s ESA Handbook—ratified by members appointed by both former Gov. Doug Ducey and Gov. Katie Hobbs—makes clear. The document expressly states that while families’ ESA purchases under $2,000 are promptly reimbursed by the state, these items ‘are not deemed ‘approved’ by the Department, until they are audited OR the timeframe to audit the orders has passed [2 fiscal years].’ Just like their tax returns filed with the IRS, these families’ ESA purchases are processed up front and subject to enforcement afterwards.”
For immediate release: August 29, 2025 Horne calls out AG Mayes for misleading attack on ESA program AG sent letter to Superintendent today Link: : https://t.co/ul3JSKLudp Contact: Communications@azed.gov pic.twitter.com/xGEPdsrHqB
— Arizona Department of Education (@azedschools) August 29, 2025
In a lengthy statement, Horne addressed the allegations raised by Mayes and accused the AG of making false statements:
“In your letter today, and in a recent television interview, you misled the public by stating that improper ESA purchases had been approved, without any reference to the fact that under risk-based auditing dictated by the legislature the money has been recovered or is in the process of being recovered. We have collected or are in the process of collecting more than $600,000 that was paid out for improper purchases. You also criticize risk-based auditing. Risk-based auditing is a very common and appropriate practice used by auditors, and the ESA Director has more than 16 years’ experience as an auditor. The risk-based approach involves not approving purchases prior to review, but paying amounts under $2,000 subject to later review, which is how we were able to collect or be in the process of collecting more than $600,000.”
He went on to chide Mayes writing, “You state that this is not partisan. That is disproved by all the false statements you made on the television interview.”
Horne continued, “Your argument is not with me but with the legislature. The legislature recently passed ARS section 15–2403B. It provides in part: ‘The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuing to this subsection.’
“The statute was passed because the department is operating with the same number of people to check purchases as had been given by the legislature when the program was 1/7th as large. The most recent House budget included an appropriation for more people to check purchases, but it had to drop that provision when the governor said that if it did not do so, she would veto the entire budget. The limit on personnel had meant delays for reimbursement or more than two months, which was an unbearable burden for parents who had already paid the money and needed reimbursement. This explains why the legislature wanted to add more staff to serve parents.
“Again, you misled the public in your interview by stating that these improper items have been approved. They were not approved, and as to all the items you mentioned, the accounts have already been frozen. This is as egregious as ignoring the recovery of over $600,000, not to mention your failure to state that this procedure was dictated to us by the legislature and the ESA parent committee that you referred to set the limit at $2,000 pursuant to the legislative command to adopt risk-based auditing. It has been made clear to ESA users in multiple communications that payments of under $2,000 do not imply approval, which can be obtained only after the risk-based auditing dictated by the legislature.
“You referred to a July 21 meeting of the legislative audit committee. Within four days we consulted with the auditor general. Some have erroneously interpreted the word ‘consultation’ to mean that the auditor general has the right to dictate terms to us. That is incorrect. The normal English language use of the word consultation is that we have a discussion, which we have done, and then proceed. However, we have agreed to have further consultations with the auditor general and will do so.
“We will provide at a later date further responses to your long-winded letter of seven pages single space. We are responding now to the main points so you will have no further excuse to mislead the public.”
The legacy media seem to be on a mission: tear down Arizona’s groundbreaking school choice program with false accusations and inaccurate reporting.
Fortunately, facts don’t lie, even if the media does.
The Arizona Capitol Times declared this week in astonishing terms, “Education department under fire for approving $124M in improper ESA [education savings account] purchases.”
Such astronomical levels of fraud would seem to threaten the very foundations of the historic school choice revolution that has swept the nation. There was just one problem, the headline was completely false.
Not only were the supposed dollar amounts exaggerated up to 100 times greater than the amounts of improper spending actually reported by the department, but these purchases weren’t even approved in the first place.
Here’s the story the media won’t tell: Arizona’s 2022 adoption of a fully universal ESA program has been a nation-leading success, allowing parents across the state to give their children an education best suited to their needs.
To its credit, the Times quickly retracted its original headline and issued a formal correction admitting “an inaccurate dollar amount” in its first draft and eliminating the suggestion that the purchases were “approved.” Unfortunately, such journalistic ethics appear not to be shared by the Times’ more ideological media counterparts in Arizona, particularly those of the teachers’ union-aligned 12News team, who have resolutely declined to correct or retract their false reporting.
12News’ Craig Harris, for instance, has repeatedly and falsely declared that the state has “approved” ESA purchases for iPhones, televisions, and other non-educational items over the past year.
But all those purchases haven’t been approved, as the State Board of Education’s ESA Handbook—ratified by members appointed by both former Gov. Doug Ducey and Gov. Katie Hobbs—makes clear. The document expressly states that while families’ ESA purchases under $2,000 are promptly reimbursed by the state, these items “are not deemed ‘approved’ by the Department, until they are audited OR the timeframe to audit the orders has passed [2 fiscal years].” Just like their tax returns filed with the IRS, these families’ ESA purchases are processed up front and subject to enforcement afterwards.
Yet, 12News either knowingly misrepresented the status of these orders or else incompetently failed to perform basic due diligence to learn how the program operates.
By 12News’ anti-ESA logic, the IRS should apparently also withhold refunds to taxpayers until their tax returns have been audited potentially years later, rather than promptly when the returns are filed.
Unfortunately, this is not the first time that 12News’ anti-school choice reporters have been exposed in such light. In 2018, Harris (then with the Arizona Republic) falsely reported that Arizona charter schools produced worse student graduation rates and worse outcomes on the state A-F letter grade system than district schools. Both claims turned out to have been fabricated results stemming from a faulty, agenda-driven data analysis by Harris’ team.
In 2024, 12News’ Joe Dana likewise doubled down on false claims that ESAs cost state taxpayers more than the public school system per student by conveniently ignoring major sources of public school funding. The state’s Classroom Site Fund, for example, allocates over $1,000 for every public school student in the state and gives not a penny to ESA families.
Undeterred by journalistic standards, Dana’s 12News team also went further, deceptively extracting a fragment of a statement given by the state’s budget director (given in response to a completely different question) to suggest the ESA program had created unprecedented strain on the state budget.
The Heritage Foundation’s Matt Ladner and Jason Bedrick have already exposed a litany of deceptive claims flowing from outlets like 12News, while more prestigious national news organizations like The Washington Post have seen their recent anti-ESA narratives similarly debunked. Yet none of these outlets have expressed any contrition for their deceptive coverage.
Indeed, in perhaps the richest of ironies, Harris’ 12News team recently attacked ESAs for “hurting” high-performing schools like Arizona charter network BASIS by competing with it for students. Never mind that Harris previously attacked BASIS for its alleged poor stewardship of taxpayer funds. Now that it is clear he and the media were on the wrong side of that school choice debate as well, they have simply shifted to a new enemy in their war on parents.
Looking at the whole of Arizona’s education landscape, there is no question that those who seek to defraud the state—whether via the traditional public school system or its competitors—should be prosecuted to the full extent of the law. But if there is a scandal in our education system, it is the dishonest reporting by journalists who are more disturbed by parental empowerment than by the tens of billions of dollars squandered year after year in chronically poor performing public schools.
Matt Beienburg is the Director of Education Policy at the Goldwater Institute.
Channel 12 continued its clumsy crusade against school choice this week with a breathless report about fraudsters abusing Empowerment Scholarship Accounts to buy diamond rings and necklaces, flights and hotel stays, and even lingerie.
It paints a picture of a program rife with abuse. But is it?
The Arizona Department of Education gave Channel 12 the records for more than 1.2 million ESA requests. Yet when askedrepeatedly what percentage of those requests were fraudulent, Channel 12’s reporter refused to comment.
Why? Because the truth undermines the anti-ESA narrative.
The salacious report is intended to persuade policymakers who support ESAs to impose regulations that would undermine the ESA program. It goes without saying that anyone engaged in fraud should be prosecuted to the fullest extent of the law, and the Arizona Department of Education is appropriately cracking down on fraudsters. But before policymakers rush to amend the ESA program, they should know the context that Channel 12 left out.
ESA Misspending Is a Tiny Fraction of Total ESA Spending
The ESA program currently serves about 90,000 students at a projected cost of $882 million this year and $939 million next year, or about 6.7% of the $14 billion spent on Arizona’s district schools. Families can use ESAs to purchase a wide variety of educational expenses to customize their child’s education.
The typical ESA student receives about $7,500 per year, compared with more than $15,300 per pupil at Arizona’s district schools. Students with special needs—who account for more than 19% of ESA students, compared with 14% of district school students—can receive more funding, although the accounts are still worth 90% of what the state spends on similarly situated students at public schools. According to the Common Sense Institute, “a disproportionate share of middle-income households use an ESA.”
On Tuesday, the Arizona Department of Education revealed that their internal audit had turned up $622,000 in ESA funds that are “possible fraud or misuse.”
That’s less than one-tenth of 1% of total ESA spending.
Ignoring Mountains, Covering Molehills
Meanwhile, there are 30 school districts that the Arizona Auditor General currently deems to be non-compliant with state reporting requirements or that have internal control deficiencies. The total spending in those districts is more than $1.4 billion, more than the total spending of the ESA program. Yet aside from its coverage of the disastrous overspending in the Isaac Elementary School District, Channel 12 has barely covered it at all.
For that matter, Channel 12 has ignored the $7.8 billion that Arizona school districts are holding in cash reserves. That’s about $7,000 per pupil. The reserves have grown $2 billion in two years, yet Channel 12 doesn’t evince even the slightest curiosity about why.
Nor is anyone at Channel 12 interested in the $12 billion worth of unused and underutilized buildings that districts are sitting on, often just to prevent private or charter schools from buying them.
Channel 12 found space in the aforementioned ESA exposé to mention that a judge recently ruled that the state supposedly “isn’t properly funding capital needs for its public schools,” but the station had no space to mention that school districts are sitting on $20 billion in cash reserves and underutilized buildings.
Indeed, Channel 12 has barely covered any of these facts even as they pump out multiple anti-ESA stories each week, despite the fact that the ESA program is dwarfed by the spending at non-compliant districts, district school cash reserves, and underutilized buildings.
School-choice opponents and their media allies are hyper-focused on ESA misspending because they want to pressure lawmakers to undermine the program via regulation.
The Arizona Department of Education adopted its risk-based auditing strategy—automatically approving ESA spending requests below $2,000, then auditing accounts on the back end—because Superintendent Tom Horne’s previous “review every penny” approach was causing massive backlogs and delays in approving expense requests and reimbursements.
There were nearly 11,000 transactions in quarter 3 of this year alone. It’s impossible for the department’s staff to review each transaction in a timely manner, but parents trying to teach their kids can’t wait months just to buy a textbook or pay their child’s tutor or school.
To Horne’s credit, he listened to parents and made some incremental improvements that make it easier for parents to use the program. Now a tiny percentage of ESA holders are taking advantage of the looser rules, but they will be forced to pay the money back and could face prosecution.
The Arizona Department of Education has suspended 400 accounts due to improper spending —just 0.4% of the total accounts—and has referred some to the Attorney General for further investigation and prosecution.
Punishing fraudsters is necessary. Every government program is subject to some amount of fraud and abuse, and it’s incumbent upon public officials to implement rules that keep fraud as close to zero as possible. But it is not in the public interest to undermine a program’s effectiveness, especially when that program is helping kids get access to a better education and a brighter future.
School-choice opponents are using misspending as a pretext. If that was their real concern, they’d be raising alarms about all the waste, fraud, and abuse in the district school system. They’re not really concerned with stopping the 0.4% of ESA holders committing fraud, they just don’t want the program to work for 99+% of families just trying to do right by their kids.
Supporters of education freedom and opportunity should ignore the manufactured outrage and work to ensure that the ESA program works well for the families it serves.
Jason Bedrick is a Research Fellow at The Heritage Foundation’s Center for Education Policy.
Have you heard the charge that Arizona families are using Empowerment Scholarship Accounts (ESA) for babysitting? Or that ESA families are sitting on millions of dollars that they’re using for expensive, overseas vacations? Or that the ESAs only benefit wealthy families who live in high-performing school districts?
These claims range from “lacking key context” to “lacking any evidence whatsoever.” The main source of these and other horror stories that school-choice opponents tell is reliably left-leaning Arizona media outlets such as Channel 12 and the Arizona Republic.
It’s no surprise. Reporters at these outlets, such as Craig Harris, have a history of inaccurate agenda-driven “reporting” on Arizona’s school choice policies. Recent articles and “news” segments from these and other outlets are in keeping with this history.
Award-Winning Errors
In 2018, the Republic released a series criticizing Arizona’s charter schools. The series won the paper a Polk Award. The only problem is that it was riddled with errors.
For example, the Republic claimed that Arizona’s traditional district schools outperformed the state’s charter schools as measured by the state’s A-F school grading system and graduation rates. Both these claims were demonstrably false, but the Republic never ran a correction.
Matthew Beienburg of the Goldwater Institute detailed at length the numerous errors the Republic made to reach those incorrect conclusions, describing the story as “astonishingly deceptive.” For example, they counted one charter school as having a graduation rate of 0% when the school only offered instruction through 9th grade. Two more schools that supposedly had 0% graduation rates had closed years earlier. Another charter school with a low graduation rate was an alternative school that operated under the Yuma County Juvenile Justice Center—hardly an apples-to-apples comparison for typical district schools.
In 2019, the Republic released an above-the-fold, front-page story claiming that 100 of Arizona’s then 544 charter schools were in imminent danger of closure. The report said it was a “near certainty” that at least 50 would close “in the near future.” You’d think such a sensational claim would warrant a healthy dose of skepticism, but the Republic was more than happy to breathlessly repeat the claims nearly unchallenged.
Six years later, 580 charters operate in the state, defying predictions of a mass extinction. In fact, on the most recent National Assessment of Educational Progress, Arizona’s charter school students scored over two grade levels higher than district students on 8th grade mathematics and by almost two grade levels on 8th grade reading. The state’s charter school students also scored higher than any other statewide average on both subjects.
You won’t see those facts reported by Arizona’s legacy media.
Journalism’s Credibility Crisis
For careful journalists concerned with their personal credibility and the declining credibility of their profession with the American public, these embarrassing errors might have sparked some self-reflection upon their sources and practices. For the Republic, it was merely a warmup for more of the same.
Author Amanda Ripley, interviewed for a book she wrote on deep problems of journalism, noted the “strange and insular world of journalism prizes,” which encourage simplistic “us versus them” stories. “This adversarial model that we’ve got going in education, journalism, and politics no longer serves us. There’s a good guy and a bad guy and everything’s super clear, it just breaks down. And we keep awarding prizes in that model. But 99 percent of stories are not that clear-cut,” Ripley noted.
In other words, as if journalism did not have enough problems amid a pronounced decline in public confidence, journalism awards—like the Polk Award given to the Republic team for their inaccurate and ideological anti-charter school series—encourage advocacy-style journalism.
There Is No Evidence Families Used ESAs for Babysitting
Channel 12’s recent anti-choice crusade involves a series of clumsy attacks on Arizona’s Empowerment Scholarship Account program.
One myth Channel 12 has been attempting to spread is the notion that participants in the ESA program are using their accounts to pay for “babysitting.” In fairness, this claim is based upon a since-corrected misstatement by a representative of the Arizona Treasurer’s Office. The ESA program, however, has a list of allowable uses for accounts, and babysitting is not now—nor has it ever been—an allowable use.
Despite the correction by the Treasurer’s Office, some in the media are still spreading the claim. Asked about this on KTAR days after the correction, reporter Craig Harris of Channel 12 (who authored or co-authored the erroneous Republic articles described above) artfully claimed that the Arizona Department of Education’s use of risk-based auditing on low-dollar purchases means that we really don’t know whether parents are using ESA accounts for babysitting or not.
We can likewise state that we really don’t know whether any random person has cheated on his or her federal income taxes. After all, the IRS does not audit every single income tax return—instead they use a technique known as “risk-based auditing” to detect and deter fraud. This is the same technique that Arizona law established to ensure accountability in the ESA program, as recommended by the Arizona Auditor General, and it is used by numerous government agencies.
Journalists have no evidence that anyone has ever used the ESA program for babysitting. But if it happened and they were caught, just like the hypothetical tax cheat, the hypothetical ESA offender would face fines or even jail time. The combination of risk-based auditing and consequences for fraud is why the United States has one of the highest tax compliance rates in the world.
ESA Parents Are Not Really “Subsidizing Vacations”
Channel 12 is likewise playing fast-and-loose with the facts when they claim that Arizona parents are “using education tax dollars to subsidize their vacations.” That phrasing gives the impression that ESA funds are being used for flights, food, or hotel stays—none of which are allowable expenses under the ESA statute.
The reality is that families are using ESA funds to buy tickets to museums, zoos, aquariums, and other educational venues that are—appropriately—allowable expenses under the ESA statute, and which public schools regularly purchase as well.
ESAs Expand Educational Opportunity
Stories from the same outlets also claim the ESA is “hurting high-performing public districts.” Even setting aside that such statements treat children as mere funding units for district schools, reporters’ use of the term “high-performing” is out of step with what most parents think it should mean.
The article notes that the “top five school districts losing students who left for [ESAs] are: Mesa, Deer Valley, Chandler, Peoria and Scottsdale,” and that all these districts received an “A” letter grade from the state except for Mesa, which received a “B.”
But are Arizona’s school letter grades a reliable indicator of quality? Absolutely not.
In the 2023-24 academic year, Arizona awarded 677 schools “A” grades, while only four schools “F” grades—yet only a third of Arizona students passed the state math exam.
By contrast, GreatSchools is a much harsher grader than state bureaucrats. In Maricopa County, the state awarded 325 “A” grades and only two “F” grades, while GreatSchools gave 49 “A” ratings and 111 “F” ratings. For obvious reasons, parents trust GreatSchools more than they trust state bureaucrats.
In the five districts that parents are fleeing most for ESAs, the percentage of students scoring “proficient” or higher on the state math test ranges from 30% in Mesa to 58% in Chandler. Fewer than half of students scored proficient in Deer Valley and Peoria as well.
Reporters who are hostile to parental choice in education might call that “high performing,” but most parents don’t.
Arizona families deserve accurate reporting on education policy, not sensationalized narratives built on flimsy foundations. Arizona media’s pattern of misrepresenting school choice programs—from the error-ridden charter school series to unfounded attacks on ESAs—undermines the public’s understanding of legitimate educational options.
While parents increasingly turn to alternatives like ESAs and charter schools that demonstrably outperform traditional districts, journalists have a responsibility to report these developments fairly, not perpetuate myths that serve no one except those invested in maintaining the status quo. Arizona’s children benefit when families have genuine choice in education, and they deserve journalism that illuminates rather than obscures the facts about their options.
Matthew Ladner is a Senior Advisor for education policy implementation and Jason Bedrick is a Research Fellow at the Heritage Foundation’s Center for Education Policy.
