by AZ Free Enterprise Club | Dec 10, 2025 | Opinion
By the Arizona Free Enterprise Club |
Despite Halloween being long over, Katie Hobbs has decided to spend the Christmas season playing dress-up as a Trump-loving, tax-cutting, leader of the middle and working class.
On November 20th, Governor Hobbs released her so-called “Tax Cuts for Middle-Class Arizonans” plan. If some of these concepts sound familiar, that’s because every single provision in her plan was word-for-word copied straight out of the One Big Beautiful Bill (OBBB) tax package signed into law by President Trump on July 4th:
- Increase the standard deduction from $15,000 to $15,750 for single filers, $31,500 for joint filers – straight from the One Big Beautiful Bill (OBBB)
- Adding an additional $6,000 deduction for seniors over 65 – straight from the OBBB
- Deducting tipped income from taxable income – straight from the OBBB
- Deducting overtime income – straight from the OBBB
- Deducting car-loan interest on new American-made vehicles – again, right out of the OBBB
So, after spending months opposing the OBBB, trashing Congressional Republicans, and urging its defeat, Hobbs has now decided to pretend that it was her idea all along…
>>> CONTINUE READING >>>
by Matthew Holloway | Oct 30, 2025 | Education, News
By Matthew Holloway |
The Phoenix Union High School District (PXU) is preparing for significant budget reductions and potential staff layoffs as enrollment continues to drop, according to a letter sent to district employees on October 24th by Superintendent Thea Andrade.
In a letter to PXU colleagues posted to X by Phoenix Union Governing Board Member Jeremiah Cota, Andrade cites a decline of approximately 1,800 students in the 2025-2026 school year, following a drop of about 1,200 students the previous year. This represents a total loss of roughly 3,000 students, or about 10% of the district’s overall population, since its high point in 2022.
The superintendent attributes the budget cuts to “a significant decline in student enrollment.” In her letter, she explains that “the reasons for declining enrollment are complex,” and pivots to what she says are contributing factors: “the largest expansion of Empowerment Scholarship Accounts (ESA) in our state’s history,” the continued growth of charter schools, local demographic challenges such as gentrification and low birth rates, and the expiration of several federal Elementary and Secondary School Emergency Relief (ESSER) funds.
The announcement drew immediate response from Governing Board Member Jeremiah Cota, who slammed the district for casting blame on ESA families, charter schools, and Arizona’s Republican-led legislature.
In his post, Cota said that as a board member, he has repeatedly requested improvements in school safety and has been “all but ignored.” He also expressed concern that parents are hesitant to send children to district schools due to safety issues and “woke identity politics” in classrooms.
Cota wrote in full:
“Today, Phoenix Union High School District announced an untold number of possible job cuts due to declining enrollment.
It’s unfortunate, this district has chosen to blame ESA families, charter schools, and the GOP legislature for their budget shortfalls.
As a board member for @PhoenixUnion, from day one I’ve asked to make our schools safer and have all but been ignored on EVERY single request.
Parents, don’t feel safe sending their kids to one of our schools and are tired of the woke identity politics being injected in the classroom.
Yet, here we are, big enrollment drops and possibly even bigger job cuts coming.
TRUTHFULLY, I am concerned the present board will not take any corrective action to stem this decline.”
To address the financial strain, the district has already implemented cuts. In the 2023-2024 school year, it reduced district office budgets by $8.6 million and reorganized the executive team, eliminating several administrative positions to shield campus roles. For the 2024-2025 school year, per AZ Family, an additional $5.8 million was cut through district office reductions, unfilled vacancies, and natural attrition.
As previously reported by AZ Free News, the Phoenix Union High School District (PXU) faced major controversy going into a vote to approve a Memorandum of Understanding (MOU) with Chicanos Por La Causa (CPLC) to provide substance abuse prevention and mental health services at three high schools. The MOU outlines CPLC’s role as a subgrantee of the Arizona Health Care Cost Containment System (AHCCCS) under the federal Substance Abuse Prevention and Treatment Block Grant (SABG).
The MOU would also permit CPLC to offer “Health Masculinity Services for Self-Identified Males.”
Looking ahead, the district projects it will need to cut another $15 million in the 2025-2026 school year and $20 million in the 2026-2027 school year to maintain solvency. Approximately 90% of the district’s annual budget goes toward employee salaries and benefits, Andrade noted.
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 | Oct 18, 2025 | Opinion
By the Arizona Free Enterprise Club |
Ever since Arizona passed universal school choice, the Empowerment Scholarship Account (ESA) program has been the target of the Red for Ed teachers’ union, Democrat lawmakers and their corporate media allies. They demand transparency and accountability for alleged abuse of ESA dollars—all while scandal after scandal continues to pop up in our state’s K-12 public schools.
We saw it at the beginning of the year when the Isaac Elementary School District (IESD) was placed under a state receivership after it was determined that it had a budget shortfall of over $12 million! And this wasn’t a surprise. The Auditor General had been sounding the alarm on IESD’s mismanagement of funds for five years!
But where was the corporate media? Where was the digging? Where was the series of articles and threads on X exposing the corruption?
We got none of it. Instead, we have certain Red For Ed reporters, like Craig Harris, attacking Arizona’s popular ESA program with liberal talking points about unspent funds and alleged waste and abuse.
But if the failures of IESD weren’t enough, now we have the sordid financial tale of Tolleson Union High School District, a story so scandalous that it should make every taxpayer’s blood boil…
>>> CONTINUE READING >>>
by Matthew Holloway | Oct 11, 2025 | News
By Matthew Holloway |
Former Arizona Governor Doug Ducey sharply rebuked Gov. Katie Hobbs’ announcement of her 2026 reelection campaign, accusing her of fiscal mismanagement that turned a $2.5 billion surplus into a $1.4 billion deficit.
Hobbs launched her bid for a second term on Wednesday in a two-minute video posted to X, where she emphasized her administration’s focus on education, public safety, and housing affordability.
“Arizona is a place of hard work, hope and determination,” Hobbs said. “That’s why I’m running for reelection — to continue putting your family first.”
Ducey, a Republican who preceded Hobbs in office, responded hours later on X, quoting Hobbs’ video and writing: “This dishonesty isn’t surprising given the current struggles on the 9th floor. When I left office, I turned over a $2.5B SURPLUS to Katie Hobbs. She blew it all AND created that $1.4B deficit in only a year. AZ didn’t have a revenue problem, Hobbs had a spending problem.”
The exchange between the former and current governors highlights Arizona’s ongoing budget tensions. Hobbs inherited the surplus from Ducey in January 2023, but the state faced a projected $1.4 billion shortfall for fiscal year 2025. According to a report from the Common Sense Institute of Arizona (CSI), that shortfall was mainly driven by increased spending and not the state’s adoption of a flat income tax rate of 2.5% or the Empowerment Scholarship Account (ESA) program.
The GOP-led Arizona legislature approved a $16.1 billion budget in June 2024, following a major budget battle that addressed the deficit by incorporating spending cuts and one-time adjustments. Hobbs signed the measure, though Republican critics, including House Speaker Ben Toma, have described her fiscal approach as unsustainable.
Reactions to Ducey’s post were polarized. A few users defended Hobbs, claiming Ducey’s tax cuts and ESA expansions as root causes of the shortfall. Others echoed his criticisms. A few, urged Ducey to support GOP challengers in the 2026 gubernatorial race, like U.S. Rep. Andy Biggs. The vast majority offered critiques of the former Governor.
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 Matthew Holloway | Oct 8, 2025 | Education, News
By Matthew Holloway |
A new report on Arizona’s Empowerment Scholarship Account (ESA) from the Common Sense Institute (CSI) shows a robust jump in ESA enrollment of nearly 15,000 students since last year.
According to the detailed report, the school choice program has reached a milestone with 92,362 students enrolled as of September 15, 2025. Projections indicate that ESA numbers will reach 103,000 this fiscal year.
The report from CSI is released on a quarterly basis to address “a lack of reliable and consistent data about who is using the program and how.” CSI noted, “Applying scrutiny to hundreds of thousands of individual transactions on an almost real-time basis has made the program vulnerable to exaggeration, misinformation, and mischaracterization. No comparable program is subject to this kind of examination.”
The quarterly findings indicate the program is maturing from an initial stage of rapid growth to a more steady-state. Universal eligibility, rolled out in 2022, has fueled the fire, but the real story now is “switchers”—57% of new enrollees ditching public schools for tailored options like private academies, therapies, or homeschooling setups. The report underscores how shrinking school-age cohorts (down 20,241 since 2021) aren’t slowing the momentum.
Glenn Farley, Director of Policy & Research at CSI and the report’s author, explained, “Arizona’s ESA program is reaching a point of steady participation. The rapid expansion is behind us, and future growth will be shaped more by broader demographic trends and the choices families make across an increasingly competitive K–12 landscape.”
The key questions that CSI seeks to address include the ultimate cost of the program at full expansion, the steady-state count of how many people are using the ESA program, its ultimate extent, the demographic characteristics of its users, and the efficiency and good operation of the program.
CSI found that total ESA costs are on track to reach $1.0369 billion in FY 2026, with an average award of $10,349 per student. Notably, 88% of funds have already been spent, the highest percentage ever recorded. Administrative approval rates are at a peak of 88.8%, and reimbursements are processed in just 13 days on average, with a whopping 455,142 orders handled in the last quarter alone.
As far as budgetary impact is concerned, a common complaint from opponents like Governor Katie Hobbs, the CSI projects that “state K–12 Basic State Aid costs will exceed appropriations by $35 million in FY 2026, due largely to higher ESA participation and lower-than-expected district enrollment.”
The report also offers a firm, authoritative rebuke to allegations that the program is most used by “the wealthy.”
“Nearly 57% of ESA recipients live in ZIP Codes with a median family income of between $75,000 and $150,000 – up slightly since our last report. A quarter of ESA users may be lower-income, 13% reside in rural areas, and nearly 20% are estimated to be nonwhite,” the report states.
Farley concluded the CSI report’s findings, writing, “Administrative reform throughout 2025 by the Department of Education has improved various high-level metrics: the Department is approving purchases faster and at greater volume and embracing its statutory authority (risk-based auditing, Handbook language noting use-tests for technology purchases and not limiting the purchases directly, etc.). However, the ESA environment often remains narrative rather than fact driven. We remind users: ESA enrollment costs are offset by reduced enrollment in other K-12 programs; ESA misuse rates are lower than comparable programs; ESA growth is slowing and increasingly driven by students switching from traditional public options.”
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.
