Myth: Vouchers won’t hurt traditional schools or rural NC counties

RALEIGH (February 19, 2025) – Proponents of using North Carolina taxpayer funds for millionaires to send their children to private schools love to talk about “choice” and how “choice” provided by the “Opportunity Scholarships” will be good for every child in North Carolina in the long run.

Based on experiences of other states, if North Carolina does not make immediate changes to stop defunding neighborhood schools by siphoning taxpayer dollars for millionaire private school vouchers, our state will see a less-qualified workforce and more-segregated public schools.

Here are the facts of how so-called “school choice” vouchers have impacted neighborhood schools in other states:

Arizona: Drained Public School Funds, Created Budget Deficits, Increased Segregation

Policy: Arizona expanded its Empowerment Scholarship Accounts (ESA) to make all students eligible for private school vouchers in 2022.
Impact:
- Funding Loss: In 2023, nearly 60% of voucher recipients had never attended a public school, meaning the program did not help “rescue” struggling students but instead diverted money from public schools to reward students already attending private schools.
- Budget Shortfalls: Public school districts lost funding while still needing to maintain facilities, transportation, and teachers. And vouchers were a major contributor to a $1.4 billion state budget deficit last year.
- Increased Segregation: Wealthier families benefited the most, exacerbating racial and socioeconomic divides in education.

Indiana: Undermining Rural Schools

Policy: Indiana’s Choice Scholarship Program provides publicly funded tuition support for private schools.
Impact:
- Public Schools Lost $172 Million in 2023 Alone: This reduced resources for public school teachers, extracurricular programs and student services.
- Rural Schools Hit Hardest: Many small towns don’t have private schools, meaning public schools suffered funding cuts without benefiting from school choice.
- Lower Teacher Salaries: Indiana ranks among the bottom 10 states for teacher pay, as voucher programs pull funding away from public education.

Wisconsin: Higher Taxpayer Costs & Failing Private Schools

Policy: Wisconsin’s Milwaukee Parental Choice Program (1990) was one of the first voucher systems in the U.S.
Impact:
- Increased Costs for Taxpayers: By 2022, state taxpayers spent over $500 million a year on private school tuition while Milwaukee Public Schools remained underfunded.
- School Closures & Mismanagement: Multiple private voucher schools abruptly shut down after receiving public funds, leaving students stranded.
- No Significant Performance Gains: Studies found voucher students performed no better (or worse) than their public school counterparts in reading and math.

Florida: Lower Public School Performance & Special Needs Neglect

Policy: Florida’s Family Empowerment Scholarship and Hope Scholarship allow tax dollars to fund private tuition.
Impact:
- Public School Ratings Declined: Research found that areas with high voucher use saw drops in public school performance due to funding instability.
- Special Education Suffered: Private schools receiving vouchers are not required to follow federal disability laws, leaving many special-needs students without appropriate services.
- Lack of Accountability: Private schools receiving vouchers do not have to follow the same testing and curriculum standards as public schools, reducing overall education quality.

Ohio: Lawsuits & Public School Budget Crisis

Policy: Ohio’s EdChoice Scholarship Program expands vouchers to students in low-performing schools.
Impact:
- Public Schools Lost Over $1 Billion Since 2015: Districts like Columbus and Cleveland have had to cut essential programs.
- Lawsuits from School Districts: Over 100 school districts sued the state, arguing that vouchers were unconstitutional and hurt public education.
- Declining Enrollment in Public Schools: Some schools have faced closures due to budget constraints.

West Virginia: Rapid Expansion & Public School Decline

Policy: In 2021, West Virginia introduced the Hope Scholarship, one of the broadest voucher programs in the country, covering nearly all students.
Impact:
- Public School Enrollment Dropped: West Virginia saw declining public school enrollment, forcing rural schools to consider consolidation or closure.
- Lack of Oversight: Many private schools receiving voucher funds operate without state accreditation, reducing accountability for academic outcomes.
- Funding Crisis: Public schools lost significant per-pupil funding, weakening their ability to provide quality education, particularly in already struggling districts.

Conclusion

Across multiple states, voucher programs have drained public school funding, widened inequalities, and led to mismanagement of public funds. While marketed as “school choice,” vouchers often benefit wealthier families and private institutions at the expense of traditional neighborhood schools.

The North Carolina State Board of Education understands the severity of the situation and is trying to stop the madness. The board recently voted 9-2 to recommend a moratorium on expansion of the Opportunity Scholarship program and reinvestment in neighborhood schools.

In her motion, board member Catty Moore said:

“We are requesting that a moratorium be placed on the expansion of the Opportunity Scholarship program, offer no new awards to students beginning in the 25-26 fiscal year, and redirect funding appropriated for new Opportunity Scholarships for 25-26 and 26-27 fiscal years to addressing the needs in our public schools. Future funding increases for the Opportunity Scholarship program should be limited to the annual percentage increase in funding for the state public school fund. “

Join us to support the State Board’s call to action and advocate for policies that strengthen – not weaken – public education! Contact your legislators and tell them to honor the State Board of Education’s request.

Sources:

Arizona Empowerment Scholarship Accounts (ESA):
https://www.azed.gov/esa

Arizona – Funding Loss Analysis:
https://www.azcentral.com/story/opinion/op-ed/2024/08/02/arizona-title-i-school-funding/74640154007/

https://www.azcentral.com/story/news/local/arizona-education/2024/07/23/arizona-school-vouchers-budget-meltdown/74481939007/

https://www.azcentral.com/story/news/local/arizona-education/2024/03/29/schools-scramble-after-arizona-education-department-cuts-federal-title-program-poverty-funds/73125623007/

Arizona – Budget Shortfalls Analysis:
https://www.propublica.org/article/arizona-school-vouchers-budget-meltdown

Arizona – Increased Segregation Report:
https://www.the74million.org/article/amid-explosion-of-school-choice-report-spotlights-the-marginalized-families-left-behind/

https://www.axios.com/local/phoenix/2024/05/17/arizona-school-segregation-brown-board-anniversary

Indiana’s Choice Scholarship Program:
https://www.in.gov/doe/students/indiana-choice-scholarship-program/

Indiana – Public Schools Lost $172 Million Report:
https://www.wvxu.org/2025-02-04/indiana-public-schools-stand-to-lose-1-8-billion-over-two-years-under-property-tax-relief-proposal

Indiana – Rural Schools Impact:
https://www.indystar.com/story/news/education/2023/03/09/rural-indiana-voucher-funding-impacts/

https://www.indystar.com/story/news/investigations/2024/09/04/voucher-earning-limit-sta40000-a-year-today-the-same-family-could-qualify-while-making-222000-a-year/74042543007/