School choice saves billions in tax dollars, new analysis shows

A new analysis shows school choice programs save taxpayers significant money.

EdChoice’s Fiscal Research & Education Center (FREC) released a new report analyzing 48 school choice programs in 25 states and the District of Columbia.

All of the programs were at least five years old as of 2022, with most (31) having operated for over a decade.

The analysis included five education savings account (ESA) programs, 22 voucher programs and 21 tax-credit scholarship programs.

“Critics argue that school choice programs deplete resources from public schools and harm the students who remain,” wrote head researcher and FREC director Martin Lueken. “Policymakers who are responsible for balancing state budgets and ensuring public schools fulfill constitutional obligations are thus concerned about the financial implications of these programs.” 

But those concerns couldn’t be further from the truth. 

FREC estimated school choice actually saved taxpayers between $20 billion and $45 billion since the programs began. 

The savings are equivalent to $3,300 to $7,800 per participating student, or $1.70 to $2.64 saved per dollar spent on school choice. 

In nearly all of the states examined (23 out of 26), choice students receive less than half of what’s spent on public school students. Most states (18) spent less than one-third.  

Taking all the programs together, FREC determined choice students made up 2.4% of overall enrollment but received only 1% of school funding. Far from robbing the public school system of resources, school choice provided an arguably better education for a lower cost.  

And not all of school choice’s benefits are monetary.  

Other research has shown social benefits when families have access to more educational opportunities. 

“Some studies indicate that choice programs can lower crime rates, teen pregnancy, adolescent suicide rates, and adult mental health issues, thereby enhancing societal welfare,” Lueken wrote. 

Though the recent trend of universal school choice is too young for empirical analysis, FREC did estimate that Arizona’s ESA – the first universal program to be implemented – would save the state $244 million annually. 

“It is hard to argue that expanding educational opportunities through education choice programs would financially harm public school systems,” Lueken concluded. “Numerous studies have explored the impact of education choice programs on students in nearby public schools. Almost all report that students who stay in district schools see modest and positive improvements in their learning. 

“This evidence contradicts the claims that students in district schools suffer when education choice expands, suggest instead that the opposite is true, as students who remain in district public schools experience modest academic gains and even more resources devoted to their education via fiscal savings from choice programs.”