Understanding Arizona's Empowerment Scholarship Account (ESA)

The Arizona Empowerment Scholarship Account (ESA) program offers a significant opportunity for families to personalize their children's education. By providing access to state funds allocated for education, the ESA empowers parents to choose the educational path that best suits their child's needs. This article delves into the details of Arizona's ESA program, covering eligibility, funding, approved expenses, participating schools, and the application process.

What is Arizona's ESA Program?

In Arizona, ESA stands for "Empowerment Scholarship Accounts." Similar to Education Savings Accounts in other states, Arizona's ESA program allows families to access up to 90% of the funds allocated for their children's education in a public school. These funds, typically ranging from $6,000 to $9,000, can then be used for qualified private educational expenses. This empowers parents to direct their tax dollars towards their child's education in a way that aligns with their individual needs and preferences.

Established in 2011, Arizona's ESA is the oldest program of its kind in the country. As of the academic year 2024-2025, it has become the most expansive ESA nationwide, with over 83,032 students participating. The program's growth has been substantial, particularly after eligibility expanded to include all Arizona residents.

Who is Eligible for ESA Funding in Arizona?

Initially, Arizona's ESA program was limited to students with disabilities. However, it has since expanded to include all students who live in Arizona and are eligible to attend public school in the state. Eligibility is not based on household income, whether the child attends a private school or is homeschooled, or the location within the state.

Families with children enrolled in public school can apply for ESA. However, ESA funds cannot be used to pay for services offered by the public school the child is attending. The purpose of ESA is to facilitate private education, preventing the state from paying for a child's education twice.

How Much ESA Funding Can You Get?

The average amount each family received statewide was $9,782 per child. The average funding varies according to the age of the child being funded, with kindergarteners being eligible to receive around $4k-$5k, and children in grades 1 and older receiving between $6k-$9k. In each case, this corresponds to around 90% of the funds allotted for that child’s education in a state public school. Students with disabilities who meet eligibility requirements can access significantly higher funding amounts - up to $43k per year in some cases, until the age of 22. Typically, the more severe the disability, the greater the financial support available to families.

Given that the average tuition for a private elementary school in Arizona is $9,600, while the cost for a private high school in the state averages around $13,700, ESA funding can significantly offset private school tuition costs. This has contributed to the program's increasing popularity. ESA funding is distributed quarterly, typically between the 15th and 30th of the first month of each quarter, provided the account is in good standing with ESA authorities.

Approved ESA Expenses

A comprehensive list of approved expenses can be found in the ESA parent handbook. The primary expense is tuition at a qualified school. Other allowable expenses include:

Credentialed tutoring services
ACT or SAT exams, or preparation for them
Post-secondary courses taken while the student is still in high school
School uniforms
Public transportation between a student's home and a qualified school
Laptops and other computers that are to be used for educational purposes
Registration, enrollment, or payment processing fees
Musical instruments
Textbooks and similar curriculum materials

In limited cases, ESA funds can be used for approved programs or extracurricular activities at a public school, typically for schools the child does not attend. However, caution is advised, as using ESA funds for unapproved programs at the child's current school can lead to the suspension of the ESA account. All programs, whether public or private, must be delivered within the same school year they are paid for to be considered an allowable expense.

Non-allowable expenses include:

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Using one student’s ESA account to cover another student’s expenses
Entertainment
Devices that are not used for educational purposes
Video games or consoles
Home theaters
Audio equipment
Mobile phones

ESA-Approved Schools

Arizona ESA funds can be used for various private schooling options, including online schools and homeschooling. While the ESA program does not maintain an official list of schools, there are currently 404 participating providers statewide.

Examples of schools that accept ESA funds include:

Scottsdale and Gilbert: Fusion Academy: Fusion Academy offers a personalized education approach with 1-to-1 classes, catering to students facing academic challenges, gifted students, students with learning differences, and twice-exceptional students. They offer full-time and part-time enrollment options, remedial classes, summer programs, and post-secondary counseling.
Phoenix: Brophy College Preparatory: Brophy College Preparatory is a Jesuit high school for boys in Phoenix. The school’s curriculum is organized according to the principle of “cura personalis,” or care for the whole person, and combines liberal arts principles with Jesuit theology.
Tucson: The Gregory School: The Gregory School is a non-sectarian middle and high school in Tucson known for its creative and entrepreneurial environment.
Tempe: Our Lady of Mount Carmel: Our Lady of Mount Carmel is a private Catholic elementary school in Tempe known for its community and academic rigor.
Mesa: Redeemer Christian School: Redeemer Christian School (RCS) is a private school in Mesa educating children aged K-12. RCS bases its curriculum on the classical model known as the trivium, which divides education into three stages: Grammar (K-6), Logic (7-8) and Rhetoric (9-12).

Accessing ESA Funds

ESA funds are not directly deposited into a bank account. Instead, they are accessible through a state ESA account, which can then be used for allowable expenses. The financial management platform for the ESA program is ClassWallet. It serves as an intermediary between users and the private educational products and services they wish to purchase with ESA funds. As of 2023, there were just under 4,000 approved vendors on ClassWallet.

Invoices must be uploaded to ClassWallet by the end of the month following the quarter in which the purchase was made. In some cases, upfront payment for certain educational expenses is required, with ClassWallet reimbursing the user upon submission of sufficient documentation proving the expense is ESA-eligible.

Grand Canyon Private Academy and the ESA

Grand Canyon Private Academy (GCPA) proudly participates in Arizona’s Empowerment Scholarship Account (ESA). Arizona’s Empowerment Scholarship Account is a powerful resource for students and families who want to enroll in Grand Canyon Private Academy. Arizona’s ESA provides nearly $7,000 per student. This amount covers GCPA’s tuition costs. There may be additional costs associated with special education services, which could vary based upon the level of services needed to properly support a student’s IEP/ISP/MET/504 plan.

Applying for the ESA

All students in grades K-12 who reside in the state of Arizona qualify for the Arizona ESA. The Arizona ESA accepts applications year round. To apply, certain documentation is required, such as the student's birth certificate and proof of Arizona residency. Enrollment consultants can assist in determining eligibility, guiding through the application process, and answering any questions. Once the application is submitted, processed, and the Empowerment Scholarship Account is set up, families can access their ESA funds with a prepaid debit card.

Legal Considerations

On March 21, 2014, the Arizona Supreme Court in Niehaus v. Huppenthal declined to review a Court of Appeals’ ruling upholding the state’s education savings accounts (ESA). The Arizona Court of Appeals ruled ESAs are neutral toward religion. Although a prior 2009 decision by the Arizona Supreme Court in Cain v. Horne, 202 P.3d 1178 (Ariz. 2009) (en banc) found vouchers to be unconstitutional in Arizona, the appellate court distinguished ESAs and said they did not violate the state constitution because funding can be used for a variety of educational resources in addition to private school tuition. Niehaus v. Huppenthal, 310 P.3d 983 (Ariz. App.

Additional Scholarship Opportunities in Florida

While this article primarily focuses on Arizona's ESA, it's worth noting similar programs exist in other states. For instance, in Florida, Step Up For Students supports students and families through various scholarships:

Private School Scholarship: The Florida Tax Credit Scholarship (FTC) and the Family Empowerment Scholarship for Educational Options (FES-EO) provide an average of $8,000 in financial assistance for private school tuition and related costs to all Florida students eligible for K-12 public school, regardless of household income.
Unique Abilities Scholarship: This scholarship provides an average of $10,000 through an education savings account (ESA) for students with specific diagnoses, covering tuition, therapies, and more.
New Worlds Scholarship: New Worlds Scholarship Accounts support struggling VPK or K-5 public school students in math and/or reading with an education savings account (ESA) for tutoring, after-school programs, and instructional materials.
PEP Scholarship: Florida students not enrolled in public school or a Florida Home Education Program can access the Personalized Education Program (PEP) through the Florida Tax Credit Scholarship, receiving an average of $8,000 in an education savings account (ESA) for tuition, homeschooling, and more.
Transportation Stipend: Families of K-8 students can benefit from a transportation stipend of $750 per household to support the costs of traveling to a public school other than the one the student has been assigned.

Important Considerations for Students with Disabilities

The ESA+ scholarship is for students with disabilities who require special education services and are entering Kindergarten through 12th grade. When applying, an Eligibility Determination issued by a public school, determining whether a student has a disability and is eligible for special education or related services, must be submitted.

It's crucial to understand that children placed in a private school by their parents waive their right to the special education services they would receive in public schools. Private schools are not legally obligated to provide special education services to students with disabilities. Therefore, careful consideration and planning are essential when selecting a private school to ensure it meets the child's specific needs.

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