In what could be seen as a victory for the Arizona Department of Education, two individuals have been convicted for misusing funds allotted through the Empowerment Scholarship Account (ESA) program. The fraudulent activity, involving improper purchases with ESA dollars, was initially unearthed by the state's education department in 2024, and the case was subsequently referred for prosecution, as revealed by State Superintendent Tom Horne.
Superintendent Horne took to a public statement to highlight the department’s efforts in identifying and addressing waste, "In a recent television interview, state Attorney General Chris Mayes outrageously and mindlessly accused me of permitting improper purchases such as lingerie and diamonds. If she paid attention to her job or even to the news, she would know that this was a false charge," as mentioned on the Arizona Department of Education release. Horne's frustration stems from criticism he perceived as baseless, particularly considering the work done by his office to recover more than $622,000 in inappropriate purchases.
According to an announcement from the Department of Education, the practice known as risk-based auditing allows for the expeditious reimbursing of ESA expenditures that are below $2,000, subject to later review. This strategy is in place to avoid delaying reimbursements to parents, who would otherwise wait over two months for funds they are entitled to. Despite the detection of misuse, which includes spending on items like dune buggies and golf simulators, the department's limited staff of 12 people has processed purchases diligently, reviewing up to 500 requests daily.
The staffing issue was briefly addressed during the recent legislative session, with the House of Representatives proposing additional budget for more personnel in the Department of Education. However, Governor Katie Hobbs threatened a veto if the provision was not removed – a move that eventually led to its exclusion from the budget, given the risk of a government shutdown. As this internal conflict continues to unfold, Horne assures taxpayers of his commitment to combatting fraud, "I am committed to doing everything possible to protect taxpayer resources and root out fraud and abuse," as per the Arizona Department of Education. Though facing challenges, the unit remains steadfast in its pursuit of accountability, without support from the Attorney General’s office in the appellate process – an effort in which they've won 16 appeals against improper expenses thus far.
