State Superintendent Fights to Recover $29 Million in Federal Funds Left Untapped by Prior Administration

By Staff Reporter |

Arizona is currently facing a significant financial oversight, with approximately $29 million in unused federal funds designated for schools. Arizona Department of Education (ADE) Superintendent Tom Horne has expressed a commitment to recovering these funds, which were left underutilized during the tenure of his predecessor, Kathy Hoffman.

The U.S. Department of Education recently alerted Horne about the unused Title I funds, marking the first such notification under his leadership. Horne attributed this mismanagement to what he described as incompetence in the prior administration.

“The underutilization began in Federal Fiscal Year 2020 and extended into the time when my predecessor was in charge,” said Horne. He further emphasized that key staff responsible for these allocations are no longer with the department.

Amid the controversy, Horne firmly rejected claims from Governor Katie Hobbs, who accused him of mismanaging the funds. “These dollars should have been distributed to districts and charters years ago, but instead were allowed to accumulate,” he stated.

Horne noted that the miscommunication stemmed from a single employee from Hoffman’s administration who allegedly provided incorrect allocation figures to schools. He refrained from naming this individual, emphasizing the impact of their errors on federal fund distribution.

Despite the blame placed on her administration, Hoffman contended that Horne failed to identify and rectify these issues soon after taking office. “It was their choice to bring in their own leadership, so those people needed to figure out all the grant funding,” she remarked.

The situation escalated on Monday when Hobbs, alongside six Democratic state representatives, called for a Joint Legislative Audit Committee to examine Horne and ADE’s handling of the Title I funds. Hobbs criticized Horne for allowing what she described as the disappearance of critical federal funding for schools.

“It is unconscionable that Superintendent Horne has let tens of millions of dollars disappear from our schools,” Hobbs declared. “Our kids deserve better.”

The Democratic lawmakers echoed these sentiments, arguing that ADE’s current practices have contributed to confusion regarding Title I allocations. They pointed out that school finance officers statewide have struggled to understand the reductions initiated by the department.

In an effort to retrieve the $29 million in unused federal funds, ADE must apply for a Tydings waiver, which would allow the state to access exceeding funds accrued since the 2020 fiscal year. Approval of this waiver would enable increased funding to go directly to districts and charters, according to ADE.