A recent Arizona Department of Education (ADE) study has revealed significant discrepancies in reporting on the state's Empowerment Scholarship Account (ESA) program, prompting demands for 12News to retract an article by Craig Harris that cited a 20% fraud rate.

The 20% figure stemmed from a risk-based audit, which focuses on higher-risk participants and accounts to identify potential issues efficiently. Such audits target specific subsets rather than the full population, meaning their results cannot be generalized to the entire program in the way a random sample can.

In contrast, ADE commissioned a study using a random sample, conducted by a Stanford PhD researcher, to assess the ESA program more accurately. This analysis calculated the actual fraud rate at 0.3%. The study also determined that unallowable spending amounted to only 1.9% of the total.

ADE issued a press release addressing the matter directly: "A ridiculous figure of 20% fraud has been circulating concerning ESA purchases which resulted from a total misinterpretation of data provided to Channel 12. The 20% figure represented program participants that ADE had selected for risk-based auditing."

The release further noted that the 0.3% fraud rate "is far below the rate of misuse at a variety of programs such as Medicaid (7.4%), food stamps (9.3%), and unemployment insurance (14.4%)."

Arizona Superintendent Tom Horne publicly criticized 12News, describing their coverage as "outrageous and reckless reporting." He explained that the issue "stems from a misinterpretation that Channel 12 did of data we gave them," and emphasized, "The number for actual egregious purchases or fraud is 0.3%."

Critics say maintaining the article without correction at this stage constitutes journalistic malpractice, as it perpetuates a misrepresentation of the program's integrity based on official data.