Channel 12 continued its clumsy crusade against school choice this week with a breathless report about fraudsters abusing Empowerment Scholarship Accounts to buy diamond rings and necklaces, flights and hotel stays, and even lingerie.

It paints a picture of a program rife with abuse. But is it?

The Arizona Department of Education gave Channel 12 the records for more than 1.2 million ESA requests. Yet when asked repeatedly what percentage of those requests were fraudulent, Channel 12’s reporter refused to comment.

Why? Because the truth undermines the anti-ESA narrative.

The salacious report is intended to persuade policymakers who support ESAs to impose regulations that would undermine the ESA program. It goes without saying that anyone engaged in fraud should be prosecuted to the fullest extent of the law, and the Arizona Department of Education is appropriately cracking down on fraudsters. But before policymakers rush to amend the ESA program, they should know the context that Channel 12 left out.

ESA Misspending Is a Tiny Fraction of Total ESA Spending

The ESA program currently serves about 90,000 students at a projected cost of $882 million this year and $939 million next year, or about 6.7% of the $14 billion spent on Arizona’s district schools. Families can use ESAs to purchase a wide variety of educational expenses to customize their child’s education.

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The typical ESA student receives about $7,500 per year, compared with more than $15,300 per pupil at Arizona’s district schools. Students with special needs—who account for more than 19% of ESA students, compared with 14% of district school students—can receive more funding, although the accounts are still worth 90% of what the state spends on similarly situated students at public schools. According to the Common Sense Institute, “a disproportionate share of middle-income households use an ESA.”

On Tuesday, the Arizona Department of Education revealed that their internal audit had turned up $622,000 in ESA funds that are “possible fraud or misuse.”

That’s less than one-tenth of 1% of total ESA spending.

Ignoring Mountains, Covering Molehills

Meanwhile, there are 30 school districts that the Arizona Auditor General currently deems to be non-compliant with state reporting requirements or that have internal control deficiencies. The total spending in those districts is more than $1.4 billion, more than the total spending of the ESA program. Yet aside from its coverage of the disastrous overspending in the Isaac Elementary School District, Channel 12 has barely covered it at all.

For that matter, Channel 12 has ignored the $7.8 billion that Arizona school districts are holding in cash reserves. That’s about $7,000 per pupil. The reserves have grown $2 billion in two years, yet Channel 12 doesn’t evince even the slightest curiosity about why.

Nor is anyone at Channel 12 interested in the $12 billion worth of unused and underutilized buildings that districts are sitting on, often just to prevent private or charter schools from buying them.

Channel 12 found space in the aforementioned ESA exposé to mention that a judge recently ruled that the state supposedly “isn’t properly funding capital needs for its public schools,” but the station had no space to mention that school districts are sitting on $20 billion in cash reserves and underutilized buildings.

Indeed, Channel 12 has barely covered any of these facts even as they pump out multiple anti-ESA stories each week, despite the fact that the ESA program is dwarfed by the spending at non-compliant districts, district school cash reserves, and underutilized buildings.

School-Choice Opponents Want to Break the ESA

School-choice opponents and their media allies are hyper-focused on ESA misspending because they want to pressure lawmakers to undermine the program via regulation.

The Arizona Department of Education adopted its risk-based auditing strategy—automatically approving ESA spending requests below $2,000, then auditing accounts on the back end—because Superintendent Tom Horne’s previous “review every penny” approach was causing massive backlogs and delays in approving expense requests and reimbursements.

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There were nearly 11,000 transactions in quarter 3 of this year alone. It’s impossible for the department’s staff to review each transaction in a timely manner, but parents trying to teach their kids can’t wait months just to buy a textbook or pay their child’s tutor or school.

To Horne’s credit, he listened to parents and made some incremental improvements that make it easier for parents to use the program. Now a tiny percentage of ESA holders are taking advantage of the looser rules, but they will be forced to pay the money back and could face prosecution.

The Arizona Department of Education has suspended 400 accounts due to improper spending—just 0.4% of the total accounts—and has referred some to the Attorney General for further investigation and prosecution.

Punishing fraudsters is necessary. Every government program is subject to some amount of fraud and abuse, and it’s incumbent upon public officials to implement rules that keep fraud as close to zero as possible. But it is not in the public interest to undermine a program’s effectiveness, especially when that program is helping kids get access to a better education and a brighter future.

School-choice opponents are using misspending as a pretext. If that was their real concern, they’d be raising alarms about all the waste, fraud, and abuse in the district school system. They’re not really concerned with stopping the 0.4% of ESA holders committing fraud, they just don’t want the program to work for 99+% of families just trying to do right by their kids.

Supporters of education freedom and opportunity should ignore the manufactured outrage and work to ensure that the ESA program works well for the families it serves.