Arizona’s school choice program allows participants to use funds to pay for college, per a reminder from the state’s top elected education official.
Tom Horne, Arizona Superintendent of Public Instruction, promoted this usage of Empowerment Scholarship Account (ESA) program funds in an interview with The Center Square last week.
Horne said this option was more than just a benefit to families. The superintendent made the case that higher education directly correlated to strengthening Arizona’s economy.
“We want kids to go to college,” said Horne. “The percentage of college-educated students in a state has something to do with the success of its economy.”
This is not a new allowance. Arizona law has allowed this use of school choice funds since universalization occurred in 2022 under the former governor, Doug Ducey. Arizona was the first state to open school choice to all students.
Over 102,800 students have enrolled in the ESA program for the 2025-2026 school year, as of last week.
Horne is touting the benefits of the ESA program amid attacks from various special interests.
The Arizona Department of Education (AZED) is under pressure from a major media outlet, 12News, and anti-school choice organizations over misspending rates within the program.
12News reported that 20 percent of ESA expenditures were improper purchases. AZED reported the misspending rate amounted to less than two percent.
12News argued both figures can be true depending on the context, but Horne argued that was not the case. He said the actual amount of fraudulent purchases out of all misspending was 0.3 percent.
“The people who’ve made these criticisms fundamentally did not understand. To start with, [12News] said there was 20 percent fraud,” said Horne in a KTAR interview last month. “The 20 percent figure was the percentage of purchases under $2,000 to see if they were okay or not. But only 20 percent of that 20 percent were improper. That’s four percent. And the other thing to know is, they’re not all fraud. A lot of times it’s innocent mistakes.”
While Horne continues to defend and promote the merits of the ESA program in its present form, both supporters and detractors of the program argue changes need to be made.
Horne’s primary election challenger, Treasurer Kimberly Yee, announced last month that reforms were needed to reduce improper spending, starting with a switch in the reimbursement vendor.
Regardless of the outcome of this election, either Horne or Yee may face new challenges from school choice opponents.
The benefit to pay for higher education through the school choice program, and universalization as a whole, may be limited later this year pending the outcome of a ballot initiative seeking to place an income cap on eligibility.
Under the initiative, only families earning less than $150,000 a year would qualify to enter the ESA program. That income ceiling would be adjusted annually.
Under that income cap, approximately 15 percent of current ESA students would be removed from the program.
The initiative would also further restrict the list of allowable purchases. All tutors, schools, and service providers would be required to fall under State Board of Education oversight, and pay a fee and register annually with AZED to receive ESA funds.
It would also eliminate the current ability for families to rollover funds. All unspent funds would be recouped and returned to the state. That would, effectively, end ESA students’ ability to set aside funds over the years to pay toward college.
The Arizona Education Association and Save Our Schools Arizona are behind the ballot initiative, “Protect Education Act,” filed last month (this version superseded a previous version, the “Protect Education, Accountability Now Act”).
The initiative requires nearly 256,000 signatures to make the ballot.
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Gov. Katie Hobbs fired an Arizona State Board of Education (ASBE) member following pressure from a public school activist group, email records revealed.
The emails obtained and published by FOIAzona revealed that Hobbs heeded a demand from Save Our Schools Arizona (SOSAZ) to fire former ASBE member Jenny Clark due to her general support for school choice.
SOSAZ led a ballot initiative in 2022 in an attempt to overturn the legislation that universalized Arizona’s school choice within the Empowerment Scholarship Account (ESA) Program. The effort was unsuccessful after SOSAZ far overestimated their signature numbers when they turned in their signature sheets.
SOSAZ lobbyist Beth Lewis emailed Hobbs chief of staff Chad Campbell and deputy chief of staff Lourdes Pena in January of last year with the demand to fire Clark and another board member, Katherine Haley. Lewis alleged the pair were “anti-public school” due to their school choice affiliations.
Lewis recommended Hobbs replace Clark with an ESA parent of a special needs student, suggesting Kathy Boltz, a member of the SOSAZ board. Haley’s recommended replacement was Alison Bruening-Hamati, an administrator with the Tempe Elementary School District.
Three days after that initial email, Lewis sent a follow-up email to stress the urgency of both Clark and Haley’s removals, citing an upcoming (at the time) ASBE meeting to update the ESA Parent handbook.
Pena responded that they had “a plan in place to replace Clark,” and that they were holding “more ongoing convos” about Haley. Not much later, the former would be given the boot. For unknown reasons, the latter was permitted to remain on the board.
A little over three weeks later, Clark announced on social media that Hobbs’ office ignored her refusal to resign and notified her of a forthcoming letter confirming the end of her term. When that letter hadn’t arrived six days later, Clark again posted online to notify of the absence of the letter. Within hours, the governor’s office sent a letter notifying Clark that she had been replaced since her term had expired.
Several other members of the board were serving on expired terms when Hobbs ousted Clark. However, in a letter last March announcing the appointment of Lupita Hightower to replace former ASBE board member Anna Tovar, Hobbs’ office claimed no other ASBE members were serving expired terms. However, that was not true.
Haley, now the president, had her term expire last January. Both vice president Scott Hagerman and Jason Catanese had their terms expire in January 2024.
At the time of Hobbs’ letter last March, Karla Phillips-Krivickas and Jacqui Clay had unexpired terms. However, both of their terms expired this January.
Hightower did not replace Clark. Kathleen Wiebke, whose term was set to expire in 2029, replaced Clark last March but passed away in December.
ASBE also has two vacancies at present, one seat for a public member and one seat for a charter school administrator.
In all, five of the 11 board members are serving on expired terms and two are vacant.
Lewis, the author of the emails, responded that the publishing of her emails was “hilariously stupid” and accused the women she sought to remove from ASBE as “working to destroy public education.”
“[Y]all are just pearl clutching — take luck!” said Lewis.
This is hilariously stupid, Corey, even for you. Working to destroy public education is a bad quality when you want to serve on the State Board of Education 😂😂😂😂 good thing Jenny’s term was done, so yall are just pearl clutching – take luck! https://t.co/92IZ9cCFdn
As another legislative session begins in Arizona, Republicans and Democrats are again bringing the all-important issue of school choice to the forefront of the public debate.
On Monday, Governor Katie Hobbs ushered in the start of the 57th Regular Session of the Arizona Legislature with her State of the State address, where she took time to criticize the Empowerment Scholarship Accounts (ESA) program. In her speech, Hobbs said, “The current program is unchecked, flawed, and rife with exploitation. Three years ago, it went far beyond its original purpose, which was to support kids with special needs and military families. Today, it has ballooned into a billion-dollar boondoggle increasingly scamming Arizonans. Other entitlements funded by taxpayers have strict oversight and income requirements. Yet the ESA program has the privilege of virtually no safeguards.”
Other entitlements funded by taxpayers have strict oversight and income requirements. Yet the ESA program has the privilege of virtually no safeguards. My executive budget offers a balanced solution that supports families and finally brings real and effective guardrails to ESAs.
Hobbs proposed changes to the ESA program for a “balanced solution that supports families and finally brings real and effective guardrails to ESAs.” Her solution was to “institute responsible income caps, ensure taxpayers know where their money is going, and create real accountability for taxpayer dollars.”
The governor’s remarks were met with immediate criticism from Republicans and others who support the expanded ESA program. Superintendent of Public Instruction Tom Horne said, “Under my leadership, the department has done a full-court press against waste and fraud. I hired both a program auditor and an investigator, which had not been done before. I require that every expenditure be for a valid educational purpose and have been attacked for doing that. The Governor needs to pay more attention to what is going on. She gets an ‘F’.”
Senate President Pro Tempore T.J. Shope added, “We will also protect parental choice, so that every child in the state has the ability to succeed in the classroom, no matter their zip code or financial status.”
Common Sense Institute Arizona wrote, “In her State of the State address, Governor Hobbs asked lawmakers to compare Arizona’s ESA program to other government entitlement programs with respect to accountability and transparency. Luckily, we already did! And it turns out that improper payment rates in the Arizona ESA program are a fraction of those in other government programs like Medicaid, Unemployment Insurance, and SNAP.”
In her State of the State address, @GovernorHobbs asked lawmakers to compare Arizona's ESA program to other government entitlement programs with respect to accountability and transparency.
Luckily, we already did! And it turns out that improper payment rates in the Arizona ESA… pic.twitter.com/XAfMKzaPmS
— Common Sense Institute Arizona (@CSInstituteAZ) January 13, 2025
Jason Bedrick said, “The voters made their will clear by re-electing those who supported ESAs and expanding their legislative majority. The legislature should reject Gov. Hobbs’ attempts to undermine ESA families.”
Once again, AZ Gov. @KatieHobbs is attacking families who use Empowerment Scholarship Accounts.
In her State of the State address, she called for income caps that would kick thousands of families out. Is she going to impose income caps on district schools too?
On the flip side, Governor Hobbs’ comments received support from her allies, who have long attempted to shrink, regulate, or eliminate the historic ESA expansion program in Arizona. Save Our Schools Arizona Executive Director Beth Lewis responded, “It is time to end the rampant waste, fraud, and abuse in the universal ESA voucher program. We commend Governor Hobbs for championing public education and pushing for much-needed voucher reform. We sincerely hope legislators like Senate President Petersen who name ‘fiscal responsibility’ their top priority will bring long-overdue guardrails to this irresponsible program, which now costs taxpayers nearly $1 billion annually.”
Hobbs and legislative Republicans will continue to bicker about the future of school choice in Arizona, but not much – if anything – will be done this year (and likely the next) to regulate ESAs per the governor’s insatiable desire. Over the past two years, Arizona Senate President Warren Petersen successfully fended off ferocious political attacks that targeted ESAs and other school choice opportunities for Arizonans. He will again be counted upon, along with his Republican colleagues in the Arizona House and Senate, to protect one of the top states in the country for school choice.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
An influential Arizona Republican lawmaker is combating arguments from an anti-school choice organization.
This week, Senate President Warren Petersen responded to a post from Save Our Schools AZ, which highlighted a local media report about school closures in town. Save Our Schools AZ wrote, “Last night, the Roosevelt school board voted to shutter 5 neighborhood public schools due to major budget deficits caused by chronic lack of funding from the state legislature and universal ESA vouchers.”
Petersen retorted, “First of all it is mostly a declining student population not ESAs or the funding which has doubled over the last 12 years (now 15k/student). Second if someone who receives half your funding is putting you out of business you might want to make some changes.”
First of all it is mostly a declining student population not ESAs or the funding which has doubled over the last 12 years(now 15k/student). Second if someone who receives half your funding is putting you out of business you might want to make some changes. https://t.co/zssk7u6rlZ
The east valley lawmaker then reposted one of his earlier communications about ESA funding to help bolster his point. He stated, “District vs. Charter vs. ESA Funding from all sources. District = $14,857 per student. Charter = $12,510 per student. ESA = $7,700 per student.”
District vs. Charter vs. ESA Funding from all sources
District = $14,857 per student Charter = $12,510 per student ESA = $7,700 per student
Continuing with this education theme, Petersen stated, “The Republican-led Legislature has always supported K-12 public education. We have dramatically increased funding over the last decade and are now at $14,857 total funding per student. We support empowering parents to make the best educational choices for their kids, whether sending them to public, charter, or private schools.”
The Republican-led Legislature has always supported K-12 public education. We have dramatically increased funding over the last decade and are now at $14,857 total funding per student. We support empowering parents to make the best educational choices for their kids, whether…
Petersen added, “The statement being pushed that ESAs are taking money from district schools is false. The reason some districts are closing a handful of public schools represents a decline in the number of students attending these schools and a decline in enrollment. Public schools thrive based on how they’re administering programs and curriculum. Failure in this area results in families seeking schools that are excelling in these areas to meet their families’ needs.”
Save Our Schools also shared a report of more potential school closures – this time in the Cave Creek Unified School District. The account wrote, “The Cave Creek district is considering shuttering schools. ‘Cave Creek officials are blaming the expansion of AZ’s voucher program, which allows all school-aged kids across AZ to use public money for private school tuition or homeschool expenses, for part of their hardships.’”
The Cave Creek district is considering shuttering schools. "Cave Creek officials are blaming the expansion of AZ’s voucher program, which allows all school-aged kids across AZ to use public money for private school tuition or homeschool expenses, for part of their hardships." pic.twitter.com/u5IaEzXWy7
The escalating debate between the Republican leader and the anti-school choice organization comes just weeks before the start of the new legislative session, where the issue will surely be discussed increasingly between the opposing sides. In the two years of Arizona’s divided government, Republicans have held the line when it comes to safeguarding school choice, while Democrats, led by Governor Katie Hobbs, have unsuccessfully tried to whittle away at the state’s historic opportunities for families. Petersen has managed to force Hobbs to back off of her repeated promises to reduce Arizona school choice freedoms on a number of occasions, including in both of the past budgets negotiated between the Governor’s Office and Republican legislative leadership. He will continue to engage in this role over the next two years as he returns as his chamber’s leader.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Since the results of the 2024 election came in, much of the focus has been on President-elect Donald Trump’s historic win—and rightfully so. Trump won every single swing state in a massive victory over Vice President Kamala Harris, and he beat her in the popular vote too.
But Kamala Harris wasn’t the only significant loser to come out of November’s election.
Here in Arizona, teachers’ unions and other anti-school choice groups, like Save Our Schools Arizona (SOSAZ), made the 2024 election a referendum on school choice. And they lost big!
Much of their work began earlier this year, when Arizona Governor Katie Hobbs came into legislative session (just like she did in 2023) with her top priority being to regulate the wildly popular Empowerment Scholarship Account (ESA) program out of existence. But it didn’t work. Despite the noise from Hobbs, legislative Democrats, the legacy media, the teachers’ unions, and other anti-school choice groups, only minor changes were made to the ESA program through the budget, with most of it remaining untouched.
This failure fell on the heels of other similar failures…
