Arizona schools set for $29 million windfall they failed to collect the first time around

Governor Katie Hobbs and Arizona legislators called for a special audit to investigate the loss.

PUBLISHED AUG 13, 2024

The issue became public after it was reported that millions in federal school improvement funds had expired and had to be returned.

Phoenix, Arizona: Arizona's Superintendent of Public Instruction, Tom Horne, has announced that the US Department of Education has offered a waiver to potentially recover $29 million in unused federal Title 1 funds that were not allocated starting in fiscal year 2020.

Why were the funds unused?

Horne told KTAR News that the previous administration was responsible for the lapse, while his predecessor, Democrat Kathy Hoffman, and Governor Katie Hobbs pointed fingers back at Horne. The issue became public after it was reported, in the Arizona Republic, that millions in federal school improvement funds had expired and had to be returned.

Why did the DoEd give the money back?

Horne believes the US Department of Education (DoEd) reached out to Arizona because the issue of unused funds is not unique to the state, and the federal government wanted to give states another chance to utilize the money.

Why has there been a call for an audit?

Governor Katie Hobbs and several Arizona legislators called for a special audit to investigate the loss of funds, accusing Horne of allowing critical federal funding to lapse. Horne responded by deflecting blame onto his predecessor and questioning the need for an audit.

How have schools been affected?

The Arizona Department of Education notified numerous schools that their grants were being cut for the new school year, only to later realize the funds were no longer available, leading to confusion and frustration among the affected schools.