Even with ESA increase, Arizona Department of Education underspent in FY 2024

(The Center Square) – Tom Horne, Arizona Superintendent of Public Instruction, announced today that the total state education spending for 2024 came in under budget, challenging claims that the ESA program is a threat to the state budget.

According to a news release from the Department of Education, total education spending finished $4.3 million under budget for fiscal year 2024.

“Having a surplus of more than $4 million is proof positive that the critics who have claimed the ESA program will bust not only the state’s education budget but the entire budget itself were always wrong,” Horne said. “It was always a myth, and that myth is utterly demolished.”

Arizona Democrats have long asked for increased scrutiny when it comes to the ESA program. In preparation for the possibility of a Democratic majority next year, Democratic legislators have created a multi-bill plan which includes laws targeted towards auditing the ESA program.

An ESA package was introduced by Gov. Katie Hobbs, Senate Democratic Leader Mitzi Epstein and House Democratic Leader Lupe Contreras that would increase “accountability and transparency in the ESA voucher program,” reads a news release from the governor’s office.

It would include fingerprinting, background checks and increasing financial accountability.

“Arizonans deserve to know their taxpayer dollars are being spent giving Arizona children the education they deserve, not on luxury car driving lessons, ski trips, and water park passes,” Hobbs said. “We must bring accountability and transparency to the ESA program. With this plan, we can keep students safe, give parents and students the information they deserve to make informed educational choices, and protect taxpayer dollars. It’s simple: we need accountability for government spending, and every school receiving taxpayer money should follow basic educational and student safety standards.”

The package did not make it through the legislative session.

However, the approved 2025 state budget has implemented increased safeguards when it comes to the ESA program, but does not decrease the amount of taxpayer funding spent on the program.

“I’m most proud of the fact that this budget fully protects the state’s universal Empowerment Scholarship Account (ESA) program which provides educational freedom for Arizona families,” said House Speaker Ben Toma in a news release from the Arizona House of Representatives. “Democrats have long vowed to dismantle the program. As the sponsor of the universal expansion of ESAs, I was never going to let that happen. Eligibility for the program is unchanged and we have included several smart, commonsense reforms that improve this popular school choice program and increase accountability.”

The reforms include requiring the Department of Education to utilize risk-based auditing of the program, implementing fingerprinting requirements for private educators and allowing parents to plan for the following school year by applying early while retaining the parents’ ability to be reimbursed for approved expenses.

Horne emphasized the importance of the ESA program for Arizonans.

“The universal ESA scholarships are a vital part of making sure that parents are able to choose the schools that best fit the needs of their children,” Horne stated in the Department of Education news release. “For example, we have families with three children. Two are doing fine in the neighborhood public school, but the needs of the third are not being met. ESAs enable the parents to find a school that meets the needs of the third child. How can anyone be so immersed in ideology that they would deny the parents that ability?”

According to the 2024 report, $6,309,352,100 was appropriated towards funding education and only $6,305,050,851.55 spent, leaving a surplus of $4,301,248.45. 

“Having choices such as charter schools, open enrollment for district schools and ESAs are a valuable tool for Arizona parents,” Horne stated in the news release. “As today’s announcement shows, these choices do not result in any part of the budget deficit. It resulted from overly optimistic projections of state revenues. ESAs are enabling parents to find the best schools to meet their children’s needs. No rational person should oppose that.”