Arizona AG Kris Mayes considering suing state schools chief Tom Horne over ESA auditing

PHOENIX – Arizona Attorney General Kris Mayes is threatening legal action against state Superintendent of Public Instruction Tom Horne over the Empowerment Scholarship Account (ESA) program’s risk-based auditing system.

The system automatically approves ESA purchases under $2,000, with each purchase audited afterwards.

Mayes announced Tuesday her office is investigating the system, with possible public monies violations facing both Horne and parents guilty of misusing ESA funds.

“We continue to urge Tom Horne to make the reforms necessary to stop those expenditures,” she said. “And so, what I would say is litigation is not off the table, but we are really pushing him hard to make reforms that would prevent that misspending of taxpayer dollars.”

Later Tuesday, Horne explained the system is set up so parents don’t have to wait three months for minor reimbursement, which some cannot afford without the assistance of ESA dollars.

“This is her way of silently trying to kill the program under which parents have choice for students whose needs are not being met in the public school,” he said.

Mayes stressed the importance of using taxpayer dollars for education purposes only, saying no public official can allow the misuse of taxpayer dollars.

“The parents of children with autism, who were the original beneficiaries and reasons for having this program, they don’t want to see this program collapse because of corruption. And that is a very real possibility … if this corruption continues,” she said.

State superintendent criticizes AG’s office over ESA investigations

Horne said his office has recovered more than $400,000 in misused funds for audits that found misuse and that 700 ESA accounts have been disabled because of funding misuse.

According to emails provided by ADE to KTAR News 92.3 FM, Horne’s office has taken action regarding $1,089,789 in misused funds since August 2023. A further $2.5 million in purchases is being reviewed.

Horne accused Mayes of refusing to prosecute parents who have misused $158,000 in funds while the Arizona Department of Education (ADE) has submitted multiple claims.

“We sent to her a case where somebody … purchased $64,000 worth of crystals, obviously for a business, and she refused to prosecute that,” he said.

However, Richie Taylor, the communications director of the Arizona Attorney General’s Office, rebuked Horne’s claims.

“Our office has 8 active and ongoing investigations into potential ESA fraud and two pending review,” Taylor told KTAR News 92.3 FM. “In the cases referenced by Superintendent Horne, while the spending certainly seems inappropriate, they did not meet the standard for criminal prosecution.”

Funding for this journalism is made possible by the Arizona Local News Foundation.

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