North Carolina saves $10M on school choice as participation surges to 80,000 

Most school choice participants this year in North Carolina were already enrolled in private school, but the state still saved $10 million by supporting private school choice, according to a new report from the Department of Public Instruction. 

The report comes as the Legislature debates what to do with the $10.1 million in savings and whether to expand school choice further. The state lifted all income restrictions on its program starting in the 2024-25 school year. 

Participation surged to more than 80,000 students, up from 33,000 the previous year, after the income restrictions lifted.  

Republican lawmakers overrode a veto from outgoing Democratic Gov. Roy Cooper last fall to fund the program’s expansion and clear 54,000 students from the waitlist. The state is expected to spend about $600 million on Opportunity Scholarships this year. 

The report found just 6,700 students receiving scholarships had attended public schools the previous year.  

Critics argue the program mostly subsidizes families who could already afford private school, with some Democrats calling it “welfare for the wealthy.” Still, the state saved $10.1 million because the average scholarship was $5,800, compared to $7,500 per student in the public school system. 

The scholarships are awarded on a sliding scale: low-income families receive up to $7,500, while higher-income families receive as little as $3,300. The report did not specify how many students may have left public schools in prior years. 

Opportunity Scholarships began in 2014, marking 11 years of a successful program. 

By law, savings from the program can be reinvested in public education, and the State Board of Education is recommending that, though it’s not required, WUNC reported. 

Opponents of school choice have sought to restrict future funding increases, but Republicans argue all families should be able to decide where their education dollars are spent. 

Even Carolina Forward, a liberal think tank, acknowledged Democrats were wise to support the current budget, which includes more money for Opportunity Scholarships. 

“The reality is this: For the foreseeable future, any Republican budget in North Carolina will contain corporate tax cuts and private-school vouchers,” wrote Alexander H. Jones, a policy analyst with the group. “The only way those long-term Republican priorities will be removed from any budget would be for rural Republicans to change their minds. Given that Democrats have no realistic power to stop the advance of tax cuts and vouchers, rejecting a strong budget would simply be dogmatic. 

“Democrats showed good judgment by voting for an acceptable Republican budget.” 

The state is currently considering its 2025-27 biennial budget. The legislative session adjourns July 31, one month after the current fiscal year ends. If a new budget isn’t passed by July 1, the previous budget remains in effect until a new one is approved.