Carol Burris spent time in Arizona to find out what happens with the state’s school choices. What she discovered was unbridled profiteering on the taxpayers’ dime.
She wrote in the Arizona Capitol Times that Arizona taxpayers are being hoaxed by the education industry.
It is time for Arizonans to take a hard look at who really benefits from school choice. While some families may want tax-payer funded options, the dizzying array of choices, combined with lax oversight and weak laws, make Arizona’s taxpayers easy marks for profiteering on the taxpayers’ dime.
Arizona is the Mecca of School Choice – for-profit charters, non-profit “fronts” for for-profit charters, Empowerment Scholarships Accounts (ESAs), and tax credits all compete with little regulation and oversight.
Let’s begin with charters. Arizona’s charter laws are some of the worst in the nation when it comes to protecting taxpayer money. For example, the Arizona State Office of the Auditor General is not allowed to monitor charter school spending.
Only the Arizona State Board for Charter Schools (AZCB), whose members (with one exception) are appointed by the charter-friendly Governor, can keep an eye on charter school finances.
Does that lack of thorough, objective oversight matter? You bet. Sound oversight produces fiscally responsible charter schools that can afford to stay open. Without it, scams, bad real estate deals and old-fashioned mismanagement abound.
When charters close, millions of taxpayer dollars are wasted and students are left stranded. In a five-year period (2009-2013), 111 Arizona charters shut down. According to former superintendent and charter school administrator, Curt Cardine, in 2013-2014, 138 charter schools “did not meet the AZCB Financial Performance Recommendation. This is fully 33.91% of the charter groups in the state that were financially rated by AZCB.”
Are the citizens of Arizona indifferent to the waste and fraud that permeates the charter industry? Or is it that they just don’t care what they are paying for? Do they fall for every fraud that the hucksters sell? Would they buy snake oil to cure baldness?
There is no penalty for the owners if the school fails. In fact, it is an opportunity for enrichment. All property belongs to the charter owner by law. That means taxpayer-funded buildings, books, computers, and equipment go to the owner of the failed school, which he can sell.
Fiscal problems are not limited to “mom and pop” charter schools. Even well-established charter chains can run into fiscal difficulty. The most recent audit for the BASIS charter chain shows a huge deficit in assets of over $13 million, and a 2014-2015 net loss of $3,074,317. BASIS School Inc., which collects the taxpayers’ dollars, is a non-profit. However, it is managed by the for-profit, BASIS Educational Group, LLC. In 2014-15, just shy of $60 million went from the BASIS non-profit to the for-profit corporation to provide services to BASIS schools. When that happens, spending is blocked from public view.
Additional frauds are perpetrated with Arizona’s so-called Empowerment Savings Accounts, aka deregulated vouchers.
But charter schools are not Arizona’s only worry. Empowerment Scholarship Accounts (ESAs), which some in the legislature want to expand, have been a “hot mess” of misspending and even fraud.
For those unfamiliar with the program, parents who participate are given a debit card to buy educational services for their child instead of sending them to a public school. Although it is touted as a program to help poor families escape “failing schools,” an analysis of the state’s ESA program found that most families using it are leaving high-performing public schools in wealthy districts to attend private schools. Students from schools with the fewest students receiving free or reduced-priced lunches received an average ESA benefit of $15,200 – more than twice the average ESA benefit of $7,350 given to students from schools with the highest share of children receiving free or reduced-price lunches.
Parents have used the debit card to purchase personal items for themselves instead of their kids. There was even an attempt made to use it for a dating service. There are cases of parents getting and using the debit card even though their children are enrolled in public school. The state has collected only a fraction of what has been misspent.
Other Arizona school privatization programs have been equally fraught with problems. The $140 million dollar a year tax-credit program is nothing more than a gift of public funds masquerading as a “good cause.” Contributors get a dollar for dollar credit with the money going to support private school tuition. Yes, you make a contribution, but it costs the taxpayers, not the donor.
When will the citizens and taxpayers of Arizona wake up and realize that their tax dollars are underwriting fraud, conflicts of interest, nepotism, and self-dealing?
Do they care?
No, they don’t care about waste and fraud. Yesterday the Arizona legislature voted by 16-13 to expand the voucher program, so that more students can use public money to go to private and religious schools.
Sen. Debbie Lesko, R-Peoria, had originally sought universal vouchers. Her plan was built on the fact that the cap on enrollment, currently about 5,000 students, is scheduled to self-destruct after 2019, making vouchers available for every one of the 1.1 million students now in public schools.
But Lesko could not get the votes for her plan, with objections ranging from philosophical issues of state aid to private schools to the fact that her legislation would have increased the cost to the state by $25 million a year by 2021.
The stalemate was broken when Sen. Bob Worsley, R-Mesa, agreed to go along. But Worsley insisted on a series of changes, including the cap he said should keep the number of vouchers at probably no more than about 30,000 by 2021.
That proved little comfort to Sen. Steve Farley, D-Tucson, who pointed out it would take only a simple majority of a future legislature to remove that cap and create universal vouchers.
Worsley conceded the point. “I think it’s the best deal we can get,” he said. Worsley also said that’s not necessarily a bad thing, and that the next six years will be an “experiment” to show whether vouchers result in better education.
Vouchers were first approved in 2011 to help parents whose children with special needs could not get the services they need in public schools.
Foes sued, charging that it violates a state constitutional provision barring public dollars from being used for religious worship or instruction.
But the state Court of Appeals said the money goes to the parents who decide how to spend the funds, making who ultimately gets the dollars irrelevant. And the judges said the vouchers do not result in the state encouraging the preference of one religion over another, or religion over atheism.
Since that time, proponents have repeatedly added to the list of who is eligible. It now includes everything from children of people in the military on active duty and foster children to all children in failing schools and those living on Indian reservations.
And supporters have made it clear from the beginning the ultimate goal always has been universal vouchers, which was precisely where Lesko was headed.
Worsley insisted he’s neither a supporter or foes of vouchers, formally called “empowerment scholarship accounts,” describing himself as a “pragmatic arbitrator” between supporters and foes.
Farley scoffed at that contention, saying this “compromise” does not acknowledge there are many lawmakers who believe public dollars should not be used to send children, in whatever numbers, to private and parochial schools.
“This is no compromise at all,” added Senate Minority Leader Katie Hobbs. “This is lipstick on a pig.”
Worsley said his amendment does more than cap the number of vouchers — at least unless and until future lawmakers decide otherwise.
He said the amount of the voucher given to a student will be based on the amount of state aid given to students in that district. Worsley estimated that average figure at $4,400 a year, versus the current $5,600.
What that also means, he said, is if the maximum number of children eligible can get vouchers in 2021 there will be a net savings to the state of $3.4 million, versus the $25 million cost.
Worsley said that’s nothing to be sneezed at, pointing out that $28.4 million swing is twice as much as Gov. Doug Ducey, who lobbied in support of this plan, put into this year’s budget for teacher raises.
That still leaves the question of who benefits.
There is some evidence that many of the 3,800 students who are now getting vouchers have moved from schools in affluent neighborhoods. That leads to charges that vouchers help defray what parents pay to have their youngsters attend private schools where tuition can top $15,000 a year.
“They’re just having the taxpayers of Arizona subsidize that tuition,” said Sen. Sean Bowie, D-Phoenix.
The $4,400 will be a nice subsidy for affluent parents. But it won’t be enough to put poor children into elite private schools, which has no space for them anyway.
The research on vouchers has pointed in one direction: It does not produce better education. It produces a lobby to keep the money flowing to private and religious schools without regard to the quality of education.

“Empowerment Scholarship Accounts (ESAs), which some in the legislature want to expand, have been a “hot mess” of misspending and even fraud.
For those unfamiliar with the program, parents who participate are given a debit card to buy educational services for their child instead of sending them to a public school.”
What genious came up with this idea?
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Omg!
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The legislation was signed into law, by Governor Ducey on Friday April 7, see
https://www.usnews.com/news/best-states/arizona/articles/2017-04-06/arizona-legislature-to-debate-big-school-voucher-expansion
School choice and vouchers were utilized in the 19th century. The modern proposal was postulated by the Nobel prize-winning economist Milton Friedman, in his paper on the role of government (1955).
see
Click to access 350kPEEFriedmanRoleOfGovttable.pdf
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At the end of your article you stated, “It produces a lobby to keep the money flowing to private and religious schools without regard to the quality of education.”
I am confused when you mention religious school. Is it all the religious schools, some religious schools? Is there data to substantiate your statement when you use the term religious school. After reading your article gets the that religious schools are not good schools.
Here is an example that came out in our local paper today,
“Long Island Student Accepted To All Ivy League Schools Chaminade High School “– run by Marianist -religious Borthers and priests.
https://patch.com/new-york/huntington/s/g33l0/long-island-student-accepted-to-all-ivy-league-schools utm_source=alertbreakingnews&utm_medium=email&utm_term=schools&utm_campaign=alert
Okonkwo, son of Nigerian immigrants, has received acceptance letters to Brown University, Columbia University, Cornell University, Dartmouth College, Harvard University, the University of Pennsylvania, Princeton University and Yale University.
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Mary, there are many good religious schools, but the best don’t have room for voucher students and have tuition that far exceeds the voucher. Most of the religious schools that accept voucher students are very poor schools that need the tuition money to survive and have unaccredited teachers. Are there many empty seats in the religious schools that you cite? Enough to accept hundreds of voucher students with very low test scores?
As a general rule, in the South, the schools getting vouchers are very bad religious schools that teach creationism and use special textbooks that do not acknowledge modern science, math or history.
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NYS is not AZ. I googled & could not find a single Marianist school in Arizona. I found one Jesuit school in Phoenix. There have got to be some Catholic schools in Arizona (one would think many, considering the Mex-Amer population?). But I think the point of the post is that AZ has low ed-stds, loose monitoring of pubsch alts, & hi-sch choice, which means that regardless of relig affiliation, taxpayer-supported alternatives to pubschs, incl Catholic schs, are not monitored w/regard to school quality or ed-achievement. Even Catholic schs– & I am a Catholic– can be corrupted when there is a flow of unmonitored public $ supporting tuition.
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Correction:
After reading your article one gets the impression that religious schools are not good schools.
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Mary DeFalco, if religious schools want to benefit from public taxes to support their tuition, they should be able to show that their curriculum, grad stats, test results, college admissions– et al public measures of ed achievement– meet minimum state stds.
There are many Catholic parent orgs that want that public $ to support their kids’ tuition, so they blindly support schoool choice. There are also many Diocesan orgs who are against this sort of measure: they recognize that buying into pubtax-supported school choice puts the gen public in charge of their school curriculu.
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Dr. Ravitch, you asked, “Are there many empty seats in the religious schools that you cite?” Most likely not. To enter Chaminade the school states, “In order to be considered for admission to the freshman year, the student must successfully complete the eighth grade and must present adequate academic credentials.”
Grade schools usually accept all students regardless of race, color, or creed.
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I was not surprised that a voucher plan passed since our state is run by ALEC. I’m sure that Debbie Lesko, or one of the other ALEC lackeys, will try again to get the broader voucher plan through. There is a growing movement here against school choice but unless we figure out how to get the population mobilized more effectively we won’t be able to stop the ALEC train wreck.
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• I post this quote from a work in progress for the nice lady who wrote about Diane’s piece and asked whether there are good religious schools. Diane used a quote from me in the blog today.
Here are the Organizations already providing “scholarships” on the “tax credit” dime here in AZ. I am a proud Catholic School Graduate and I have grandchildren in Catholic Schools in New Hampshire.
Those choices were my parents and my children’s RELIGIOUS choice. They wanted their children indoctrinated into the Catholic Faith.
Catholic schools have their history in anti-catholic sentiments going back to the NO NOTHING PARTY and anti-immigrant attitudes in the 1840s. There was a time when it was a “mortal sin” for Catholics to attend public school if a Catholic School was available..
We in AZ live in a state that allows a “Christian Scholarship fund that doesn’t include any Catholic, or for that matter Mormon schools, that is a RED FLAG.
I ask the following.
How is it that the Senate president of the Arizona State Senate, can simultaneously be the executive director of a $17,064,168 organization, The Arizona Christian School Tuition Organization Inc., while having control over all of the bills that come up for voting in the Senate including those that benefit his organization?
o This while collecting a salary and other compensation of $145,705 per annum in 2014-2015 for directing the ACSTO.
Source IRS Form 990 FY 2013: http://www.guidestar.org/FinDocuments/2014/860/931/2014-860931047-0b056c5d-9.pdf
o Again the question is asked, “Politically would this be considered “permissible” if the organization was dedicated to promoting Catholic Schools and run by the Senate President who happened to be the Bishop of the Diocese of Phoenix?
o Researching the Organization in question one finds a list of the “participating schools”. That list which is provided below is devoid of any Catholic or Mormon Schools. Do they not fit the organization’s definition of Christian Schools? Would having a Muslim or Hindu Tax Credit group be okay with the legislature? How about an ATHEIST School?
Bethany Christian School
Christian Academy of Prescott
Flagstaff Community Christian School
Joy Christian School
North Valley Christian Academy
Northwest Christian School
Paradise Valley Christian Prep
Scottsdale Christian Academy
Trinity Christian School (Prescott)
I am sure these are good programs but I have met some of their leadership and a lot of them ascribe to the philosophy that the world is 6000 years old.
• Catholic Education Arizona is an IRS 501(c) (3) nonprofit charitable organization and has never accepted gifts designated for individuals. Per state law, a school tuition organization cannot award, restrict or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent. This new law changes that.
o The rules for donating to a Catholic Educational Program speak volumes to the previous complaint regarding what is a Christian School. It required separate rules to “allow” the donations to go to Catholic Schools. The restrictions make it impossible for one to donate for their own child’s (or grandchildren’s) tuition.
This is a taxpayer funded way to provide the scholarships that Catholics used to provide in their donations to the church of their choice.
The leadership at this charity received compensation of $131,115 in 2013-2014. This was on revenue of $16,269,022.
Source: IRS FORM 990 See: http://www.guidestar.org/FinDocuments/2014/860/937/2014-860937587-0b8e0571-9.pdf
“Freedom to choose” for religious purposes has always been an option in this country. Catholics chose to create Catholic Schools. Jewish parents chose schools based at their Synagogues. There are Hindu Schools and Muslim Schools. These faiths funded this choice with sacrifice and tuitions that were subsidized by their church, synagogue or mosque, not by diverting funds meant to support the public schools to their religion.
• Jewish Tuition Organization is another 501 C specifically to provide Scholarship or Grants to Attend Jewish Primary and Secondary Schools. http://www.jtophoenix.org/take-the-credit/
o The Executive Director at the Jewish Tuition Organization has a salary of $70.000 as of the 2013-2014 Fiscal Year. This is on Revenue of $2,922,316.
o Form 990 FY 2013 JTO: http://www.guidestar.org/FinDocuments/2014/860/970/2014-860970081-0b26cdec-9.pdf
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I am not questioning the problems with vouchers and the possibility of corruption – public, private, or religious schools. No institution is without flaws.
It was the generalization Dr. Ravitch made about religious schools “…money flowing to … religious schools without regard to the quality of education.”
I am very sensitive to blanketed statements made about religious schools. I taught in a phenomenal public system but we sent our children to parochial schools. Religion, our Faith, is important to us. Our children received an excellent education – curriculum wise, but also learning about their religion, the development of character including responsibility to helping others…. e.g. One particular grade school teacher instilled in one of my daughters a great love of history, drama, and music that followed her into high school. My daughter couldn’t decide what to major in; she had developed a love of learning in many areas because of knowledgeable, enthusiastic, caring teachers. She carried a dual degree for her bachelors. She now has three masters degrees and a doctorate thanks to many teachers in the parochial system who planted the seeds.
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I repeat, “money flowing to religious schools without regard to quality.”
Some religious schools are great schools. Some stink.
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Religiously-operated schools are on the :bell curve”. Some are excellent (Notre Dame, Georgetown,Brigham Young University,Southern Methodist,etc.) Some are good, some are terrible.
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You listed established universities, not schools. Outstanding religious schools don’t have empty seats.
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Universities are schools. There are many excellent K-12 institutions of learning (schools). One of them is Gonzaga, in Washington DC, and excellent prep school, run by the Jesuits. See
https://www.gonzaga.org/
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OOPS!
Universities are schools. There are many excellent religiously-operated K-12 institutions of learning (schools). One of them is Gonzaga, in Washington DC, an excellent prep school, run by the Jesuits. See:
https://www.gonzaga.org/
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How many empty seats at Gonzaga? How many voucher students have they accepted from the D.C. Voucher program? what is the tuition?
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Q How many empty seats at Gonzaga? How many voucher students have they accepted from the D.C. Voucher program? what is the tuition? END Q
I do not know how many empty seats are there. Since their website is seeking applicants, you can be certain that there are vacancies.
I do not know how many Opportunity Scholarship students have been accepted at Gonzaga. Their website indicates that students attending this school are eligible for the DC Opportunity Scholarship program.
Their website indicates
Tuition $21,475
Registration Deposit $1,000 -applied to tuition
Application fee $35
Books per year $1,200 (approximate)
(SOURCE: Gonzaga website)
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The D.C. Voucher is about $5,000.
Gonzaga costs about $$22,000.
The math doesn’t work.
Maybe Congress will increase the voucher so one or two kids could go to Gonzaga, that if their test scores are high enough.
But if they are fleeing “failing schools,” they probably won’t get admitted.
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“Betsy DeVosVerified account @BetsyDeVosED Apr 6
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A big win for students & parents in Arizona tonight with the passage of ed savings accts. I applaud Gov. @DougDucey for putting kids first.”
Well, putting certain kids first.
Arizona has done absolutely nothing for kids in public schools, but that’s true of the Secretary of Education too, so I guess the federal government and Arizona have that in common.
Maybe public school kids and parents should find a politician who will work as hard as on their behalf as these folks do promoting private schools.
Weird how the “agnostics” cheer massive new funding for private schools yet cut public school budgets every year. I’m getting the distinct impression this “movement” is mostly about eradicating public schools.
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The part that amazes me about Arizona and Nevada and ed reform is the politicians pushing private school vouchers don’t feel they even have to PRETEND to do anything for kids in public schools.
It would be one thing if they were doing something, anything, to benefit kids in public schools WHILE pouring public funding into private schools, but they do nothing.
They take the public school kids and parents completely for granted. I guess the assumption is we’ll keep voting for them although they obviously don’t have any interest in adding anything of value to our kids’ schools and indeed often actively harm our kids schools.
DeVos and Trump are the same way. Betsy DeVos does not have one positive idea or plan or initiative to benefit or add value for public school kids, yet she is somehow “the education secretary” of the United States, a country where the vast majority of kids ARE public school kids.
We’ve somehow ended up with a situation where 90% of politicians serve 10% of kids.
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Q We’ve somehow ended up with a situation where 90% of politicians serve 10% of kids. END Q
I may sound cynical, but I live in a cynical town (Metro WashDC). Politicians do not care a (expletive deleted) about children. They are only subservient to the voters, and the big-money donors who fund their campaigns, to keep them in office.
Until such time, as the USA has publicly-financed political campaigns (FAT CHANCE!), will there be any change.
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