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ESA director breaks down changes as school year is underway

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PHOENIX — With the new school year underway, there have been some big changes to the Universal Empowerment Scholarship Accounts (ESA) program that families say have been a big burden on them.

Currently, the ESA program has more than 68,000 students enrolled. It was at around 75,000 students at the end of the last school year, however, ESA director John Ward says it’s lower now because they’re still working on going through renewal contracts with some families.

“It’s hard to say where exactly this will land by September, but I think we’ll be somewhere around 75,000 students,” he said.

Another change ESA families have been dealing with is - the need to pay brick-and-mortar private schools through third-party contractor ClassWallet, at least until September as part of its contract with the state department of education.

“At the end of this past legislative session, state law was passed that all purchases through the ESA could be paid out of pocket and parents could seek reimbursement,” Ward continued. “Previously, that was not part of state law. It is now and that law takes effect on September 13.”

The biggest change, though, is what’s currently having the most impact on ESA families, according to Ward and Jenny Clark, an ESA parent and executive director and founder of Love Your School.

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Parents using ESA must now submit a curriculum for supplementary materials that could include books, flashcards and more. This came from the Arizona Attorney General’s Office which sent a letter to the Arizona Department of Education as part of its ongoing investigation into the ESA program earlier in July. As part of its investigation, the department is also investigating whether the ESA program is “authorizing expenses beyond the statutory framework.”

Under the ADE’s ESA handbook, the department differentiates supplementary materials that do and do not need curriculums.

“Because they just seemed so standard, that one would not expect a curriculum would be necessary for them but according to the AG’s office, a curriculum is still required,” Ward said.

When ABC15 asked Ward if they were not following state law before, he said that this has been a long-standing practice even since before Horne took office.

“It’s a decision that was approved by the State Board of Education. It was codified in our ESA parent handbook… This is new guidance based on the Attorney General’s interpretation of state law and so we’re going to abide by the Attorney General’s guidance on this,” Ward said.

ESA families say this change is more burdensome on them.

“To go after parents and make their lives more difficult by conflating the law saying that for 10 years it's been utilized in the improper way, feels like a direct attack on ESA parents,” Clark said.

Critics of universal ESA feel it’s needed, and the ABC15 investigators have detailed the calls for more accountability after analyzing about $300 million worth of ESA purchases. Some of those included ski passes, trampoline park visits and martial arts classes. The Arizona Department of Education said these were all valid.

“The AG's attempt here to insert some accountability for taxpayer dollars is helpful. But, you know, there's a lot more work to do to fix this program,” said Beth Lewis, the director of Save Our Schools, an education advocacy organization that’s been against the universal ESA program.

Since the change from the AG’s Office, there have been more calls to the ESA program with families in need of help.

“We understand those concerns. We’re empathetic to them, however, these are the expectations according to the Attorney General’s office for us to be in compliance with state law,” Ward said.

The Goldwater Institute, a conservative think tank, sent a letter to the Arizona Department of Education over the AG’s recent letter. The ADE told ABC15 that it’s been in conversations with the Goldwater Institute and that if a lawsuit were to be filed, Superintendent Tom Horne would support it and testify if necessary.

The Arizona Attorney General’s Office shared the following statement with ABC15:

“Attorney General Mayes and most Arizonans believe it is absolutely appropriate to require documentation for ESA purchases to ensure they serve an educational purpose. Beyond the common-sense need to ensure tax dollars are spent appropriately, this requirement is also mandated by state law and regulations enacted by the State Board of Education.”