Union-Backed Measure Seeks to Eliminate ESA College Funding Rollover for Arizona Families

Arizona law allows students in the state’s Empowerment Scholarship Account (ESA) program to roll over unused funds for college expenses, a provision that could be eliminated under a proposed ballot initiative filed by the Arizona Education Association and Save Our Schools Arizona.

Arizona Superintendent of Public Instruction Tom Horne told The Center Square that Arizona law permits ESA participants to roll over unused funds from one year to the next and apply those savings toward higher education tuition.

State statute A.R.S. §15-2402 governing ESA accounts provides that funds may be used for a range of approved educational expenses and remain available over time, with accounts staying active through a student’s educational progression and closing only after postsecondary completion or a defined period of non-enrollment. Arizona law further specifies that ESA funds may continue to be used following high school graduation for postsecondary education, including within a multi-year window after graduation. 

The ESA program, administered by the Arizona Department of Education (AZED), allows families to direct state education funding toward approved expenses, including private school tuition, curriculum, tutoring, and other educational services. According to the department’s program materials, ESA funding represents a portion of the state dollars that would otherwise be allocated to a student’s public school and is distributed through accounts controlled by parents or guardians. 

ADE conducted a robust statistical analysis of ESA spending showing the total rate of unallowable spending is 1.9 % – lower than comparable agency or program benchmarks. The study was conducted by Dr. Joseph Guzman, Ph.D, who also holds a Masters in Statistics. When an… pic.twitter.com/Becqpb2Dq8

— Arizona Department of Education (@azedschools) March 18, 2026

A recent study conducted by Dr. Joseph Guzman, published by AZED, found that “analysis of ESA spending shows the total rate of unallowable spending is 1.9 % – lower than comparable agency or program benchmarks.”

Policy analysis from the Arizona Legislature notes that ESA funds may be carried forward from year to year, allowing families to save unused funds for future educational expenses. 

Matt Beienburg, director of education policy at the Goldwater Institute, told The Center Square that ESA funds can be used across a range of educational settings, including K-12 education, community colleges, public universities in Arizona, private accredited post-secondary institutions, and out-of-state colleges. Beienburg said the program’s structure allows families to conserve funds for future use, including college tuition, particularly when students do not spend the full allocation in a given year.

Writing about the AZED study for the Goldwater Institute, Beienburg stated, “While many public schools fail to steward their financial resources for the benefit of students, the ESA program is allowing thousands of parents to do right by their children and ensure they have access to best education possible, all at a lower cost to taxpayers and with a higher degree of accountability and transparency than is found even in the public school system.”

The ESA program has grown in recent years, surpassing 100,000 participants statewide, according to reporting by The Center Square. 

A ballot initiative filed by the Arizona Education Association and Save Our Schools Arizona, titled “Protect Education, Accountability Now!,” would impose additional oversight on the ESA program and eliminate the ability to roll over unused funds into future years.

Such a change would affect participants’ ability to save ESA funds for college, according to Beienburg, who told The Center Square the proposal would disproportionately impact families seeking to build long-term education savings. 

The initiative would also establish a $150,000 household income cap for eligibility, which could kick current participants from the program, according to the same report.