Arizona’s school voucher program is under intense scrutiny after recent fraud schemes were uncovered, prompting calls for reform from state Democrats. While they propose significant changes, Republicans in the Legislature favor more measured approaches to safeguard the program.
Democratic Attorney General Kris Mayes has been at the forefront, pursuing fraud cases against individuals accused of illicitly diverting hundreds of thousands of dollars from the program. This program allows families to use public funds for private education expenses.
One notable case involves three former Department of Education employees who allegedly falsified records to siphon $600,000 by enrolling nonexistent children in the program. Another case targets two individuals from Colorado accused of creating fictitious student profiles to embezzle over $100,000.
Critics, including Mayes and Democratic Governor Katie Hobbs, argue that the program’s expansion in 2022, which extended benefits to all students, has paved the way for wasteful spending and fraudulent activities. Mayes remarked, “The ESA program has proven itself to be a big fat target for fraud.”
Governor Hobbs suggests narrowing eligibility to families with incomes below $200,000, while also reducing benefits for those earning above $100,000. However, Republican legislators have dismissed this proposal outright.
“I’m just telling you no now,” said Rep. David Livingston, chairman of the House Appropriations Committee, to Hobbs’ team.
Republicans, collaborating with state schools Superintendent Tom Horne, propose enhancing resources to better identify and prevent fraudulent activities. They highlight the need for increased staffing, as the program’s enrollment has surged from 11,000 students in 2022 to over 85,000.
Despite the surge in requests, Horne has drawn attention for easing scrutiny on smaller voucher purchases to alleviate a backlog, a move he acknowledges isn’t a permanent fix. “We used to think we need to check the large amounts and not the small amounts, but turns out there’s more cheating on the small amounts and on the large amounts,” Horne noted.
The Arizona Department of Education is working to secure additional funding for staffing and exploring technological solutions to streamline the fraud detection process. This includes leveraging AI tools in partnership with ClassWallet to ensure compliance with state regulations.
Attorney General Mayes supports these additional resources, emphasizing, “It’s a lot easier to stop the fraud on the front end than to prosecute and investigate on the back end.” Nevertheless, she anticipates ongoing challenges, stating, “I will continue to do these prosecutions for as long as I have to, but it’s going to be like playing whack a mole with these fraudsters.”
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