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 Rosemary McAtee | May 20, 2025 | Opinion
By Rosemary McAtee |
Secrecy, control, and parents without a voice. These factors apparently comprise the current motto of Superintendent Tom Horne and John Ward, head of the ESA department. As a six-year veteran parent in the ESA program, I know what I am talking about. Over the past two years, the changes I have seen have been nothing short of appalling, frustrating, and alarming. Instead of empowering parents with trust and the ability to make free choices in educating their students, the current Superintendent has done all he can to rob parents of the freedom granted in the lawmakers’ legislative intent in the historic bill that was passed in 2020.
I could spend hours sharing all the abuses that parents have experienced at the hands of Tom Horne. To save us all a bunch of heartache, I’ll leave it at one major concern: the ongoing development of the most recent edition of the parent handbook. As a longtime shareholder, I can tell you the current protocol of closed-door meetings and a handpicked handbook committee led by a non-ESA parent has never been the norm of this program. Even under former Superintendent Kathy Hoffman, a clear opponent to the program, parents were offered townhalls to make their voices heard.
This year, despite the State Board of Education’s President demanding that Superintendent Tom Horne offer a townhall, Superintendent Horne has remained silent for months. Instead, prior to the last State Board of Education meeting, Mr. Horne sent an email to parents, demanding they sit down and shut up.
I quote, “This email is particularly directed to ESA users who have been in disagreement with the proposed handbook: We received some concern from state legislators. We therefore agreed to postpone the vote on the handbook until the June meeting to give us a chance to sit down with the legislators and hopefully reach mutually acceptable agreements. We therefore respectfully request that those who have signed up to speak on this issue wait until the June meeting and not come to the meeting next Monday. The handbook will not be on the agenda, and once agreement is reached with legislators, any objections you have might be solved. It is best to come to the meeting when you know what the final proposal will be in June.”
Clearly Superintendent Horne has no interest in listening to the concerns of the parents.
Now, let us explore some major issues in the handbook itself. A large portion of the parental outcry has primarily been against the mandated caps in different spending categories. While the caps seem to be contrary to the law, I firmly believe they are merely a diversion from the real agenda of the ESA department. Take a moment to examine two critical footnotes.
For the second time in the last two years, we see a footnote that an acceptable expense category is as follows: “Any fees that may be levied by the Department to cover the costs of managing of the Empowerment Scholarship Account program” (pg 15, footnote 10). This means that the ESA department really wants to pull fees out of students’ accounts to cover administrative fees. Students already only receive 90% of the funding they would in public schools – and now the department wants to steal money from the kids to cover their own expenses?
Even more concerning is footnote 22 on page 52, which says: “The Department may ask for repayment of any items approved in error, if items are improper or unallowable under your ESA contract, state law, administrative rule, program policies, or this ESA parental handbook.”
For the first time in my experience as an ESA parent, Superintendent Horne and John Ward have approved auto approvals of expenses in the ESA program. Before this, every single purchase had to be approved, thus protecting tax dollars from being used improperly. However, because the current ESA department cannot be run efficiently or effectively (despite the program being handed over to Mr. Ward with turnaround times being 24-48 hours for every single order), they now want the buck to stop with the parents, not themselves as the lawful administrators of the program. This leaves parents in a position that if rules change or future ESA parent handbooks remove categories, the state can demand repayment. This has nothing to do with improper spending, but everything to do with bureaucratic inefficiency.
It is clear that Tom Horne is no advocate for school choice and no advocate for making the voices of parents heard. We parents have had enough. We will scream until our voices are hoarse, because we are the primary educators for our children and we should have a say in the proposed ESA parent handbook.
Rosemary McAtee is a home-educating parent of 7 students and a 6-year veteran of the ESA program.
