School bureaucrats who have mismanaged their finances are hoping that voters will blame a convenient scapegoat: families using Empowerment Scholarship Accounts (ESAs) to educate their children. As usual, their allies in the legacy media are trying hard to help them shift the blame—but the numbers don’t lie.
Channel 12 recently ran a story titled “Deer Valley teachers self-fund or rely on classroom wish lists for basics, while ESA parents buy luxury items with state tax dollars.” Most of the article reads like a press release from Deer Valley Unified School District Superintendent Curtis Finch, who claims that the ESA program has “zero accountability,” “no oversight,” and is “out of control.” Meanwhile, the article quotes teachers in Deer Valley who are spending hundreds of dollars from their own pockets to cover school supplies for their students.
The implication is clear: district schools are financially starved while ESA families waste money on frivolous luxuries. But the reality is exactly the opposite.
Misuse of the ESA program is vanishingly small. The Arizona Department of Education’s internal audit had turned up $622,000 in ESA funds that are “possible fraud or misuse.” That’s approximately 0.05% of total ESA spending over the past two years.
Misuse of funds in the ESA or any other public program must be detected, deterred, and punished. This is in fact happening in the ESA program, as the Arizona Department of Education had already found the misuse, suspended accounts of those responsible, and reports that it is “in the process of collecting more than $600,000” in improper spending. All of this makes the ESA program far more transparent and accountable than Arizona school districts, which do not post their purchases.
And while Deer Valley teachers may indeed purchase their own school supplies, it has nothing to do with the ESA program and everything to do with misplaced district priorities.
One of the oldest tricks in the school district advocate playbook involves pretending that teachers must buy their own classroom supplies because of a lack of funding. The Channel 12 story cites a Deer Valley biology teacher who said she “spends at least $500 of her own money every summer for her classroom.”
Days after the report aired, former Deer Valley school board candidate Tiffany Hawkins revealed that Deer Valley Unified had spent $560,407 to send students and staff on trips to Disneyland, Knott’s Berry Farm, Sea World, Universal Studios, and other destinations in Arizona, California, Hawaii, Indiana, and Texas. Apparently, the district leadership decided that these trips took precedence over classroom supplies for Deer Valley teachers.
Don’t hold your breath waiting for Channel 12 to cover that. Deer Valley Superintendent Finch—who recently faced charges of stonewalling public records requests and illegal electioneering on school grounds—attacked the ESA program for “out of control” spending with “zero accountability.” But his critiques of the ESA program much more accurately describe spending in his own district.
The Arizona Auditor General reports that Deer Valley spends $13,717 per pupil, meaning that a classroom of 25 students thus generates over $340,000 in total revenue. Where did this money go? Mainly not to teachers.
The Auditor General reports that Deer Valley average teacher pay is $2,163 below the state average. If Deer Valley is not prioritizing teachers, what is it prioritizing instead? The Auditor General report helpfully provides an answer: “high” and “very high” spending on administration and transportation, respectively, compared to a group of peer school districts.
The Goldwater Institute recently published a study of Arizona school superintendent compensation. Goldwater needed to use the open-records law to obtain this information, as districts compensate their superintendents in a variety of creative ways outside of their base salary, including providing either vehicles or “car allowances,” extra retirement benefits, and other perks.
The Goldwater Institute found that Deer Valley provides a total compensation package for their Superintendent of $290,505, including a car allowance of $10,000. This car allowance alone could have provided 20 teachers with $500 each for classroom supplies.
Even if one were to take the highly perverse view that students were the indentured servants of the school districts in which they reside, it would still be absurd for Deer Valley Unified officials to blame their problems on the ESA program. Arizona Department of Education reports show that 10,966 students lived within the boundaries of Deer Valley Unified but attended other public schools in 2024.
Deer Valley Unified meanwhile “drained” almost 3,000 students and their funding from other public schools. At the end of 2024, only 709 students had left a Deer Valley school to participate in the ESA program. Four different public schools outside Deer Valley Unified each have enrolled more students who reside in the district than the ESA program. Moreover 217 total public schools outside the district enroll Deer Valley Unified resident students.
Luckily, Arizona policymakers have decided that Arizona children are not merely funding units for their local school districts. Arizona families can use ESAs to choose the schools that are the best fit for the interests and aspirations of their children.
Arizona school districts have never had as much money as they have now, enough apparently to prioritize trips to California and perks for superintendents. If Deer Valley Unified officials hope to gain the enrollment of the thousands of resident students who have chosen to pursue their education elsewhere, a clear path forward would be to prioritize their funding.
Purchasing classroom supplies for teachers would be a great first step.
Matthew Ladner is a Senior Advisor for education policy implementation and Jason Bedrick is a Research Fellow at the Heritage Foundation’s Center for Education Policy.
Every year, a horde of school district officials and their lobbyists come before the state legislature, rattling their tin cups, begging for more money for their supposedly underfunded schools. They tell sob stories about crumbling buildings and underpaid teachers who had to pay for school supplies from their own pockets. Their schools, they say, are financially starved.
Hogwash.
School bureaucrats don’t want you to know it, but school spending is at an all-time high, and Arizona’s school districts are sitting on more than $20 billion in cash reserves and buildings they don’t need while student achievement craters. A new report from the Common Sense Institute (CSI) reveals the shocking scope of waste plaguing our traditional public school system, and it’s time taxpayers demanded answers.
The numbers are staggering. As has been documented, Arizona’s school districts are already hoarding $7.8 billion in cash reserves, up $1 billion since the prior fiscal year. Now we learn they’re also sitting on $12.2 billion worth of excess real estate—78 million square feet of unused and underutilized space that could house 630,000 additional students. Combined, that’s over $20 billion in resources that could be put to better use serving Arizona’s children.
Since 2019, district school enrollment has declined 5% statewide, yet these same districts increased their building space by 3% and boosted capital spending by a jaw-dropping 67% to $8.9 billion. As CSI has documented, districts have added 499 new buildings while losing 47,500 students. This isn’t just inefficient, it’s fiscally reckless.
The massive spending on new buildings might be justifiable if schools were overcrowded or expecting a huge influx of new students, but they’re not. In fact, Arizona’s district schools are already significantly overbuilt, operating at just 67% capacity while charter schools run at 95% capacity and private schools at 75%. CSI estimates that the excess space in district schools could accommodate 630,000 additional students—nearly half the current statewide district school enrollment.
The excess capacity comes at an enormous cost. CSI estimates that the market value of excess district space alone—$12.2 billion—could fund a decade of capital expenditures. Alternatively, eliminating maintenance costs for unused space would save taxpayers $1 billion annually. That’s real money that could reduce taxes, improve education, or address Arizona’s other pressing needs.
There are plenty of willing buyers. Indeed, the fastest-growing school systems—charters and private schools chosen by increasing numbers of Arizona families—struggle to find adequate facilities. Yet school districts often go to incredible lengths to avoid selling buildings to them, such as when Tucson Unified School District sold an unused building for 25% less than what a Christian school had offered, just so that a “competitor” wouldn’t have it.
In response to such cases, Gov. Doug Ducey signed a law requiring school districts to sell buildings to the highest bidder, even if it’s a private or charter school. Now, rather than comply, school districts are just letting their underutilized space languish and forcing the taxpayers to pay the bill.
The wastefulness is also a slap in the face to teachers and students alike.
As we noted previously, the districts have enough cash reserves to raise the average teacher pay from $64,420 to more than $80,000 for 10 years and still have funds left over. If they sold off all their underutilized space, they could raise the average teacher pay to $100,000 for a decade and still have billions left over.
There is no evidence that spending on buildings is contributing to student learning. As the buildings have gone up, math scores have gone down, plummeting 25% since 2019. As CSI documents, the lowest-performing schools have the most excess space, operating at just 19% capacity, while high-performing schools run at 70% capacity.
This isn’t about helping kids learn; it’s about protecting a bloated bureaucracy that puts institutional self-interest above student needs.
Fixing the problem will require realigning incentives. CSI recommends more transparency—including a “Facilities Condition Index” that would give policymakers and the public objective information about the quality of existing school facilities—and more state oversight of severely underutilized facilities. In the meantime, any funding requests from the school districts should be greeted by state lawmakers with a healthy dose of skepticism.
Arizona’s children deserve better than a $20 billion monument to government inefficiency. They deserve a system that puts their education first, not one that hoards resources while performance plummets. If local officials can’t or won’t deliver, then state lawmakers will have to step in.
Jason Bedrick is a Research Fellow and Matthew Ladner is a Senior Advisor for education policy implementation at the Heritage Foundation’s Center for Education Policy.
The Arizona Department of Education has unveiled a new public webpage identifying which schools in the state are in compliance with the Trump administration’s recent directives targeting diversity, equity, and inclusion (DEI) programs. The move comes amid national legal battles over DEI in public education.
Earlier this month, the U.S. Department of Education issued guidance requiring schools to sign compliance letters affirming they do not engage in DEI practices that the administration deems discriminatory. Failure to comply could result in the loss of federal funding. In response, Arizona Superintendent of Public Instruction Tom Horne announced the launch of a tracking site aimed at promoting transparency around which schools have agreed to follow the guidance.
“I am committed to following the law and will abide by the latest guidance from the U.S. Department of Education to take no action against schools until further notice,” Horne said in a statement.
The federal guidance has sparked legal challenges and confusion across the country, with educators and administrators unsure what qualifies as a DEI program. Two federal judges have already intervened. In one case, U.S. District Judge Landya McCafferty of New Hampshire criticized the vague language in the compliance letters, noting that they fail to clearly define DEI initiatives or how they allegedly violate civil rights laws.
Despite the legal uncertainty, Horne has voiced strong support for the administration’s position. “Federal law and the 14th Amendment to the U.S. Constitution are clear that no person shall be discriminated [against] because of race, skin color or ethnicity, and this guidance aligns completely with my philosophy,” Horne said. “By contrast, the use of DEI programs does just the opposite and promotes racial discrimination.”
Horne said he believes the current DEI restrictions will ultimately be upheld by the U.S. Supreme Court and encouraged Arizona school districts and charter schools to take the issue seriously.
The Arizona Department of Education’s DEI compliance page can be viewed here.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
The Arizona State Senate is reviewing Senate Bill (SB) 1091, which would require school district election ballots to include clear information on potential property tax reductions if voters reject budget overrides or bond measures.
The bill, which was sponosored by Sen. Jake Hoffman (R-LD15), aims to provide greater transparency for voters when deciding on school funding measures that involve secondary property taxes.
Arizona school districts can request budget overrides or bond authorizations when additional funding is needed beyond state-imposed limits. These measures are often funded by secondary property tax levies and must be approved by voters in district-wide elections.
Currently, school district ballots already include estimated tax rates for proposed overrides or bonds. However, SB 1091 would require ballots to explicitly state the estimated property tax reduction that would occur if voters reject the proposal, allowing taxpayers to see the potential financial impact.
If passed, the legislation would mandate that ballots for school district funding elections include an estimated average reduction in secondary property taxes if the budget override or bond measure is not approved and the exact date when the tax reduction would take effect.
This requirement would apply to budget override continuation elections, where districts seek to maintain higher spending limits through secondary property taxes as well as bond authorization continuation elections, which determine whether a district can continue issuing and selling bonds at the same tax rate in future years.
The bill also includes technical and conforming changes to existing statutes but does not impose any anticipated fiscal impact on the state’s general fund.
Supporters argue that SB 1091 enhances voter transparency, ensuring residents fully understand the tax implications of school district funding decisions. Critics, however, worry that emphasizing potential tax reductions on ballots could sway voters against approving necessary education funding.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Arizona lawmakers are advancing a series of bills aimed at increasing transparency, accountability, and taxpayer protection. These measures tackle issues ranging from government spending on elections to school board meetings and travel, with a focus on ensuring that public funds are used responsibly and efficiently. With strong support from various groups, these bills reflect ongoing concerns about how taxpayer money is spent and how local government actions are conducted.
One of the most significant pieces of proposed legislation, HB2722, is backed by the Arizona Free Enterprise Club and sponored by Rep. Neal Carter (R-LD15). The bill seeks to prevent taxpayers from indirectly subsidizing private businesses through government gifts. Specifically, it targets “gift clauses” in state and local government contracts, which some argue allow for inappropriate use of taxpayer funds to benefit private entities.
The Arizona Free Enterprise Club has been vocal about the need for stronger protections against such expenditures. The organization has stated that this bill is necessary to curb the growing trend of government spending on private corporations without clear public benefit.
“Taxpayers should not be used as a backdoor financing mechanism for private companies,” said Arizona Free Enterprise Club officials. “This bill is about ensuring that public dollars are spent in a way that directly benefits the public, not private interests.” If passed, this bill would create stricter guidelines on how public funds can be spent and would allow taxpayers to hold officials accountable when misused funds are discovered.
Another bill making its way through the Arizona legislature is SB1036, supported by the Goldwater Institute and sponosred by Sen. John Kavanagh (R-LD3). This bill targets government spending on influencing elections, a topic that has sparked considerable debate in recent years. SB1036 would create a private right of action for taxpayers, allowing individuals to sue if they believe government funds are being spent on efforts that influence an election. This would make it easier for citizens to challenge the use of taxpayer money in elections, particularly when the spending appears to be partisan or otherwise improper.
The Goldwater Institute has argued that taxpayers have a right to ensure their money isn’t used to sway political outcomes. According to a recent report by the organization, there have been multiple instances of local governments spending taxpayer funds to advocate for policies that align with political interests, which has raised concerns about government overreach.
“Governments should not be using taxpayer money to influence the political process,” said Goldwater Institute officials. “This bill provides taxpayers with the ability to stand up for their rights and ensure public resources are not misused.”
Another bill, HB2169, which was introduced by Representative Matthew Gress (R-LD4), seeks to address transparency within Arizona’s public school districts. The bill would require school board meetings to be held in public facilities within the district, ensuring that they are easily accessible to the communities they serve. Additionally, the bill mandates that school boards must receive public approval before engaging in out-of-state travel, making it more difficult for administrators to make costly decisions without community oversight.
This legislation gained near-unanimous support, with proponents arguing that it ensures greater accountability for how public schools operate and how funds are spent. Critics of the current system have pointed to examples of school board members using taxpayer money for luxury travel without clear, public approval or benefit. A notable incident involved a local school district that faced backlash after spending taxpayer funds on extravagant trips while simultaneously requesting additional funding from voters for educational needs.
“Public education is about serving the community,” said Representative Gress in a statement. “We need to make sure that the actions of school boards are always in the public interest. This bill strengthens public trust in our school systems.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
