📚 Limit School Voucher Spending

A Model Proposal to Refocus Voucher Programs on Student Need and Fiscal Accountability

✅ 1. TLDR

• Limits school voucher (ESA) spending by ending universal eligibility

• Preserves access for students with documented need (e.g., disabilities, military, low-rated schools)

• Reclaims hundreds of millions to over $1 billion annually, depending on state size

• Keeps school choice available while restoring public funding integrity

• Requires annual reporting, oversight, and public transparency

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🌟 2. Purpose

This model legislation helps states return education voucher and ESA programs to their original intent: supporting students who genuinely need alternative options instead of funding private tuition for families who never attended public schools.

It offers a simple path to limit runaway voucher spending, protect vulnerable students, and ensure public education dollars serve public purpose.

🕰️ 3. Background

Voucher programs — often called Education Savings Accounts (ESAs) — began in many states as targeted support for:

• Students with disabilities

• Military-connected families

• Children attending low-rated or persistently underperforming public schools

• Foster youth and students experiencing homelessness

⠀But over the past decade, several states (e.g., Arizona, Florida, West Virginia) expanded ESA eligibility to nearly all students — regardless of income, school performance, or demonstrated need.

The result in many states:

• Tripled program costs in a single year

• Over 60% of ESA recipients were already attending private or homeschool before enrolling

• No consistent academic gains observed

• Public schools lost per-pupil funding while remaining obligated to provide fixed services

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✅ 4. Proposed Solutions

✅ Solution 1: Restore ESA/Voucher Eligibility to Need-Based Groups

Beginning January 1, 202X, public voucher or ESA funds may only be awarded to students who meet at least one of the following criteria:

• Documented disability and qualification under an IEP or 504 plan

• Parent or guardian is an active-duty military member

• Student attends or is zoned for a low-performing public school (e.g., rated D/F or in bottom 5% statewide)

• Student is in foster care or classified as homeless by state or federal law

⠀States may adapt this list based on original program statutes.

✅ Solution 2: End Universal Voucher or ESA Enrollment

• No new voucher/ESA applications may be accepted from students outside the eligible groups after January 1, 202X

• Students currently enrolled under universal expansion may continue receiving funds through December 31, 202X

• State agencies must notify families and provide information about in-district transfers, public magnet programs, and support options

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✅ Solution 3: Strengthen Oversight and Annual Public Reporting

The state education agency shall publish an annual report by June 30 each year that includes:

• Total number of voucher/ESA recipients, categorized by eligibility type

• Total disbursements, broken down by service (tuition, therapy, transportation, tutoring)

• Administrative vs. instructional spending

• Geographic and demographic impact

• Any audits, fraud reports, or flagged misuse

⠀Oversight may be assigned to the State Auditor, Treasurer, or other designated enforcement body.

📊 5. Evidence

📘 Learning Policy Institute (2024)

• 2022 expansion caused a 211% cost increase in a single year

• Costs rose from $189M to $587M in 12 months

• FY2025 projections exceed $860 million

• Griffith, M., & Burns, D. (2024). Understanding the Cost of Universal School Vouchers. Learning Policy Institute. ERIC PDF

📘 Grand Canyon Institute (2024)

• Universal vouchers made up 55–60% of ESA spending

• Net cost of expansion: $332M in 2024, rising to $429M in 2025

• Cost of the Universal ESA Vouchers

📘 ADE Q2 2025 Reports

• 73.6% of ESA users qualify under universal voucher rules

• Vast majority of new ESA funds are not going to high-need students

• ESA FY25 Q2 Executive & Legislative Report

📘 Additional

• Abrams, S.E. (2025). The Mounting Trouble with Education Savings Accounts. Great Lakes Center. PDF

• Huerta, L.A., & Baisden, T. (2024). Strengthening Oversight of ESA Funding. National Education Policy Center. PDF

• Roy, S., Schwartz, H.L., & Gable, A. (2024). ESA Impacts on Achievement Outcomes. RAND. PDF

• McBeth, J. B. (2024). Opportunity Hoarding in Arizona's ESA Expansion. University of Arizona. PDF

• Berry, W., & Chait, R. (2024). ESA Accountability Landscape. WestEd. PDF

📌 Recommendation for Local Adaptation

To maximize local credibility, campaigns using this model should include:

• Their state’s most recent voucher/ESA cost projections

• Any existing auditor general or legislative bureau ESA evaluations

• Public opinion data or polling on school funding priorities (if available)

📘 6. Definitions

1. Voucher Program / ESA: A publicly funded account used to pay for private educational expenses outside the public school system.

2. Eligible Student: A student meeting clearly defined, need-based criteria for voucher or ESA funding.

3. Universal Voucher: A voucher available to all families, regardless of income, need, or school rating.

4. Transition Period: A one-year window during which ineligible recipients may continue receiving funds before reforms take effect.

5. Low-Performing School: A public school in the bottom rating tier based on the state's accountability system (e.g., D/F rating or bottom 5%).

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❓ 7. Clarifications

Q1: Is this a ban on school choice?

🅱️ No. Families may still choose private, homeschool, or online learning. This proposal limits public funding to students with demonstrated need.

Q2: What happens to students currently enrolled?

🅱️ They will receive a full one-year transition period before funding eligibility changes.

Q3: Does this save money?

🅱️ Yes. Depending on the state, this reform could reclaim hundreds of millions to over $1 billion annually in redirected funds.

Q4: What happens to the savings?

🅱️ States may reinvest these savings in core public education priorities — such as literacy, mental health, teacher salaries, or rural school access.

🛠️ 8. Implementation

• Legal Form: Statutory reform (via state legislature or citizen ballot initiative, where applicable)

• Effective Date: January 1, 202X

• Transition End Date: December 31, 202X

• Administered by: State Education Agency

• Oversight by: State Auditor, Inspector General, or equivalent

• Annual Report Due: June 30 each year

📣 9. Why This Proposal Is Critical

Universal voucher and ESA expansions are draining state budgets, weakening public school systems, and shifting education policy toward subsidizing private tuition — often for families already outside the public school system.

This proposal offers a responsible reset.

By limiting voucher spending to students with demonstrated need, states can:

• Restore budget stability

• Protect the integrity of public education

• Support families who truly need alternatives

• Stop funding private choices with public dollars — unless there’s a compelling reason to do so

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💬 10. Call for Feedback

• Which eligibility groups are most relevant in your state?

• Does your state already publish ESA cost or outcome data?

• Should the savings be earmarked or returned to the general fund?

• What would make this message resonate with voters or legislators where you live?