Researchers have conducted rigorous analyses of the ways in which parents use ESAs in Arizona. According to data from the Arizona Department of Education, just 1.9 percent of a random sample of account funds spent by Arizona parents were used for ineligible purchases. Most of these purchases were unintentional errors, such as purchasing backpacks and lunch boxes. The same audit found that 0.3 percent of the spending was actually fraudulent or egregious. 

Despite this evidence, critics of ESAs falsely claim the rates of misspending are much higher. Yet ESAs offer taxpayers an unparalleled level of transparency. Public officials or payment processing companies that contract with state agencies review parent spending on a regular basis, sometimes conducting risk-based auditing. With a risk-based audit, officials closely monitor irregular expenses. 

When fraud is detected, officials will suspend an account until expenses are properly accounted for—preventing ongoing, widespread misuse of ESA funds. Fraudulent activity in traditional public school districts often goes undetected for years because of poor bookkeeping and weak oversight policies.

Do ESAs Harm Public Schools?

Lawmakers in more than half of all states have enacted K-12 private school choice laws, and almost every state allows teachers and community leaders to form public charter schools—public schools of choice. The research literature consistently shows that when states adopt school choice policies, traditional public schools perform as well or better than they did before. Expanding education options improves outcomes. School choice is the rising tide that lifts all boats.