Universal Empowerment Scholarship Account Participation Soars in Arizona

Neil Jones

A new report for the Arizona-based Goldwater Institute (GI) Monday revealed that participation in the state’s universal Empowerment Scholarship Account program is soaring, and so is Arizona’s economy.

“Arizona’s bet on universal school choice is already paying off. At the same time that enrollment in the state’s Empowerment Scholarship Account (ESA) program is surging, the state’s revenue surplus has gone through the roof,” wrote Matt Beienburg, Director of Education Policy at the GI. “In the first four months of 2023 alone, enrollment in Arizona’s ESA program has soared by 7,000 students, bringing the total number of children served to over 51,000.”

The Arizona Sun Times reached out to the Arizona Department of Education (AZED) for additional comment but did not hear back before press time.

Before State Representative Ben Toma (R-Peoria) produced the universal expansion legislation, which former Gov. Doug Ducey (R) signed in 2022, there were only 12,000 participating in the program. While the increase in students using the program does bring a financial burden, the GI argued that the state is equipped to handle it.

The Finance Advisory Committee (FAC) of Arizona’s nonpartisan Joint Legislative Budget Committee (JLBC) met on April 13th and showed that revenue for the state is currently swinging in an upward direction. Since January 2023, Arizona’s surplus money has risen by $750 million above initial estimates, putting the state’s total available resources at around $2.5 billion. This total does not include the $1.4 billion rainy day fund kept in reserve for any future financial turmoil.

Additionally, the GI found that Arizona roughly spends, on average, $14,000 per student in a public school district every year. On the other hand, eligible ESA program families can only receive upwards of $7,000 per student during a school year. Arizona is estimated to spend nearly $15 billion on public education in the fiscal year 2023.

As shared by The Sun Times, since the program’s implantation, many students have left the state’s public school systems.

However, opponents of the program, such as Save Our Schools Arizona (SOSAZ), say it will only ruin the state. The organization claimed that “reckless spending,” such as the ESA program, combined with the flat tax rate implemented by Ducey and Republicans, will eventually push Arizona off a financial cliff. SOSAZ tried and failed to get the ESA expansion taken off the books and put in the hands of voters.

The FAC’s analysis revealed that if Arizona blows through the $2.5 billion surplus over the course of this year, the state’s gap between the state’s available funds and expenditures will shrink to $663 million by the fiscal year 2026. The GI ultimately said it is up to the legislators who implemented the ESA expansion and tax rate to determine the best way to spend the state’s money and keep Arizona prosperous.

Beienburg wrote, “when it comes to ESAs and the state’s financial solvency, one thing is clear: universal school choice and successful economic stewardship easily go hand in hand.”

Furthermore, Monday also marked an announcement from AZED that the ESA program has opened for the 2023-24 school year.

“Every child deserves a quality education no matter their zip code, and ESAs allow parents from any income level to choose what is best for them,” shared AZED.

As of March, there are five states aside from Arizona with universal ESA programs, including Florida, West Virginia, Utah, Iowa, and Arkansas.

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Neil Jones is a reporter for The Arizona Sun Times and The Star News Network. Follow Neil on Twitter. Email tips to [email protected].

 

 

 

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