Grand Canyon Times

Arizona State Senate Majority Leader Sonny Borrelli is asking Gov. Katie Hobbs to focus on fraud occurring in the state’s education sector rather than increase regulation on the Empowerment Scholarship Accounts Program.

Led by Borrelli, the Legislative Audit Committee’s investigations have revealed over $1.8 million in losses and 34 criminal charges against individuals involved in theft, forgery and other fraudulent activities.

"I implore Governor Hobbs and Democrats to stop their obsessive witch hunt focusing on the majority of honest families participating in the Empowerment Scholarship Accounts Program, and to instead scrutinize the criminal activity happening right now in our public school districts and universities, which is robbing millions of dollars collectively from taxpayers, students, and teachers,” Borrelli said in a statement posted to X.

Kim Quintero, the director of communications for the Arizona State Republican Caucus, told Grand Canyon Times the investigations would continue.

“They've already prosecuted those individuals that were involved in those fraudulent schemes,” she said. “[The Auditor General] will be conducting another investigation, this year, kind of picking and choosing school districts again to look through, their finances and any potential wrongdoing.”

The Arizona State Senate Republican Caucus also produced a press release noting the Legislative Audit Committee’s uncovering of fraudulent schemes within K-12 Public School Districts and Arizona State University, resulting in significant financial losses to taxpayers.

This follows similar findings in 2022, where over $980,000 in losses and 25 criminal charges were identified within other school districts.

Borrelli emphasized the importance of financial accountability and transparency to prevent misuse of taxpayer funds, ensuring resources are directed towards academic endeavors rather than criminal acts that undermine educational opportunities for students and teachers.

"Arizonans should have confidence knowing their tax dollars are being spent to educate students, but we're finding individuals within public school districts and public universities are illegally padding their personal bank accounts and purchasing gifts for themselves, like video game consoles, exercise equipment, and laptop computers," Borrelli said in the press release.

"I implore Governor Hobbs and Democrats to stop their obsessive witch hunt focusing on the majority of honest families participating in the Empowerment Scholarship Accounts Program, and to instead scrutinize the criminal activity happening right now in our public school districts and universities, which is robbing millions of dollars collectively from taxpayers, students, and teachers.”

Arizona’s Auditor General Lindsey Perry, noted the fraud in a year-end round up discussing her office’s work in 2023.

Perry noted the Legislative Audit Committee in Arizona addressed 74 fraud-related allegations across various government entities in 2023, leading to 4 financial investigations and 34 criminal charges against 5 individuals.

The investigations revealed the instances of embezzlement and misuse of public funds within Arizona State University and several school districts.

The revelations come as Democrat Gov. Katie Hobbs seeks to change the rules governing Arizona’s Empowerment Scholarship Accounts Program.

Despite portraying Hobbs’ measures to enhance the program's effectiveness critics are saying the proposed changes would be detrimental.

In an opinion piece posted to AZCentral, Director of National Research at EdChoice Michael McShane said the move to further regulate the ESA program is aimed at “hobbling” its outcomes. 

“With the massive legislative success of Empowerment Scholarship Accounts over the past three years, it is clear that opponents are using new tactics to slow down or choke momentum,” McShane wrote.

McShane said despite claims of improving ESA functionality, closer examination reveals the regulations may actually impede its efficacy.

Concerns arise regarding the impact on special education services, potential bureaucratic burdens, and the reintroduction of restrictive eligibility requirements.

McShane argues that these measures could hinder educational choice and burden families and providers without clear evidence of enhancing educational outcomes.

With ESA's increasing popularity, opponents' efforts to impose new regulations are seen as attempts to slow down its momentum, prompting calls for careful scrutiny and resistance against perceived encroachments on educational choice.