Arizona’s ESA Program Sparks Controversy Over Spending

Categories: Arizona Breaking NewsArizona State News

Extracurricular activities funded by Arizona's ESA program raise concerns over spending equity.

News Summary

Over the past three years, Arizona taxpayers have funded nearly $20 million in extracurricular activities for private school students through the Empowerment Scholarship Account (ESA) program. Investigations reveal spending on lavish items, raising questions about the program’s fairness and intent. Critics argue that the ESA supports wealthy families at the expense of public education, with no current income restrictions for applicants. Amidst rising costs and enrollment, debates on accountability and equitable funding continue in the state legislature.

Arizona taxpayers have financed nearly $20 million in extracurricular activities for private school students through the state’s Empowerment Scholarship (ESA) program over the past three years. This spending covers a range of non-academic activities, including private swim and dance lessons, according to an investigation by an independent news team.

The findings stem from public records obtained from the Arizona Department of Education under state Schools Chief Tom Horne. The records reveal that since the universal voucher law was implemented in 2022, over 6,000 vendors and private schools have received payments linked to the ESA program. Payment amounts for such activities have raised eyebrows, particularly as many of these expenditures appear extravagant.

Despite repeated requests for detailed spending records on how ESA funds are allocated, Arizona State Treasurer Kimberly Yee has declined to disclose this information, arguing that her office lacks the necessary documents. This is particularly concerning given earlier disclosures covering the years 2022-2024.

The ESA program, originally designed to offer educational alternatives to families, has been criticized for favoring affluent families in Arizona, potentially undermining financial stability in public and charter schools. Previous attempts to regulate the program more strictly have not borne fruit, with examples of auditors attempting to restrict spending on luxurious items such as a $16,000 cello or a high-end Rolex watch going unheeded.

According to the I-Team, the vast majority of the nearly $20 million was channeled into just eight extracurricular activities available to children enrolled in private educational institutions benefiting from vouchers. This concentration of spending raises questions about the program’s intent and equity.

Concerns surrounding the ESA program have prompted criticism from public school advocates, including state representatives who argue that taxpayer funding should not support families capable of covering private school costs. Proposals for a $200,000 income cap on ESA eligibility have surfaced, aiming to limit public funds to families that genuinely require financial assistance.

Currently, no income restrictions exist for those seeking ESA vouchers, with estimates suggesting that the program will encumber taxpayers with costs exceeding $1 billion in the next school year. In fiscal 2022 alone, the ESA program accounted for $176 million prior to its expansion to universal access.

Despite these revelations, Republican lawmakers have consistently indicated a commitment to maintaining the existing structure of the ESA program. Their motivation is partly rooted in safeguarding educational choices provided to families, a stance that shows little sign of change in light of recent findings.

This year, the ESA program’s enrollment exceeded 92,000 students, with forecasts suggesting that approximately 6,500 additional students will join in the upcoming school year. Governor Katie Hobbs has highlighted a “dramatic spike” in ESA expenditures, predicting spending to surpass $1 billion in the next fiscal year and calling attention to the pressing need for greater accountability in how these funds are allocated.

Governor Hobbs has criticized the legislative focus on lavish vouchers rather than essential funding for vital support programs for individuals with disabilities. In an effort to reign in spending and promote fairness, she proposed not only income caps for ESA eligibility but also limits on the number of students able to participate in the program. These proposals may face considerable challenges due to resistance from the Republican-controlled legislature.

The ongoing debate surrounding the ESA program signifies a broader discussion on educational funding priorities in Arizona, particularly the need for clarity and accountability in how tax dollars are utilized to support children’s education.