In examining the 2024 NAEP results for Arizona, a rather stark picture emerged that Arizona charter and Arizona districts had strongly diverged– Arizona charter schools show academic recovery, whereas Arizona district scores sank, in some cases, to all time lows. This came despite district spending standing not only higher than charters on a per pupil basis and standing at or near record high levels. Arizona charter schools still have an incentive to attract students, whereas during the federal money printing extravaganza districts of the COVID-19 debacle often spent a lot more money even as their enrollments shrank. The NAEP shows the scale of the academic gulf between Arizona charter school students and Arizona district students placed into context with statewide average scores on the 2024 eighth grade math exam:
Drowning districts in cash even as their enrollments shrink may have turned off the positive competitive impact of choice programs, and data published by the Common Sense Institute Arizona shows just how stark this has been. Kamryn Brunner and Glenn Farley of the Common Sense Institute Arizona have been tracking the enrollment and expenditure trends of school districts that have announced school closings since January 2025. I used their data to make Figure 1:
So, the word cloud that pops in my head when looking at this data prominently features “RECKLESS” and “IRRESPONSIBLE” and “UNSUSTAINABLE.” A few months ago the Arizona State Board of Education put the Isaac School District into financial receivership. This enrollment loss was not driven by Arizona’s ESA program, as the state’s open enrollment report shows 2,319 students who reside within the borders of Isaac attend public schools outside of the district (through open enrollment and charter schools) and the ESA quarterly report shows only 82 ESA students reside within the Isaac school district. The number of students who transferred from an Isaac district school to the ESA program will be smaller still, as these students may have previously been attending other districts, charter schools or private schools.
The districts in Figure 2 have announced a total of 13 school closings. Another chart from the Common Sense Institute Arizona shows far more is needed. The Arizona district system has physical capacity to serve almost 1.3 million students, but only 850,000 enrolled.
So how did Arizona districts wind up with a spare 450,000 spaces? There is not a single culprit. A baby bust started in 2008, but this seems not to have informed the decisions of districts. Part of the story is that Arizona families have less demand for district schools. The main culprit however is the usual suspect: politics. The Arizona Center for Investigative Reporting (AZCIR) and KJZZ reported in 2017 on financial relationships between a small group of architects, construction companies and subcontractors and the school districts in Maricopa County. They found that architects, construction firms and subcontractors accounted for nearly all the financial contributions made to Maricopa County districts’ bond and override campaigns from 2013-2016. This is dubious enough in a fast-growing district with clear facility needs, but it has also been happening in districts with shrinking enrollments.
Arizona should collect K-12 capital funding statewide, rather than on a local basis and provide it on an equitable per pupil basis to students. District and charter schools should be free to spend these funds in whatever fashion they feel furthers their educational mission, whether that is building a new school, patching a leaky roof, or paying their teachers. Districts with large amounts of underused space should, however, not receive these funds until such time that they return or offload such space to some sort of productive use.
Arizona is likely not the only state where the positive impact of competitive effects drowned in a sea of COVID cash. With the 2024 election having hinged largely upon an inflationary spiral coinciding with federal money printing, and 10,000 Baby Boomers reaching the age of 65 per day until 2030, the reckless level of spending on K-12 seems all but certain to reverse.
