Group Counters Hobbs’ False Claims About ESAs
By Daniel Stefanski |
Amid an increased flurry of attacks on Arizona’s school choice opportunities, a prominent organization is countering with the facts.
Citizens For Free Enterprise responded to another derogatory statement about Arizona’s historic Empowerment Scholarship Account (ESA) azprogram from the state’s Democrat Governor, Katie Hobbs. Earlier this week, Hobbs posted, “ESAs are rife with waste, fraud and abuse, and this will only make it worse. This empowers bad actors who are spending taxpayer dollars on ski passes, luxury car driving lessons, and grand pianos. We need accountability and transparency for this almost billion dollar program.”
Hobbs was reacting to a recent news story about the Arizona Department of Education’s new policy to automatically approve a vast majority of outstanding reimbursement requests from parents in the program, which was announced by Republican Superintendent of Public Instruction, Tom Horne, at a Board of Education meeting.
The response from Citizens For Free Enterprise stated, “FACT CHECK: Arizona’s universal school choice program is a model of accountability, transparency, and security, according to CSI Institute Arizona. The over 83,000 Arizona families using ESAs just want the best for their children – and Katie Hobbs should stop attacking them.”
Others weighed in on the governor’s attack ahead of the 57th State Legislature, starting in January. State Representative Travis Grantham said, “I wish Democrats cared this much about government waste across the board. Why do they only care about it when it’s privatized and / or it gives the citizenry more choices?”
Fellow legislator Austin Smith added, “Not only was Katie Hobbs education agenda rejected; she lost seats in the house and senate. Bold move Cotton, let’s see if it pays off.”
Not everyone was opposed to Hobbs’ statement. Democrat State Representative Oscar De Los Santos replied, “From forging documents to scam taxpayers to abusing funds for luxury items, the private school voucher program is filled with waste, fraud, and abuse. Every Arizonan should be outraged. The DOGE committees should take a look at this disaster.”
Matthew Ladner, a school choice advocate, weighed in on De Los Santos’ statements, saying, “The waste, fraud and abuse in the ESA program is a small fraction of programs you support. If you’d like to eliminate all the programs with ESA level or higher abuse you will make Ron Paul a very happy man!”
In addition to its statement, Citizens For Free Enterprise shared a document of facts from the Common Sense Institute Arizona (CSI) to counter the myth that “ESA’s are subject to rampant fraud and abuse.” On that document, CSI highlighted that there was more than $2 billion of “Medicaid billing fraud in Arizona revealed by a single investigation into pandemic-era relaxed program standards,” and that “Arizona’s share of estimated pandemic-era fraudulent U.S. Unemployment Insurance payments” was $2.3 billion. On the flip side, according to CSI, “the sum-total of all specific, public allegations of ESA fraud …identified to-date, since universal eligibility expansion” was just around $650,000 – a far cry from the fraud in other state programs and handouts.
CSI concluded that “there are specific statutory requirements governing the use of ESA monies – including guidelines on permissible expenditures and a requirement that ADE conduct random and regular audits to ensure compliance. Within that framework, the program has been able to run well, especially compared to similar programs.”
While officials and organizations may have again successfully pushed back on Demcorats’ renewed, false detractions of the ESA program, Horne’s handling of this significant portion of the department he was entrusted to oversee continues to present major headaches for Republicans and school choice proponents. Since Horne’s first ESA Director, Christine Accurso, left the office last summer, he has been faced with a rising number of reimbursement requests and other issues that he has struggled to address with his team. Horne also capitulated to Democrat Attorney General Kris Mayes earlier this year, when she challenged him about the lack of “curriculum” attached to certain requests, adding additional regulations for parents to comply with the attorney general’s threats. Horne’s backsliding here came after he had repeatedly stood up to Mayes and Hobbs’ saber-rattling against the school choice program.
Additionally, Horne recently blamed a number of external factors, including Arizona state legislators, for the skyrocketing number of unfulfilled reimbursement requests. In a November press conference, Horne noted a fix to the ESA program that allowed parents to bypass ClassWallet to obtain reimbursements, stating, “Somebody went to the Legislature last year and got them to pass a bill saying they could do it by reimbursement… We’ve asked the Legislature, in the future, ‘Please ask us before you pass something so we can tell you what the consequences will be.’”
While the program has continued to grow over the past two years, Arizona Education Department officials have failed to satisfactorily explain why the processes put in place by Accurso before her departure were unable to suffice for smooth management and processing of reimbursements and other factors of ESA program oversight and delivery going forward. Accurso was able to save the program from massive and glaring issues created by Horne’s Democrat predecessor, adding staff to her team and reducing the backlogs to almost nothing, while accounting for an exponential increase in students and families realizing the benefits of ESAs.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.