Yee retracts claim on ESA funds for babysitting

PHOENIX — State Treasurer Kimberly Yee has told 12News for months that she does not have records showing how parents are spending their Empowerment Scholarship funds — even though her office released similar records in the past.

Earlier this week, 12News reported that Joe Kanefield, a former high-ranking state official and attorney for Yee, said some taxpayer money is being paid to teenagers who tutor or babysit.

RELATED: AZ voucher money pays teen tutors, babysitters, says Treasurer Kimberly Yee

On Thursday, Yee and her attorney walked back one of those claims in a letter to 12News.

“The Arizona Department of Education (ADE) has confirmed that babysitting services are not allowed under the ESA program,” the letter said.

The letter added that ClassWallet, the ESA vendor, confirmed that no expenditures have been approved for babysitting, and those services are not allowed.

Yee, who is running against state Schools Chief Tom Horne in next year’s Republican primary, made those claims as one of the reasons to withhold ESA spending records from 12News.

Yee had released ESA reimbursement records from 2022-23, the first year of universal vouchers to all Arizonans regardless of income. 

Those documents showed at least $1 million in Lego purchases as well as other questionable expenses like high-end KitchenAid products that have embarrassed ESA supporters.

Yee has told 12News to get the records from Horne’s office. Horne has said Yee’s office has the contract with ClassWallet and has the records.

State law says both offices have oversight of a program that now has about 90,000 students at a cost of $1 billion a year.

12News has filed numerous public records requests with both offices to get ESA records.

Those documents from the Department of Education have shown that there is $444 million in unspent ESA funds, which parents can use for college, and that the program primarily helps wealthy families while hurting high-performing school districts and charters.

Yee, who cannot run again for state Treasurer, was recruited by far-right Republicans who want no limits on how ESA dollars are spent. Horne, however, has implemented several restrictions and cracked down on luxury purchases.

Yee avoided 12News on Thursday, before the state Board of Investment meeting, which she chairs.

She entered the meeting through a back door and refused to acknowledge a question from 12News just prior to the meeting.

Instead, she pounded a gavel to open the meeting.

Kanefield, a former top official in the Attorney General’s and Governor’s offices, did not return a call. He is also the former state election director.

Meanwhile, one of Yee’s deputies provided 12News with the retraction letter from Kanefield’s firm, Snell & Wilmer, just before the meeting started.

Horne’s office has repeatedly said Yee’s claims about ESA funds used for babysitting were false, but Yee and Kanefield, for several days, did not correct their earlier statement.

The correction came as 12News was seeking comment from Yee about her babysitting claims.

Horne said Thursday that Yee’s turnabout shows she’s unfit for his job — especially if she doesn’t have a basic understanding of the ESA program.

Horne added if Yee is elected state superintendent of public instruction, she would allow many of the outlandish ESA purchases that he’s denied.

Meanwhile, state Rep. Nancy Gutierrez, D-Tucson, said there’s no way to know if babysitters were paid with ESA tax dollars unless Yee or Horne release the spending documents.

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