Governor Katie Hobbs claimed the state’s school choice program lacks oversight.
The Arizona Department of Education (ADE) and experts dispute Hobbs’ claim.
The governor targeted the Empowerment Scholarship Account (ESA) Program during her state of the state speech last week. Hobbs advocated for the school choice program to be rolled back from universalization to its previous form that only accepted certain families with disability or military backgrounds.
“While other government entitlements have strict requirements and oversight, the ESA program continues to operate unchecked, squandering taxpayer dollars with no accountability,” said Hobbs. “It seems like every day, we learn about new shopping sprees happening at the expense of taxpayers…diamond jewelry, high-end clothing and furniture…who knows what taxpayers will be footing the bill for tomorrow?”
ADE publishes notice of its internal audits and has attempted to refer cases over to the attorney general’s office for prosecution — though Attorney General Kris Mayes has reportedly been unwilling to pursue prosecution of alleged fraud or abuse.
I’m Arizona’s strongest advocate for school choice. We’ve grown the ESA program from 10,000 students to over 90,000. Our office remains vigilant to auditing ESA accounts. To date, the department has marked $622K for collections due to possible fraud or misuse. Accountability and… https://t.co/EsWeT0rgG6
— Arizona Department of Education (@azedschools) August 19, 2025
ADE bases its claims on existing requirements within the ESA Program: documenting all purchases made, and freezing accounts that make unauthorized expenditures. Parents must repay the program for unauthorized purchases.
In August, ADE reported it marked over $600,000 for collections “due to possible fraud or misuse.”
That’s less than one-tenth of one percent of total ESA spending, as noted by the Heritage Foundation in a report last August.
Comparatively, the estimated total fraud within average federal government obligations ranges from three to seven percent, according to a 2024 report by the Government Accountability Office.
Other examples of improper payment rates within government programs in Arizona have been issued recently. (The latest data aligns with the 2024 fiscal year in most cases).
The Department of Labor announced an estimated seven percent improper payment rate from July 2021 to July 2024.
For the 2024 fiscal year, the USDA reported that Arizona had a payment error rate of nearly nine percent.
The federal government even factors in improper payment rates to mitigate losses.
The Center for Medicaid projected an improper payment rate of over six percent for Arizona in 2024.
This indicates that fraud is an inevitable occurrence within any government program.
Unlike the reporting efforts of ADE regarding the ESA Program, the Arizona Auditor General presently finds that nearly 30 school districts are noncompliant based on financially related internal control deficiencies.
This slate of presently noncompliant districts represents over $1 billion in state spending. The entire ESA program spent under $900 million in the 2025 fiscal year and costs about $1 billion for the 2026 fiscal year.
Arizona school districts have accumulated nearly $8 billion in cash reserves, per the Heritage Foundation’s assessment of Arizona Superintendent Tom Horne’s annual report covering the 2023-2024 fiscal year.
Horne responded to Hobbs’ state of the state address with criticism over the governor’s open opposition to a program supported by a majority of voters. Arizona voters approved universalization of school choice back in 2022.
“Arizona parents have made it clear they believe in being able to choose the best education for their children, whether districts, charters or Empowerment Scholarship Accounts,” said Horne. “By their loud display today, Democrats proved they want to take that power away from mothers and fathers who know their children’s needs best and return education to a government monopoly that parents do not want.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
For years, Arizona was governed by Republican majorities in the state legislature—with Republicans also holding the Governor’s and Attorney General’s offices. During that time, we transformed Arizona into one of the most enviable and prosperous states in the nation: a booming economy, a hot jobs market, a flat income tax, strong support for law and order, and universal school choice.
That all changed in 2023 when Katie Hobbs and Kris Mayes—both Democrats—took over the Governor’s and Attorney General’s offices. Since then, they’ve worked to impose a radical agenda and remake Arizona in the image of California. If not for the slim Republican majorities in both chambers of the Arizona Legislature, Hobbs and Mayes would have quickly succeeded.
As the leader of the Senate Republicans, it has been my honor to work with my colleagues to defend Arizona values and push forward conservative priorities. Despite divided government, we’ve used every tool in our toolbox to not only stop the radical left’s agendas, but to also lead. In doing so, we have set the standard for other states dealing with divided government. Here are just a few of the top victories we’ve secured on behalf of Arizonans.
Fully Funded and Protected Universal School Choice
Over the past two decades, Arizona has led the nation in enacting school choice, giving all families the freedom to choose the education that best fits their children. We dramatically increased K-12 funding (now approximately $13,000 per student) during this time, investing heavily in and safeguarding all forms of education across the state—district, charter, home school, online, and empowerment scholarship accounts. The left only wants to give you one choice to educate your child. Both Hobbs and Mayes have prioritized the dismantling of the apparatuses that let parents decide where their children go to school.
I believe educational freedom is a foundation of the American Dream. Families shouldn’t be trapped in failing schools based on their zip code; rather, they should have the right to choose the educational institutions that work best for their sons and daughters. Unfortunately, Hobbs and Mayes have repeatedly rejected this belief to the detriment of our state’s future.
Under my leadership at the legislature, we stopped them. School choice remains fully funded and protected—even in this divided government. Fighting for parental empowerment and school choice has been one of the most consequential and rewarding endeavors of my time as Senate President. I believe that we are rescuing an entire generation of Arizonans from the grip of a broken education system.
Tax Cuts for Arizonans
One of our top priorities has been to return money to Arizona taxpayers. Despite repeated attempts by Hobbs to block us, we’ve delivered real tax relief. We eliminated the rental tax in Arizona, saving families and renters hundreds of millions of dollars each year. Charging a rental tax is bad policy, and now these revenues will stay in the pockets of the people who need them the most.
Republican lawmakers forced the governor to sign additional bills that cut taxes for hard-working Arizonans. We raised the state’s business personal property tax exemption, reducing burdens on small business owners. We banned municipal excise taxes on residential leases, relieving tenants of additional tax liability and helping lower housing costs. And we passed the Arizona Families Tax Rebate to return funds directly to eligible families.
At a time when families are feeling squeezed, we’re doing what government should—getting out of the way and letting our hardworking taxpayers keep more of what they earn. These tax cuts are the result of smart, conservative leadership that puts everyday Arizonans first. This is the same pro-growth, American First approach that President Trump is delivering for our nation, and we’re proud to carry that torch here in the Grand Canyon State.
Fully Vetted Agency Directors
One of the most consequential powers of any governor is the ability to nominate and install agency directors, who do the bidding of their chief executive. These individuals wield enormous influence over how state government functions, and under Hobbs, many of her nominees have been extreme, unqualified, or relatively unknown to the public. That’s why one of my first actions as Senate President was to create accountability through a formal vetting process for the governor’s nominees. The purpose was to ensure the individuals chosen to lead integral government agencies were competent and aligned with Arizona values. Despite resistance from the governor, we succeeded. We held her nominees to high standards and protected Arizona from the consequences of unchecked political appointments.
End of DOJ Investigation into Phoenix Police Department
Over the past several years, the Phoenix Police Department was the target of a blatantly politicized witch hunt by President Biden’s Department of Justice. They twisted facts and law in a backhanded attempt to hijack another police department and bring it under the control of the federal government. After I contacted the Trump administration and met with several of the President’s top officials, the White House and DOJ ended this rampage against the men and women in blue from the Phoenix Police Department. The announcement from the Trump administration was complete vindication, and it removed the handcuffs off our law enforcement so that they may do their jobs to keep the City of Phoenix and our citizens safe from criminals seeking to cause harm.
Divided government is messy. The path forward isn’t always easy or clear. But through consensus building, unity, discipline, determination, and bold conservative leadership, we’ve proven in Arizona that progress is possible—even in the toughest of times. The rewards of this hard work are immense for those entrusted with leaving our state and nation in a better place for future generations of Americans. I hope that our efforts in Arizona have not only preserved our rich heritage of conservative values, but inspired other warriors around the country to follow in our footsteps.
Warren Petersen is the President of the Arizona State Senate and represents Legislative District 14.
Despite Halloween being long over, Katie Hobbs has decided to spend the Christmas season playing dress-up as a Trump-loving, tax-cutting, leader of the middle and working class.
On November 20th, Governor Hobbs released her so-called “Tax Cuts for Middle-Class Arizonans” plan. If some of these concepts sound familiar, that’s because every single provision in her plan was word-for-word copied straight out of the One Big Beautiful Bill (OBBB) tax package signed into law by President Trump on July 4th:
Increase the standard deduction from $15,000 to $15,750 for single filers, $31,500 for joint filers – straight from the One Big Beautiful Bill (OBBB)
Adding an additional $6,000 deduction for seniors over 65 – straight from the OBBB
Deducting tipped income from taxable income – straight from the OBBB
Deducting overtime income – straight from the OBBB
Deducting car-loan interest on new American-made vehicles – again, right out of the OBBB
So, after spending months opposing the OBBB, trashing Congressional Republicans, and urging its defeat, Hobbs has now decided to pretend that it was her idea all along…
A Deer Valley USD (DVUSD) parent, referred to as “Amy,” contacted my organization to report that her children were questioned about their morning and bedtime routines. It turns out Stetson Hills School administrators had engaged students in an “Attendance Reflection Activity” during lunch on November 6, 2025. Parents weren’t notified about the event until the end of the school day.
“Our school utilizes a system called CUTS (Chronically Absent and Truant Students) to proactively identify students who are missing more than 10% of instructional days by the end of the quarter…During the session, students participated in fun discussions about:
Their current nighttime routines,
Their current morning routines [and]
Developing a goal or plan for one small, positive change they could make to improve their attendance moving forward.”
Walter ended the communication by thanking parents for their “partnership and support in encouraging consistent daily attendance.” In her zealousness to combat chronic absenteeism, I think Walter forgot that elementary students are not responsible for transporting themselves to school.
Stetson’s attendance survey can be viewed here. Note that in addition to answering questions about sleep schedules and household activities, students were required to sign the document as if it were a contract between them and the school district.
Amy said her kids were probed about their eating habits and family relationships, but those questions were not included on the survey. She also said her children described feeling anxious and “targeted” during the attendance reflection session.
According to Amy, her children haven’t missed more than a few days since the 2025 school year began, and every absence was excused due to illness or doctor’s appointments. Assistant Principal Walter confirmed that parents only need to notify the school, and doctors’ notes are not required in these instances.
Amy emailed her concerns about the district’s lack of transparency to DVUSD Superintendent Curtis Finch. Instead of responding to Amy, Finch forwarded her email to the School Operations and Safety Coordinator, Valerie Bullis. Bullis claimed the truancy probe was intended to be a “proactive approach in addressing student attendance patterns” and that school administrators were now “reviewing the process.” Meanwhile, Amy insisted that she and other parents she talked to were never informed about the student interrogation “process” to begin with. Amy also believes most parents are not aware of the CUTS program.
Screenshots from the Stetson Hills social media account show educators and other DVUSD schools engaging in attendance competitions. Amy said these activities promote unhealthy rivalry among students who are totally dependent on their parents for transportation and life decisions.
Deer Valley taxpayers are using their properties as collateral for failing schools. By passing the 15% override, constituents empowered government employees to keep pushing the boundaries of parental controls as they advance a State-sponsored agenda. “We got the override! We got your money!” was the overarching theme of the November 18 school board meeting.
The Glendale Star quoted Superintendent Finch, stating, “We’re pretty excited that we got the okay from the public to move forward.” When commenting on potential budget cuts, he said, “If it didn’t pass, I would be using a chainsaw, but now I can use the scalpel.” Finch also predicted “another explosion of enrollment in the next three to five years.” Wrapping up a discussion about DVUSD’s successful override campaign, he declared:
“The students are the winners when this happens. The community saw how far we’ve come and responded accordingly. It’s very gratifying for everyone involved.”
Cue the laugh track.
Finch’s million-dollar “scalpel” will never be used to dissect his compensation package, and most promises made during override campaigns are never kept. It’s no secret that Arizona public schools are losing students to the school choice movement. DVUSD’s decision to host intramural attendance games only proves that government education can’t compete with superior learning methods and institutions. Parents are waking up and moving on.
“The anti-public school movement is growing here in the state of Arizona, which is a crime against humanity. And it’s unfortunate that we’re caught in that web.”
— Superintendent Curtis Finch, ABC 15 News
For the record, there’s nothing inherently negative about finding creative and fun ways to encourage classroom attendance. The CUTS program mentioned in Assistant Principal Walter’s email may have attracted some families back to the district. Alas, the planning and execution were botched, and the interrogation activities left some parents feeling gaslighted.
I will never understand why school districts are so opposed to (or ignorant of) parental rights legislation. If you want students to enroll and attend, why wouldn’t you appeal to and listen to parents? If parents want a safe, academic-focused environment that’s free from politics, why not invest in that instead of engaging in a power struggle over their kids? In other industries, when a company loses business, board members and directors will research competitors and come up with ways to recapture the market by providing quality products and services.
This concept is simple when applied to education: If public schools don’t want parents to withdraw their children and go to private schools, then they should do what private schools do. Adopt their academic model and offer it at a lower cost. Stop waving rainbow flags and talking about gender and skin color. Stop asking intrusive questions and forming inappropriate bonds with other people’s kids. Give parents a reason to trust you. Or is that too much common sense for government folk?
School board elections are not magic. Ideally, we’d like to “get our guy in office,” trust that they have our best interests in mind, and carry on with our lives. This is not reality. More often than not, time reveals that “our guy” will say whatever needs to be said to gain our support and then turn on the dime of sleazy administrators, radical union leaders, and leftist community members. Unfortunately, this pattern emerges even in school districts that many consider as having a “conservative majority.”
Despite all the online drama that erupted over those attendance surveys, I was the only one who attended and spoke about it at the last Deer Valley school board meeting. Digital outrage accomplishes absolutely nothing in real time, and virtual group therapy has no power to shift this situation. DVUSD is corrupt. The school board is dysfunctional, the superintendent is shady, and educators are lacking real leadership. Now that they have your money, what’s their incentive to do right by your children? Who will hold them accountable, if not you?
Tiffany Benson is the Founder of Restore Parental Rights in Education. Her commentaries on education, politics, and Christian faith can be viewed at Parentspayattention.com and Bigviewsmallwindow.com. Follow her on socials @realtiffanyb.
A new report on Arizona’s Empowerment Scholarship Account (ESA) from the Common Sense Institute (CSI) shows a robust jump in ESA enrollment of nearly 15,000 students since last year.
According to the detailed report, the school choice program has reached a milestone with 92,362 students enrolled as of September 15, 2025. Projections indicate that ESA numbers will reach 103,000 this fiscal year.
The report from CSI is released on a quarterly basis to address “a lack of reliable and consistent data about who is using the program and how.” CSI noted, “Applying scrutiny to hundreds of thousands of individual transactions on an almost real-time basis has made the program vulnerable to exaggeration, misinformation, and mischaracterization. No comparable program is subject to this kind of examination.”
The quarterly findings indicate the program is maturing from an initial stage of rapid growth to a more steady-state. Universal eligibility, rolled out in 2022, has fueled the fire, but the real story now is “switchers”—57% of new enrollees ditching public schools for tailored options like private academies, therapies, or homeschooling setups. The report underscores how shrinking school-age cohorts (down 20,241 since 2021) aren’t slowing the momentum.
Glenn Farley, Director of Policy & Research at CSI and the report’s author, explained, “Arizona’s ESA program is reaching a point of steady participation. The rapid expansion is behind us, and future growth will be shaped more by broader demographic trends and the choices families make across an increasingly competitive K–12 landscape.”
The key questions that CSI seeks to address include the ultimate cost of the program at full expansion, the steady-state count of how many people are using the ESA program, its ultimate extent, the demographic characteristics of its users, and the efficiency and good operation of the program.
CSI found that total ESA costs are on track to reach $1.0369 billion in FY 2026, with an average award of $10,349 per student. Notably, 88% of funds have already been spent, the highest percentage ever recorded. Administrative approval rates are at a peak of 88.8%, and reimbursements are processed in just 13 days on average, with a whopping 455,142 orders handled in the last quarter alone.
As far as budgetary impact is concerned, a common complaint from opponents like Governor Katie Hobbs, the CSI projects that “state K–12 Basic State Aid costs will exceed appropriations by $35 million in FY 2026, due largely to higher ESA participation and lower-than-expected district enrollment.”
The report also offers a firm, authoritative rebuke to allegations that the program is most used by “the wealthy.”
“Nearly 57% of ESA recipients live in ZIP Codes with a median family income of between $75,000 and $150,000 – up slightly since our last report. A quarter of ESA users may be lower-income, 13% reside in rural areas, and nearly 20% are estimated to be nonwhite,” the report states.
Farley concluded the CSI report’s findings, writing, “Administrative reform throughout 2025 by the Department of Education has improved various high-level metrics: the Department is approving purchases faster and at greater volume and embracing its statutory authority (risk-based auditing, Handbook language noting use-tests for technology purchases and not limiting the purchases directly, etc.). However, the ESA environment often remains narrative rather than fact driven. We remind users: ESA enrollment costs are offset by reduced enrollment in other K-12 programs; ESA misuse rates are lower than comparable programs; ESA growth is slowing and increasingly driven by students switching from traditional public options.”
