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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A bill advancing through the Arizona Legislature would require schools to notify parents and staff within 24 hours of serious threats or incidents involving violence on campus.
House Bill 4109 was approved by the Arizona Senate Rules Committee last week and now heads to the full Senate for consideration. The measure previously passed the Arizona House of Representatives in early March by a 35–17 vote, with seven members abstaining and six Democrats joining Republicans in support.
Sponsored by Rep. Lydia Hernandez (D-LD24), the bill would require schools to notify parents and employees within 24 hours of “life-threatening violence, threats of life-threatening violence, or threats that involve a deadly weapon or dangerous instrument.”
Schools would also be required to provide information about the nature of the incident and how administrators responded.
Under the legislation, law enforcement would be required to be notified immediately following serious threats or acts of violence. Schools would also be required to confiscate any deadly weapons and hold them until police arrive.
HB 4109 would further require school districts to submit annual reports detailing campus safety incidents, including lockdowns, shelter-in-place events, evacuations, weapon-related incidents, and referrals to law enforcement. Districts would also be required to provide a summary of their safety policies.
The bill mandates that school districts adopt a formal public safety policy outlining emergency procedures and designating the superintendent as the responsible authority for implementation.
Superintendents and school board members could face misdemeanor charges for failing to comply with the law’s requirements. Superintendents may be charged if they fail to notify parents, contact law enforcement, or follow established procedures after serious threats or violence. School board members could face charges if they fail to adopt a safety policy or retaliate against individuals who report violations.
Arizona Superintendent of Public Instruction Tom Horne told The Center Square that schools in the state face ongoing safety concerns, citing 500 recorded incidents in 2025 involving students bringing firearms onto campus.
“Schools that don’t yet have police are playing Russian roulette with the lives of the students and the teachers and the staff,” he said.
Horne said the number of police officers assigned to schools has increased from 190 in 2023 to 565 and encouraged schools to work with the Arizona Department of Education to expand campus security coverage.
Horne has repeatedly urged school leaders to allow the Arizona Department of Education (AZED) to “provide them with police officers.” He added, “We pay for the police officers. It doesn’t cost them anything.”
Newsrooms: Video of Horne comments is available here: https://t.co/2VQXTI0ccR For immediate release: March 9, 2026 Contact: Communications@azed.gov
Horne says recent gun incident at elementary school shows need for added safety funds Legislature, Governor to consider more… pic.twitter.com/MObTWTELjX
— Arizona Department of Education (@azedschools) March 9, 2026
“We need to do everything we can to protect the safety of our students, teachers [and] staff,” Horne said. He added that reporting requirements would provide transparency about incidents involving weapons or threats on school campuses.
Horne blasts Democrats for voting against school safety bill Legislation would require schools to report life-threatening incidents.
State schools superintendent Tom Horne says Democrats who voted against HB 4109, a bill requiring schools to report life-threatening on-campus…
— Arizona Department of Education (@azedschools) March 26, 2026
In a statement on March 26, Horne was critical of Democrat legislators who voted against the measure, stating, “It is reckless and irresponsible for these legislators to ignore the reality that school campuses are at risk and need every resource at their disposal to protect lives.”
“It is ironic that the bill is sponsored by Democrat Representative Lydia Hernandez,” he added. “She deserves credit for this effort. I am pleased the bill passed out of committee even with the opposition from members of her own party.”
The Arizona Department of Education’s leader admonished one party for rejecting a new mandate on schools to report deadly on-campus incidents.
Democratic lawmakers opposed HB 4109 during a Wednesday vote in the Senate Education Committee, even though one of their own, State Rep. Lydia Hernandez (D-LD24) sponsored the bill. Republicans on the committee voted in favor of it.
HB 4109 would require school boards to adopt a structured safety policy with certain, detailed implementation responsibilities imposed on school district superintendents.
Among those responsibilities of the superintendent included in the bill: written notification to students’ parents and school employees within 24 hours of any incidents or threats involving life-threatening violence or violence involving a deadly weapon or dangerous instrument; immediate notification to a law enforcement officer of observed or notified incidents involving the aforementioned situations concerning violence, and any confiscations of dangerous instruments or deadly weapons; and confiscation, or designation of confiscation to administrators, of any dangerous instrument or deadly weapon possessed by any person on school property.
School districts would also need to publish annual public safety reports detailing the number of lockdowns, shelter-in-place events, and evacuations; incidents involving a deadly weapon or dangerous instruments; incidents referred to law enforcement officers; and a summary of the school district’s adopted public safety policy and its implementation.
The bill would prohibit school districts from taking retaliatory action against employees, parents, students, state agents, or any other individuals for reporting a violation of the public safety policy requirements.
Failure to adhere to the legislation would result in school leaders facing a class one misdemeanor charge.
State Superintendent Tom Horne published a press release the day after the committee hearing accusing the Democrats on the Senate Education Committee of “reckless and irresponsible” behavior: flippant of school safety and willfully ignorant of the present safety problems plaguing school campuses.
“The bill requires notice to parents and staff within 24 hours of a life-threatening incident on campus. That is a perfectly reasonable requirement that schools should be doing anyway,” said Horne. “It is ironic that the bill is sponsored by Democrat Representative Lydia Hernandez. She deserves credit for this effort. I am pleased the bill passed out of committee even with the opposition from members of her own party.”
State Rep. Hernandez explained that the murder of Michael Montoya, 16, in Maryvale High School last August was the motivator behind the bill. Montoya was stabbed to death in a classroom by another student.
“This was a constituent bill brought to me by my neighbors, families that were so traumatized by what happened. But it’s not just limited to this one incident, but a series of incidents that keep taking place,” said Hernandez. “It’s not about politics, it’s about protecting the safety of our kids. You and I would do it, and I hope it never has to be one our children that are the victims.”
State Sen. Eva Diaz (D-LD22) said it concerned her that the bill would criminalize noncompliant school board members and superintendents.
State Sen. J.D. Mesnard (R-LD13) countered that it wasn’t unprecedented to hold school officials accountable through criminal penalties in the context of public safety.
“I understand the logic when you’re talking about public safety, at some point there has to be some oomph behind it because we’re talking about fundamental student safety,” said Mesnard.
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Arizona Treasurer Kimberly Yee is advocating for reforming the Empowerment Scholarship Account (ESA) Program to reduce improper spending.
The treasurer’s office manages the contract with the vendor operating the portal through which ESA holders submit reimbursement payments.
Yee shared that she directed her office to seek out vendors proposing to innovate better means of facilitating the expanding ESA program. The treasurer’s office will publish a formal request for information to secure a platform better suited to support the current scope of the program.
Over 100,000 families participate in the ESA Program.
“If there is a financial platform, or are updates to the current platform, that can provide families ESA program funds efficiently and identify any misspending or misuse, then Arizona taxpayers deserve to use that system,” said Yee.
Today I announced that the ESA marketplace platforms must be improved to protect taxpayer dollars. Arizona taxpayers deserve to have a platform that efficiently provides families with ESA funds while identifying misspending or misuse.
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) March 19, 2026
Yee announced her RFI plan following a public dispute between Arizona Department of Education (ADE) Superintendent Tom Horne and the media over fraud, abuse, and waste within the ESA Program.
Horne maintains the program has low levels of those problems, but 12News argues they’re much higher.
12News claimed based on a risk-based audit that 20 percent of purchases under $2,000 within the ESA Program were fraudulent. Horne disputed that total as a “ridiculous” misunderstanding of data.
“Only 20 percent of that 20 percent were improper — that’s only four percent,” said Horne in an interview with KTAR News. “The other thing to know is, [those improper expenditures are] not all fraud. A lot of times it’s innocent mistakes, a paper that needs to be submitted, things that people think are okay but don’t fall into our standards. The amount of actual egregious purchases or fraud is 0.3 percent.”
It's "ridiculous" to say that 20% of ESA purchases under $2,000 were fraudulent, according to Tom Horne, Arizona's superintendent of public instruction. @BroomheadShowpic.twitter.com/4WT3gGXUIJ
The 0.3 percent figure came from a randomized study by a Stanford PhD, per Horne, which reviewed 3,000 random ESA orders between July 2025 and February 2026.
12News relied on public records to estimate in a report published last month that misspending “could” amount to 20 percent of all purchases in the ESA Program. According to their report, at least 18,000 of the 102,000 ESA Program participants had one or more unallowable purchases over the course of one year, which amounted to nearly 84,000 unallowable purchases.
Horne has demanded that 12News issue a retraction of their reporting perpetuating the 20 percent claim.
“A ridiculous figure of 20 percent fraud has been circulating concerning ESA purchases which resulted from a total misinterpretation of data provided to Channel 12. The 20 percent figure represented program participants that ADE had selected for risk-based auditing,” said Horne in a press release last week. “Continued use of the 20% fraud allegation is an outrageous misrepresentation to the public that must stop.”
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The Arizona Department of Education (ADE) accused a major media outlet of misrepresenting the amount of fraud that occurs within the state’s school choice program.
Per ADE, 12News claimed the Empowerment Scholarship Account (ESA) Program had fraud totaling 20 percent. ADE said this figure was false, and that the true fraud rate sits at 0.3 percent.
The 20 percent claim originated from a risk-based audit — an audit of limited scope — which targeted specific higher-risk participants and accounts. It does not account for the entire ESA Program population, says ADE.
ADE presented the 0.3 percent figure from a study by Stanford PhD on a random sample to obtain a more accurate assessment of the entire ESA population. That study, which reviewed 3,000 random ESA orders between July 2025 and February 2026, also concluded that unallowable spending amounted to less than two percent of the total.
ADE Superintendent Tom Horne demanded 12News issue a retraction.
“A ridiculous figure of 20 percent fraud has been circulating concerning ESA purchases which resulted from a total misinterpretation of data provided to Channel 12. The 20 percent figure represented program participants that ADE had selected for risk-based auditing,” said Horne in a press release. “Continued use of the 20% fraud allegation is an outrageous misrepresentation to the public that must stop.”
By comparison, Horne noted, other government programs have higher rates of improper spending: Medicaid totals over seven percent, food stamps total over nine percent, and unemployment insurance totals over 14 percent.
Horne clarified that the unallowable purchases rate doesn’t constitute fraud necessarily. The superintendent said “most” of those purchases were confirmed as “innocent mistakes” such as improper form completions or viewing certain unpermitted educational items as permitted, like backpacks or lunch boxes.
Horne said ADE promptly recovers misspent funds, and has recovered over $1.2 million.
The disputed 20 percent figure was mentioned in multiple articles by 12News, including one of the latest pieces of coverage published on Wednesday.
“According to state records obtained by 12News Investigates, nearly 20% of ESA parents or at least 18,000 ESA account holders, have misused voucher funds,” read Wednesday’s article.
The original 20 percent figure by 12News stemmed from a report on public records reviewed by the outlet which estimated that misspending “could” amount to 20 percent of all purchases in the ESA Program. The report stated that over 18,600 out of the 102,000 ESA account holders had at least one unallowable purchase over the course of a year.
Horne said at the time that the percentage provided wasn’t totally representative of fraud; rather, the superintendent said “most of it” was attributable to mistakes by the parents.
While critics of the program highlight the millions ADE is forced to recover, mainly from misspending and marginally from fraud, supporters of the program highlight the millions saved by children entering the ESA Program rather than their designated public district school system.
Goldwater Institute director of education policy, Matt Beienburg, said in a press release that wrongful spending occurs just as much, if not more, in the public school district system.
“It’s also worth observing that just 52 cents of every dollar sent to Arizona district schools now makes it to classroom instruction according to the state auditor general,” said Beienburg. “Among the many uses of those funds outside the classroom: a $500,000 trip to Las Vegas by a school district that promptly cut bus services for students; a district spending $4,000 per person to send staff to Napa, California for a conference featuring wine tastings, a district spending $18,500 on ‘membership dues and for staff to attend golf tournaments,’ and more.”
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