by Matthew Holloway | Dec 26, 2024 | Education, News
By Matthew Holloway |
Earlier this month, Gov. Katie Hobbs sent a letter to Superintendent of Public Instruction Tom Horne, rebuking him for the implementation of a risk-based auditing approach to approving Empowerment Scholarship Account (ESA) program reimbursements. A few days later, Horne responded by suggesting that Hobbs “should start reading what she signs.”
In a statement, Horne reminded the Democrat governor that the process the Arizona Department of Education (ADE) is now employing is explicitly called for under a bill she signed into law herself. He notes further that Hobbs is also directly responsible for creating the situation that necessitated the change when she signed a bill permitting private school tuition to be paid under reimbursement rather than the previous third-party vendor.
The move has come as a backlog of reimbursement requests for the ESA program has exceeded 85,000. The Department of Education, unable to utilize third party provider Class Wallet, which was previously the procedure, will now automatically approve the requests up to $2,000 and then audit them after the fact.
In the initial letter to Horne, Hobbs pointed to recent indictments and allegations of fraud and abuse of the ESA program and claimed that the implementation of the risk-based auditing approach “is a complete dereliction of the ADE’s responsibility to ensure the appropriate use of public funds.”
Horne replied in a statement saying:
“The method we are instituting, known as risk-based auditing, is specifically provided for in the budget statute that the Governor signed last session. Maybe she should start reading what she signs.
Equally startling, is that she herself created the problem we are trying to solve by signing a bill to permit private school tuition to be paid under the reimbursement method, rather than going through our vendor, Class Wallet, which was previously required. This played a major role in increasing the delays and reimbursements from 30 days a year ago to over 100 days now.
The Governor played a major role in creating a problem that we now must solve by using a method provided for in a Bill that she signed.
Part of the problem appears to be that staff in the Governor’s office are slow learners.”
In a press release, Horne referred to Arizona Law under A.R.S. 15-2403 (B), which explicitly permits this method stating, “The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuant to this subsection.”
The Superintendent also stressed the accountability of the program saying, “The ESA program is among the most accountable programs in the State. It’s responsible for demonstrating accountability through reporting that is required by statute, rules, and ad hoc requests from seven government agencies and bodies, including: Governor’s Office; Legislative Leadership; Joint Legislative Budget Committee; Attorney General’s Office (multiple units); Auditor General’s Office (multiple divisions); State Board of Education and the State Ombudsman.”
As previously reported by AZ Free News, Hobbs was recently fact-checked by Citizens For Free Enterprise, who publicly criticized her for attacking the ESA program. The group 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.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Dec 17, 2024 | Education, News
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.
by Daniel Stefanski | Dec 12, 2024 | Education, News
By Daniel Stefanski |
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.”
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.”
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.”
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 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.
by Matthew Holloway | Dec 11, 2024 | Education, News
By Matthew Holloway |
Arizona’s charter schools are about to receive a fresh infusion of taxpayer dollars in a federal grant from the United States Department of Education. The grant is expected to fund the establishment of two dozen new charter schools and bolster another 23 already in operation.
As reported by The Center Square, the state of Arizona has received approximately 24% of the $143 million awarded across the nation by the Expanding Opportunities Through Quality Charter Schools Program, a total of about $34.8 million. The outlet noted that although the funding originates from fiscal 2024 it will be distributed in annual disbursements through 2029.
In a press release from the Arizona Department of Education (ADE), Superintendent of Public Instruction Tom Horne said, “I am extremely pleased that we have received this federal grant that will create 24 new high-quality charter schools and help another 23 existing schools with models and practices that result in academic growth. I want to commend the department staff who competed for this funding. Their work has resulted in the state receiving the largest recipient of this grant, per capita, in the country.”
Horne added, “Arizona is the leader in the country on school choice and charters are a major component of that. These dollars will serve a vital purpose in making sure that an estimated 10,000 students in traditionally underserved areas will have a chance to select a high-quality charter school. Every student in every part of our state, urban or rural, rich or poor, deserves this opportunity and I am very pleased to be a part of this effort.”
Speaking with AZ Capitol Times, Horne explained Arizona’s long-term history of fostering charter schools saying, “The charter schools in Arizona go back to the 1990s.” Then, he noted that as a state legislator, he championed charter schools and their purpose. “Even a good district school may not necessarily meet the needs of all the students,” Horne told the outlet. “And so the parents should have the ability to find a school that does meet those needs.”
In the release, ADE stated that it has already begun work on the upcoming project “which aims to increase the number of high-quality charter schools focusing on educationally disadvantaged students.” It added that such students are identified by their economic disadvantage, disability status, as non-English speakers, and as “other demographic groups.”
The statement outlined the grant’s purpose stating:
“The grant also seeks to close achievement gaps in academic scores, provide technical assistance to educators to improve teaching and learning and encourage dual or concurrent enrollment in college level courses. The expectation is that students will experience at least one year of academic growth on state tests for math, reading and language arts with a long-term measurement of cumulative three-year growth.”
At present, approximately 560 charter schools are in operation throughout Arizona serving about 231,000 students. The Center Square report cited the Arizona Charter Schools Association. Under Arizona law, all charter schools are open enrollment and as a result enjoy wide adoption. The outlet reported that the California Department of Education, Colorado League of Charter Schools, New York State Education Department, Utah Association of Public Charter Schools, and Rhode Island Department of Education also received 2024 grant funding as well.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | Dec 4, 2024 | Education, News
By Staff Reporter |
Two Utah residents have been indicted for defrauding Arizona’s school choice program.
The alleged culprits, Johnny Lee Bowers and Ashley Meredith Hewitt (aka “Ashley Hopkins”), were indicted for the theft of about $110,000 from December 2022 through this May, Attorney General Mayes announced on Monday.
Bowers and Hewitt allegedly used the Empowerment Scholarship Account (ESA) program funds for their personal living expenses in Colorado. The pair are now believed to be living in Utah, per Mayes’ office.
Bowers and Hewitt allegedly submitted applications to the Arizona Department of Education (ADE) for seven real and 43 fictitious children using false, forged, or fraudulent documents such as birth certificates, utility bills, and lease agreements. Bowers and Hewitt applied under their own names as well as under fake identities, called “ghost parents.”
The pair put the false identities under fictitious “families” with the surnames Gil, Cole, Diaz, and Dobbs, as well as another “family” going by Hewitt’s surname.
Bowers and Hewitt were indicted on counts of the class two felonies of conspiracy (one count) and fraudulent schemes and artifices $100,000 or more (one count), as well as the class four felony of forgery (58 counts).
In a statement on the indictments, Arizona Superintendent Tom Horne said that the fraud was found out thanks to the auditor he hired to oversee the ESA Program, a position he noted was not previously established under his predecessor, Kathy Hoffman. Horne clarified that it was his office who referred the findings of fraud to Mayes’ team.
“As a former Arizona Attorney General, I am determined as Superintendent to eliminate any fraud within the ESA program. Upon taking office, I hired an auditor who had been in the Auditor General’s office for 15 years, and who is now in charge of the ESA program as well as an investigator. Those two positions had not existed under my predecessor,” said Horne. “I am pleased that prosecutions are following in the cases we sent to The Attorney General’s office.”
Earlier this year, five others were indicted in a similar $600,000 “ghost children” scheme to defraud the ESA program. 17 children were used in those applications — five of whom were discovered to be fake — associated with false birth certificates and false disability documents to obtain more funding. Those indicted were Dolores Sweet, Dorrian Jones, Jennifer Lopez, Jadakah Johnson, and Raymond Johnson, Jr.
Sweet allegedly approved applications for three fictitious children she claimed as her own while working as an ESA account specialist from 2019 to 2023. Both Johnsons are Sweet’s real adult children.
Lopez allegedly approved applications for two fictitious children she also claimed as her own while working as an ESA program lead specialist from 2019 to 2023.
Jones worked with the ADE as an administrative services officer.
As with these most recent indictments, the five indicted earlier this year were hired by Horne’s predecessor and later caught by Horne’s auditor.
In an October meeting, Horne announced that ESA reimbursements have proved to be “an overwhelming problem” for ADE due to low staffing, resulting in long wait times and a growing backlog.
Prior to last year, the ESA program paid through ClassWallet. The legislature approved tuition payments through reimbursement last year, something Horne says is the root of the problem.
Horne explained that efforts to combat the backlog have allowed for fraud to enter, citing an attempt to streamline reimbursements earlier this year by automatically reimbursing purchases at $75 or less leading to an instance of seven account holders discovered to have bought $13,000 of Amazon gift cards.
The ESA program has over 83,000 students enrolled as of mid-November.
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