AZ Joint Legislative Budget Committee Report Dispels ESA Criticism

AZ Joint Legislative Budget Committee Report Dispels ESA Criticism

By Matthew Holloway |

Citing a report from the Arizona Legislative Budget Committee, the Goldwater Institute debunked the narrative that Arizona’s universal education savings account (ESA) program has harmed students and blown up the states’ budget.

In a lengthy and detailed report from Director of Education Policy at the Goldwater Institute Matt Beienburg, it is made plain that the universal ESA program has been a net-positive development for Arizona’s students, families, and taxpayers.

In a post to X, Beienburg summarized the report writing, “Since universal expansion, AZ enjoyed a $2B budget surplus one year, & an overall K-12 formula savings compared to its enacted budget the second, all as 75,000 ESA students are now being served at lower taxpayer cost $ than their peers in the state’s public school system.”

In a subsequent comment, he added, “Arizonans deserve better than willful or sloppy misrepresentations by @propublica, @joedanareports, @laurieroberts & @arizona_sos attacking the ESA program while ignoring record public school costs (including recently uncovered misspending on wine tastings & political candidate bootcamps)[.]”

The depth of Beienburg’s breakdown of the committee’s analysis can be summarized into a few key points.

He writes, “While union-aligned journalists and advocacy organizations have painted Arizona’s ESA program as excessively costly to taxpayers and responsible for triggering a budgetary shortfall, the two years of the universal ESA program’s history—and a new report from Arizona’s nonpartisan state budget analysts—suggest otherwise.”

The committee analysts explained, “With the above forecast adjustments, we estimate the total combined district/charter/ESA enrollment will generate savings of $(352,200) in FY 2024 relative to the enacted budget.”

Beienburg points out that the budget deficit of 23’-24’ only arose after Democrat Governor Katie Hobbs vetoed the original budget passed by Republican majorities in the House and Senate. That budget would have left the state with over a billion dollars in reserve funds even after fully funding the ESA program.

“Hobbs instead signed a budget that increased state spending by an additional $2 billion to the highest level of all time and exhausted the state’s surplus financial cushion, leaving it unable to absorb lower than projected revenue collections.”

Beienburg also mentions that the bevy of claims from critics of the ESA program “have relied on ideologically motivated, often factually dishonest misrepresentations of the program and its finances,” and “are simply false and represent either basic numerical illiteracy or willful misrepresentation of fact.”

Finally, the report from Goldwater assesses the fifth claim that critics of the ESA make which is that the program “siphons too much money to ‘wealthy’ or ‘high-income’ families,” by supporting families who are either pursuing home schooling or private education. And it is in this last segment of the report, the ultimate, purely ideological and class-warfare driven motivation for all of the “misrepresentations of the program and its finances” emerges.

The glaring inconsistency in the view of ESA critics that the “Empowerment Scholarship Accounts” benefit the wealthy is utterly undone by even a cursory examination of the families utilizing the program. As the Goldwater Institute, the nonpartisan Common Sense Institute, and multiple conservative outlets have repeatedly verified, families of ESA children cover the full breadth of the socio-economic strata from crushingly impoverished to blindingly wealthy, from the broken down trailer parks of South Phoenix to the most lavish homes of Paradise Valley.

Beienburg notes, “By simply proclaiming a national ‘consensus’ in support of their own views—and ignoring an entire half of the nation seeking something better—advocacy organizations like Brookings suggest the education status quo should be preserved because…that’s how it’s always been.”

He concludes, “Yet this same status quo failed families during COVID-19, locked children out of classrooms, has doubled inflation-adjusted K-12 costs over recent decades, and has failed to meaningfully improve student outcomes for generations. The proliferation of education savings accounts—like other school choice innovations such as charter schools—on the other hand, offers families and lawmakers the opportunity to expand the range of educational choices available to students and ensure that each child can pursue an education of excellence, not simply political convenience.”

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.

Schwiebert Aims To Dismantle School Choice And ESA Program If Elected To State Senate

Schwiebert Aims To Dismantle School Choice And ESA Program If Elected To State Senate

By Staff Reporter |

Another one of Arizona’s middle-of-the-road legislative districts may be represented by a liberal after November’s General Election if enough Democrats and left-leaning independents have their say.

Judy Schwiebert, a Democrat, is running for the Arizona State Senate in Legislative District 2. Schwiebert currently serves as a State Representative for the district. She announced for the seat in June 2023, saying that “we need people who will work together to focus on the toughest challenges facing Arizonans including our teacher, affordable housing, and water shortage crises.”

Schwiebert posted more than 1,600 signatures at the Arizona Secretary of State’s Office earlier this spring to qualify for the ballot.

The Democrat legislator has been endorsed by several left-leaning organizations, including National Organization for Women Arizona PAC, Arizona Education Association, Moms Demand Action, Save Our Schools Arizona, Arizona List, Jane Fonda Climate PAC, the Grand Canyon Chapter of the Sierra Club, Emily’s List, Moms Fed Up, and Human Rights Campaign PAC.

If voters were to select Schwiebert over the Republican favorite in the district’s primary, Shawnna Bolick, they would be sacrificing one of the state’s strongest school choice proponents for one of the top opponents of educational opportunities and freedom for students and families. In a recent interview with a local outlet, Schwiebert set her sights on the Empowerment Scholarship Account (ESA) program, which has given tens of thousands of Arizona families the opportunity to choose the education that best suits their children, saying, “What we cannot afford is to create an entirely separate private school system – funded by taxpayer money – that siphons almost a billion dollars a year out of the state budget. That’s what the universal ESA voucher program is doing. It is creating huge deficits. It is preventing us from investing in all kinds of things that Arizonans urgently need.”

In June 2022, Representative Schwiebert voted against the bill that expanded the ESA program in the state (HB 2853), which was the first of its kind in the country.

Schwiebert’s endorsements from Arizona Education Association and Save Our Schools Arizona also speak volumes about what she would continue to do in the state senate to undermine school choice opportunities for her constituents. In its 2023 Legislative Policy Priorities, Save Our Schools Arizona wrote that “Diverting public funds away from public schools toward private schools through ESAs and STOs only exacerbates the crisis – especially with universal ESA vouchers directing state tax dollars overwhelmingly to families who never sent their children to public schools in the first place. This negatively affects Arizona students and families, leaving the next generation unprepared for success and risking our state’s future.”

On her “X” account, Schwiebert has posted her participation with Save Our Schools Arizona at different events.

The Arizona Education Association is also an ardent opponent of the state’s many educational freedom opportunities. After Democrat Governor Katie Hobbs signed the state’s budget in 2023, which she negotiated with Republican legislative leadership, the Association wrote, “It’s extremely frustrating that this budget does not address the growth of the state’s out-of-control voucher program. The extremist majority in our state legislature has ignored the will of Arizona voters and pushed through policies that bankroll private schools for the wealthy at the cost of the public schools attended by 90% of Arizona kids…This unchecked spending is completely irresponsible and is on track to bankrupt our state. The fight to repeal vouchers during next year’s legislative session starts today.”

Earlier this year, Schwiebert bemoaned the resistance of Arizona Republican legislators in the House majority “to even consider sensible legislation to raise educator pay…”

However, during the 2023 Arizona Legislative Session, Schwiebert voted against HB 2800 in committee, which would have “mandate[d] each school district and charter school increase the base salary of all eligible teachers” – according to the overview provided by the state House of Representatives. That bill, which was sponsored by Republican State Representative Matt Gress, received a green light from the House Appropriations Committee, but failed to make it out of the full chamber for the Senate’s consideration.

Schwiebert explained her vote at the time, saying, “The bottom line for me is well, this bill is really, I think, well-intentioned, and it’s good that, I’m glad to hear that Mr. Gress is acknowledging that teachers deserve higher pay, they absolutely do. But unfortunately, there are some serious flaws in this bill that I’m concerned could leave public schools in a worse financial position than they are in now.”

Representatives from both the Arizona Education Association and Save Our Schools Arizona registered opposition to the legislation on the Arizona Legislature’s Request to Speak system.

Arizona Legislative District 2 is one of the most competitive in the state, with a 3.8% vote spread in the past nine statewide elections. It is very winnable for Republicans, however, as the party has emerged victorious in six out of those nine elections. The district covers a large portion of northcentral Phoenix.

Schwiebert is running unopposed in the July primary election for Democrats. She will face off against the winner of the district’s Republican primary contest for state senator, which features incumbent, Shawnna Bolick, and Josh Barnett.

Bolick told AZ Free News that her “general election opponent was voted in shortly after she helped collect signatures for a ballot initiative that would have levied a billion dollar tax on small businesses not only hurting these business owners, but our state’s economy.” She added, “[Schwiebert] cares more about protecting special interests than voting for common sense education policies that gives every kid a chance to thrive in the school of their choice.”

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Toma Calls On Horne To Protect ESAs From AG Mayes

Toma Calls On Horne To Protect ESAs From AG Mayes

By Daniel Stefanski |

Another political battle may be brewing over Arizona’s historic school choice program.

Earlier this week, Arizona House Speaker Ben Toma sent a letter to Tom Horne, the state’s Superintendent of Public Instruction (ADE), over his department’s controversial decision to acquiesce to Attorney General Kris Mayes’ demands to increase regulation of the Empowerment Scholarship Account (ESA) program.

In his letter, Toma wrote, “I understand that you may have no choice but to cooperate with the Attorney General’s politically-motivated investigation. However, ADE is best situated to determine how to implement its policies in a way that fulfills legislative intent but does not burden parents with unnecessary bureaucratic requirements.”

Toma added, “As you implement your Department’s policies, I urge you to scrutinize Attorney General Mayes’ unsolicited legal advice expressed in her July 1, 2024, letter, consider how her interpretation of Arizona statutes would impact parents throughout the state, and reject her interpretation of the law that would lead to absurd results.”

The Republican Speaker’s communication addressed an email from ADE ESA Executive Director, John Ward, to parents within the program, informing them about a letter he had received from Mayes’ Solicitor General. According to Ward, that letter “stated that some ESA program practices are inconsistent with State law and result in payment of ESA funds without authorization of law, [and that] the Solicitor General’s Office has directed the ESA program to address the issues it identified.”

The Attorney General’s Office cited two Arizona statutes to bolster its argument that “the Arizona Department of Education has approved certain supplemental items and textbooks without requiring curricula, which may result in ‘illegal payment of public monies.’” Ward told parents that “ADE has no choice but to comply with the Solicitor General’s determination,” forcing families to “submit a curriculum with all supplemental materials requested or purchased” – something that he even noted was a practice “in place since before the current ADE administration.”

Horne’s acceptance of Mayes’ interpretation of the law was surprising to many onlookers, being that his office has been at odds with the Attorney General’s Office on almost every issue related to this program. Previously, Horne issued a number of statements that expressed his ardent opposition to the Democrat Attorney General’s persistent attacks on the ESA program and vowing to match her office step for step in defense of parents.

One of the foremost experts and defenders of the ESA program, Christine Accurso, addressed this action by Horne’s office, writing, “I joined the ESA program as a parent in 2014 and in all of the years we participated, I never had to submit curriculum that listed pencils and paper (for example) as something I can use ESA funds for. This new regulation is not what the legislature intended. If you go back and listen to the many years of committee hearings you will clearly hear the lawmakers desired to give parents access to tax dollars to provide an excellent education for their child, putting them on equal footing financially (while providing a 10% savings) to what the state funds in the public schools. I don’t know of a school district in Arizona, let alone America, who has curriculum for such obvious supplemental educational materials, as noted above.”

Accurso’s sentiments were reciprocated by Speaker Toma, who in his letter to Horne, stated, “it appears that the Attorney General’s Office is advancing an argument that documentation is required for most ESA-related expenses. The legislative record does not support such an overtly restrictive view or burdensome administration of the ESA program.”

Speaker Toma concluded his letter by expressing his appreciation for Horne’s “willingness to discuss these implementation issues with legislators who – like parents – are understandably concerned about the Attorney General’s letter.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Hobbs Officially Signs Balanced Budget Expanding School Choice

Hobbs Officially Signs Balanced Budget Expanding School Choice

By Matthew Holloway |

The State of Arizona has passed a balanced budget through the Republican controlled House and Senate not only hammering down a $1.4 billion shortfall in projected tax revenues but actually expanding and reforming the state’s Empowerment Scholarship Accounts (ESA), and School Tuition Organization (STO) eligibility, much to Democrat Governor Katie Hobbs’ chagrin. Hobbs, despite her opposition toward the ESA program, implied her acceptance of the budget in a Saturday post to X, and on Monday evening signed the budget into law.

As reported by 12News, the budget was approved in a marathon of votes that stretched throughout the Saturday workday and landed on Hobbs’ desk where it was approved at the end of the business day. Many agencies in Arizona are now working with a budget cut of approximately 3% that arose primarily from depressed sales tax collections in 2023-24. Hobbs and her fellow Democrats have tried to assign the blame to former Republican Gov. Doug Ducey for tax cuts and expansion of the ESA program to allow all students access to the education of their choice.

In spite of this rhetoric, the GOP led legislature successfully prevented a reduction in the funds directed to putting students in underperforming schools into private schools and under the tutelage of homeschooling parents. The budget even included a 2% inflation-driven increase in the K-12 public schools budget.

Senate Majority Whip Sine Kerr explained in a statement from the AZ Senate Republicans:

“What’s not included in the $16.1 billion budget is an elimination of the historic Universal Empowerment Scholarship Accounts program or our School Tuition Organizations program providing tens of thousands of Arizona families the freedom to pick the best schools to meet their children’s unique learning needs.

We are continuing our commitment to providing every family in the state of Arizona with a quality education, no matter their zip code or economic status. Additionally, we said ‘no’ when Governor Hobbs and Democrats proposed eliminating our Arizona Freedom Schools at our public universities, which are dedicated to civics education and ensuring students are equipped down the road to lead our state to a brighter tomorrow.”

In the new budget, the ESA program sees an expansion to “allow the use of account monies to reimburse the parent of a qualified student or a qualified student for the purchase of a good or educational service that is an allowable expense.” Reforms to the ESA will be extensive with the Arizona Department of Education to work in consultation with the Auditor General to generate risk-based audits of the program and ensuring that educators being paid through the program are not subject to disciplinary action by the State Board of Education and requiring all teaching staff and personnel with unsupervised contact with the students be fingerprinted as public school teachers already are. Expansion to the STO program grew the student eligibility to include any students who “are placed in foster care … at any time before the student graduates from high school or obtains a general equivalency diploma.”

In her comments posted to X, Hobbs commented, “While this bipartisan budget delivers reforms to ESAs, they are not enough.” She added a commitment to bring “accountability and transparency” to the program referring to it as “unsustainable.”

In addition to the preservation and expansion of Arizona’s ESA and STO programs, the AZ Senate GOP offered the following highlights from the budget:

  • Reduces state spending by $1.7 billion below the 2023-2024 enacted budget (a 10% reduction).
  • Reduces ongoing spending by $330 million.
  • Protects school choice programs—both Empowerment Scholarship Accounts and School Tuition Organizations are funded for continued growth.
  • Protects Arizona Freedom Schools.
  • Does not pull dollars from the rainy-day fund.
  • No new taxes or tax increases.
  • No new debt.
  • Reduces ongoing funding of state agencies by 3.5%, including cuts to universities by $23 million.
  • Maintains law enforcement funding, while adding $5 million for local border security support and $4 million for fentanyl interdiction and law enforcement response.
  • Prohibits board fee increases for 2 years.
  • Lowers vehicle emissions testing fees by 5%.
  • Ends ongoing funding for COVID federal programs.
  • Maintains road infrastructure funding.
  • Adds additional full-time employees to reduce concealed carry permit application and renewal time frames.
  • Makes conservative policy and spending reforms to the Arizona Commerce Authority, the Arizona Department of Transportation, the Industrial Commission of Arizona, and the Board of Technical Registration.

Senate President Warren Petersen summarized the contentious budget in statement, “Following last year’s state budget, where Republican lawmakers provided inflationary relief to everyday Arizonans through $274 million in tax rebates distributed to struggling families, as well as a ban on the tenant-paid rental tax taking effect this January, Republicans are again successfully supporting our hardworking citizens while simultaneously reining in spending.” He added, “In this year’s budget, we defended more than $520 million allocated last year for much-needed transportation projects statewide. We also cut fees for Maricopa County drivers on emissions testing by 5%, and we banned fee increases on Arizonans from state boards for the next two years.”

“Arizonans can rest assured that their state has a balanced budget. I’m thankful for members of the legislature who came together, compromised, and passed this bipartisan agreement,” Gov. Katie Hobbs said in a statement reported by AZ Mirror. “But I know we still have more work to do.”

Despite the modest gains of the budget, not all Republicans supported the compromise. The Arizona Freedom Caucus seemed very displeased and took their case to the public in a post to X, writing, “It’s a perfect example of the Swamp that establishment Republicans at the Arizona Capital are saying ‘the Freedom Caucus is the problem’ on this budget The reality is that this is what happens when weak Republicans negotiate a budget in secret with Democrats.”

The Caucus cited a dozen shortcomings in the budget, namely that the Democrat and Republicans who formulated it, “Fail to appropriate any new meaningful border security money for local Sheriffs, kneecap a school choice tax credit, regulate private faith-based schools, weaponize public schools’ ability to stop conservative teachers from providing instruction to ESA students, impede parents’ right to educate their children as they see fit, gift hundreds of millions of your tax dollars to the healthcare industrial complex, refuse to do anything meaningful to fix our elections, use budget gimmicks to pretend to solve the state’s deficit, rather than actually solving it, sweep $430M of water funding intended to help solve our state’s water crisis, fail to hold Hobbs accountable for her illegal pay-to-play scheme, fail to hold Mayes accountable for weaponizing the justice system against her political opponents,” and  “fail to hold Fontes accountable for his totally illegal Election Procedures Manual.”

They added, “In the case of the current budget, when @AZFreedomCaucus members approached leadership, raised concerns with some of the nonstarters in the budget, offered solutions, and indicated that with changes we could achieve Republican unity… Warren Petersen and Ben Toma rejected the changes instantly without even considering them, and then spent the rest of the day attacking, defaming, and insulting the members of the Freedom Caucus for not just blindly following orders. Unfortunately, establishment Republicans’ failure to see the present battlefield for what it really is will cost us the legislature. When Democrats take control, whether it’s in November or in two years… you can look back at who voted YES on this year’s budget to figure out who to blame.”

The budget is also likely to draw a legal challenge from Arizona Attorney General Kris Mayes regarding the ‘sweep’ of funding from the $1.14 billion, 18-year opioid One Arizona Agreement. The agreement, long a bone of contention between the AG, Governor, and Legislature, stems from a lawsuit that capped the Big Pharma opioid scandal and resulted in then-Attorney General Mark Brnovich signing onto to a $26 billion national settlement with Cardinal, McKesson, and AmerisourceBergen and Johnson & Johnson, which distributed, manufactured and marketed opioids respectively.

The funds are held by the AG’s Office as steward for the money designated for opioid treatment, prevention, and education. Mayes told 12 News’ Brahm Resnick, “I am not giving that money to them. It’s in my bank account at the Attorney General’s Office. It’s not going anywhere.”

In a lengthy statement posted to X, Mayes said, “I have stated publicly + very clearly that I refuse to release these funds in this way as it would violate the agreement, & I stand by those words today. This is an egregious grab, and I will do everything in my power to protect these opioid settlement funds for all Arizonans.”

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.