In eight states, at least $4 billion in taxpayer money was used to fund universal private school choice programs in 2023-24, impacting some 569,000 students. Here’s what that means for public schools.
The shift from public to private schools has been smaller than anticipated, new research from FutureEd suggests. In Iowa, one of the eight states utilizing private school choice programs outlined in the report, lawmakers projected more than one-third of its expected 14,000 ESA (Education Savings Account) participants would come from public schools. In reality, less than half transferred.
However, several states underestimated the sheer cost of these programs, with expenditures exceeding initial projections as a result of high participation, particularly from families who already pay for private school. Similarly, these programs primarily benefit students who are already enrolled in private schools.
“Enrollment continues to increase where programs are offered; several additional states have legislative proposals in the works; and advocacy organizations continue to push aggressively for expansion,” FutureEd Director Thomas Toch said in a statement.
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The report also raises some concerns regarding the lack of transparency behind some programs. Many states don’t require standardized testing or public reporting of student performance data.
Instead, the research calls upon policymakers to consider several adjustments to their ESA programs:
- Better design: Communicate how these programs are defined, like whether funding is based on income.
- Equity: Policymakers ought to assess the equity of these programs and how they serve diverse student populations.
- Return on investment: Are taxpayer dollars being used efficiently to maximize student outcomes?
“How state leaders design these programs will have a powerful effect on which students participate in them, whether students benefit from the programs, the nature of the benefits, and the consequences for state budgets,” the researchers wrote.
Take a look at the full report here.
