38. School Vouchers: The Arizona and Florida Experiments

Education funding in the United States is undergoing a radical transformation, led specifically by aggressive legislation in Arizona and Florida. These states have moved beyond traditional “school choice”—which typically targeted low-income families or students in failing schools—to implement “universal” voucher programs. These initiatives allow any family, regardless of income, to use public taxpayer money for private school tuition or other educational expenses. While proponents call this educational freedom, fiscal analysts and public school advocates warn that these programs are blowing holes in state budgets and subsidizing tuition for families who were already paying for private school.

The Arizona Blueprint: A Budgetary Warning

Arizona became the pioneer of universal school choice in 2022 when then-Governor Doug Ducey signed the universal expansion of the Empowerment Scholarship Account (ESA) program. This legislation made Arizona the first state to offer public funding to every single K-12 student in the state to pay for private school or homeschooling.

The Cost Explosion

The primary controversy in Arizona centers on the massive gap between projected costs and actual spending. When the universal expansion was pitched to legislators, the Joint Legislative Budget Committee estimated the cost would be approximately $33 million for the 2023 fiscal year.

The reality was starkly different. By the summer of 2023, enrollment had surged well past expectations. The administration of Governor Katie Hobbs released projections showing the program was on track to cost the state roughly $900 million to $943 million for the year. This unexpected explosion in costs contributed significantly to a projected $400 million deficit in the state budget.

Subsidizing the Already Private

The drain on the budget stems largely from “new” costs to the state. In a traditional voucher system, if a student leaves a public school for a private one, the state funding follows the child. Theoretically, this is cost-neutral.

However, data from the Arizona Department of Education revealed a critical flaw in this logic. Approximately 75% of the initial applicants for the expanded universal vouchers had no history of attending Arizona public schools. These were students already enrolled in private schools or being homeschooled at their parents’ expense. When they claimed the voucher (valued at roughly $7,000 to $8,000 per student), it became a net new expense for the state, creating a massive financial burden that tax revenue had not previously covered.

Florida’s Massive Expansion

Following Arizona’s lead, Florida Governor Ron DeSantis signed House Bill 1 (HB 1) into law in March 2023. This legislation expanded the Family Empowerment Scholarship to make all Florida students eligible, regardless of household income, effectively creating the largest voucher program in the nation.

The Price Tag of Universality

Similar to Arizona, Florida faced questions regarding the true cost of the program. The Florida Policy Institute, a non-profit policy research group, estimated that the expansion could cost the state roughly $4 billion in its first year. State evaluators offered more conservative estimates, yet the fundamental economic pressure remains the same: the state is taking on the financial responsibility for thousands of students who were previously paid for by private households.

The program creates a tiered system where lower-income families ostensibly get priority, but because the cap was removed, wealthy families earning six-figure incomes are now eligible to receive approximately $8,000 per child in state-funded scholarships.

Impact on Public Schools

The diversion of funds affects the Florida Education Finance Program (FEFP), the primary funding pot for public schools. When students leave the public system, the school loses the per-pupil funding associated with that student. However, the school’s fixed costs—electricity, maintenance, bus routes, and administrative salaries—do not decrease proportionally.

Critics argue that this creates a “death spiral” for public education. As budgets tighten, public schools may be forced to cut advanced placement courses, arts programs, or support staff, which in turn drives more families to leave the system, further reducing funding.

Lack of Accountability and Oversight

One of the distinct features of the Arizona and Florida experiments is the deregulation accompanying the funding. Unlike public schools, which are subject to rigorous state testing, letter grades, and federal reporting standards, private schools receiving these voucher funds face significantly fewer requirements.

In Arizona, private schools accepting ESA funds are not required to administer the same standardized tests as public schools. This makes it difficult for parents or taxpayers to compare academic outcomes objectively. There is no guarantee that the taxpayer investment is yielding better educational results.

Furthermore, reports have surfaced regarding questionable spending of ESA funds. In Arizona, allowable expenses under the ESA program have included items such as trampolines, specialized coffee makers, and martial arts lessons, provided they can be justified as “educational.” This broad interpretation of educational expenses has led to calls for tighter auditing to ensure public funds are actually supporting core academic learning.

The Future of Public Education Funding

The experiments in Arizona and Florida are setting a precedent that other states are watching closely. Legislatures in states like Iowa, Arkansas, and Utah have moved to pass similar, though currently smaller or phased-in, versions of universal choice.

The central tension remains the sustainability of the model. If a state commits to funding two separate education systems—a public one open to all and a private one subsidized by the same tax base—without raising taxes, the math suggests one system must eventually cannibalize the other. Currently, the data indicates that public school budgets are bearing the brunt of this shift, serving as the financial reservoir for a privatized expansion.

Frequently Asked Questions

What is the difference between a voucher and an ESA? A traditional school voucher pays tuition directly to a private school. An Empowerment Scholarship Account (ESA), used in Arizona, deposits public funds into a restricted bank account controlled by parents. These funds can be used for tuition, online curriculum, tutoring, or other approved educational materials.

Do these programs actually save the state money? Proponents argue they save money because the voucher amount is usually less than the total per-pupil spending in public schools. However, this only works if the student switches from a public school. In Arizona and Florida, the majority of new recipients were already in private school, creating a massive net cost to the state.

Can wealthy families get these vouchers? Yes. Under the “universal” models in Arizona and Florida, income caps have been removed. A millionaire family is eligible to receive the same state funds for their child’s private tuition as a middle-class family, though Florida does have a tier system that prioritizes lower incomes first.

Are private schools required to accept all students with vouchers? No. Unlike public schools, private schools retain their admission standards. They can reject students based on academic records, behavioral history, or religious alignment, even if the student is paying with public voucher money.

How does this affect rural schools? Rural areas often lack private school options. Consequently, rural residents pay taxes into the voucher system but may not have access to use it, effectively subsidizing private tuition for families in urban and suburban areas.