by Ethan Faverino | Jul 5, 2025 | Education, News
By Matthew Holloway |
The Arizona Department of Education sent information to the State Treasurer’s Office earlier this week regarding supplemental dollars to be sent to Arizona public schools following a shortfall this year. The information confirms funding will be sent to schools immediately, following the newly signed state budget.
As soon as the new state budget was signed into law, the Department of Finance personnel began working on this process, ensuring that schools would not face funding shortfalls.
This move by the Department of Education makes sure that schools will receive full payments for June and beyond, avoiding the crisis that emerged at the end of the 2025 fiscal year.
At the close of FY2025, Arizona’s education system faced a shortfall of just under $200 million, which was due to several factors.
The biggest factors in this shortfall were caused by recalculation of Statewide Average Daily Membership, the Qasimyar tax lawsuit, the Empowerment Scholarship Account, and the Qualifying Tax Rate Levy.
The recalculation of the state’s Average Daily Membership (ADM) caused a $45 million adjustment. This is the state’s method for counting enrolled students, which determines how much funding public schools receive per student. The state had overestimated student enrollment, likely due to increased withdrawals as families opted for other methods of schooling, some paid for by the Empowerment Scholarship Account (ESA).
In an unexpected blow to the state’s finances, Arizona settled Qasimyar v. Arizona. This was a tax lawsuit over disputed property assessments, resulting in a large payment of $69 million from the state’s general fund. This same fund also supports public education, causing a significant amount to be taken away from public schools across the state.
Arizona’s ESA program exceeded its projected cost by $52 million in FY2025. With more families taking advantage of the program than people anticipated, the general fund was strained even more, reducing resources for public schools.
The last big blow to public school funding was the Qualifying Tax Rate Levy, which is a property tax that contributes directly to school funding. This brought in $17 million less than what was projected.
Despite all the financial pressures, the Arizona Department of Education took early action. Before the new budget’s approval, ADE had already distributed roughly 63% of June’s payment.
With the new budget in place, the remaining balance will be paid immediately, restoring full funding levels for schools.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by AZ Free Enterprise Club | Jul 2, 2025 | Opinion
By the Arizona Free Enterprise Club |
Among many issues, the past two elections have been a referendum on the public school system throughout our country. And that’s especially true here in Arizona. The people have shown that they are tired of the leftist indoctrination, wasted taxpayer dollars on declining test scores, attacks on parental rights, and more.
Immediately after his inauguration, President Trump proved that cleaning up our schools wasn’t just a campaign talking point. He issued an executive order (EO) ending radical indoctrination in K-12 schooling, and the U.S. Department of Education took action to eliminate harmful Diversity, Equity, and Inclusion (DEI) initiatives. It’s been a breath of fresh air, frankly, but the woke crazies in our state are not going down without a fight.
Back in February, a teacher at Marana High School was suspended after he challenged President Trump’s denial of the existence of more than two genders during a classroom lecture. Then, in May, an advocacy group released audio from inside a Catalina Foothills School District (CFSD) ninth grade health classroom where an alleged teacher gave a “lesson” on LGBTQ issues and criticized religious texts. What any of this has to do with “health” is beyond us, but it certainly shows the lengths these crazies are willing to go in order to push their radical message.
Not wanting to be outdone, Scottsdale Unified School District (SUSD) also decided to get into the mix…
>>> CONTINUE READING >>>
by Tamra Farah | Jul 1, 2025 | Opinion
By Tamra Farah |
Arizona’s Empowerment Scholarship Account (ESA) program, launched in 2011, empowers families to tailor their children’s education with state funds. The 2025-2026 school year covers private school tuition, tutoring, and therapies, averaging $7,000 – $8,000 per student.
While the program serves over 93,000 students, that number is only a fraction of its possible reach. Bureaucratic inefficiencies and government red tape currently hinder broader access and limit the benefits of ESAs. The approval of the 2025-26 ESA Parent Handbook could have fixed this, but as critics pointed out, the handbook’s restrictive guidelines and manual review processes create more bureaucratic obstacles.
Now, it’s time to examine some of the key aspects of the ESA Program. We need real change, including adopting best practices from other states to streamline operations, better serve families, and extend this opportunity to more Arizona children.
ESA Application Process
The ESA program provides eligibility to any Arizona child from kindergarten through 12th grade, including preschoolers with disabilities, as outlined in the 2025-26 ESA Parent Handbook and A.R.S. §15-240. Families apply via the Arizona Department of Education’s (ADE) online portal, submitting proof of residency and, for students with disabilities, an IEP or 504 Plan.
Approvals are typically granted within 30 days. Approved families sign a contract to use funds for educational expenses and to forgo public school enrollment. Quarterly tuition deposits are managed through ClassWallet, requiring allocation to core subjects like reading and math, with receipt submission to ensure compliance. Non-compliance risks account suspension, balancing flexibility with accountability.
ClassWallet and Financial Management
ClassWallet simplifies ESA fund management through the ESA Applicant Portal, allowing parents to monitor balances and make transactions. It offers four spending options: the Marketplace, with pre-approved items like textbooks; Pay Vendor, for payments to providers such as private schools; the Debit Card, which requires receipt validation for purchases like school supplies; and Reimbursement, for out-of-pocket costs after review.
Marketplace purchases are automatically deducted, like a math workbook, are automatically deducted, streamlining routine expenses. However, non-Marketplace transactions require manual review as mandated by the 2025-26 handbook, which causes inefficiencies and frustrates parents.
Manual Review Staffing Strain
The 2025-26 handbook requires a manual review for non-Marketplace items, a detailed and staff-intensive process. Items like custom curricula, tutoring from unregistered providers, computer hardware, therapies for students with disabilities, debit card purchases, public school fees, and expensive items such as a $500 musical instrument must be verified for educational relevance. This includes providing specific documentation for IEP students and detailed invoices.
With more than 93,000 students, that could mean up to 186,000 reviews annually taking 46,608 staff hours. That would require at least 23 full-time ADE employees, thereby straining resources. These reviews, mandated by A.R.S. §15-2403(B), caused delays for 77% of parents, according to a 2024 Heritage Foundation report, which fuels perceptions of bureaucratic inefficiency.
The 2025-26 Handbook Controversy
The latest handbook’s approval by the Arizona State Board of Education (SBE) with an 8-1 vote sparked controversy over its compliance with state law. Critics, including parent Angela Faber, argued that its restrictive approval process, requiring additional documentation for disability-related expenses, violates A.R.S. §15-2402(B)(4), which permits funds for therapies and assistive technology.
Republican lawmakers criticized “overly restrictive cost guidelines,” such as a removed $16,000 cap on items like cellos, claiming the handbook defied a legislative warning. Still, no formal directive is documented, making the accusation speculative. The ADE asserts compliance with A.A.C. R7-2-1503 and A.R.S. §15-231(B), with a 30-day appeal period for denied expenses to ensure recourse. Despite revisions, late draft postings limited public review and increased debate. A 2023 report showed 96% of ESA funds supported academic goals, highlighting the program’s potential when managed effectively.
Lessons from Other States
Expanding ClassWallet’s Marketplace to include more pre-approved items could decrease manual reviews by 20–30% to improve the handbook’s inefficiencies. Implementing a machine-learning system for routine approvals, modeled on Florida’s Family Empowerment Scholarship or Tennessee’s Individualized Education Account, would simplify processing. Reinstating debit cards with Merchant Category Code restrictions and adopting risk-based audits could reduce review volume by 40%. Better parental education through tutorials could lower errors, easing administrative burdens.
Potential Leadership Change: Horne vs. Yee
Amid the handbook concerns, Superintendent Tom Horne may face Treasurer Kimberly Yee in the Republican primary for Arizona Superintendent of Public Instruction. During his tenure, Horne has advanced educational initiatives by eliminating the Kindergarten Entry Assessment to reduce teacher workload and expanded school safety with 565 new officers. As Arizona State Treasurer, Kimberly Yee has championed government transparency by pushing for easily accessible online budgets, with the Arizona Treasury website providing clear information on taxpayer spending, enhancing public accountability. Yee has also prioritized financial literacy for high school courses and a Financial Literacy Fund to educate students, seniors, and vulnerable populations. Voters are urged to select the leader in 2026 who is most qualified and prepared to improve upon the administratively challenged ESA program. Check out my previous column for more information about the Horne and Yee matchup.
Conclusion: Strengthening a National Model
The ESA program’s flexibility for over 93,000 students makes it a national leader, but the 2025-26 handbook’s manual reviews and controversial approval process show administrative challenges. Arizona can improve operations while keeping accountability by increasing transparency and adopting automation, learning from Florida and Tennessee.
For more details, visit https://www.azed.gov/esa or call (602) 364-1969. Be aware of potential staff availability constraints.
Tamra Farah leads AmericanStrategies.org. She brings twenty years of experience in public policy and politics as a journalist, focusing on protecting individual liberty and advocating for limited government. She has worked with ten local, state, and federal candidates and organizations, such as Americans for Prosperity, FreedomWorks, Moms for America, and Arizona Women of Action. Farah has regularly appeared on conservative radio, television, and print media.
by Ethan Faverino | Jun 24, 2025 | Education, News
By Ethan Faverino |
The Arizona State Board of Education has adopted the Arizona Department of Education’s Empowerment Scholarship Account (ESA) Parent Handbook for the upcoming school year.
This updated handbook was approved on June 23, 2025, by an 8-1 vote after more than a year of gathering feedback from parents and lawmakers.
“I am very pleased that the board has endorsed the updated handbook. The changes reflect the needs of parents to have clarity in how ESA expenses are reviewed, allow the department to continue its efforts to ensure the program is well-managed and that taxpayer dollars are used for appropriate educational purposes. Anything less would potentially damage the ESA program. I am committed to its long-term sustainability because it is a vital way for parents to have the freedom to choose the best education for their children,” said Arizona Superintendent of Public Instruction Tom Horne.
The ESA program allows Arizona parents to use state funds for educational expenses like tutoring, homeschooling materials, and private school tuition. The handbook serves as a guide for parents on how to comply with the program rules and ultimately make sure all funds are used for appropriate educational purposes. It also covers eligibility, application process, and allowed and prohibited expenses.
The 2024-2025 handbook outlined basic ESA rules, eligibility, and allowed expenses, but lacked specificity in certain areas, particularly Special Education students. It provided general guidance on expenses like educational therapies, but did not include a structured approach to evaluate expenses for students with diverse needs, making it difficult for parents to navigate approvals for Special Education requirements.
The updated 2025-2026 handbook addressed these issues with a broader, more flexible framework for evaluating expenses for Special Education students. There are more explicit guidelines for how expenses are approved and evaluating expenses for students with unique needs, such as specialized therapies, adaptive equipment, and individualized educational materials.
However, some parents believe that the language is still too vague, indicating the ongoing challenges in fully meeting Special Education requirements.
During the Arizona State Board of Education board meeting, ESA Director John Ward defended the broad language that was used in the ESA Parent Handbook and said that it provides flexibility to address varied students’ needs.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 16, 2025 | News
By Jonathan Eberle |
The Arizona House of Representatives passed a structurally balanced, conservative budget on Thursday, advancing a financial plan that focuses on strengthening public safety, reducing costs for families, and increasing government accountability.
Speaker Steve Montenegro (R-LD29) called the budget a reflection of voter priorities. “This budget delivers safe communities, strong families, and a government that works for the people — not the other way around,” he said. “It cuts tuition, raises pay for law enforcement, fixes critical roads, and reins in waste — all without raising taxes.”
Key components of the budget include a 5% pay raise for Department of Public Safety and corrections officers, $94 million for repairs to major highway infrastructure, and a 2.5% in-state university tuition reduction alongside a freeze for the subsequent two years. The budget also fully funds school choice programs and clears a backlog of Empowerment Scholarship Account applications.
Additional funding is designated to keep voter rolls accurate and up to date, fully fund payments for parents acting as caregivers, and provide developmental disability services. An expanded adoption tax deduction is also included.
“The House-passed budget puts the House Majority Plan into action,” Majority Leader Michael Carbone said. “We’re protecting opportunity by lowering costs for students and parents. We’re backing public safety with strong support for our law enforcement officers. And we’re holding government accountable by cutting waste and demanding better results — this is the kind of leadership Arizona voters asked for.”
Speaker Pro Tempore Neal Carter stressed the budget’s potential for boosting small business. “The House-passed budget gives long-overdue relief to Arizona’s small businesses by eliminating the administratively burdensome business personal property tax under the $500,000 threshold,” Carter said. “This helps local job creators grow, hire, and invest in their communities — and makes Arizona a more competitive place to do business.”
The budget package — HB2945 through HB2961 — now moves to the Senate for consideration.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
