How Can Education Savings Accounts Serve Students With Special Needs? (Opinion)

As educational savings account (ESA) legislation continues to emerge across various states, a pressing question revolves around their practical application—particularly regarding students with special needs. With Arizona leading the nation as the birthplace of the ESA program, insights from local experts can prove invaluable. One such expert, Karla Phillips-Krivickas—a member of Arizona’s state board of education and co-founder of Champions for Kids—brings firsthand experience and a wealth of knowledge to the discussion. Here, she shares her perspective.
—Rick

Rick: Your journey into special education advocacy—how did it begin?

Karla: My involvement spans several decades within education policy and reform. However, the real impetus came from my personal experience as a mother to two children with disabilities. My focus on education policy remains unchanged; it’s always been about enhancing outcomes for all students. We face disconcerting educational disparities, especially reflected in the achievement data of students with disabilities. For instance, among third graders in Arizona, only 16% of students receiving special education services are proficient in reading, compared to 39% of their peers. There’s a prevailing misconception that special education services are limited to specific groups in separate classrooms; however, in Arizona, 67% of students receiving such services actually spend the majority of their day in general education classes.

Rick: With Arizona’s pioneering ESA program, what do we see in terms of benefits for students with special needs?

Karla: ESAs provide significant options and flexibility for families, but the choice to leave public school can be daunting, especially for those with children who have disabilities. Many families desire to keep their children in neighborhood schools among family and friends. Opting for an ESA often requires relinquishing certain rights, a decision made only after extensive struggles within the public school system. Despite federal protections, many parents fight tirelessly to secure the resources their children require. Choosing an ESA is often a life-changing but challenging decision, typically following years of emotional challenges with their local schools.

Rick: What percentage of ESA participants in Arizona are recognized as having disabilities?

Karla: Initially, students with disabilities were the first to be eligible for ESAs in Arizona. Now, fourteen years later, 19% of ESA recipients have a disability compared to 14% across all public school students. Notably, autism represents the largest group among these students, with 52% of Arizona’s 16,553 ESA recipients diagnosed with autism—a stark contrast to only 12% in public schools. This is crucial data that could inform policy decisions in other states.

Rick: How does the monetary value of Arizona’s ESA compare in supporting children with special needs?

Karla: In Arizona, approximately 65% of ESAs range between $7,000 to $8,000. However, those with significant disabilities, such as autism or severe intellectual disabilities, might access funds totaling $30,000 to $40,000. ESAs are designed to reflect about 90% of the state funding that would follow a student in public school, and since Arizona considers student needs in its funding structure, ESAs available for students with disabilities are particularly substantial. While it’s challenging to definitively state if these amounts are adequate—given the larger conversation about school funding—many argue they fall short.

Rick: In what ways have families utilized the ESA?

Karla: Families can allocate ESA funds towards tuition at private institutions or create customized programs that may include tutoring, therapies, or various services. Current data indicates that in the third quarter of fiscal year 2025, over 670,000 financial items were processed for ESA families, predominantly reflecting expenditures on tutoring, teaching services, and associated educational expenses. Anecdotally, we see many families of students with disabilities opting for home education and tailored programs, contributing to a burgeoning market of educational service providers. This flexibility appears to ease initial anxieties around home education.

Rick: How do legal obligations for special education, like the right to a Free Appropriate Public Education (FAPE), intersect with the ESA program?

Karla: In the context of ESAs, the right to a FAPE is confined to public schools. The Individuals with Disabilities Education Act (IDEA) does mandate supports and services for students with disabilities in private and home school settings. Federal law stipulates that school districts allocate a portion of their IDEA grants to provide equitable services to students in parentally-placed private schools, which can encompass those in home schooling—though for-profit institutions remain excluded.

Rick: For skeptics of the ESA framework, can you highlight any success stories?

Karla: Absolutely. I recommend listening to public testimonies from recent Arizona state board of education meetings. While criticisms often surface concerning administrative matters, you will consistently hear stories about how ESAs have been transformative for families. A salient example is from a mother of five children, all with disabilities, who shared, “The ESA program changed everything for us. It allowed us to create what public school couldn’t provide.” It’s clear that even the best public schools cannot fully cater to every student’s needs, and ESAs offer hope and tangible assistance to families navigating these challenges.

Rick: What potential concerns should stakeholders be aware of regarding ESAs?

Karla: Beyond the philosophical debates surrounding school choice, several practical issues demand attention. The operational aspect of the ESA program has revealed a shortage of manpower to properly review expenses and manage the program. For instance, over 10,000 purchases made by ESA families were processed daily during the third quarter of fiscal 2025! The state education department has also faced controversy over policy changes and the handbook governing the ESA program. Families have actively engaged in voicing their concerns to both the legislature and state board meetings. It’s a pivotal time where community voices are gaining attention.

Rick: What advice would you impart to parents navigating the ESA landscape?

Karla: I would emphasize three key approaches: First, seek assistance. Numerous support networks, social media platforms, and nonprofits can provide invaluable guidance and community. Second, be fully informed; understand the expectations and requirements differentiating public and private education. Lastly, maintain accurate records of your ESA expenditures and grasp what qualifies as allowable expenses.

Rick: What valuable lessons can other states glean from Arizona’s ESA experience?

Karla: The key takeaway is to adopt a flexible stance on what constitutes an educational expense. While items like tuition and conventional educational materials are straightforward, we must also accommodate the unique needs presented by students with disabilities. Controversies around perceived misuse of funds—e.g., purchasing non-educational items like luxury items—underscore the necessity for clear definitions of educational expenses. Mistakes are inevitable in this new model, but as long as we prioritize the needs of students, we can make significant strides forward.