Horne Asks State Board of Education To Strengthen Operation of ESA Program

State schools chief Tom Horne has sent the State Board of Education four proposals for changes to the handbook regarding the administration of the Empowerment Scholarship Accounts (ESA) program. This is with an eye toward improving service for parents and students and to comply with updates to state law.

Horne said, “The mission of the Arizona Department of Education is a service organization committed to raising academic outcomes and empowering parents. The four updates that I am asking the State Board of Education to consider for the operation of the ESA program ensure compliance with the original ESA law.”

The proposed updates cover four areas:

Allowable education-related expenses: This program is subject to audit and the Department is committed to ensuring that taxpayer dollars are being used only for educational purposes as authorized by the law.

Accreditation for tutors and teaching services: Currently, these services are intended to be provided by a person or facility accredited by an accrediting organization. However, in terms of facilities, this was not enforced in prior years. Because accreditation of facilities was not enforced in previous years requiring a college degree would be disruptive to parents and students.

Access to ESA funds and debit card use: There are four ways to arrange payments to vendors. One of these is debit cards. Contrary to some impressions, those who have debit cards and have been in compliance with the law, can keep them. However, debit cards create a much higher administrative burden than the other three methods of payment. As the program expands, issuing more debit cards would make it impossible to pay vendors within a reasonable amount of time. The department is recommending that it sticks only with those who now have debit cards and ask new ESA participants to use the other three payment methods.

Change to Third Party payment vendor: Many ESA parents have complained about the performance of Class Wallet. A Request For Proposal (RFP) for other providers is being prepared and the department expects to have a new vendor under contract near the end of May.

Click here to read copy of the email sent to ESA families and the State Board of Education.