Arizona’s Empowerment Scholarship school voucher program hits 100,000 students

PHOENIX — State Schools Chief Tom Horne announced on Tuesday that Arizona’s Empowerment Scholarship education voucher program had hit a milestone: 100,000 kids.

At a news conference at the Arizona Department of Education, Horne was joined by two ESA parents who said the program had done wonders for their children. Those two parents also said that those who waste ESA funds on frivolous, non-educational purchases need to stop because they are endangering the program.

“When I took office this term, the ESA program had about 11,000 students,” Horne said. “In the past three years, we have grown it to more than 100,000 students.

Horne added that the ESA program joins charter schools and open enrollment as pillars of school choice in Arizona. ESAs are expected to cost $1 billion this fiscal year.

While the program has substantially grown, 12News has uncovered numerous instances of questionable purchases like diamond rings, Kenmore appliances and even women’s lingerie.

Horne downplayed those problems, insisting again that the department’s risk-based auditing will eventually catch the fraudsters.

He noted his office has taken action to recover approximately $1.2 million in unallowable expenses through collections, repayments and referrals to legal authorities.

Last summer, 12News uncovered that Horne’s office had automatically approved 1.2 million ESA requests from parents totaling $124 million during a roughly seven-month period for everything at $2,000 or less.

12News found several million dollars in improper purchases, including more than $3 million in purchases to Amazon, Costco, and Best Buy, with no indication of what was bought. There were also nearly $2,000 payments to a person identified as “me” and “Jamie the tutor,” as well as for a purse.

Parents of ESA children also purchased more than 200 Apple iPhones, more than 50 smart TVs, and dozens of gift cards worth up to $500 — all unallowed, according to an ESA parent handbook that sets guidelines on what parents can purchase.

Horne said the department has initiated a technology-based counter-fraud tool to crack down on improper purchases. He also said Arizona residence is now verified to make sure money isn’t going out of state.

Horne, a Republican, also blamed Gov. Katie Hobbs, a Democrat, for not providing enough ESA staff to monitor the program and Democrat Attorney General Kris Mayes for not doing enough to prosecute ESA fraud.

Hobbs has repeatedly rejected those claims, saying Horne has refused to stop widespread cases of fraud while calling for more oversight during her entire three years in office. Mayes has ordered Horne to stop automatically approving all purchases under $2,000, but he has refused to do so, saying it would cause a backlog of orders for parents. 

ESA Director John Ward on Tuesday said the agency has 35 ESA staff members, with seven vacancies. 

He said the department needs to triple its staff to fully operate the wildly popular ESA program.

Ward also said 700 ESA accounts have been frozen because of improper purchases. He did not know how many were among the automatic approvals of $2,000 or less.

Two parents — Keisha Arnold and Ramona Carrasco — told reporters how ESAs had significantly helped their children, including one with Down syndrome.

That child, Byanca Carrasco, also told reporters how much ESAs had helped her.

Both parents also said they want other ESA parents to quit wasting funds on improper purchases because they are concerned the bad publicity could take ESAs from their kids.

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