The far-right Goldwater Institute has filed a lawsuit claiming that the state has no right to regulate how parents spend their voucher money, the money that is paid by taxpayers. Goldwater says that if the parents misspent the money, it should be refunded to parents so they can try again. The Goldwater Institute, along with the DeVos family and Charles Koch, have sponsored efforts to expand the voucher program to cover all students in the state. They began with the “camel’s nose” under the tent, offering vouchers for students with disabilities (who abandon their federally-protected rights when they go to private schools); then added students in foster care; then added students in “failing” public schools; then students on reservations; then students from military families. They won’t be satisfied until every student in the state gets a voucher to leave public schools for a private school.

The Arizona Republic reports:

The Goldwater Institute, a conservative think tank, has filed suit against the state Department of Education contending it doesn’t have the authority to enforce rules governing Arizona’s school voucher program.

The suit — which was filed in Maricopa County Superior Court and names the state attorney general as a defendant — alleges the Department of Education didn’t follow the state’s rule-making process when it created the ESA handbook, a set of rules that outlines the Empowerment Scholarship Account program. The ESA program grants parents money to send their children to private school.

The suit also contends the Department of Education does not have the authority to require that parents who have misspent ESA money reimburse the state for those funds. It is demanding the Department of Education instead put that misspent money back into parents’ accounts. 

Finally, the lawsuit claims the department has no right to make funding conditional on parents filing expense reports to document how they spent the taxpayer money. It calls the quarterly reports “cumbersome and time-consuming” and says as a result payments to participants are often late, breaching their contract and causing them to miss payments to private schools.

Under the ESA program, parents receive 90% of the state funding that would otherwise go to their local public school districts. Children in six categories, such as those with special needs, in foster care, from failing schools and others, are allowed to enroll in the program. 

The voucher money, loaded on debit cards, is intended to cover specific education expenses such as private- or religious-school tuition, home-school expenses and education-related therapies.

Dawn Penich-Thacker, spokeswoman for Save Our Schools Arizona, which has opposed expansion of the ESA program, said the suit is really about stripping power from Kathy Hoffman, the Democratic superintendent of public instruction elected in 2018.

“They (Goldwater) don’t want her having any say over it,” Penich-Thacker said. 

Parents have complained about the expense reports for years but Goldwater only now filed suit, Penich-Thacker said. 

Last year, two bills in the Arizona Legislature would have stripped oversight of the ESA program from Hoffman and given it to the Treasurer’s Office, which is overseen by Republican Kimberly Yee.

“Suddenly, this is when the school choice community is up in arms,” Penich-Thacker said. “Parents are saying this is happening since day one, but it took the election of 2018 for anything to actually become a problem.” 

The Goldwater Institute has been involved in shaping the ESA program since before the voucher program became law in 2011. 

The think tank was instrumental in writing the legislation that created the program. It was also deeply involved in the numerous expansions of the law, which were often copied from model legislation written by special interests.

It was a big backer of the universal voucher expansion that would have allowed all 1.1 million Arizona public school students to use public money to go to private school. The number of students receiving the funds would have been capped at 30,000. Voters overturned the voucher law in November 2018 by a vote of 65% to 35%.

Goldwater also has wielded an “iron-like grip level of influence” behind the scenes with the Department of Education, attempting to dictate how the program should be implemented and acting as if it retained ownership of the program.