News Summary
The Arizona School Voucher Program, known as the Empowerment Scholarship Account (ESA), is under scrutiny for rising costs and fraud concerns. Although the program aims to provide educational options for K-12 students, it is struggling to comply with mandated auditing procedures. With escalating expenses projected to exceed $1 billion and delays in establishing accountability measures, critics worry about the misuse of funds and the impact on public education resources.
PHOENIX – Arizona School Voucher Program Faces Accountability Challenges Amid Rising Costs and Fraud Concerns
The Arizona Department of Education is failing to comply with a state law that requires it to collaborate with the auditor general to establish auditing procedures for the Empowerment Scholarship Account (ESA) program. This failure comes amid growing concerns over rising costs and instances of fraud associated with the program, which has seen significant growth since its inception.
The ESA program, launched in 2012, initially provided educational vouchers for students with disabilities. However, it was expanded in 2022 to include all K-12 students in Arizona, leading to a dramatic increase in enrollment. Currently, over 87,600 students are participating in the program, with an additional 4,000 applications pending approval.
Parents enrolled in the ESA program can utilize public education funds for various educational expenses, facilitated through a debit card system. Despite its usefulness, the program’s cost has escalated from an initial $300 million to an estimated $869 million in the last fiscal year, with projections suggesting expenses could surpass $1 billion for the 2025-26 school year as participation is expected to exceed 90,000 students.
In 2024, the Arizona Legislature enacted a law mandating the ESA program to work alongside the auditor general to establish risk-based auditing procedures for voucher spending. This law, aimed at increasing accountability regarding the use of ESA funds by parents and students, is set to take effect in September 2024. Nevertheless, Arizona Auditor General Lindsay Perry has noted ongoing delays from the Arizona Department of Education in fulfilling these audit requirements, reporting that the department has not engaged with her office for the past 10 months.
The ESA program has faced criticism for favoring parental preferences over the implementation of necessary auditing practices. John Ward, the executive director of the ESA program, has indicated that compliance with the new auditing law is not prioritized due to limited staffing resources within the department. Only 12 staff members are currently tasked with auditing purchases, which includes daily reviews of over 250 transactions each.
A new handbook approved in June removed purchase limits from the ESA program, allowing for automatic approvals of ESA purchases under $2,000 to streamline the processing of pending requests. This measure has led to a significant number of automatic reimbursements—over one million—without comprehensive review, raising concerns among critics who fear misuse of program funds. There have been documented cases of fraudulent activity, including individuals who have created fictitious children to access ESA funds, resulting in criminal charges.
Critics argue that the ESA program disproportionately benefits wealthier families, enabling taxpayer funding for luxury education options while draining resources from public schools. The Arizona Department of Education has faced additional scrutiny for not providing requested documents related to previous audits, which has further fueled calls for enhanced oversight.
Governor Katie Hobbs has expressed concern over the rapid escalation of ESA expenditures and has opposed additional funding for programs designed to assist individuals with disabilities, asserting that political interests are diverting essential resources. Furthermore, GOP lawmakers have resisted implementing accountability measures proposed by Democrats regarding the ESA program. During budget negotiations, Republican lawmakers declined to include accountability provisions linked to funding for additional staff to support the program’s auditing requirements.
The ongoing challenges surrounding the ESA program paint a complex picture of balancing educational choice with fiscal responsibility and program integrity. As Arizona continues to navigate this landscape, the scrutiny over accountability and the potential for misuse will likely remain central to discussions about the program’s future.
Deeper Dive: News & Info About This Topic
HERE Resources
Closure of John R. Davis Elementary School Highlights School Choice Impact
Arizona Faces Compliance Issues in ESA Program Oversight
Arizona’s ESA Program Faces Scrutiny Over Minor Payments
AZ Big Podcast Explores Trends in Office Design
Arizona Schools Face Funding Delays as New Academic Year Starts
Community Comes Together for Back-to-School Support
Arizona Ranks Low in School System Quality
Arizona Schools Face Uncertainty Over Federal Funding Delay
Arizona Joins Lawsuit Against Education Funding Freeze
Concerns Emerge Over $440 Million in Arizona Education Vouchers
Additional Resources
- Arizona Central: Arizona School Voucher Program Critique
- 12 News: Arizona Education Voucher Reimbursements
- Arizona Mirror: School Voucher Program Audit Issues
- AZ Family: Arizona Governor’s Budget Update
- 12 News: Unused ESA Funds Investigated
- Wikipedia: School Vouchers in the United States
- Google Search: Arizona School Voucher Program
- Google Scholar: Arizona School Vouchers
- Encyclopedia Britannica: School Voucher
- Google News: Arizona Education Voucher Program
