Hobbs Urges Halt to Automatic Reimbursement in School Voucher Program

Arizona Governor Katie Hobbs has expressed concerns over Republican Superintendent of Public Instruction Tom Horne’s proposal to automate the approval process for reimbursements within the state’s school voucher program. This initiative aims to streamline the handling of reimbursement requests amidst a significant backlog.

Recently, the Arizona Department of Education revealed plans to automatically process 85,000 reimbursement requests related to the universal school voucher program, which allows families to receive up to $2,000 for educational expenses. The department is grappling with more than 89,000 requests, and the total cost of the automatic reimbursements is estimated at $170 million, according to Hobbs.

In a letter addressed to Horne, Hobbs highlighted cases of misuse within the Empowerment Scholarship Account (ESA) program, referencing a recent fraud investigation involving two individuals accused of exploiting the program by submitting requests under fictitious names. The ESA initiative provides parents with funds via a debit card to cover various education-related expenses, including tuition and supplies.

“Arizonans expect responsible management of their tax dollars and a commitment to preventing fraudulent activity,” Hobbs stated in her correspondence.

In response, Horne defended the automated process, emphasizing that post-reimbursement audits would allow for the recovery of misused funds. He pointed out that risk-based audits have been a standard practice in the past and that the current approach fits within the framework established by this year’s state budget.

The ESA program, initially launched in 2012, saw significant expansion in 2022, transitioning from serving around 12,000 students to a universal system accessible to nearly one million K-12 students. Over 83,000 students are currently enrolled, showcasing the program’s rapid growth.

Horne noted that the escalation of the backlog was influenced by new legislation allowing private school tuition reimbursement, which he argues created operational challenges for the Arizona Department of Education. He countered Hobbs’s claims by asserting that the ESA program maintains a high level of accountability.

The ongoing debate reflects broader tensions between Republicans, who advocate for the program’s expansion, and Democratic leaders concerned about escalating costs and the potential for fraud. This has led to ongoing budgetary disputes in Arizona, highlighting the complexities involved in managing educational funding.