New Report Undermines ESA Critics’ Assertions

By Matthew Holloway |

The Common Sense Institute of Arizona (CSI) has unveiled a detailed report that addresses misconceptions regarding Arizona’s Empowerment Scholarship Accounts (ESA) program. This report presents a factual analysis of the financial and educational consequences of the ESA on the state’s public education landscape.

Spanning eleven pages, the report adopts a claim-and-fact structure, highlighting five critical areas: K-12 Funding Growth, Per-Pupil Spending, Public School Enrollment Decline, ESA Program Costs, and Accountability and Oversight. The findings provide clear insights amidst the ongoing debate surrounding ESA funding.

Over the past nine years, from Fiscal Year 2016 to 2025, funding for Arizona Public Schools surged by approximately 60%, surpassing $6.3 billion. In contrast, funding for ESAs rose by just $792 million during the same period—registering only 11% of the overall budget increase. This data counters the prevalent narrative that public school funding is being slashed to finance the ESA program.

In alignment with statements from Superintendent of Public Instruction Tom Horne and assessments by the Arizona Legislative Budget Committee and the Goldwater Institute, the report emphasizes the unchanged nature of public school funding despite declining enrollment. According to the CSI, Arizona’s public school spending has reached over $15,100 per student—a 30% increase since FY2016 when adjusted for inflation, even as public school enrollment has dropped by over 23,500 students in the last five years.

The CSI noted on X that the decline in traditional district public school enrollment is a long-standing issue in Arizona, primarily influenced by demographic changes and evolving public sentiments. They assert that this pattern will persist regardless of ESA impacts, framing the ESA as a necessary response rather than a catalyst for declining enrollment.

Critics have often claimed that the ESA program primarily benefits affluent urban families. However, the CSI, along with the Joint Legislative Committee, dispels this belief. They point out that since the pandemic, interest in traditional public schools has waned across various demographic segments. The rise of alternative education models, like homeschooling and microschools, signifies a shift in the student population that transcends simple socio-economic divides.

Further validating this, the report cites the Black Mother’s Forum, a microschool in Arizona that has been operational since 2021, serving over 150 students—all utilizing ESAs. Notably, 90% of these students are from non-white backgrounds, with the majority classified as low-income. The Forum’s CEO clearly articulated the necessity of the universal ESA program, stating, “Without it, these schools would not exist.”

Matthew Holloway is a reporter for AZ Free News. Follow him on X for updates or email tips to Matthew@azfreenews.com.