Flagstaff Families Face Uncertainty as Two Competing Arizona School Voucher Initiatives Clash Over Funding and Control

Two ballot measures, one billion-dollar program, and a constitutional question

Arizona's $1 billion Empowerment Scholarship Account program faces its biggest policy showdown yet. Two competing ballot initiatives will ask voters to decide the future of the state's school voucher system in November.

The conflict centers on a fundamental question: who controls how the money is spent, and who pays for oversight.

The reformers: Fortify AZ and the cost-saving promise

Fortify AZ, backed by the American Federation for Children and chaired by former U.S. Secretary of Education Betsy DeVos, is circulating petitions for an initiative that would overhaul the ESA payment and review process.

The proposal would require the Arizona Department of Education to build an online marketplace payment system, create a list of approved curricula, issue standardized testing requirements, and produce annual reports to the state attorney general.

"Fortify's initiative updates and automates the review process with the ability to identify ineligible expenses at the front end, greatly reducing the practice of chasing and approving expenses after the fact," said Barrett Marson, Fortify AZ spokesman.

Fortify AZ argues the changes would save the state money by catching fraud before funds are disbursed. The initiative does not include an income cap for ESA eligibility, matching the current program.

But the campaign has not released figures on how much money the proposed system would save or how much it would cost to build.

The counter-proposal: Protect Education Act and the income cap

The competing Protect Education Act, backed by the National Education Association and public school advocates, would impose a $150,000 annual income cap on families seeking ESA funds. The cap would be adjusted annually for inflation.

The initiative would also redirect $1.75 million from the state's medical marijuana fund each year to cover the costs of new oversight and regulation. That money would go to the Arizona Department of Education, the State Board of Education, the Department of Public Safety for mandatory teacher fingerprinting, and the attorney general.

The constitutional hurdle: Arizona's revenue source rule

Arizona voters approved a revenue source rule in 2004 with 55% support. The rule requires any ballot initiative that creates new spending to also identify a funding source.

Jim Barton, attorney for the Protect Education Act, said Fortify AZ's proposal violates that rule.

"Just hoping that savings cover costs is not good enough to meet legal requirements," Barton said. "Continuing with a ballot measure that is likely to be struck down by the courts is disrespectful to voters and dishonest."

Fortify AZ disputes that characterization. Marson said the initiative's changes would save money, not cost more, so no additional revenue source is needed.

State schools chief opposes both measures

Tom Horne, Arizona's state superintendent of public instruction, said he opposes both initiatives. He argued that neither plan addresses the core problem: the department lacks the staff and funding to manage a program that has grown from 12,000 students to 101,500 students since the ESA was expanded to all Arizona children in 2022.

"You can't expect to do things without people to do them," Horne said. "And that takes money."

Horne said both initiatives layer on additional requirements for his department without providing the resources to carry them out. He compared the situation to "requiring us to make bricks without straw."

The department's staffing shortage became so acute that in 2024, it began issuing any ESA purchase under $2,000 without prior review. Those expenses are audited after the fact using a risk-based system.

What it means for Flagstaff families

Flagstaff families enrolled in the ESA program could see their options change depending on which initiative wins. The Protect Education Act's income cap would exclude households earning more than $150,000 annually. Fortify AZ's plan would keep the program open to all income levels but add new testing and curriculum requirements.

Horne predicted neither initiative will pass if they reach the November ballot.

Both groups are now competing to gather enough signatures to qualify. The fight has already turned personal. Fortify AZ accused Protect Education backers of trying to "gut school choice in Arizona." Protect Education supporters said Fortify is trying to confuse voters and is not sincere about reform.

The nomination petition period is ongoing. Voters in Flagstaff and across Arizona will decide the program's future in November.