Arizona Governor Katie Hobbs is demanding that the Arizona Department of Education reconsider a policy that she herself approved, which fast-tracks spending of Empowerment Scholarship Account funding in amounts under $2,000.
In response, the state’s top public school official, Superintendent of Public Instruction Tom Horne, is asking why she now questions a practice, known as risk-based auditing, that she signed into law.
“The method we are instituting, known as risk-based auditing, is specifically provided for in the budget statute that the Governor signed last session,” said Horne. “Maybe she should start reading what she signs.”
“Equally startling, is that she herself created the problem we are trying to solve by signing a bill to permit private school tuition to be paid under the reimbursement method, rather than going through our vendor, Class Wallet, which was previously required,” explained Horne. “This played a major role in increasing the delays and reimbursements from 30 days a year ago to over 100 days now.”
Arizona law (A.R.S. 15-2403 (B)), that was signed in the most recent legislative session, states: The department shall conduct or contract for annual audits of Arizona empowerment scholarship accounts to ensure compliance with section 15-2402, subsection B, paragraph 4. The department shall also conduct or contract for random, quarterly and annual audits of Arizona empowerment scholarship accounts as needed to ensure compliance with section 15-2402, subsection B, paragraph 4. The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuant to this subsection.
“The Governor played a major role in creating a problem that we now must solve by using a method provided for in a Bill that she signed,” says Horne. “Part of the problem appears to be that staff in the Governor’s office are slow learners.”
The ESA program is among the most accountable program in the State, according to Horne. “It’s responsible for demonstrating accountability through reporting that is required by statute, rules, and ad hoc requests from seven government agencies and bodies, including: Governor’s Office; Legislative Leadership; Joint Legislative Budget Committee; Attorney General’s Office (multiple units); Auditor General’s Office (multiple divisions); State Board of Education and the State Ombudsman.”
Hobbs’ opposition to the practice is especially surprising that she broke the record for number of vetoes issued by an Arizona Governor, and critics say that given Hobbs’ veto-happy approach to governing, Arizonans could safely assume she was for the risk-based auditing procedures before she was against it.
