Massive Fraud in AZ School Voucher Program

From News 12, Phoenix:

 PHOENIX — Home and private school parents with Empowerment Scholarship Accounts for their kids bought diamond rings and necklaces, Kenmore appliances, and even lingerie with education tax dollars, a 12News investigation has found.

Parents of ESA children also purchased more than 200 Apple iPhones, more than 50 smart TVs, and dozens of gift cards worth up to $500 each since last November, when the state Department of Education began automatically approving all ESA requests because of a massive backlog.

The 12News I-Team, through a public records request, also uncovered more than $3 million in purchases to Amazon, Costco, and Best Buy, with no indication of what was bought. There were also nearly $2,000 payments to a person identified as "me" and "Jamie the tutor," as well as for a purse.

Many of the purchases are considered "unallowable" under ESA guidelines, and Arizona Superintendent of Public Instruction Tom Horne said his office eventually will claw back the money. A spokesman said Monday that parents may be referred to the Attorney General's Office for prosecution, and 400 accounts have been suspended because of improper spending.

"Most people are honest and request reasonable things," Horne said. "The unreasonable ones are about 1 percent, and we recover them afterwards….So, there’s nothing where people can get away with murder on things under $2,000.”

The I-Team's public records request was made after 12News uncovered that 1.2 million ESA requests totaling $124 million were automatically approved since late last year.

The Department of Education's website said the ESA program, which has about 90,000 kids and will cost the state $1 billion this school year, "may be the most accountable program in the state."

Beth Lewis, who leads Save Our Schools, Arizona, said that's laughable.

"Tom Horne has instituted this policy, which is, you know, the exact opposite of any sort of financial stewardship or responsibility," Lewis said. "We have no idea where the funds are going, and whether they’re being used to just improve people’s homes or pay for things that no other person in the state would ask people to pay for.”

The questionable -- and possibly illegal -- ESA spending was uncovered by 12News as a Maricopa County judge ruled last week that Arizona isn’t properly funding capital needs for its public schools, calling it unconstitutional.

In Judge Dewain Fox's 114-page ruling, the judge included several pictures of damaged roofs, cracked floors and peeling walls from various schools across Arizona to emphasize how some districts "languish with substandard facilities for years."

Other purchases automatically approved include:

• Two 1-carat diamond rings and several necklaces.
• Kenmore washers, dryers, and a range.
• Gift cards to Kohl's and Happy Moments, which can be used at restaurants and clothing.
• Gaming laptops.
• Apple iPods and watches along with warranties.
• Hotel and resort stays, including Knott's Berry Farm, Great Wolf Lodge and Hilton properties.
• Broadway tickets at ASU Gammage, including one for nearly $1,300.
• Airline tickets.
• Luxury clothing like Psycho Bunny.
• Maternity wear and corsets.
• Diapers.
• Dog food.
• High-end office furniture like a $1,750 Herman Miller Embody Ergonomic Office Chair.
• Sports camps.
• Dozens of Lego sets, including 15 for more than $1,000 each.
• Above-ground pools.
• Personal fitness training.
• More than 300 purchases at The San Diego Zoo and SeaWorld.
• Traeger grills.
• Electric bikes and mopeds.
• Massive inflatable water slides.
• Horse saddles.

Marisol Garcia, president of the Arizona Education Association, said it's shameful that ESA parents are making such luxury purchases when so many public schools are struggling.

She notes that numerous teachers are asking for donations for basic necessities like books, and added that public school employees would be fired if they made similar purchases as ESA parents.

"It just doesn’t happen. And there would be accountability, multiple layers of accountability," she said. "Hearing about these extravagant purchases breaks my heart."