PHOENIX — The price tag for Arizona ESAs, or empowerment scholarship accounts, hits the state budget much harder in “no state aid districts,” such as the Scottsdale and Cave Creek communities.
The average cost for a non-special needs (universal) ESA is $7,400.
Based on school funding structures in Arizona, the average “net cost” to the state general fund for a student who leaves a school district and takes an ESA is $544. However, the “net cost” to the state general fund for a student who leaves a “no state aid” district is the full amount of the ESA.
There are 48 “no state aid” districts in Arizona. Most of them are small and in rural areas but they also include Scottsdale Unified, Cave Creek Unified, Prescott Unified and Flagstaff Unified.
A 12News analysis of available data shows that ESAs in 'no state aid' districts carry a cost between $65 and $85 million dollars.
According to the latest data reported by the Arizona Department of Education, there were 3,480 ESAs awarded to students living in Scottsdale’s boundaries alone. That total includes students who were previously in charter schools, district schools and a private school setting.
“Scottsdale is certainly the largest one, but there are many other districts in the state where the state picks up the full tab for that student,” said Chuck Essigs of the Arizona School Business Association.
Per-pupil funding for “no state aid” school districts stems from local property wealth taxes and not the state general fund, which means the state general fund makes up the full difference for students leaving the school district for a universal ESA.
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