Deer Valley school superintendent criticizes luxurious purchases with ESA money

PHOENIX — Public school teachers across Arizona are digging into their own pockets or creating wish lists to pay for basic school supplies as parents who oversee their kids’ Empowerment Scholarship Accounts are purchasing diamond rings, Kenmore appliances, and iPhones with state tax dollars.

The discrepancy infuriates Deer Valley Unified School District Superintendent Curtis Finch, an outspoken critic of Arizona’s loosely regulated ESA program.

“Arizona has the most unusual (education) system in the nation. We have zero accountability,” Finch said. “I think the taxpayers are now starting to figure out, like, ‘Whoa, this is out of control.””

Finch’s comments come as 12News has uncovered home and private school parents purchased lingerie, more than 50 smart TVs, and dozens of gift cards worth up to $500 each since last November, when state Schools Chief Tom Horne ordered his staff to automatically approve all ESA reimbursements of $2,000 or less.

Horne has said his staff will eventually claw back the money from the misspending.

“The department is operating the ESA program in accordance with state law, which includes risk-based auditing. That is an ongoing process that gives us three years to pursue potential fraud,” said spokesman Doug Nick. “So far, we have collected or are in the process of collecting more than $600,000 in inappropriate expenses, including referrals to law enforcement when warranted.”

RELATED: I-TEAM: ESA parents bought diamond rings, lingerie, and Kenmore appliances with education tax dollars

Finch, who has been in education nearly four decades, said it’s ludicrous that the Department of Education is giving parents carte blanche on spending.

“We obviously know that the wealthy are using it. About 80 percent of the (ESA) users are from the wealthy, wealthy zip codes,” he said. “Obviously, there is no oversight of it. So, people are taking advantage of it.”

Finch added that if a teacher or superintendent in his district tried to buy a diamond ring, a Kenmore appliance, or lingerie with tax dollars, they would immediately be fired.

“They would be out of a job. No question,” Finch said. “And this is happening every day in the ESA machine.”

Attorney General Kris Mayes has ordered Horne to stop automatically approving requests that are clearly illegal or unallowed in the ESA Parent Handbook.

Horne said he has no plans to change the practice, and Mayes has indicated she will take him to court.

At Mountain Ridge High School, one of Deer Valley’s 42 schools, biology teacher Jane Koistinen said she spends at least $500 of her own money every summer for her classroom.

“There’s some stuff I buy at the beginning of the year to sort of refresh, get situated. A lot of school supplies,” she said. “I love doing sort of class rewards and treasure box items.”

Koistinen said many of her colleagues rely on donations from parents while other Valley teachers say they have Amazon wish lists to pay for paper, books or cleaning supplies.

“I don’t know a single teacher on campus who does not either have a wish list, a Donors Choose or asks in some other way for some sort of supply,” she said.

Meanwhile, 12News found the Department of Education approved more than $4.7 million in Amazon purchases for ESA families since late last year even though there was no record of what was purchased.

ESA guidelines state all of those purchases should have been rejected.

Koistinen said that kind of spending — especially with tax dollars — doesn’t happen in her school.

“You can only use district funds for an approved list that has to get approved by your supervisor, and that person has to then have a receipt,” she said.

Koistinen added she was dismayed at what ESA parents are allowed to purchase.

“It’s just shocking,” she said. “It impacts, sort of, my long-term view of the state of public education. Like if people are just allowed to buy these things, buy trips, buy lingerie, or whatever else it might be, why am I busting my butt, taking 14-hour work days?”

RELATED: A couple who created ‘ghost’ children to defraud Arizona’s Empowerment Scholarship program plead guilty to felony charges