‘Litigation is not off the table’: ESA spending fight continues between Mayes and Horne

PHOENIX — Arizona Attorney General Kris Mayes revealed Tuesday her office has been conducting a “public monies investigation” involving how state Schools Superintendent Tom Horne approves spending for school vouchers. 

Earlier this year, 12News obtained records revealing some questionable purchases with funds from Arizona’s Empowerment Scholarship Accounts, a program that allows families to utilize public dollars on private education.

As a result of the findings, Mayes sent Horne a letter instructing the Republican superintendent to stop automatically approving ESA expenses under $2,000. During a press conference on Tuesday, Mayes said an investigation into ESA spending practices is ongoing.

In response, Horne was quick to call the attorney general “hypocritical” for reportedly not prosecuting potential cases of ESA fraud his office has sent her. 

The attorney general’s office recently prosecuted a fraud case that resulted in a prison sentence for a man who stole from the ESA program, but Horne listed off other cases he claims have not been pursued by Mayes. 

Richie Taylor, a spokesman for Mayes, said the office only prosecutes cases based on a reasonable likelihood of conviction. He added that the office has eight active cases of ESA fraud and two pending review. 

“We will continue to investigate and prosecute cases with sufficient evidence to bring criminal charges,” he said.

Taylor said the cases referenced by Horne appeared to have inappropriate spending, but they did not “meet the standard for criminal prosecution.”

“Arizonans should be concerned the ESA program has such little oversight that these items were ever allowed to be purchased in the first place,” Taylor said.

Horne said his office has already implemented processes to avoid misuse of ESA funds and claimed that up to 700 ESA accounts have been shut down.

That figure is for the past three years. 

Horne was unable to say how many accounts were closed for parents who misspent funds during the past year when his office approved all requests for $2,000 or less.

Horne has previously explained his office utilizes a “risk-based auditing” procedure for ESA expenses less than $2,000 and claimed this process was necessary so parents wouldn’t be left waiting months for reimbursement. 

The superintendent has repeatedly argued the education department needs more staff to properly audit and process the growing program, which he said has grown from more than 11,000 children to over 97,000 kids under his watch.

The records previously reviewed by 12News showed ESA expenses for jewelry, appliances, lingerie and resort stays.

Mayes, a Democrat, said her office has serious questions regarding how the growing program is managed and hinted that her staff is looking at potential “public monies violations.”

“Litigation is not off the table but we are pushing (Horne) really hard to make reforms that would prevent that misspending of taxpayer dollars,” Mayes said Tuesday.

Horne said it was “disgraceful” for Mayes to apparently politicize the popular ESA program. 

RELATED: Arizona AG orders State Schools Chief Horne to stop automatically approving ‘unallowable’ ESA purchases, like lingerie, after 12News investigation

RELATED: AG Kris Mayes says she’ll crack down on ESA ‘scandal’ following 12News investigation that found parents used tax dollars for diamonds, luxury goods