Governor Hobbs, Democrats Demand Audit Over Missing Education Funds

Today, Gov. Hobbs called for special audit of the Arizona Department of Education.Photo byElement5 DigitalonUnsplash

PHOENIX — Governor Katie Hobbs and six Democratic members of the Arizona House of Representatives have called for a special audit of the Arizona Department of Education’s handling of school improvement and Title I funding allocations.

The request was made amid concerns that the Department, under Superintendent Tom Horne, has mismanaged tens of millions of dollars in federal funding intended to assist struggling students in public schools.

“I commend the members of the state legislature who are demanding accountability and transparency,” Hobbs said.

“It is unconscionable that Superintendent Horne has let tens of millions of dollars disappear from our schools—critical federal funding that helps students succeed. I sincerely hope that the Joint Legislative Audit Committee takes up this investigation and finds out what happened to these resources. Our kids deserve better.”

The push for an audit follows reports that the Department of Education lost $24 million in federal funding for public education, raising alarm among state officials.

Further complicating the situation, the Department has refused to release the data and formulas used to calculate the funding reductions, leaving school finance officers unable to verify the accuracy of the cuts.

House Democratic Whip Nancy Gutierrez, authored a letter sent on August 7, 2024, to Representative Matt Gress of the Education Appropriations Committee that outlined concerns regarding the Department’s explanation for the reduced Title I allocations, which it attributed to federal grant funding cuts.

“The actions of the Arizona Department of Education and Superintendent Horne have raised serious questions about their ability to responsibly oversee the state’s education federal funding distribution,” Gutierrez said.

“We need more attention to detail, basic transparency, and better communication with schools—and with us—to avoid the budget cuts and negative impacts that our schools have experienced. We need an audit right now to find out exactly what is happening and why, and to restore trust.”

The signatories of the letter include Gutierrez, Democratic Assistant Leader Oscar De Los Santos, Democratic Leader Lupe Contreras, Democratic Whip Melody Hernandez, Representative Jennifer Pawlik, and Representative Judy Schwiebert.