Governor Hobbs Unveils ESA Accountability and Transparency Plan

And we are off.

Welcome to 2024.

The ESA wars in Arizona have begun.

In possibly a preview of comments that will be in her upcoming State of the State Address on Monday, January 8, 2023, Arizona Governor Katie Hobbs threw the first salvo in what is likely going to be a long dragged-out fight on the fate of the current Empowerment Scholarship Account (E.S.A.) School Voucher Program.

Earlier today, the Governor unveiled, in an office press release, a plan to rein in the excesses of that program.

The E.S.A. program has come under increased scrutiny because of its adverse effect (close to a billion dollars) on the state’s fiscal condition, the lack of data from the current Department of Education Administration for failing to report who is actually taking advantage of these scholarships (including claims that this is a welfare for the wealthy program,) and reporting that some of the approved expenses appear to have little to no educational merit.

Saying in the press release that the proposals would “increase student safety, promote financial accountability, and hold private schools receiving taxpayer dollars to similar standards as public schools,” the plan features include:

• “Increasing Student Safety: Just like public schools, educators at private schools that receive taxpayer dollars will be required to pass a fingerprint background check in order to provide instruction to ESA students. This common-sense measure ensures a safe learning environment for every student.
• Protecting Rights for Students with Disabilities: Require private schools to provide accommodations and services in accordance with an ESA student’s Individualized Learning Plan or Section 504 Plan.
• Requiring Accountability for Taxpayer Dollars: End spending on luxury expenses like ski passes and luxury car driving lessons, and require manual approval of purchases over $500 to ensure purchases are utilized for an academic purpose.
• Expanding Auditor General Authority: Create an audit authority for the Auditor General to monitor and report on how ESA voucher money is spent by private schools. This critical oversight mirrors practices at public schools.
• Prohibiting Price Gouging: Stop private schools receiving taxpayer dollars from hiking the cost of tuition and fees at a rate higher than inflation.
• Raising Educational Standards: Require private schools receiving taxpayer dollars to have minimum education requirements for classroom educators that provide instruction to ESA students.
• Establishing Program Transparency: Require the Department of Education to disclose the parental and student rights that are relinquished when leaving the public school system for the ESA voucher program and report graduation and chronic absenteeism rates.
• Reinstating Eligibility Requirements: Students participating in the universal ESA voucher program must have attended a public school for 100 days at any point in their education prior to becoming eligible for the ESA voucher program.”

Commenting on these proposals in the press release, Governor Hobbs relayed:

“The ESA program lacks accountability and transparency. With this plan, we can keep students safe, protect taxpayer dollars, and give parents and students the information they need to make an informed choice about their education. Arizonans deserve to know their money is being spent on educating students, not on handouts to unaccountable schools and unvetted vendors for luxury spending. My plan is simple: every school receiving taxpayer dollars must have basic standards to show they’re keeping our students safe and giving Arizona children the education they deserve.”

The Arizona State Senate and House Democratic Leaders also offered their perspectives in the press release.

Senate Democratic Leader Mitzi Epstein offered:

“Legislative Democrats have been the most consistent advocates for student safety and success. The Republican expansion of government to universal ESA vouchers has put our state’s financial security at risk, and our students at risk without any safeguards. We included the work that Democrats have done for years in developing this plan with Gov. Hobbs. These safeguard policies are common sense and vitally important to help children learn and to keep children safe.”

House Democratic Leader Lupe Contreras noted:

“With all the issues and pressing needs we have as a state, Republicans knew that an unaccountable subsidy for private schools was more than our taxpayers can afford. This plan provides common-sense guardrails and fiscal responsibility that this program — that any taxpayer-funded program — should have.”

Reacting to the Governor’s proposal, Beth Lewis, the Director of Save Our Schools Arizona, stated:

“We applaud Governor Hobbs’ plan to reform Arizona’s massively unaccountable and costly universal ESA voucher program. Hobbs’ common-sense proposal to increase student safety, promote financial transparency, and add accountability for private schools receiving taxpayer dollars is a strong step in the right direction. Much work remains to ensure that K-12 public schools are fully funded and to prevent a budget catastrophe driven by runaway voucher costs. We look forward to working with the Governor to achieve all of the above.”

Current Arizona Superintendent of Public Education Tom Horne issued a response to Governor Hobb’s release, writing:

“My job is to administer the ESA program in line with state law, and if changes are made the Department of Education will follow them.

However, one proposal stands out because it’s already in place: The Governor recommends a manual review of ESA purchases over $500. My office already reviews all expense requests regardless of amount, unlike the previous superintendent who approved many frivolous requests. In 2023, we rejected several thousand ESA applications for lack of adequate documentation and suspended almost 2,200 accounts totaling $21 million because the student was enrolled in a public school. We’ve also rejected more than 12,000 ESA purchase order requests.”

Most would be curious on the details on the figures Mr. Horne provided in his release. It would definitely be a first for public accountability if they were released since he became Superintendent.