PHOENIX — State Superintendent Tom Horne claimed the Empowerment Scholarship Account school voucher program wasn't responsible for Arizona's budget deficit.
"Nothing in education is causing the budget deficit because all kinds of education are costing $28 million less than were actually budgeted for," Horne said.
The ESA program is projected to cost $100 million more than projected this year. Horne and lawmakers say the Department of Education has leeway to cover the difference because the department as a whole has a $28 million surplus.
Horne, Senate President Warren Petersen and other legislators addressed the public during a news conference on Tuesday.
Arizona is currently ranked 45th out of 50 states for education according to U.S. News & World Report's 2023 Best State rankings.
The state faces a budget deficit of upwards of $1 billion.
“Increasing ESAs, along with declining revenues, put more and more pressure on the state general fund,” said Anabel Aportela, financial consultant for district and charter schools. “What districts fear is that they will again bear the brunt of cuts when the general fund cannot afford multiple school systems.”
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The voucher program lets parents use public money for private school tuition and other education costs. It started in 2011 as a small program for disabled children but was expanded repeatedly over the next decade until it became available to all students in 2022.
Arizona faces a $400 million shortfall in this current budget year and another $450 million deficit in the coming year. Those numbers are mainly due to the skyrocketing costs of a 2022 expansion of the voucher program and a 2021 tax cut that took full effect last year.
The law was originally estimated to cost $64 million in 2024 when the law was passed in 2022. Nonpartisan analysts updated that number to more than $700 million. The program could ultimately top $900 million this year, according to state enrollment figures and projections.
Horne also provided an update on ESA enrollment figures. Here is what we learned on Tuesday:
- The average amount for all ESAs, including those weighted for special education, is at $9,800.
- The number of ESAs projected for this school year was 68,000. Enrollment is now at 74,000. The department projects it will reach 85,000 by June.
- The Arizona Department of Education has 32 full-time employees overseeing the ESA program.
- The department suspended 2,200 ESA accounts because students were already enrolled in public schools. Horne said the move “saves” $20 million.
- For students who leave public schools mid-year, the ESA awarded to them is a lesser amount, based on quarterly payments.
- If a student leaves a public school to take an ESA after the 100 day mark, state law dictates the distrit receives per-pupil funds for that student. The child would also be eligible for the quarterly ESA payment.
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