In a clash over fiscal responsibility and bureaucratic efficiency, Arizona's State Schools Chief Tom Horne publicly criticized Governor Hobbs after she expressed dissatisfaction with the risk-based audit method for Empowerment Scholarship Program reimbursements—a procedure outlined in legislation she previously endorsed. Horne pointed out the method in question was legally sanctioned in the last budget statute signed off by the Governor herself, stating, "The method we are instituting, known as risk-based auditing, is specifically provided for in the budget statute that the Governor signed last session. Maybe she should start reading what she signs," in the Arizona Department of Education release.
The Governor's previous move to allow private school tuition payments through a reimbursement method instead of using the designated vendor, Class Wallet, has caused payment delays to spike from 30 to over 100 days. Horne argued that the current auditing approach was a response to problems exacerbated by the Governor's own legislation. He further criticized the Governor's office staff, describing them as slow learners.
The back-and-forth between the state's educational oversight and executive administration highlights ongoing debates about the execution of school choice programs. Horne emphasized the high level of accountability required for the Empowerment Scholarship Accounts (ESAs), which are subject to scrutiny by various governmental agencies and bodies, as outlined in the same press release. These accounts are governed by a range of statutory, rule-based, and ad hoc reporting requirements.
Arizona law mandates that the Department of Education conduct or arrange third-party annual audits of ESA to ensure compliance with state statutes, along with random audits throughout the year. This requirement is rooted in A.R.S. 15-2403 (B), which was signed in the most recent legislative session. Horne's criticism centers on the fact that the risk-based auditing method, now under dispute, was established in collaboration with the office of the auditor general, following directives from legislation previously approved by Governor Hobbs.
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