More Budget Cuts are Coming

and one way or another, we will all feel the pain

At our last school board meeting, the superintendent of our small rural district reported that five students left to be homeschooled with vouchers in the past year. It isn’t the first time students have left to attend a charter or private school, but it is the largest number to leave in one year. 

I’ve been closely watching the impact vouchers are having on our state budget and have worried about the lack of accountability and the quality of education these voucher students are receiving. This is the first time though, that it hit home. It isn’t surprising that our students wanting to take advantage of vouchers are going to be homeschooled. The closest private school is about 25 miles away. So, homeschooling or microschooling (a group version of it) is probably the predominant way parents will use vouchers in our neck of the woods.

Mind you, the voucher recipient numbers are still dwarfed by the over 90 % of students who attend public schools (including charters), but they are a fast-growing group and so is the cost of the program. It isn’t just about the actual dollars lost by the districts, however, but also the uncharted nature of it all.

Education Week reported this week that “the proliferation of private school choice programs has injected uncertainty and volatility into the already-chaotic school budgeting process”. According to Ashlee Gabrysch, an analyst who helps analyze school district financial health for credit rating firm Fitch Ratings, “Even the existence of these programs introduces a lot of uncertainty into the K-12 school budgeting or district budgeting process, both for revenue this year and/or revenues next year and beyond”.

It also is incredibly inefficient, because fewer students don’t inherently mean lower costs. Fixed costs (those that do not vary with enrollment levels and that the district has little control over) are typically expenses such as utilities, building operations and maintenance, transportation, and technology. Even instruction is largely a fixed cost since the number of teachers and para pros cannot be reduced because one or two students, (from several grades), leave the school. 

Additionally, because voucher amounts are based on 90% of charter school funding, they are worth more than a district would receive for a typical student. According to the Joint Legislature Budget Committee

  • For large school districts that receive state aid, the per-pupil cost for Grades 1 through 8 in public schools was $700 less than the cost of an ESA.
  • For public high schools, the per-pupil cost was $900 lower than an ESA.

And, the vast number of students who have been taking the vouchers weren’t even in district public schools. They were already being homeschooled or attending private schools at their parent’s expense. Now they attend that private school at taxpayer expense. In addition, a voucher doesn’t ensure equal access for all students since 1) private schools do the “choosing” not the other way around (unlike district schools who must accept all students as long as they have room) and 2) many private schools cost more than the voucher funds. That can be no surprise to anyone who understands how capitalism works.

The real truth is that vouchers are not saving Arizona taxpayers money, as the AZ Daily Star noted,

Most funding for public schools comes from taxpayers who do not have school-age children. When special interests claim that voucher users are “reclaiming their tax dollars,” they ignore the fact that the average household in Arizona is only paying about $3,000 into the state general fund per year via sales and income taxes; only $1,300 (43%) goes to public schools, while vouchers cost at least $7,000 per child.

And yet, as of February 2024, 11 states offered universal vouchers, 12 states had expanded their program, and seven had passed new voucher programs. But Arizona was the first and continues to lead in offering school choice. Unfortunately, Arizona is also the Wild West of school choice, and according to NEA Today, “has one of the least accountable voucher programs in the nation”. Unlike many other states, there is no cap on the amount of vouchers that may be granted and for the 2023-2024 school year, the cost was close to $1 billion. Arizona also doesn’t require any testing or reporting for students on vouchers, whether they are being homeschooled or enrolled in parochial or private schools. Neither does it require any sort of disclosure on how these private schools spend our tax dollars.

Some states are paying attention to the Arizona debacle. In 2023, the Texas State Teachers Association was successful in repeatedly defeating Governor Abbot’s universal proposal. The Idaho Education Association also defeated seven voucher bills in their state legislature and Illinois became the first state to end its voucher program. Just recently, the South Carolina Supreme Court ruled vouchers unconstitutional.

Unfortunately, the AZ GOP-led Legislature is unwilling to do anything to reign in its voucher debacle. State budgets must be balanced each year; they can’t run a deficit like the federal government. When unexpected costs (such as what the runaway voucher program is producing) far exceed what was budgeted, the cuts have to come from somewhere. This year, that meant cuts such as those to colleges and universities, delayed road work and highway construction, and the elimination of funding for water system upgrades. As reported by 12News.com, the final agreement also included, ‘eliminating $37 million annually to K-12 school poverty funding and $24 million annually to the “Promise” low-income college scholarship program.’

The unfunded mandate of universal vouchers is unconscionable and unsustainable and it isn’t just our public schools that are at risk but critical programs across our state. As the Arizona Education Association President, Marisol Garcia warned, “If other states want to follow Arizona, well – be prepared to cut everything that’s in the state budget – health care, housing, safe water, transportation. All of it.” 

The worst part is, that we have no way of knowing what kind of return on our investment we are getting on vouchers for education. We simply do not know whether students on vouchers are learning what they need to know to be productive members of our society. In what universe can that be a good thing?

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