Hobbs Demands Halt to Automatic Reimbursement in Arizona School Voucher Program

Governor Katie Hobbs is calling on Republican Superintendent of Public Instruction Tom Horne to reconsider plans for automating the school voucher reimbursement approval process in Arizona. This appeal follows the Arizona Department of Education’s announcement to address a significant backlog of reimbursement requests by automatically approving 85,000 purchases of up to $2,000 each. The total cost of this initiative could reach approximately $170 million.

The push for automation comes as the department grapples with over 89,000 pending requests from families utilizing the state’s Empowerment Scholarship Account (ESA) program. In a letter to Horne, Hobbs noted previous cases of misuse involving the program, citing a recent indictment of individuals who submitted fraudulent applications using fictitious identities.

Hobbs emphasized the need for fiscal responsibility, stating, “The people of Arizona expect their elected officials to be strong stewards of their taxpayer dollars, not to enable fraudulent spending.” Meanwhile, Horne defended the plan by suggesting that post-reimbursement audits would allow for the recovery of improperly used funds, a method he argues has been previously utilized by the Arizona Department of Education.

Supporters of Horne maintain that the ESA program has been operating efficiently. However, the program has witnessed considerable growth since its inception in 2012, with enrollment rising from around 12,000 students in specific categories to over 83,000 currently, following a 2022 expansion to include all K-12 students in Arizona.

Horne, in response to Hobbs, pointed to this year’s budget as a foundation for moving towards risk-based audits and reiterated that the department retains its ability to investigate ESA expenses for potential fraud. He chastised the governor for not fully understanding the implications of the legislation she endorsed, emphasizing that the ESA remains one of the most accountable programs in Arizona.

While Horne attributes the backlog to recent legislative changes that permitted direct tuition payments for private education, Hobbs criticized the current course of action as “a complete dereliction of ADE’s responsibility.” She urged Horne to devise a more effective strategy for administering the ESA program, one that would safeguard public funds against fraud.

The ESA program continues to spark debate, with Republican supporters promoting it as a model for school choice and Democratic critics citing escalating costs leading to budget challenges across the state.