Save Our Schools Arizona (SOS) and some Dem lawmakers were up in arms last week. And anytime that happens, you know you’re probably doing something right.
Last Wednesday, the Republican-led legislature passed the $17.8 billion budget, and it was a big win for students, parents, school choice, and Arizona’s taxpayers. Despite the fact that Governor Katie Hobbs made it clear that she planned to dismantle school choice for all with a full repeal of the beloved Empowerment Scholarship Accounts (ESA), Hobbs signed the budget without any cap or restrictions on the historic program. This should be cause for celebration—unless, of course, you’re SOS or certain Democrat lawmakers.
Predictably, SOS got right to work on spreading lies about the popular ESA program, claiming it would drain K-12 public schools of funding, hurt Arizona’s economy, and even bankrupt the state. That last lie is particularly absurd, but then again SOS has a history of such desperation when its back is against the wall. (Can you imagine being this bent out of shape that children from all walks of life can get an education that best fits their needs?)
The reality is that the ESA program has absolutely exploded during this fiscal year…
Arizona’s bet on universal school choice is already paying off. At the same time that enrollment in the state’s Empowerment Scholarship Account (ESA) program is surging, the state’s revenue surplus has gone through the roof.
In the first four months of 2023 alone, enrollment in Arizona’s ESA program has soared by 7,000 students, bringing the total number of children served to over 51,000. And now, new data released this past week by the nonpartisan Joint Legislative Budget Committee (JLBC) show that over a similar period, the state’s estimated revenue surplus has surged by an extra $750 million, putting the total state budget surplus this year at $2.5 billion.
Before Arizona’s historic universal ESA expansion took effect, just 12,000 students were participating in the program. This means that during the first school year where every family in the state can use their child’s public education dollars to customize that student’s schooling, nearly 40,000 new students have received ESA support for private or at-home learning opportunities. And all this is happening as state coffers have overflown with over $1 billion dollars more in revenue than originally forecast.
Sources: Arizona Joint Legislative Budget Committee (JLBC) FY 2023 Appropriations Report: $1,077,036,700 projected FY 2023 ending balance based on enacted budget. Arizona JLBC Finance Advisory Committee April 2023 Briefing Materials: $2,530,157,100 projected FY 2023 ending balance (revised). Arizona Department of Education ESA Program 2022 Quarter 4 Report: 12,127 ESA students. Arizona Department of Education ESA Program Homepage as of April 17, 2023: 51,849 ESA students.
Indeed, this extraordinary economic momentum comes in the wake of Arizona enacting the nation’s first fully universal ESA program. Sponsored by state Representative Ben Toma and signed into law by former Governor Doug Ducey last summer, the new legislation took effect in September 2022.
Since then, leftwing activist organizations such as Save Our Schools (SOS) Arizona have attempted to portray the program as financially ruinous. Yet this same organization—whose leaders were forced to admit that they had miscounted the number of signatures they collected in opposition to the program last fall by more than 50,000—has again opted for partisan wish-fulfillment rather than numerical reality.
With a typical ESA scholarship award around $7,000 per student—that is, about half of the roughly $14,000 spent on average per student in a public district school—the ESA program now serves roughly two kids for the cost of each one in a traditional public school district.
Unsurprisingly, when compared to the roughly $15 billion now spent each year on Arizona public schools, the ESA program makes up only a sliver of total K-12 spending. Scholarship awards for students who’ve joined the program under the universal ESA expansion amount to roughly 2% of the total spending on public school students. In fact, despite claims by SOS and other opponents of school choice that ESAs have drained public schools of funding, state lawmakers increased ongoing public school funding by more than $600 million in the same year that the universal ESA expansion took effect.
In short, the ESA program makes up only a small share of the state’s spending on education, but with over 50,000 participants and growing, it will continue to provide a lifeline for all students in need. It’s already done just that for students with special needs and other vulnerable populations ever since Goldwater created the nation’s first ESA program in Arizona more than a decade ago—delivering life-changing results at lower costs than public school offerings.
Despite such real-world impacts on families, critics have doubled down to suggest that the program’s success is a sign of failure and financial unsustainability. Indeed, teachers union-aligned groups have suggested that because more students have opted into the ESA program than originally estimated, it must be too expensive. (Note the sharp contrast to their usual take on education spending, which is only ever portrayed as an investment, rather than a cost.)
It is true that demand for ESAs has already beaten initial estimates, and it is true that the expansion, which passed in the final days of last year’s legislative session, was enacted separately from the state budget—meaning ESA awards were not incorporated into the projected costs of the original budget. But ESA award amounts have already been factored into the state’s updated budget projections released this January for the current and upcoming fiscal year. In fact, it’s the very same state budget analysts who assume that the program will grow even further to 57,000 students by the end of this school year who also report the state is now sitting on a $2.5 billion cash surplus for next year. (Of note, that surplus is in addition to the state’s $1.4 billion rainy day fund, which former Governor Ducey and conservative lawmakers also accumulated to cushion the state from any future economic turbulence.)
The state budget analysts were characteristically cautious in their recommendations to spread out the massive war chest. They suggested that if all $2.5 billion were spent this year, the state budget would simply break even next year, before the balance increases again to an estimated $600 million surplus by 2026. But in any case, their projections make clear that the same Arizona lawmakers who unleashed universal school choice have helped steward robust economic vitality and have created a situation where Arizona lawmakers are again weighing how best to spend or return excess tax revenues. Indeed, as the JLBC analysts reported in January—even before the latest upward revisions—the state has enjoyed “an increase of $1.06 billion over the original revenue estimate included in the FY 2023 budget enacted in June 2022” due to “significantly stronger revenue growth than originally projected.”
There is no doubt that global financial uncertainty, the risk of fiscal and monetary mismanagement from Washington D.C., and warnings of mild or severe recessions should perennially weigh on the minds of state legislators. But when it comes to ESAs and the state’s financial solvency, one thing is clear: universal school choice and successful economic stewardship easily go hand in hand.
Arizona has just proven it.
Matt Beienburg is the Director of Education Policy at the Goldwater Institute. He also serves as director of the institute’s Van Sittert Center for Constitutional Advocacy.
Arizona’s first-in-the-nation universal school choice program just hit a major milestone, and it is poised for more successes in the months ahead under a Republican’s stewardship.
Last year, the Arizona Legislature expanded the Empowerment Scholarship Accounts (ESA) program to include all eligible K-12 students in the state. Former Superintendent of Public Instruction Kathy Hoffman, a Democrat, was handed the keys to maintain the legislature’s intent for the program. However, Hoffman did not support the universal expansion of ESAs and according to sources, did not take advantage of all available resources afforded to her by the legislature to ensure the program’s positive developments on behalf of students already in – and yet to join – the system.
At the start of this year, new Arizona Superintendent of Public Instruction, Tom Horne, became one of the few Republican statewide officeholders and assumed control of the ESA program, which is under the umbrella of the Arizona Department of Education. Per reports since the transition of power, his administration inherited significant problems with the program, and his staff has had to work around the clock to catch up with the outstanding issues and requests in addition to nurturing the program’s growth.
Recently, though, under Superintendent Horne’s watchful eyes, the program has seen more stability and success than ever before, culminating with a recent announcement from the office that there are now 50,000 students enrolled in the ESA program.
Arizona's first in the nation universal ESA officially hit 50,000 participants today! #EducationForAll
— Arizona Department of Education (@azedschools) March 17, 2023
When asked to respond to the news of this milestone, Superintendent Horne told AZ Free News, “Students should not be trapped in schools that, in their parents’ judgement, do not meet the particular students’ needs. If the schools are afraid of losing students to private or charter schools, they will make a greater effort to please parents with good academic outcomes.”
This news spread quickly around the state and nation – with many advocates and elected officials chiming in to congratulate Arizona and Superintendent Horne.
Congressman Paul Gosar tweeted, “Arizona is leading the country in education reform; 7 of the top 10 charter schools are in AZ and now with ESA, every student has the choice to find the best school he or she wants.”
Arizona is leading the country in education reform; 7 of the top 10 charter schools are in AZ and now with ESA, every student has the choice to find the best school he or she wants. https://t.co/0fRQYKMlpn
Steven Utroska, a Mississippi Director for the State Freedom Caucus Network, wrote, “This is amazing. Could you imagine if 50k students in MS could leave failing government schools and actually get a quality education? It would revolutionize our state, but too many MS politicians would rather pander to the system than provide for the student.”
This is amazing. Could you imagine if 50k students in MS could leave failing government schools and actually get a quality education? It would revolutionize our state, but too many MS politicians would rather pander to the system than provide for the student. https://t.co/kSV9zADNWy
Despite the good news about enrollment numbers with the program, Superintendent Horne and legislative Republicans have their work cut out for them in the months ahead. Democrat Governor Katie Hobbs and legislative Democrats are seeking to defund and undermine the universal ESA program, eliminating school choice for tens of thousands of Arizona students whose families have elected to participate in the historic opportunity to control their children’s education.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
It’s been just over a month since new Arizona Superintendent of Public Instruction, Tom Horne, was sworn into office, and his hire to run the Empowerment Scholarship Account (ESA) Program has been delivering significant results for Arizona families.
Christine Accurso, the new ESA Executive Director, has been a longtime pro-life and school choice advocate in the East Valley. Her family has benefited from the ESA program for years – well before the Arizona Legislature expanded its scope in 2022. After the bill was signed into law by former-Governor Doug Ducey, Accurso singlehandedly led a grassroots army of moms and dads from around Arizona to defeat a campaign meant to refer ESA expansion to the ballot and delay the implementation of school choice and freedom for tens of thousands of children in our state.
Since coming on with the Arizona Department of Education, Accurso has been hard at work to save the expanded ESA program a second time, bringing staffing up to the levels intended by the legislature, handling the huge backlog of funding and reimbursement requests, vetting and approving new applications for the program, and ensuring that parents are receiving timely and relevant information from her office.
To that end, Accurso has been extremely diligent in sending out weekly emails to account holders, explaining what her program is working on, clarifying any previous misconceptions about ESAs, and giving updates on the number of students benefiting from school choice in Arizona. Her first email, sent January 3 (which was her inaugural day leading the program), alerted parents and guardians that there were 45,170 students receiving an ESA. In her email this week, that number was up to 46,971 – and Accurso briefed readers that the program is “receiving a minimum of 150 new applications a day.”
Accurso’s latest email also gave an update on her processing que, which is very helpful for account holders to realize the reasons behind some delays in payment processing or approval of desired resources for students. The Marketplace has a backlog of 4,578; Direct Pay of 4,032; Reimbursements of 24,409; and pre-paid debit cards of 63,125 – and there are 4,000 orders coming in each day to be processed. These numbers are significantly down from the original backlog Accurso inherited from the previous administration (and shared in her January 13 email), which was 171,575 orders.
The ESA Executive Director has also been planning and executing the formation of a parent advisory committee – an action she forecasted in her January 13 email to account holders. Accurso announced in her January 25 email that the application process for this committee was open – with 15 to 30 members selected to serve in a volunteer capacity. There were 140 applications received by the ESA Program for this committee, per Accurso’s February 8 email, and she informed interested readers that “we will be finalizing the candidates and communicating with them soon.”
The February 8 email to account holders was lengthy, which Accurso apologized for, but it was filled with necessary information. Accurso explained that she had “spent her first month as the executive director adjusting our office’s approach to everything in the ESA program to align with the state law.” She clarified the law and requirements for an “individual vs facility/business offering tutoring or teaching services,” and she gave an update on “accessing your ESA funds.” She gave a lot of information on the four ways account holders could access their ESA funds, including some new directives on using the pre-paid debit card. Accurso warned that her office “does plan to cancel the use of debit cards for all accounts that have not submitted the appropriate receipts by the (required) deadline or have purchased unallowable items with the card (For example: Chevron, Chick-Fil-A, Taco Bell and Dillard’s).”
Accurso realizes that one of the deadliest attacks toward ESA programs is the lack of oversight by those entrusted to distribute and steward the funds, and the propensity of some account holders to misuse funds that have been earmarked for specific educational purposes – whether intentionally or unintentionally. This is why she appears to be laser focused on bringing the Arizona ESA program into conformity with the law and the original intent of the legislature. Her weekly updates will continue to provide much-needed guiderails for parents and guardians as the program moves forward under the watchful eyes of Superintendent Horne.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
The people of Arizona do not want to turn our state into the next California. But just a few weeks into her reign as governor, Katie Hobbs has made it clear—that’s exactly what she intends to do. Last week, Hobbs released her first budget plan, and it’s nothing more than a liberal wish list of big spending, extreme proposals, and corporate welfare designed to reward her special interest friends.
Her first target is education, and she wasted no time going after Arizona’s expansion of Empowerment Scholarship Accounts (ESAs). Yes, the program that is so popular that it overwhelmed the Department of Education’s website immediately after launch—the one that even some Democrats have openly supported. Despite being a private schooler herself, Hobbs wants to dismantle school choice for all with a full repeal of universal ESAs. And that’s just the start…
