When we look at Arizona, we get a preview of what an ESA voucher scheme (like the one we have in Tennessee) does to local schools.
Instead of investing in local public schools to meet students’ needs and ward off school closures to ensure equal access to quality neighborhood schools, Republican state lawmakers voted to force through universal ESA vouchers, which are now draining a massive $1 billion a year to instead pay for private, for-profit models that pick and choose students.
Tennessee now has a big, universal school voucher scheme.
ESAs, they’re called.
And, in other states, similar programs have been susceptible to fraud.
If you don’t live in Arizona or have any kids going to school there, you can still get access to that state’s voucher funds.
A man from Florida gained access to the state’s ESA voucher funds by indicating he had children in school in the state. Of course, he didn’t – these ghost kids, though, netted him as much as 25,000.
The Big, Terrible Bill included lots not to like, including the creation of a federal school voucher program.
While conservatives tend to be proponents of state-level voucher schemes, some are raising concerns over the Trump scheme:
Though attractive on the surface, this generous credit effectively removes the burden of K-12 funding from the state and transfers it to private SGOs. This undermines states like North Carolina, who did the difficult work of reforming their education funding model to ensure dollars follow the student.
As we saw in the last administration, given enough leverage, the federal government will always try to turn funding into a cudgel to promote its social policy goals.
The scandal that is Arizona’s school voucher scheme keeps getting worse.
It’s not enough that an investigation revealed families using voucher funds to pay for vacations. Now, there’s evidence the voucher money was spent on diamond rings, necklaces, and iPhones.
12 News’ Craig Harris requested reports of all of the reimbursements being approved by Supt. Horne’s ADE, and the laundry list of fraud, waste, and abuse is shocking. The investigation found that private school parents using ESA vouchers for their kids “bought diamond rings and necklaces, Kenmore appliances, and even lingerie with education tax dollars… more than 200 Apple iPhones
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Yes, there’s a federal school voucher scheme.
Yes, it’s a tax giveaway to the rich.
Yes, it also means private school coupons for wealthy families.
States will have to opt in so residents can access the federal coupons.
While there are between 7-10 states unlikely to opt in, Tennessee joins the majority of states likely to participate. Of course, the Volunteer State already has its own private school coupon plan – one that will cost state taxpayers more than $140 million this year alone.
As Tennessee embarks on a school voucher misadventure, it is important to look at other states with universal voucher schemes to see how they are (not) working.
Today, we turn to Arizona. There, voucher recipients are using tax dollars to fund family vacations – Disney, Sea World, etc. – there’s even a Facebook group where users discuss how to game the system to finance vacations.
As 12News points out, most tickets to San Diego attractions or others outside of Arizona are likely to get approved regardless of cost — at least up to $2,000. Why? Supt. Tom Horne’s ADE implemented a new policy in December that all expenses less than $2,000 are approved automatically, without any review, with the plan to audit later.
Will Tennessee taxpayers end up on the hook for trips to Dollywood or Panama City Beach?
An interesting tidbit from The Education Report about Indiana’s voucher program and the possible implications for Tennessee:
Tennessee starts a universal school voucher plan in the 2025-2026 school year. That program is already at capacity in terms of the number of applicants. All 20,000 slots will be taken.
If growth of the program tracks Indiana, that would mean that by 2035, Tennessee will be spending more than $1.4 billion on private school coupons.
Which brings us to the second big takeaway: These vouchers are just creating a discount for wealthy families – they are not a pathway for low- and middle-income families to gain access to private school education.
A pair of stories in The Education Report highlight the unfortunate reality of a federal school voucher scheme brought about by the “Big, Beautiful Bill.”
Robert Kim, Executive Director of Education Law Center:
“Education has not been spared in this bloodbath. This legislation establishes a federal tax credit school voucher scheme with no spending cap. Study after study shows that vouchers sweep aside civil rights protections, support segregation, decimate public school budgets, and do not improve student outcomes. Vouchers undermine public education, the cornerstone of our democracy, and have no place in federal policy.”
Senate version, House version – it’s all quite bad:
The federal voucher is proposed as a tax credit scholarship, meaning that every dollar taxpayers put into the voucher program is a dollar of revenue the federal government does not collect (and for which each donor gets a dollar-for-dollar tax credit, a deal unlike any available for other donation credits). The House version has a cap on the amount of tax revenue the government will give up; the Senate version has no such cap.
The State of Tennessee has said it will not keep track of whether recipients of the state’s new, universal school vouchers are currently enrolled in private schools. In other states (like Arizona), as many as 75% of school voucher recipients were already enrolled in private schools BEFORE receiving a state-funded discount coupon.
These numbers would indicate that vouchers are not so much about school choice as they are about subsidizing private schools – and, ultimately, privatizing the delivery of public education.
As Tennessee lawmakers debated a new universal voucher program earlier this year, one financial analysis projected that 65% of vouchers would go to students already enrolled in private schools.
Now, it will be impossible to determine whether that projection was accurate.
Tennessee families do not have to report their previous school enrollment in the new statewide voucher program application, a gap that will leave Tennesseans in the dark about whether the program will significantly expand private school access for public school students or send millions in public funds to students already enrolled in private schools.
The expected cost of the state’s voucher program at full implementation exceeds $1 billion. If fiscal analysts and trends in other states are an accurate predictor, Tennessee will essentially be funding an entirely separate school system – in addition to the woefully underfunded public K-12 system. Tennessee currently ranks last among Southeastern states in investment in public schools.
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One Tennessee school district is leaving free money for teacher pay on the table. The Grundy County School Board has decided not to accept the state’s $2000 bonus for teachers that was provided as part of the universal school voucher bill that passed this year.
Chattanooga’s NewsChannel9 has more:
“. . . the Grundy County school board did not approve thousands of dollars from the state for teacher bonuses.
Those $2,000 bonuses were tied to the Education Freedom Act and school vouchers.
After the votes failed last week, one board member said he voted against the bonuses because he believes vouchers are wrong.
But another board member said not accepting that money only hurts the county, no matter what strings may be attached.
The strings included passing a supportive resolution to accept the funds that some perceived as a tacit endorsement of Gov. Bill Lee’s voucher scheme.
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