AUSTIN — Republicans’ push for a voucher-like program that could funnel state money to private schools could cost an estimated $1 billion a year by 2028, while draining funds from public schools, according to a newly released fiscal note.
The analysis by the state’s Legislative Budget Board puts the first price tag on a bill prioritized by Lt. Gov. Dan Patrick, a Republican who oversees the state Senate.
The legislation would give families $8,000 in public funds to spend on private school or other educational costs. Only students currently enrolled in public school or just beginning their education would be eligible for the newly created “education savings accounts.”
A quarter of a million students are currently receiving private education, according to the analysis. The bill’s effects are limited by capacity at such schools, it notes.
The analysis assumes 25,000 children will leave public schools to take advantage of the program in the first year, and that the number will grow to nearly 42,000 by 2028. While the annual cost of the program starts at $512 million, the figure balloons to nearly $1 billion within three years, the analysis found.
Meanwhile, the fiscal note said traditional school districts would face a loss of state funding “as a result of this bill due to students leaving public schools to participate in the program.”
The analysis does not name a specific number, but it estimates that the state’s Foundation School Program will see annual savings of $335 million by 2028.
Hundreds of people signed up to speak on the bill during the first public hearing on Wednesday. Testimony before the Senate Education Committee was expected to run late into the night.
Sen. Brandon Creighton, the bill’s author, said parents “have the right to choose the educational setting of their children.” The legislation is “not designed to harm public schools,” he said, noting the funding will come from state general revenue, not the Foundation School Program for public schools.
Critics contend that voucher-like programs don’t help students as they often fail to cover the true cost of private schools, which don’t have to accept all students, and haven’t always translated into academic gains in other states.
“When I speak to a lot of moms and dads, they’re concerned that the public school system won’t have the resources it needs in order to be more successful than it currently is,” Sen. Royce West, D-Dallas, said at the hearing.
The state funds public schools based on how many students they educate. The funding starts at roughly $6,000 per student with that amount increasing based on various factors, such as if a child is receiving special education services. If a student leaves, the state’s portion of funding for that child ends.
The bill gives smaller districts an annual financial cushion of $10,000 for every student who leaves with an education savings account during the first two years. Large urban and suburban districts, such as Dallas, are given no financial backstop.
The analysis estimates that about 43% of the students using the program would come from smaller public school districts of 20,000 students or less, which would be those qualifying for that cushion payment.
On Wednesday, some lawmakers questioned why the payments would not be available to all public schools.
“If that’s a good policy, why does that policy only apply to small school districts?” asked Sen. José Menéndez, D-San Antonio.
Creighton countered that small districts don’t have sizable budgets to cover such losses as larger ones do. Districts also must contend with changing enrollment all the time, whether students move or leave for other reasons, he added.
“School districts have to adjust to that day in and day out,” he said.
The DMN Education Lab deepens the coverage and conversation about urgent education issues critical to the future of North Texas.
The DMN Education Lab is a community-funded journalism initiative, with support from Bobby and Lottye Lyle, Communities Foundation of Texas, The Dallas Foundation, Dallas Regional Chamber, Deedie Rose, Garrett and Cecilia Boone, The Meadows Foundation, The Murrell Foundation, Solutions Journalism Network, Southern Methodist University, Sydney Smith Hicks and the University of Texas at Dallas. The Dallas Morning News retains full editorial control of the Education Lab’s journalism.
