The Arizona Supreme Court ruled 5-2 on Thursday that the state's Education Savings Account program does not violate the Arizona Constitution, dealing a significant blow to the Arizona Education Association and its allies who argued the program unconstitutionally diverts public funds to private and religious schools.
The decision marks the third time since 2022 that the state's school choice expansion has survived legal challenge. The ESA program, signed into law by Governor Katie Hobbs in 2024 after a narrow legislative passage, allows families to receive state per-pupil funding directly into savings accounts they can use for private school tuition, tutoring, and other educational expenses.
What the Right Is Saying
School choice advocates celebrated the ruling as a victory for parental rights. Americans for Prosperity-Arizona called it "a historic win for families who have waited years for educational freedom." The Goldwater Institute, which helped draft the original ESA legislation, argued that the program simply returns tax dollars to families rather than forcing them into one-size-fits-all public schools.
Conservative lawmakers argued the constitution's language about supporting "general and uniform" public schools does not prohibit choice programs. Senate President Warren Petersen said: "This court has correctly interpreted the law as protecting all Arizona parents, not just those who can afford private education without assistance."
What the Left Is Saying
Arizona Education Association President Marisol Garcia called the ruling a "devastating blow to public education" and said her organization is evaluating whether to pursue federal litigation or seek a ballot initiative to amend the state constitution. "Today's decision opens the door to dismantling 140 years of Arizona's commitment to free, universal public education," Garcia said in a statement.
Democratic state legislators argued that ESA funds disproportionately benefit wealthier families who can afford private school tuition beyond what state allocations cover. Representative Athena Salman of Tempe wrote on social media: "5 justices just handed a tax break to wealthy families at the expense of underfunded public schools serving 90% of Arizona students."
The left-leaning Center for Budget and Policy Priorities has estimated that Arizona's ESA program could cost traditional public schools $600 million annually by 2028, based on current participation growth rates.
What the Numbers Show
Arizona's ESA program currently serves approximately 38,000 students, up from 12,000 when it launched in 2022. The average ESA allocation is $7,200 per student. Private school tuition in Maricopa County averages $12,500 annually for elementary schools and $15,800 for high schools, meaning most families must supplement ESA funds out-of-pocket.
Arizona ranks 41st nationally in per-pupil spending at approximately $9,100 annually. Traditional public school enrollment has declined by 31,000 students since 2022 as charter and private school enrollment grew.
The Arizona Education Association spent an estimated $4.2 million on its legal challenge. The Goldwater Institute and other school choice organizations collectively spent approximately $3.8 million defending the program.
The Bottom Line
Thursday's ruling effectively ends the current round of constitutional challenges to Arizona's ESA program, though opponents may pursue federal arguments under the First Amendment's establishment clause or seek legislative remedies. Governor Hobbs has not indicated whether she would sign legislation curtailing ESAs if Republicans regain the two-thirds majority needed to override a potential veto. The next battleground is likely legislative funding battles during the January 2027 budget session.