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Hobbs Demands Special Audit as Horne’s Funding Cuts Hit Arizona’s Vulnerable Schools

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Hobbs calls for special audit after Horne loses millions in funding for needy Az schools

Arizona Governor Katie Hobbs and legislative Democrats are pushing for a special audit of the Arizona Department of Education (ADE) following a significant loss of federal funding. The department failed to utilize $29 million in federal school improvement grants before the deadline, leading to a return of the funds.

“I commend the members of the state legislature who are demanding accountability and transparency,” Hobbs stated in a Monday press release. She condemned Superintendent Tom Horne’s oversight, asserting that the loss of vital federal resources is unacceptable. “Our kids deserve better,” she emphasized.

Superintendent Horne revealed that the U.S. Department of Education had contacted the state last week regarding a waiver that might allow the recovery of the unspent funds. Horne expressed his commitment to fighting for additional school funding, highlighting that the misallocation of these funds dates back to Fiscal Year 2020 under the previous superintendent. He criticized the prior administration’s management of the resources.

The audit request was partly prompted by an article in the Arizona Republic, which highlighted that the ADE did not notify schools about the loss of funding until the summer. As a result, between 150 to 200 schools now face severe shortfalls, receiving less than half of the anticipated grants, which were earmarked for hiring staff and professional development.

The federal government required that the grant funds be allocated by September 30, 2023. However, ADE reportedly became aware of this deadline only in March, well past its expiration. In response to the situation, ADE attempted to other funding sources, but those efforts proved unsuccessful.

This issue also prompted six Democratic legislators to send a letter to Rep. Matt Gress, chair of the Joint Legislative Audit Committee, requesting an investigation into the funding reductions and demanding improved oversight of educational finance. House Minority Whip Nancy Gutierrez noted that reductions to allocations had been communicated to some schools months prior, with dire impacts leading to cuts in summer programs and staffing.

Gutierrez accused ADE of withholding key data regarding funding formulas, which has left district finance officers struggling to understand the cuts. “The Department insists it is against its policy to release the data and formulas used to determine the reduced Title I allocations,” she wrote, describing the ensuing confusion and doubt about the accuracy of the funding calculations.

In light of media reports, Horne claimed that the information regarding the allocated grant amounts had been misrepresented and that the responsibility for the failure to utilize the funds lay with his predecessor’s administration. He contended that the previous employee’s actions had exacerbated the situation.

Despite calls for a retraction of the Republic’s article, the publication stood by its reporting. Former Superintendent Kathy Hoffman acknowledged challenges schools faced in spending grant money during the inflow of COVID relief funds, suggesting that the current administration has a responsibility to adapt and manage resources effectively.