Mayes, Horne Spar over ESA Procedures and Oversight

Arizona Superintendent of Public Instruction Tom Horne sharply rebuked Attorney General Kris Mayes’ criticism of the Empowerment Scholarship Account (ESA) program, saying her public comments were misleading and politically motivated. In a letter to Horne and her television appearance, Mayes expressed concern over the Department’s policy of automatically approving ESA purchases under $2,000, a practice she claims led to taxpayer dollars being spent on items clearly prohibited under program rules.

“The problem here, Brahm, is, number one, Horne has allowed anything under $2,000 to be automatically approved, which is why apparently we’re now getting diamond rings being purchased with taxpayer money,” Mayes said during a 12News interview.

The letter Mayes sent to Horne demanded that he halt the automatic approval practice and requested the Department to provide documentation of audit procedures and account suspensions within 10 to 30 days.

“I also need to assess whether the Department is taking appropriate steps to respond to clear abuses of the ESA program and safeguard public funds,” she wrote, adding, “without further litigation, but I must reserve all available legal remedies.”

In response, Horne accused Mayes of omitting crucial context, namely that the ESA Department is in the process of recovering more than $600,000 in improper purchases and that the practice is mandated by law.

“In your letter today, and in a recent television interview, you misled the public by stating that improper ESA purchases had been approved, without any reference to the fact that under risk‑based auditing dictated by the legislature the money has been recovered or is in the process of being recovered. We have collected or are in the process of collecting more than $600,000 that was paid out for improper purchases.”

Horne defended risk-based auditing as both common and appropriate, emphasizing that it is also legally required by A.R.S. § 15‑2403B. The statute requires the Department to develop such procedures in consultation with the Auditor General.

He further emphasized that “these improper items have not been approved,” and that accounts tied to questionable purchases have already been frozen. “Again, you misled the public in your interview by stating that these improper items have been approved. They were not approved, and as to all the items you mentioned, the accounts have already been frozen.”

Horne noted that budget constraints, stemming from Governor Katie Hobbs’ veto threat, limited the Department’s ability to add auditors, forcing reliance on risk-based audits. Additionally, he clarified that consultation with the auditor general does not mean ceding control: “Some have erroneously interpreted the word ‘consultation’ to mean that the auditor general has the right to dictate terms to us. That is incorrect.”

Mayes also drew criticism from Arizona GOP Chair Gina Swoboda, herself a supporter of school choice, who warned of the need for stricter oversight of ESA. “Anytime you have a government program, you need to have proper guardrails. This is where we are now,” Swoboda said in a recent interview, implying bipartisan alarm over the ESA management.

This exchange highlights the heated feud between Horne and Mayes over ESA oversight, fiscal transparency, and public messaging. Horne asserts that he is following the statute, recovering funds, and shielding families from reimbursement delays. Mayes contends that front-end controls are lacking and that the protection of taxpayer dollars is insufficient.

Horne concluded that although a fuller response to Mayes’ “long-winded letter of seven pages single space” will follow, he felt compelled to address the “main points so you will have no further excuse to mislead the public.”