As GOP lawmakers in Arizona rebuff changes to school voucher program, a Florida school-choice Republican is pushing major reforms there

PHOENIX — Arizona’s Empowerment Scholarship Account (ESA) program, which allows families to use public education funds for private school tuition, homeschooling, and other approved expenses, is facing renewed scrutiny after instances of misuse uncovered by 12News.

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While a significant number of families are using the program as intended, investigations have revealed questionable spending — and so far, Republican Arizona lawmakers who control the Legislature have declined to tighten oversight.

However, in Florida, a prominent Republican supporter of school choice is taking a different approach after an audit there revealed the state cannot account for more than $270 million in funding.

Don Gaetz, a longtime advocate of school choice, earlier this year led a unanimous effort in the Florida Senate to pass legislation aimed at increasing oversight and transparency in that state’s voucher system.

“I’ve been a school choice advocate as long as that has been alive in Florida,” Gaetz said in an interview with 12News.

But he acknowledged serious gaps in accountability.

“What’s happened is that the state of Florida today does not know where 45,000 students are who we are paying for,” he said. “They could be in a private school, and we’re paying tuition. They could be in a public school, and we’re paying for their funding.”

Gaetz said reforms are necessary to preserve public trust in the program.

“Florida has to make sure that our system works,” he said. “If we don’t fix it, sooner or later, taxpayers are going to say, ‘What are you all doing?’”

His proposal still needs approval from the Florida House.

In Arizona, attempts to impose stricter controls on ESA spending for a program that costs more than $1 billion for 100,00-plus kids have repeatedly failed.

After the state expanded the program to all students in 2022, Democratic Gov. Katie Hobbs and legislative Democrats pushed for reforms. However, the Republican majority rejected those efforts.

Investigations by 12News found ESA funds being used for items such as iPhones, big-screen televisions, and even lingerie — purchases that have raised questions about how closely spending is monitored.

Despite those findings, there remains little agreement among Arizona lawmakers on how to address the issue.

Gaetz suggested political dynamics may be a factor.

“Sometimes politics gets in the way,” he said. “There’s a feeling among some Republicans that if we start to fix it, that’s an admission that there may be something wrong with it.”

Back in Arizona, gubernatorial candidate Hugh Lytle, who is running as an independent, is also calling for changes to the ESA program.

“There needs to be some scrutiny on this,” Lytle said.

• Real-time transaction review instead of automatic approvals under certain dollar amounts.
• Clear and consistent purchase guidelines for families.
• Transparent public reporting of ESA spending and audits.
• Independent oversight not controlled by partisan politics.
• Phasing out ESA eligibility for households earning more than $250,000 per year so the program prioritizes middle-class and working families.

Lytle also criticized the state for not using better technology to prevent improper purchases.

“Just think about your own health savings account,” he said. “You can’t walk into a store and buy auto parts with money that’s meant for healthcare.”

According to data obtained by 12News from the Arizona Department of Education, about 20% of ESA participants, or at least 18,000 ESA account holders, used voucher funds intended for private and home schooling on a myriad of banned purchases.

Those public records obtained by 12News show thousands of parents used Empowerment Scholarship accounts to purchase at least $10.3 million on banned items — including paying themselves, buying condoms, and other sexually explicit items — in less than a year.

State Schools Chief Tom Horne notes that misspending does not necessarily mean fraud, but the department has not said whether those funds have been recovered. He has said repeatedly that fraud is less than 1 percent. 

Despite the concerns, most families appear to be using the program appropriately.

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