PHOENIX — The top two administrators of Arizona's school voucher program quit abruptly on Monday, days before the scheduled award of a long-term contract to process more than half a billion dollars in transactions by the 60,000 families that receive the vouchers.
Also:
-Gov. Katie Hobbs' office projects a $319 million budget deficit in the current fiscal year tied to the expansion.
-Attorney General Kris Mayes is stepping up her oversight of the ESA program.
What Is The ESA Program?
Last year, the Republican-controlled Legislature expanded Empowerment Scholarship Accounts to all 1.1 million Arizona students. Every student is now eligible for $7,000 a year or more to attend a private or parochial school or be home-schooled.
Arizona was the first state in the country to allow universal vouchers. The program, which had been limited largely to low-income and special-needs students, has exploded over the last 10 months, from about 12,000 students to the current 60,000, according to ADE.
The ESA law, however, provides for little accountability or transparency in how the voucher money is spent, how the schools receiving the money perform, or how much the program will require in taxpayer support.
Why Top Administrators Quit
An Arizona Department of Education spokesman confirmed Tuesday that Empowerment Scholarship Account Director Christine Accurso and operations director Linda Rizzo had resigned.
"Christine Accurso has explained to the department that she took the ESA position to clean up the program and having successfully done that she has chosen to move on," according to an ADE statement. "We wish her well in her next opportunity."
Accurso didn't respond to a request for comment. Rizzo's departure wasn't explained.
Republican School Superintendent Tom Horne declined to comment on what his spokesman described as a "personnel matter."
The Education Department's internal auditor, John Ward, has taken over leadership of the program.
It's unclear how the resignations will affect the scheduled award of the state contract on Aug. 1 to process ESA transactions.
Parents Cite Reimbursement Issues
When Accurso was hired to run the ESA program, she was a prominent advocate of school choice whose relevant work experience was running a small medical office.
According to several parents who have contacted 12News, the ESA program has been plagued by sluggish reimbursement of voucher families' spending, in particular, special-needs families, who have higher expenses; questions about where the voucher money is being spent; and issues with how the contracted financial services company, ClassWallet, is handling transactions.
Hobbs' Office Warns of $319 Million Deficit
On Tuesday, Democratic Gov. Katie Hobbs' office issued a new warning of a potential budget shortfall linked to ESA spending.
The state faces a budget deficit of $319 million in the current fiscal year if projected costs of the voucher program hit $943 million, according to a report by Hobbs' Office of Strategic Planning and Budgeting
The updated cost projection is based on May estimates by the Arizona Department of Education. Hobbs' deputy chief of staff, Will Gaona, said the governor's office is seeking clarification of how ADE arrived at its projections.
In May, ADE projected enrollment of 97,000 students by July 2024 in the 10-month-old universal voucher program, up more than 50% from the current 60,000.
The Legislature's independent budget analysts at the Joint Legislative Budget Committee have also raised questions about the Department of Education's methodology.
AG Mayes Steps Up Oversight
Horne's Department of Education is also facing pressure from a new front.
Democratic Attorney General Kris Mayes on Monday took her first public step toward increased oversight of ESA spending. In a social media post, Mayes' office sought examples of potential fraud in the ESA program and warned parents of certain rights they wouldn't have at private schools.
Horne responded: "There have been significant protests against me from people who were used to the old lax system, but I am insisting that every law is strictly followed and that every penny of these funds is used for valid educational purposes."
In May, Mayes revealed on "Sunday Square Off" that the attorney general's office would investigate potential fraud, waste, and abuse in the ESA program.
"There are no controls on this program. There's no accountability, and they're spending hundreds of millions of dollars of taxpayer money," Mayes said.