by (in alphabetical order) John Garrett Clawson, Reynaldo de la Garza, Victoria Keller, Sarah Pollock, Laurie Roberts,
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Because ESAs seek to accomplish goals similar to school voucher programs, political sentiment on both sides of the aisle are quite similar in nature. For more information about ideology and school choice, see the school choice page.
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.
Parents who elect to enroll register in the proposed program proposed program would receive a debit card with funds that may be applied to educational expenses. The Texas Commissioner office would be in charge of establishing and managing funds to be distributed for approved educational-related expenses for eligible students. The allotted amount will be equal to 80-100% of the annual funding per student in that student’s specific district. Refer to the Amount Per Student section below for financial eligibility.
When signing up, parents would be agreeing to the following (SB 1178, 2015):
- Minimum education requirements of reading, grammar, health, social studies, and science
- Funding to be spend on qualified education expenses
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- Annual administered assessment instruments i.e. state testing, AP exams, etc.
- Notify TEA if student enrolls in public school district or an open enrollment charter school
- Inform TEA once student has graduated
Any unused funds would roll over and may could be applied to higher education expenses the child may incur after completing the appropriate K-12 curricula.
Currently, Arizona, Mississippi, Florida, Oklahoma and Tennessee limit Tennessee limit eligibility to students with special needs, students from low income families, and/or students in low performing school districts, but the program outlined in Texas' SB 1178 would be open to all SB 1178 would allow all Texas students meeting the following conditions to participate (SB 1178, 2015):
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- A student who is at least 5 years old and no more than 21 years old AND
- Enrolled in a public school district the preceding year OR a student eligible to enter first grade in a public school system
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.
Arizona’s ESA program, known as the Empowerment Scholarship Program, did not produce any long-term savings for the state in 2014[1]and may produce budget deficits similar to those seen in other voucher states if lawmakers continue to expand eligibility for the program.[2] Despite awarding voucher amounts worth as little as half of the state subsidy sent to local school districts, some states are experiencing program budget deficits due to an overwhelming number of private school students enrolling in their choice programs. Because Nevada’s ESA program was temporarily halted due to concerns about the program’s constitutionality, no historical budget data currently exists. However, the fiscal note attached to the original legislation suggests the state may need to find an additional $85 million to guarantee true universal access if 75 percent of existing private school parents participate during the first school year.[3]
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.
- Arizona – 90% of the amount that would have gone to a public school for a given student (FN SB 1363, 2013)
- Mississippi - $6,500
- To be adjusted annually in proportion with public student spending (SB 2695, 2015)
- Nevada – up to 90% (SB 302, 2015)
- Tennessee – 100% (SB 431, 2015)
- Florida – $9– $9,000 (SB 850, 2014)
SB 1178 suggests that Texas students would receive 80% of the amount that would have been spent on that student allocated for him/her in the school district they he/she would have otherwise have attended, with students with disabilities receiving the full 100%.
Eligible Expenses
Parents may spend ESA funds on a variety of educational costs including private or charter school tuition, textbooks, curricula, and tutoring. Parents can also use funds to pay for private tuition or specialized therapy for children with disabilities. Consumables (like pens and paper), transportation, and technological equipment are not eligible expenses under SB 1178. Students with disabilities or “educational disadvantages” would receive the full amount 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.
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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Lutz, Lauren. "Arizona Court Unanimously Upholds Education Savings Accounts as Constitutional." American Legislative Exchange Council. October 17, 2013. Accessed November 08, 2016. https://www.alec.org/article/education-savings-accounts-upheld/.
“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 original bill – http://www.azleg.gov/legtext/50leg/1r/bills/sb1553h.pdf
Arizona. Senate. 2013. reg. sess. Phoenix. SB 1363 Fiscal Note. Schimpp, Steve. 2013.
Nevada. Senate. 2015 reg. sess. SB 302 Fiscal Note. Carson City. 2015.
Tennessee – https://www.edchoice.org/blog/florida-governor-signs-nations-second-esas-expands-tax-credit-scholarships/
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