AZ Republican chairwoman breaks ranks, says ESA abuse should be ‘cut off’

PHOENIX — After more revelations of questionable private school voucher spending, Arizona Republican Party Chairwoman Gina Swoboda tells 12News this week, “people are taking advantage of the system,” and an audit is needed.

Swoboda’s comments are the most specific acknowledgement in months by a prominent Republican in Arizona that the growing ESA program needs some kind of restraint, though Swoboda stopped short of calling for specific legislation.

“I will concur that there are people that are taking advantage of that system, and it appears that they are making purchases that should not be approved,” Swoboda said. “Anytime you have a government program, it’s going to be susceptible to abuse, and when you expand it rapidly and you don’t staff up for it, or put guardrails in place, this is where we are now.”

The most recent report by 12News shows home and private school parents used Empowerment Scholarship Accounts to buy diamond rings, necklaces, Kenmore appliances, and even lingerie.

Senate President Warren Petersen (R) and Senator Shawnna Bolick (R) did not respond to questions from a reporter on Tuesday about Swoboda’s comments.

State Superintendent Tom Horne unsuccessfully requested additional funding from the state legislature to pay for more ESA administrators for the purpose of vetting expenses. Citing a lack of resources, Horne said his department would automatically approve ESA purchases under $2,000. A large portion of 12News reports have focused on those expenses.

Swoboda also referenced 12News journalist Craig Harris, author of several reports in recent weeks about the expansive nature of alleged ESA abuses.

“Craig has done tremendous work, and I’m grateful for it,” Swoboda said. “I think parents need choice. That being said, we need risk-limiting audits. We need to do something to ensure that this, this is cut off, because if it’s not, then the public won’t support the expansion of the program.”

Last year, another Republican, former legislator Ken Bennett, also broke ranks with Republicans when he said high-end Lego sets purchased with ESAs—some as much as $1,400—were excessive. But Petersen and House Speaker Steve Montenegro (R) rebuffed attempts at reforms of any kind. The vagueness of what qualifies as a legitimate educational expense has created a burden for the State Board of Education to create rules in its annual ESA handbook.

Meanwhile, ESA critics said there is more evidence that public schools lack even basic funding.

Just last week, a Maricopa County Judge, Dewain Fox—an appointee of former Governor Doug Ducey—issued a ruling in a seven-year-long lawsuit brought against the state legislature by public school districts. 

The plaintiffs argued the legislature has chronically shortchanged public schools for capital needs – expenses like buses, repairs, AC units, and technology.  

The Dysart School District alone said they were owed $60 million between 2014 and 2021 for transportation expenses. Fox cited evidence showing struggling districts often move money earmarked for teacher raises to instead address more pressing needs.

“I think the most important thing about this is the judge looked at all the evidence and said, this system is broken and it’s unconstitutional, and now it’s time for the legislature and the governor to come together, work with us and fix it,” said David Adelman, attorney for the plaintiffs.

Fox wrote in his 114-page ruling that the system used by the state legislature requires low-income and rural districts to rely on local bonds and overrides, which creates disparities in the system. Lawmakers are required to provide a “general and uniform public school system” for all school districts.

Senate President Warren Petersen, an intervenor in the case, argued during the trial last year that maintenance funds for schools are “robust” and administrators are expected to “conscientiously budget their available funds” to meet their needs.

Fox concluded in his ruling that administrators, especially in rural districts, have few options.  Fox also cited evidence suggesting that last year alone, the state underfunded public schools $387 million for needed repairs of roofs, AC units, and buildings. 

This year, the entire state budget to fix deficiencies in schools is $200 million. According to the ruling, that amount would not even be enough to cover the backlog from 2024. Fox also cited evidence showing that when repairs were put off by schools, the damage led to much higher expenses.

Petersen told 12News on Tuesday he planned to appeal the ruling and defended his record on school funding.

“We are not done on education funding,” Petersen said. “In fact, I led on Prop 123, and we tried really hard to get that done this session. I think we will get that done next session, and part of that will be increases in pay raises.”

Democrats say that’s the problem. They want increased funding that allows districts to address other needs as well.

According to evidence in the trial, districts that cannot pass local bonds and overrides are at a disadvantage in maintaining basic services for students.

From 2013 to 2023, 80 bond measures in Maricopa County passed, and 26 bond measures failed–for a passage rate of about 75%.

In other areas of the State during that same period, 44 bond measures passed, and 23 bond measures failed–for a passage rate of about 65%. For 2020 to 2023, the bond measure passage rate in Maricopa County significantly declined to about 59.5% (25 bond measures passed and 17 bond measures failed), and the bond measure passage rate for other areas of the State declined slightly to about 61% (11 bond measures passed and 7 bond measures failed).

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