Is Your State Considering An Education Savings Account Voucher Law? Here Are Five Questions You Should Be Asking.

Education Savings Accounts are the newest version of school vouchers. They provide parents with a chunk of money to spend on any number of education-related expenses, from books to transportation to computer software. In some cases, ESA bills represent a shift of billions of dollars of taxpayer money from public schools to private “education service providers.”

The differences between these bills are often small but significant. If your state legislature is considering such a bill, here are questions to ask.

Who is eligible to receive the voucher?

Some states have gone with a voucher “starter” bill which limits eligibility to students below a certain income line or students with special needs. There may be a requirement that students are leaving the public school system, but increasingly states are aiming for a universal voucher that has no income requirements and can be used for students who are already enrolled in private schools. The more students who are eligible, the more expensive the bill will be for taxpayers.

How are the vouchers funded?

The state must get the money from somewhere. Typically there are two preferred options; either from the funding for the district where the voucher student lives, or from the general education funding pool for the state. In the former, the impact is felt primarily by the local school district and its taxpayers, but in the latter, school districts that don’t even include voucher students lose state funding.

This funding loss is especially acute in states that allow vouchers for students who were never in public school to begin with. In that situation, local school districts lose funding while their operational costs remain exactly the same. School districts must either cut programs or increase the burden on local taxpayers.

How is the program administered?

In many cases, the bill instructs the state to hire a management company to operate and administer the voucher program. This company will be responsible for setting criteria for service providers and determining which expenses may or may not be allowed. In effect, the state outsources responsibilities of its education department to a private company (an issue being tested in a New Hampshire lawsuit).

What protections are in place for students and families?

Under most voucher programs, students with special needs waive their rights. Parents are asked to sign off on a statement that they are now fully responsible for their child’s education. Most bills include no requirement for gatekeeping for vendors; if you want to be eligible to collect voucher dollars, just fill out a form. Voucher programs, so far, do not include any recourse for parents who find they have been defrauded by service providers or who find that the voucher dollars do not go far enough. No voucher program, existing or proposed, makes any promises about maintaining the dollar amount of the voucher.

Often service providers’ rights are more explicitly protected than those of students. Taking voucher money does not make them “an agent of the state or federal government.” They will be given “maximum freedom.” Typically a provider shall not be required “to alter its creed, practices, admissions policy, or curriculum.” They remain free to discriminate as they wish.

What accountability and oversight measures are in place?

Does the bill include any calls for regular or random audits? Do service providers have to submit any measures of effectiveness? Or do taxpayer dollars simply disappear into a black hole, with no public accounting of financial or educational results?

School vouchers have historically proven unpopular with voters; the current crop is being rushed through quickly and quietly and with little opportunity for the public to weigh in. That’s all the more reason that these questions remain important, even if the answers are shrouded in secrecy.