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Gov. Hobbs warns Democrats the bill for ESA will be nearly a $1 billion

Posted at 6:18 PM, Jul 25, 2023
and last updated 2023-07-25 21:18:08-04

PHOENIX — The rapid growth of ESAs continues to raise concerns among Arizona Democrats that the program will bankrupt the state.

On Monday, the Governor's Office sent a memo to Democrats in the legislature saying the program could cost over $943 million.

In May, Superintendent of Public Instruction Tom Horne said the program would cost nearly $870 million. Both figures are way above the half million dollars that the program is budgeted for this year.

The universal school voucher program is unsustainable. Unaccountable school vouchers do not save taxpayer money, and they do not provide a better education for Arizona students, Arizona Governor Katie Hobbs said in a statement.

The Governor's Office projection is speculative.

As of May 24th, 60,561 students were enrolled in the ESA program. That is less than the 68,380 students budgeted for in the fiscal year 2024 and far less than the Governor's Office projection of 97,580 by the end of the 2024 fiscal year.

Democrats are lining up behind the Governor's Office projections. Democratic Whip Nancy Gutierrez, a longtime public school teacher said, "There's no limit on how much can be spent, and it is on pace to cost nearly $1 billion when its original price tag was $33 million. That will put our budget shortfall at $320 million next year."

After reviewing the report, Horne said "questioning our methodology and our commitment to integrity in this process is unfair and unnecessary."

In June, Republican legislative leaders said they will wait for the Joint Legislative Budget Committee report to confirm the numbers before responding. That report won't be ready until enrollment numbers for the fall are finalized.