The legacy media seem to be on a mission: tear down Arizona’s groundbreaking school choice program with false accusations and inaccurate reporting.
Fortunately, facts don’t lie, even if the media does.
The Arizona Capitol Times declared this week in astonishing terms, “Education department under fire for approving $124M in improper ESA [education savings account] purchases.”
Such astronomical levels of fraud would seem to threaten the very foundations of the historic school choice revolution that has swept the nation. There was just one problem, the headline was completely false.
Not only were the supposed dollar amounts exaggerated up to 100 times greater than the amounts of improper spending actually reported by the department, but these purchases weren’t even approved in the first place.
Here’s the story the media won’t tell: Arizona’s 2022 adoption of a fully universal ESA program has been a nation-leading success, allowing parents across the state to give their children an education best suited to their needs.
To its credit, the Times quickly retracted its original headline and issued a formal correction admitting “an inaccurate dollar amount” in its first draft and eliminating the suggestion that the purchases were “approved.” Unfortunately, such journalistic ethics appear not to be shared by the Times’ more ideological media counterparts in Arizona, particularly those of the teachers’ union-aligned 12News team, who have resolutely declined to correct or retract their false reporting.
12News’ Craig Harris, for instance, has repeatedly and falsely declared that the state has “approved” ESA purchases for iPhones, televisions, and other non-educational items over the past year.
But all those purchases haven’t been approved, as the State Board of Education’s ESA Handbook—ratified by members appointed by both former Gov. Doug Ducey and Gov. Katie Hobbs—makes clear. The document expressly states that while families’ ESA purchases under $2,000 are promptly reimbursed by the state, these items “are not deemed ‘approved’ by the Department, until they are audited OR the timeframe to audit the orders has passed [2 fiscal years].” Just like their tax returns filed with the IRS, these families’ ESA purchases are processed up front and subject to enforcement afterwards.
Yet, 12News either knowingly misrepresented the status of these orders or else incompetently failed to perform basic due diligence to learn how the program operates.
By 12News’ anti-ESA logic, the IRS should apparently also withhold refunds to taxpayers until their tax returns have been audited potentially years later, rather than promptly when the returns are filed.
Unfortunately, this is not the first time that 12News’ anti-school choice reporters have been exposed in such light. In 2018, Harris (then with the Arizona Republic) falsely reported that Arizona charter schools produced worse student graduation rates and worse outcomes on the state A-F letter grade system than district schools. Both claims turned out to have been fabricated results stemming from a faulty, agenda-driven data analysis by Harris’ team.
In 2024, 12News’ Joe Dana likewise doubled down on false claims that ESAs cost state taxpayers more than the public school system per student by conveniently ignoring major sources of public school funding. The state’s Classroom Site Fund, for example, allocates over $1,000 for every public school student in the state and gives not a penny to ESA families.
Undeterred by journalistic standards, Dana’s 12News team also went further, deceptively extracting a fragment of a statement given by the state’s budget director (given in response to a completely different question) to suggest the ESA program had created unprecedented strain on the state budget.
The Heritage Foundation’s Matt Ladner and Jason Bedrick have already exposed a litany of deceptive claims flowing from outlets like 12News, while more prestigious national news organizations like The Washington Post have seen their recent anti-ESA narratives similarly debunked. Yet none of these outlets have expressed any contrition for their deceptive coverage.
Indeed, in perhaps the richest of ironies, Harris’ 12News team recently attacked ESAs for “hurting” high-performing schools like Arizona charter network BASIS by competing with it for students. Never mind that Harris previously attacked BASIS for its alleged poor stewardship of taxpayer funds. Now that it is clear he and the media were on the wrong side of that school choice debate as well, they have simply shifted to a new enemy in their war on parents.
Looking at the whole of Arizona’s education landscape, there is no question that those who seek to defraud the state—whether via the traditional public school system or its competitors—should be prosecuted to the full extent of the law. But if there is a scandal in our education system, it is the dishonest reporting by journalists who are more disturbed by parental empowerment than by the tens of billions of dollars squandered year after year in chronically poor performing public schools.
Matt Beienburg is the Director of Education Policy at the Goldwater Institute.
Last week, the Chairman of the Arizona House Appropriations Committee, Rep. David Livingston, praised Treasurer Kimberly Yee for her recent letter reporting on allegations of “missing money,” somehow “misplaced” by Democrat Governor Katie Hobbs. Yee explained that the “missing money…appears to be unfortunate gross financial mismanagement by the Hobbs Administration.”
Chairman Livingston said in a statement, “I appreciate Treasurer Yee’s clarity in addressing the financial mess Governor Hobbs has created. The issue isn’t ‘missing money’—it’s blatant mismanagement.”
“Under the Governor’s feckless leadership, state agencies are making massive spending decisions with zero legislative oversight, ballooning costs, and expecting taxpayers to foot the bill. This kind of incompetence cannot stand.”
Livingston has been among the legislators expressing increasing alarm over the State of Arizona’s Developmental Disabilities Program (DDD). The program is presently staring down insolvency in a matter of months due to decisions made by Hobbs’ Office.
“This Governor is running Arizona’s budget into the ground,” Livingston added. “She’s refusing to control spending, and instead of making responsible choices, she’s leaving families on the hook for her failures. The Republican Majority Legislature won’t stand by while she bankrupts the state.”
According to Matt Beienburg of the Goldwater Institute, the budget proposed by Hobbs in late January is “mismanagement at its worst.” He explained, “Her recently released budget plan seeks to tear down Arizona’s Empowerment Scholarship Account program (ESA), the most successful school choice program in the country, even as it fails to account for more than $800 million in statutorily required spending on the state’s Medicaid program.”
In a letter to Hobbs in early February, Livingston called the Governor out for “fiscal mismanagement and lack of legislative consultation.” He claimed that the Hobbs administration has failed to control costs, noting that the program’s supplemental funding needs have ballooned from $109 million to $122 million in just weeks. He observed that in the case of the DDD, “Under Governor Hobbs’ watch, the cost of this program has exploded from $750 million to $1.5 billion.” He added, “The Legislature was blindsided by these numbers, and we need immediate answers on how the administration plans to rein in spending before Arizona families are left with nothing.”
“The state must act now to fix this before families pay the price for this administration’s failure,” Livingston said, according to the Arizona Daily Independent. “We can’t afford more of the governor’s last-minute budget negotiations while programs Arizonans depend on collapse.”
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.”
NEW: Arizona ESAs Defy National Media Propaganda Campaign.
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 $… pic.twitter.com/D1Kc2m3bQ3
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.”
For the Democrats and their sycophant media allies, the problem is always too much parental choice in education and letting taxpayers keep more of their hard-earned money. Yet this narrative couldn’t be further from the truth. A closer look at Arizona’s budget and the projected budget deficit reveals that we have a spending problem, not a revenue problem…
Projected Budget Shortfall Is a Spending Problem
Just 5 years ago, the legislature enacted the FY 2019 budget that included $10.1 billion in on-going spending, plus $500M in “one-time” expenditures ($10.7 billion total). By last year, that number had exploded to nearly $15 Billion in ongoing spending, a 50% growth in ongoing spending in 5 years! The most recent budget negotiated with Democrat Katie Hobbs earlier this year kept ongoing spending at a lower trajectory but included “one-time” outlays that brought the total budget cost to $17.8B…
One of Arizona’s most-influential organizations is bringing facts to the conversation surrounding the state’s historic school choice expansion program.
Last month, the Director of Education Policy for the Goldwater Institute, Matt Beienburg, responded to the latest political attacks against Arizona’s Empowerment Scholarship Accounts (ESA) program, releasing a comprehensive fact-check to promote the truth.
Beienburg’s fact-check came after the Governor’s Office issued a memo, which targeted the ESA program, showing that it “could cost the state over $943 million, with over 53% of all new K-12 education spending going towards only 8% of Arizona students.” In conjunction with the release of that memo, Democrat Governor Katie Hobbs said, “The universal school voucher program is unsustainable. Unaccountable school vouchers do not save taxpayer money, and they do not provide a better education for Arizona students. We must bring transparency and accountability to this program to ensure school vouchers don’t bankrupt our state. I’m committed to reforming universal vouchers to protect taxpayer money and give all Arizona students the education they deserve.”
The fact-check from the Goldwater Institute refuted three claims made against the ESA program. First, that “spending on ESA vouchers could account for 53.25% of all new K-12 education spending in the FY2024 budget going towards only 8% of Arizona students.” Beienburg put forward three facts in opposition to the claim: that “total spending on universal ESA students makes up just 2% of total Arizona K-12 spending,” that “Arizona public school districts are projected to receive over 60% (more than $570 million) of all new K-12 funding in FY 2024, despite making up 0% of the growth in students served this upcoming year,” and that “even under the Arizona Department of Education’s (ADE) highest projections, the ESA program would be funding the education of roughly 8% of Arizona’s students (including a disproportionately high percentage of students with severe disabilities) for less than 6% of the total taxpayer cost of educating Arizona’s students.”
The second claim refuted by Goldwater was that “there is an increased cost to the State when a student leaves a public district school and enrolls in the ESA voucher program. This occurs because the ESA award amount is based on the state funding provided to charter school students, which is higher than the state funding provided to district school students.” Goldwater issued one fact in opposition to this claim – that “the average savings per ESA student is even higher when including other (non-formula) spending on public school students. In total, JLBC reports over $3 billion (roughly $3,000 per student on average) of additional spending by state and local taxpayers per public school student outside the basic funding formula. ESA students receive none of this funding.”
The third – and final – claim refuted by Goldwater was that “new estimates indicate the ESA voucher program may cost taxpayers up to $943,795,600 annually, resulting in a potential $319,795,600 General Fund shortfall in FY 2024.” Goldwater issued four facts in opposition to this claim, including that “Gov. Hobbs’ office itself does not believe the report that it is using as the basis for these figures;” that “Gov. Hobbs’ office mistakes the cost ESA awards by thousands of dollars per student;” that “the nonpartisan JLBC continues to project ESA costs in line with the state budget; “ and that “even if the higher enrollments and total ESA award amounts estimated by ADE do materialize, they would not represent the net cost to taxpayers of the program.”
Beienburg closed his fact-check, writing, “Arizona’s ESA program now offers tens of thousands of families an opportunity to pursue the best education possible for their children at a lower cost than traditional public schooling. The governor and her budget office owe it to parents and the public to provide the facts about ESAs free of manipulation.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
