ESA scandals are getting the press right now (as they should be), but don't ignore the budget-busting effects of School Tuition Organizations (STOs)

While the trend of recipients of ESA/school vouchers misusing the public money they've been given has gotten a lot of press coverage recently (it's gotten so bad that AZ Superintendent of Public Instruction Tom Horne appeared on Channel 12's Sunday Square Off to defend his failures.  Of course, his "defense" was a desperate attempt to shift the blame on to certain Democratic women, like Governor Katie Hobbs, Attorney General Kris Mayes, and his predecessor as SPI, Kathy Hoffman), the Republican majority in the AZ legislature is adamant in their refusal to do anything to rein in that misuse of public funds.

Maybe that refusal is rooted in the myriad, often internecine, ties that R members of the legislature have to STOs and charter schools.

The are 90+ STOs that have been certified to receive donations for individual income tax credits and 90+ STOs that have been certified to receive donations for corporate tax credits (there is a LOT of overlap between the two) (the lists have URLs that indicate they are from 2023, but the lists were updated on 8/8/2025).

Certain legislators reported (on their financial forms) their ties to STOs and private/charter schools -

From State Representative Michael Way:

Charter schools seem to be a profit center for the Way family

From House Speaker Steve Montenegro:

From Representative David Marshall:

He doesn't specifically call it (the STO) out, but the church was certified (allowed) to accept tuition tax credit donations from 12/16/2022 to 9/30/2023 .

From Representative Alexander Kolodin -

Arizona School Choice Trust (ACST) received more than $71m is tuition tax credit donations from CY98 thru FY24.

From Senator Shawna Bolick -

Not only does she work for Choose A School, her organization has strong ties to Kolodin's ACST.

From Choose A School's website -

There's a reason that I used the word "internecine" earlier.

Of course, the person  who may find STOs and School Tuition tax credits the most lucrative is former legislator Steve Yarbrough.  

According to records from the Arizona Corporation Commission (ACC), he's part of two organizations that are certified to receive STO donations.

While the the address for ACSTO goes to a PO box, many STOs list their addresses as PO boxes or private mail drops.  In and of itself, that's not evidence of criminal behavior.

On the other hand, the address for School Choice Arizona goes to a building that's owned by Yarbrough, according to the Maricopa County Assessor.  That org doesn't have to go far to talk to its landlord.

The two Yarbrough organizations collected nearly 17% of the millions of dollars given to STOs in FY2024 (the latest year for which data is available.)

AZ Department of Revenue annual reports on STO tax credits are here.

One interesting development:

This organization, Simply STO, is one that I couldn't find in ACC records.  However they may be registered under a different name, so to use a phrase I've used before - in and of itself, that's not evidence of criminal behavior.

The org's website does not list any names or even a phone number.  Their contact page is a contact form, and not even an email.  Again, that's not evidence of criminal behavior.

Lastly, the address they give tracks back to a "rent a desk" place designed to give small organizations a cheap street address.  Again, that's not evidence of criminal behavior.

Taken together though, it is interesting and begs a few questions.

At the AZ Lege, some folks are setting things up for it to become an example of "what's old is new again"

And, for once, I'm talking about the Rs' desire to return society to the 1930's or earlier (you know, times of massive corruption, massive breadlines, and massive lynchings).

Nope, I'm talking about how certain former members of the legislature are seeking to return there.

I've already written about the candidacy of former Senate president Steve Yarbrough in his quest to return to the lege, this time in the House.

It's still early, but Republican former rep Walt Blackman has formed a committee for a return to the House from LD7.  In 2022, he ran for Congress and lost in the primary. -

Republican Vince Leach is looking to return to the Senate from LD17 -

He's not exactly a good public servant, but he lost a primary fight with the wildly controversial Justine Wadsack, the current state senator from that district and someone who laughs at sane when she sees it in her rearview mirror.

Also having a committee is former legislator Bob Stump, but I'm not sure that he's running - it's a *very* old committee and isn't set up for his current district.

The committee is set up for LD9 but he lives in LD27.

Steve Yarbrough (R-Giant Sucking Sound) looking to return to the Arizona legislature

I generally don't write about legislative races, but a name that's a blast from the past has formed a committee to run for a seat in the AZ House.

From the website of the Arizona Secretary of State -

Yarbrough is a former president of the state senate.

From the 2018 member roster for the state senate -

I've referred to him as a "Giant Sucking Sound" because of his penchant for benefitting from funds taken from public education and given to private and charter schools, funds laundered through his entity, the Arizona Christian School Tuition Organization (ACSTO).

He's still involved with ACSTO (as his campaign email address indicates), but is no longer the official head of it -he's *just* a director.

From the Arizona Corporation Commission -

Note: Though his committee formation indicates that it is formed for a run in LD17, I think that he lives in LD12 or 13 now; 17 is his former district designation.  

Since redistricting, LD17 is now a southern AZ district.