Skip to main content

Is the Arizona Legislature Gambling with the State’s Fiscal Future?

As reported by the Arizona Republic’s Mary Jo Pitzl , enrollment in the Empowerment Scholarship Account (ESA) program is expected to far exceed the projections assumed in the budget.  In late May, the Department of Education estimated next year’s cost at $900 million, $448 million more than included in the budget passed earlier that month.  

The ESA program, often referred to as the state’s voucher program, was supposed to save the state money. Instead, it’s likely the program will end up costing the state more because of how school funding in Arizona works, how the voucher program was designed, and whether or not the students receiving the vouchers are coming from an Arizona public school.  

This surge in ESA vouchers is occurring at the same time Arizona’s general fund revenues have dropped, almost entirely due to the new flat income tax. As of the end of May, year-to-date revenues were $175 million below the projections assumed in the budget passed earlier that month. While the fiscal year is new, Arizona’s policymakers need to be paying attention and planning for what they will do should expenditures exceed revenues, especially since the new budget assumes an ending balance of less than $8 million.  

Click here to learn more about the history and issues regarding Empowerment Scholarship Accounts.  

Both PDF of the articles provided by AZ Central. Written by Mary Jo Pitzl from Arizona Republic. Access online articles here with subscription.

More News

A Real Pro-Family Tax Policy Invests in Child Care and Elder Care

State and federal tax cuts aren’t helping families—they’re leaving them behind. As the federal government pushed for even more tax breaks for the wealthy and big corporations as part of HR-1, everyday Arizonans are…

Many Arizona small business owners and self-employed workers could lose affordable health insurance if enhanced premium tax credits are allowed to expire

A main sticking point that has led to the current federal government shutdown is over affordable health care that millions of Americans purchase on the Affordable Care Act Marketplace. One of the actions that Congress can…

2025 Legislative Scorecard

Last summer, despite a strong state economy, state policymakers had to resolve a nearly $1.6 billion deficit for fiscal years 2024 and 2025. Driven by the flat individual income tax hollowing state revenues, as well as the…