by (in alphabetical order) John Garrett Clawson, Reynaldo de la Garza, Victoria Keller, Sarah Pollock, Laurie Roberts,
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ESAs share several programmatic characteristics with schools vouchers program. The primary distinction is that vouchers can only be used for tuition, while ESAs can be used for a variety of educational expenses. Another distinction is that vouchers transfer tuition from the government to the student's chosen school, while ESA funds are controlled by parents through a government-funded debit card. Consequently, many of those that support the school voucher concept support ESA initiatives as well. Those that oppose such voucher proposals are also likely to reject ESA programs.
How it Works
While no ESA program currently exists in Texas, SB 1178 - a failed proposal from the 2015 Texas Legislative Session - elaborates upon some of the programmatic infrastructure that may be included in subsequent bills.
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Once a student is eligible, it is at the discretion of the parent/guardian to decide how the funds will be applied in order to meet the agreed requirements of the program. See below for Eligible Expenses.
Program Size and Fiscal Impact
While no fiscal note was prepared for SB 1178 in the 2015 state legislative session, the budget implications in other states with ESA programs can, to some extent, be used as proxies. To date, just two ESA programs - Arizona and Nevada - permit students without disabilities or an IEP to participate. These programs are much larger than similar programs and best resemble the proposed Texas program. Evidence documenting the fiscal impacts of voucher programs around the country is forthcoming on a separate Wiki page.
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Like the Arizona program, the version of SB 1178 introduced in the Texas Senate in 2015 would have created enrollment caps, limiting the growth of the program over time. If enacted, the number of new students allowed into the program each year would have been capped at “one-half of one percent of the total number of students in average daily attendance in grades 1 through 12 in the state during the previous year (SB 1178 - Introduced, 2015).” If more students applied to participate than allotted under this provision, the Texas Education Agency would give first priority to children with disabilities or “education disadvantages (SB 1178 - Introduced, 2015).”
Amount Per Student
States (with the exception of Mississippi) determine the amount for each student based upon the average amount the government spends on each student attending public school. This amount varies by special need and poverty level.
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SB 1178 suggests that Texas students would receive 80% of the amount that would have been allocated for him/her in the school district he/she would have otherwise attended. Students with disabilities or “educational disadvantages” would receive the full amount (100%) that would have been allocated for him/her in the school district he/she would have otherwise attended. A third party would assess applications to determine the level of funding for which each student was eligible.
Eligible Expenses
Parents may spend ESA funds on a variety of educational costs. Under SB 1178, these educational costs would include:
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However, consumables (like pens and paper), transportation, and technological equipment are NOT eligible expenses under SB 1178.
ESAs vs. Vouchers
ESAs are often confused with vouchers. The primary distinction is that vouchers can only be used for tuition, while ESAs can be used for a variety of educational expenses. Another distinction is that vouchers transfer tuition from the government to the student's chosen school, while ESA funds are controlled by parents through a government-funded debit card.
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O'Dell, Rob, and Yvonne W. Sanchez. "State Money Helping Wealthier Arizona Kids Go to Private Schools." The Arizona Republic. Last modified July 7, 2016. http://www.azcentral.com/story/news/arizona/politics/education/2016/02/23/state-money-helping-wealthier-arizona-kids-go-private-schools/80303730/.
“School Choice in America,” EdChoice, last modified Oct. 28, 2016, http://www.edchoice.org/school-choice/school-choice-in-america.
S.B. 1178, Texas 84th Cong. (2015).
S.B. 2695, Mississippi 114th Cong. (2015).
S.B. 302, Nevada 302nd Cong. (2015).
S.B. 431, Tennessee 431st Cong. (2015).
Arizona. Senate. 2013. reg. sess. Phoenix. SB 1363 Fiscal Note. Schimpp, Steve. 2013.
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