School choice programmes grow in popularity

Robbie Sequeira, Tribune News Service

States are scrambling to meet rising demand for newly expanded school choice initiatives, pouring more money into the programmes as waiting lists — and budget concerns — grow. A further boost is expected next year, when the federal government rolls out a new policy allowing taxpayers to claim a tax credit for up to $1,700 in donations to nonprofits that award private school scholarships to K-12 students. Supporters tout such programs as a lifeline for parents desperate to get their kids out of failing public schools, while opponents have long warned that they drain resources from public education as students move from public schools to private ones.

For years, voucher and scholarship programs providing taxpayer dollars for private school tuition were limited to low-income or special needs students. In 2022, however, Arizona became the first state to allow all students to use public money for private school tuition. By next school year, at least 17 states are expected to have universal programmes — making roughly half of U.S. students eligible to receive money, according to FutureEd, a think tank at Georgetown University. As both universal and limited programs spread across the country, many families are eager to participate. In Alabama, more than 36,000 students last spring applied for 14,000 spots in the state’s new programme, prompting Republican Gov. Kay Ivey to propose increasing its funding from $180 million to $250 million for the 2027-28 school year, when income limits will be eliminated. In Oklahoma, Republican Gov. Kevin Stitt has proposed removing the budget cap on a scholarship program that turned away 5,600 students a couple of years ago because it ran out of money. And in Tennessee, Republican Gov. Bill Lee has proposed doubling the funding for a scholarship program that has a waitlist of about 34,000 students.

“Last year, we gave families school choice with the Education Freedom Scholarship programme, because parents know best,” Lee said in his State of the State address last month. “Growing the program would open the doors of opportunity for thousands more children statewide.” South Carolina Republican Gov. Henry McMaster and Missouri Republican Gov. Mike Kehoe also are seeking more money for school choice programmes. “So far what we’ve really seen is legislatures looking to expand the programs,” said Andrew Handel, director of education and workforce development at the American Legislative Exchange Council (ALEC), a membership group for conservative state lawmakers that has pushed for choice programmes nationwide. “The ESA [education savings account] is the gold standard. It’s the one that gives parents the most flexibility,” he said, referring to programs that allow parents to use the money for other education-related expenses in addition to tuition. “The best states are where the funding for those school choice programs is tied directly to their state education formula. That ensures that no matter how many families apply, you’re always going to have the money there.”

But in Arizona, the first state with a universal program, Democratic Gov. Katie Hobbs has become an outspoken critic. Hobbs last month criticized the program, approved under her Republican predecessor, as an “entitlement program” that “continues to operate unchecked, squandering taxpayer dollars with no accountability.” She has proposed scaling back the program to its original scope, when it was limited to children with disabilities and military families. The program serves more than 100,000 students — about 1 in 10 K-12 students — and cost the state about $872 million in fiscal 2025, according to the Grand Canyon Institute, a nonpartisan think tank. In addition to offering vouchers to pay private school tuition, it allows money to be spent on certain school supplies.

A recent audit by the Arizona Department of Education found that about 20% of Empowerment Scholarship Account dollars were used for unauthorized purchases, including iPhones, lingerie, jewelry and other luxury items, according to documents obtained earlier this month by the television station 12News in Arizona. At least 45% of the kids receiving aid in Arizona were never enrolled in public schools, 12News recently reported. In some states, the percentage is even higher: In the 2023-24 school year, about two-thirds of the students participating in scholarship programs in Arkansas and Iowa were already attending private schools. Those numbers have handed ammunition to critics who argue that universal programs are creating two parallel education systems, both funded by taxpayers.

“Every state that’s passed a voucher system has had to slow down its per-pupil funding for public schools,” said Joshua Cowen, a professor of education policy at Michigan State University. “Whether they take it directly out of school aid or fund it from another pot, it’s all the same budget.

“States can’t afford to run two systems.” The waiting lists prove that many families would like to send their children to private schools, but it’s difficult to determine whether they get a better education there: Unlike public schools, private schools can turn away students, and in many states private school students don’t take the same standardized tests, so comparing academic performance is difficult. Patrick Wolf, a professor at the University of Arkansas who studies school choice programs, noted that in his state, students with disabilities made up 48% of first-year participants. The percentage declined to 36% the second year, but that was still nearly three times the rate of disability in the general population.

Wolf argued that choice programs can help public schools by providing competition, forcing them to adapt. “The traditional public schools can lose students who didn’t really want to be there, and that can be a pressure release valve,” he said. “What we’ve seen when private school choice programs launch is that public school test scores often go up slightly.

“The competitive effects are either neutral or positive,” he said. “They communicate more effectively with parents. They offer new programs targeted to the kinds of students they’re afraid might leave.”

Earlier this month, Texas launched what is likely to be the nation’s largest school choice programme. The new pre-K to 12th grade scholarship program is open to any US citizen or immigrant in the country legally (public schools are open to everybody), but funding will be capped at $1 billion for the 2026-2027 school year. If state lawmakers choose to spend more in future years, the cost could rise to nearly $5 billion by 2030, according to a legislative fiscal note. The state’s current biennial budget is close to $340 billion. Most participating students who want to attend a private school will be eligible for about $10,470 per year, while students with disabilities can receive up to $30,000. Families who want to homeschool their child can get $2,000. This year, Texas will give priority to students with disabilities, families with lower incomes, and children enrolled in public and charter schools. Starting next year, the guidelines will be adjusted to favor the siblings of current students and new applicants.