Dems seek 'full audit' of Arizona's school voucher program

Arizona Democratic senators are calling for a full audit of the state’s Empowerment Scholarship Account (ESA) program following a report by the Arizona Auditor General’s office. The report identified nearly 600,000 high-risk purchases totaling nearly $100 million from July 2023 to October 2025, including items like a diamond necklace and dog training, which the Department of Education under Superintendent Tom Horne failed to review or address. The audit also revealed the department did not adequately check for conflicts of interest among ESA employees and missed reviewing unallowable transactions for seven months in 2025, increasing the risk of public funds misuse. Sen. Eva Diaz of Phoenix sent a letter dated May 14 to the Joint Legislative Audit Committee, citing serious concerns over the program’s lack of checks and balances. The ESA program allows families to use taxpayer dollars for private school tuition, homeschooling, and education expenses, with purchases under $2,000 automatically approved. However, the report found the Department of Education did not comply with state law by failing to conduct timely reviews of suspicious transactions. Republican lawmakers, including House Speaker Steve Montenegro, acknowledged the findings but opposed proposed restrictions by teacher unions, which would limit ESA eligibility for households earning over $150,000 annually and enforce public school academic standards. Montenegro emphasized the need for proper oversight while rejecting measures he called punitive to families. Department of Education officials disputed the audit’s findings, arguing the Auditor General’s office misrepresented key issues, including conflict-of-interest claims. Superintendent Horne dismissed the report as lacking value and accused Auditor General Lindsey Perry’s office of disregarding the truth. Perry’s office responded with a 2,000-word addendum, calling the department’s rebuttal misleading and deflecting attention from the problems identified. The ESA program was expanded into a universal voucher system in 2022 under former Gov. Doug Ducey and Republican lawmakers. While other state agencies agreed with the Auditor General’s findings, the Department of Education stood alone in rejecting the report’s conclusions, deepening a long-standing dispute between the two agencies.