Another cost for the ESA program

Arizona's maybe most controversial program continues to add costs

There is always a lot of debate around Arizona’s Empowerment Scholarship Accounts (ESA) program, but nothing more lately than the debate on how much the now-universally expanded program will cost.

There have been several different numbers thrown around from the Legislature, the Governor’s Office and the Arizona Department of Education, with latest predictions expected to hit around $900 million by the end of Fiscal Year 2024. That number could be closer to $1 billion and lead to a budget shortfall, according to Governor Hobbs’ office.

The Legislature’s prediction when the law passed in 2021 anticipated it costing $30 million annually, which never seemed like an accurate portrayal, which critics shouted from the rooftops to ears of those who have never wanted to listen to critics on this issue.

The $900 million is just to fund accounts for students and does not include how much it costs to administer the program, pay the vendor or cover salaries for any additional staff needed at ADE.

• There are plenty of issues within the ESA program, most recent of which was a data breach that resulted in an Arizona Department of Homeland Security investigation and simultaneous “resignation” of the programs top two advisors under Superintendent Tom Horne.

• No matter how many times Horne or Christine Accurso, the program’s now former director, claim is was a resignation on her part, it just doesn’t pass the smell test. I was sent a photo of Accurso allegedly being “escorted” out by the HR manager and securities manager of ADE.

• Doug Nick, ADE communications director, categorized it differently, despite the photo. “That is incorrect. She wasn't escorted out. She left amicably,” he said.

To clear up just how much the program will cost and how many students will enroll (is it 68,000? is it 90,000? is it 100,000?), House Speaker Ben Toma¹ hired economist Alan Maguire to look into it all.

I requested the contract to see how much money the state will pay Maguire to look into the ESA program, which several government agencies have already done.

The contract wasn’t announced until July 26, but according to the records, Maguire sent the contract terms on July 10 and Toma signed it on July 24.

The Maguire Company will be tasked with “reviewing, analyzing and understanding. any estimates of the number of Arizona K-12 students that may likely apply for Empowerment Scholarships (ESA); b) understanding where such students may have previously been receiving education services; c) documenting the basis such information; and d) presenting such findings as requested.”

• Maguire is known as a top notch economist and is a frequent guest on KJZZ.

This is what The Maguire Company will do for the Arizona House at $400 per hour for up to 20 hours per week beginning July 17. That comes out to $8,000 per week max, but the contract doesn’t say how long it will go until.

So I’ll stay on top of this to see how much it will end up costing and I’m sure other local media will report on the findings of Maguire’s report.

See the full contract terms here.

1. It’s worth noting that Toma was the initial sponsor of the universal expansion Governor Doug Ducey signed in 2021.