The Arizona Board of Education’s decision to uphold rejections of questionable Empowerment Scholarship Account (ESA) expense requests shows that “we allow only what public schools provide at reasonable cost,” according to State Superintendent of Public Instruction Tom Horne.
Horne applauded the State Board’s unanimous decision. In Monday’s meeting, the board rejected two appeals of expense requests from parents that the Department of Education had rejected.
“In recent months much has been made of supposedly extravagant ESA expense approvals,” Horne said. “But our policy of reviewing all requests is far different from that of my predecessor who did allow a number of inappropriate expenses to be approved and which ESA opponents continue to falsely claim as alleged abuses today.”
“The department and State Board have again shown this week that we take these expense approvals seriously and will not tolerate attempts to go beyond what the law permits,” Horne continued.
One of the rejected ESA requests was for a $2,300 commercial freeze dryer, which serves no educational purpose, so is not a valid expense under state law. The other rejected request was for car seats.
State law says that every child must be secured in a car seat, and parents do not have the right to use ESA funds to buy something they are already required to provide, according to Horne’s news release.
The department expects to defend against an appeal from a parent requesting a $500 dune buggy in the next few months.
“Despite the claims we hear from opponents of the ESA program, under my watch we review every expense request regardless of dollar amount,” Horne said. “Things such as commercial freeze dryers and dune buggies that might be approved under the previous administration are being rejected now.”
Horned said ESA staff has reviewed 252,000 orders and rejected 12,200 of them in recent months.
“This work takes extra time and effort, but it is necessary to make sure ESA taxpayer funds are spent for valid educational purposes and are in line with state law,” Horne said.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
If any business owner saw 450% growth in one of the company’s products or programs during a 15-month period, they would be ecstatic. And it’s safe to say that whatever that program was doing must be working. But for Governor Katie Hobbs and her allies in the teachers’ unions, who have never been known for their math skills, it’s a completely different story when it comes to the ESA program.
Back in July 2022, when then-Governor Doug Ducey signed universal school choice expansion into Arizona law, 13,400 students were enrolled in the ESA program. That number has now grown—as of January 16, 2024—to an astounding 73,415 students—a near 450% growth. Clearly, the program is in high demand, and it is definitely working. But after signing the Republican budget bill last year, without any cap or restrictions on ESAs, Hobbs is now trying to push a barrage of regulations that would effectively dismantle the popular program…
Gov. Katie Hobbs is claiming that the state’s school choice program is rife with abuse and in need of serious reform.
In her State of the State address on Monday, Hobbs claimed the Empowerment Scholarship Account (ESA) program lacks accountability and transparency, alluding to media reports of questionable and controversial expenditures — some of which were debunked previously.
“We have seen a steady stream of news coverage around unacceptable and sometimes downright outrageous use of taxpayer money under this program, including water park admissions, ski passes, and luxury car driving lessons,” said Hobbs.
We must also address the long-term health of our K-12 schools – which means we must address the lack of accountability and transparency in Arizona’s ESA program.#SOTS2024#HobbsSOTSpic.twitter.com/C5FOU7d1eK
The Arizona Department of Education (ADE) issues quarterly reports on the ESA program; the latest was released several days prior to Christmas. These reports include the program award amount received by students, as well as the number of orders and reimbursements approved and rejected.
ADE also provides lists of allowable and disallowable expenses, both updated last March. The ADE debunked one of Hobbs’ claims of “outrageous” expenditures last summer. In a statement, ADE clarified that it rejects expenditures for water park admissions.
An ESA representative mistakenly said this was acceptable, but when it came through, it was rejected. Please reach out to confirm stories. https://t.co/HFyU3C3C6J
— Arizona Department of Education (@azedschools) July 26, 2023
An ABC15 review of 2022-23 ESA program expenditures found that ADE issued nearly 80 approvals for driving lessons and over 100 approvals for ski passes. However, that report didn’t distinguish whether those expenditures were made in 2022 under former ADE Superintendent of Public Instruction (SPI) Kathy Hoffman, or in 2023 under current SPI Tom Horne. The difference matters because, as Horne stated in November, similar “outlandish purchases” occurred under Hoffman, not him.
“Approvals like those came during the prior superintendent’s administration led by a friend of the leader of Save Our Schools, and one of my first acts in office was to put an end to it,” said Horne.
As reported by AZ Free News last January, Hoffman’s administration of the ESA program was described as neglectful and improper. In addition to severe understaffing and hundreds of thousands of unfulfilled expense requests, the Horne administration discovered questionable expense approvals such as espresso machines.
Hoffman’s administration of the ESA program has been something that Horne has pointed out repeatedly in refuting claims of improper ESA program expenditures.
“The frivolous ESA spending approvals occurred under the administration of the Governor’s friend, Kathy Hoffman,” said Horne in another statement last month.
Hobbs’ criticism of the ESA program comes days after she announced a plan to effectively dismantle the ESA program. Monday’s speech made mention of several aspects of this proposed plan: fingerprint background checks for private school educators, a new audit authority for the auditor general specific to monitoring ESA expenditures, and requirement of attendance at a public school for at least 100 days to qualify for the program.
The governor’s plan also aims to require private schools to accommodate Individualized Learning Plans and Section 504 Plans, prohibit private schools from increasing tuition costs at a rate higher than inflation, require private schools to meet certain education requirements, and require ADE to disclose which parental and student rights are waived upon entrance into the ESA program as well as graduation and chronic absenteeism rates.
We must also address the long-term health of our K-12 schools – which means we must address the lack of accountability and transparency in Arizona’s ESA program.#SOTS2024#HobbsSOTSpic.twitter.com/C5FOU7d1eK
At least one of Hobbs’ proposals addresses a practice already in place, according to Horne: accountability in the form of manual reviews of purchases over $500 and rejection of non-academic expenditures.
Horne explained in a statement that his staff reviews all expense requests, regardless of amount, leading to a rejection of over 12,000 purchase order requests and the suspension of nearly 2,200 accounts totaling $21 million due to public school enrollment.
“My job is to administer the ESA program in line with state law, and if changes are made, the Department of Education will follow them,” said Horne. “My office already reviews all expense requests regardless of amount, unlike the previous superintendent who approved many frivolous requests.”
That $500 threshold appears to be related to another false expenditure-related claim echoed by Hobbs from the activist group, Save Our Schools Arizona. The activist group implied in a viral post picked up by various media outlets that ADE approved an expenditure of over $500 for a Lego set.
“Contrary to a falsified document tweeted by Save Our Schools, no ESA parent has been reimbursed $500 to buy Legos,” said Horne. “To be clear, district, charter and ESA students are allowed to use Legos. The issue here is a pattern of lying. Save Our Schools admitted they fabricated a document to make it look like a parent made a $500 purchase when she did not. By doing so they have misled both the Governor and a prominent newspaper columnist, both of whom have retweeted this lie.”
Although the claim was debunked, Hobbs didn’t retract her viral accusation of ESA program mismanagement.
“Your taxpayer dollars are being used to buy $500 Lego sets because partisan politicians refuse to place limits on school vouchers,” said Hobbs.
Your taxpayer dollars are being used to buy $500 Lego sets because partisan politicians refuse to place limits on school vouchers.
It is time to end this wasteful, runaway spending by passing real accountability & transparency measures. ⬇️https://t.co/MBdqirOrfg
After several years of inflated budgets propped up by trillions in unsustainable COVID cash flowing to the states from the federal government, Arizona lawmakers will be coming into the new year and the new legislative session facing a potential shortfall for the budget year in excess of $400 million. Naturally, the left and their sycophants in the media have for months been decrying this to be the result of 1) historic tax cuts enacted by Republicans in 2021 and 2) the successful universal expansion of school choice in 2022. This couldn’t be further from the truth, and there are three key facts that need to be remembered when discussing the state budget and a potential funding gap.
1. The Shortfall Is a Fraction of the Arizona Budget, Nothing Like California’s Crisis
The projected $400 million shortfall represents less than 5% of the total state budget, which spends $17.8 billion this year. Far from catastrophic. Compare this to our neighbor California, facing a $68 billion dollar deficit (nearly four times the size of our entire budget), which represents 22% of their $308 billion bloated budget – up from less than $200 billion only four years ago.
Opposite to our approach, California has continuously increased taxes, having one of the highest income tax burdens in the country. They also don’t provide choice to parents and families to make educational decisions themselves. Surely, if Arizona taking less of the people’s hard-earned money and providing ESAs to all families is the cause of our small funding gap, California, doing the exact opposite, should place them in tip top shape, right?
Mere days before the start of the 2024 Arizona legislative session, the state’s Democrat governor is finally telegraphing her primary plan for the months ahead – though her proposal is likely dead on arrival with the Republican-led House and Senate chambers.
On Tuesday, Governor Katie Hobbs issued a press release to reveal “her plan to increase accountability and transparency in the ESA voucher program.” The governor’s plan has eight elements, including “increasing student safety, protecting rights for students with disabilities, requiring accountability for taxpayer dollars, expanding auditor general authority, prohibiting price gouging, raising educational standards, establishing program transparency, reinstating eligibility requirements.”
The ESA program, which is projected to cost the state nearly $1 billion, lacks accountability and transparency.
Today, I’m announcing my plan to keep students safe, protect taxpayer dollars, and give parents and students the information to make an informed educational choice.…
In a statement, Governor Hobbs said, “The ESA program lacks accountability and transparency. With this plan, we can keep students safe, protect taxpayer dollars, and give parents and students the information they need to make an informed choice about their education. Arizonans deserve to know their money is being spent on educating students, not on handouts to unaccountable schools and unvetted vendors for luxury spending. My plan is simple: every school receiving taxpayer dollars must have basic standards to show they’re keeping our students safe and giving Arizona children the education they deserve.”
Hobbs’ announcement was followed by two volleys from leading Arizona Republicans. House Speaker Ben Toma immediately highlighted his opposition to the governor’s announcement, saying, “Empowerment Scholarship Accounts are wildly popular with Arizona parents because they leverage private sector solutions to offer the best educational opportunities for their children. Meanwhile, Governor Hobbs and Democratic Party legislators now seek to strangle ESAs and private education with bureaucracy and regulation. I won’t allow that to happen.”
The state’s schools chief, Superintendent Tom Horne, also issued his own statement, focusing on the governor’s proposition to mandate “accountability” for user purchases in the ESA program. Horne said, “One proposal stands out because it’s already in place: The governor recommends a manual review of ESA purchases over $500. My office already reviews all expense requests regardless of amount, unlike the previous superintendent who approved many frivolous requests. In 2023, we rejected several thousand ESA applications for lack of adequate documentation and suspended almost 2,200 accounts totaling $21 million because the student was enrolled in a public school. We’ve also rejected more than 12,000 ESA purchase order requests.”
Other legislative Republicans shared their sentiments against Hobbs’ proposals. Senator Jake Hoffman posted the following to his “X” account: “Let’s be very clear… Katie’s half cocked attempt to destroy an invaluable parental choice option via ‘death by a thousand cuts’ is DOA at the Capitol. The Arizona Freedom Caucus will make sure of it.”
Let’s be very clear…
Katie’s half cocked attempt to destroy an invaluable parental choice option via ‘death by a thousand cuts’ is DOA at the Capitol.
Representative Jacqueline Parker added, “Nothing lacks more accountability & transparency than the government school system. ESA’s are an extremely successful & equalizing solution, so of course democrats want to mess it up.”
Nothing lacks more accountability & transparency than the government school system. ESA’s are an extremely successful & equalizing solution, so of course democrats want to mess it up. 🤦🏻♀️ https://t.co/iZn9U0v23R
Arizona’s universal ESA program has long been a significant point of contention between members of the two major political parties in the state, though legislative Republicans scored a huge victory in 2023 when they negotiated a budget compromise with Hobbs that left the historic school choice opportunities completely unscathed. After news of the budget agreement hit the wires, many Democrats and education interest groups levied their disappointment and disapproval over the governor’s inability to extract any concessions with the program. Hobbs spent the rest of the year picking fights with Horne over the stewardship and leadership of ESAs in an attempt to win back political capital, leading to this announcement just ahead of the commencement of the upcoming session.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
