Group Challenges Hobbs’ Misleading Claims on ESAs

By Daniel Stefanski |

As controversies surrounding Arizona’s school choice initiatives escalate, an influential group is stepping up to defend the program. Citizens For Free Enterprise reacted strongly to recent comments from Governor Katie Hobbs, who criticized the Empowerment Scholarship Account (ESA) program. In a tweet, Hobbs stated that ESAs are “rife with waste, fraud and abuse,” highlighting specific misuses of taxpayer funds and calling for greater accountability within what she described as a nearly billion-dollar program.

Hobbs’ remarks followed a report from the Arizona Department of Education regarding new policies geared towards rapid approval of parent reimbursement requests under the ESA initiative. This policy shift was announced by Republican Superintendent of Public Instruction Tom Horne.

In defense of the program, Citizens For Free Enterprise asserted, “Arizona’s universal school choice program is a model of accountability, transparency, and security, according to CSI Institute Arizona. The over 83,000 Arizona families using ESAs just want the best for their children.” They urged Hobbs to reconsider her stance.

Political analysis surrounding the governor’s comments has intensified as the Arizona State Legislature prepares to reconvene in January. Representative Travis Grantham criticized the focus on ESAs, questioning why Democrats are concerned about waste primarily in privatized programs. “I wish Democrats cared this much about government waste across the board,” he remarked. His sentiment was echoed by fellow legislator Austin Smith, who noted Hobbs’ educational agenda had faced setbacks in the previous elections, suggesting her recent comments might backfire.

Voices on both sides of the debate emerged as well. Democrat Representative Oscar De Los Santos strongly contended that the ESA program is plagued with misuse, calling for oversight of what he described as a “disaster.” School choice advocate Matthew Ladner countered, positing that instances of waste within the ESA program pale in comparison to fraud in other state programs.

To bolster their argument, Citizens For Free Enterprise distributed a report from the Common Sense Institute Arizona. The report highlighted significant resources lost to fraud in other areas, noting that while over $2 billion in Medicaid billing fraud and $2.3 billion in fraudulent pandemic-related unemployment payments had been identified, ESA fraud was much lower, totaling around $650,000. The report emphasized existing audit processes designed to maintain transparency and compliance within the ESA framework.

Despite the reaffirmation of support for the ESA program, challenges persist. Horne has faced mounting difficulties managing the program since the departure of its former director, Christine Accurso. He attributed the rise in reimbursement requests and systemic issues to several external factors, including actions taken by state legislators. Horne has also expressed concerns about how new legislative measures may complicate ESA management.

While support for the ESA program remains strong among advocates, the growing complexity and operational challenges of the initiative present significant hurdles for proponents of school choice in Arizona.

Daniel Stefanski is a reporter for AZ Free News, with ongoing coverage of developments in Arizona’s education policies.