Lindsey Luebchow, “Does Title I Funding Go Holy to Fund Private School Students?,” New America, April 16, 2008, https://www.newamerica.org/education-policy/federal-education-budget-project/ed-money-watch/does-title-i-funding-go-holy-to-fund-private-school-students/, https://www.brookings.edu/research/why-federal-spending-on-disadvantaged-students-title-i-doesnt-work/. Perhaps the most serious charge leveled against ESAs is the assertion they threaten public education by diverting necessary resources from already underfunded public schools. Do you have another child that already receives an ESA or was a past recipient of an ESA. Specifically, critics assert that 1) only affluent families who can already afford private school will use ESAs, but that 2) ESAs will lead to a dramatic exodus of students (and the dollars that follow them) from their local public schools. Interestingly, I have never heard that argument made when there is an increase in the number of students. Arizona’s ESA program gained national attention this past year amid reports it had given rise to widespread fraud and abuse. For example, it would have required the state to contract with a financial management firm to run the program and mandated ADE to post information on all program expenditures online for maximum transparency. Yet various organizations opposed to ESAs have suggested that ESAs represent a net cost to Arizonans. Conditions include severe sensory impairment, orthopedic impairment, moderate or severe intellectual disabilities, emotional disabilities, visual or hearing impairments, and preschool severe delay diagnoses. Have you already registered for the ESA Portal? But perhaps this remains cold comfort to those who still believe that ESAs and other school choice alternatives damage traditional public schools. If you answer YES to any of them, your child qualifies! Taken together, these funding sources provide an estimated $10,120 per pupil as of FY 2019, and for students with special needs, the total can exceed $30,000 per student. Though rarely acknowledged by critics of the program, ESAs have relieved budgetary pressures on school districts by serving one of the highest-need, highest-cost student populations in the state: students with severe disabilities. Historical enrollment data from Arizona Joint Legislative Budget Committee FY 2020 Baseline. Looking at the largest group of ESA-eligible students in particular—those with special needs—only 2.9 percent participated in the program as of FY 2019. Thanks to additional efforts by the Arizona Legislature and with cooperation from ADE, the state recently enacted a new requirement that the department contract with a financial management firm to help administer the ESA program. Generally speaking, Arizona’s school funding formula injects more money into public education when more students are enrolled. 3 FY 2020 Appropriations Report – Department of Education and School Facilities Board Agency Sections. This means the 6,423 ESA participants are redirecting over $4.2 million per year in education dollars back to other public school pupils. 4 Jonathan Butcher, Education Savings Accounts: A Path to Give All Children an Effective Education and Prepare Them for Life, Goldwater Institute, October 28, 2014, https://goldwaterinstitute.org/wp-content/uploads/cms_page_media/2015/2/2/PR253ESAsPathToAllChildren_0.pdf. This charge does have some merit to it—but only to the extent that a $1,000 income tax cut coupled with a $500 property tax increase, for example, would constitute a net cost to a taxpayer. We still have to pay for [x,y, and z].” The implication of their argument is that all costs of running public schools are fixed. ESAs served over 6,400 students in Arizona in FY 2019, including over 3,700 with special needs and more than 800 whose families serve in the armed forces or have fallen in the line of duty. FY 2019 public school average as reported by Arizona Joint Legislative Budget Committee. As described earlier in this report, the average (non-special education, non-kindergarten) ESA award totaled $6,148 in FY 2019, compared to the $10,120 average per pupil costs of Arizona public school students statewide. Protect ESA parents against “surprise bills” by requiring the program’s administrative body to notify them of any policy changes before demanding repayment for expenditures that were previously approved. Reality: ESAs’ Impact on Individual Districts. These increases compound into hundreds of millions of dollars of additional funding each year, yet they are generally waived off by pundits because they do not increase per pupil public school spending. Europe's history of excellence in space is one of the most visible achievements of European cooperation and a source of pride for citizens. The ESA program also served an additional 627 students who were eligible as participants’ siblings, and 85 students who were eligible as previous participants. For example, a recent analysis of sampled school districts in Maricopa County (which contains the Phoenix metropolitan area) found that over 30 percent of public school students had taken advantage of the state’s “open enrollment” process to attend a district school other than the one they were assigned to by their zip code. Known commonly as education savings accounts (ESAs), they are now accessed by thousands of families in the state of Arizona, while in 2017, activists gathered thousands of signatures and successfully campaigned against making them available to all students in the state. This is because ESAs actually increase the resources available to public school students on a per pupil basis. In other words, they suggest that ESA parents engaged in $700,000 of intentional deceit. Federal funds thus do not necessarily follow low-income students who transfer out of a public school to a private one or to a homeschooling arrangement. These dollars—generated by formula savings and originally set aside for ESA administration—will fund the redevelopment of the Arizona Department of Education’s (ADE) IT system, which is responsible for calculating the payments to every single public school in the state. This narrative quickly erodes when considering that many ESA purchases labeled as “misspending” have been educational in nature and made by parents who believed the expenditures were allowed under the program. This is why, even though total K-12 spending in Arizona has increased since 2001 by more than $5 billion (or 34 percent, adjusted for inflation), organizations like the Children’s Action Alliance have alleged that Arizona has cut funding for public schools. Accessed May 15, 2019. 13 Arguments Submitted Against Prop. More than 2,500 of these students participated in FY 2019. ESA award amounts exclude 5% administrative set-aside to ADE and the State Treasurer, which totals approximately $300 per participant. Critics of the ESA program often make this claim as one of two mutually incompatible arguments against ESAs. 33 Benjamin Scafidi, The Fiscal Effects of School Choice Programs on Public School Districts, Friedman Foundation for Educational Choice, March 2012, https://files.eric.ed.gov/fulltext/ED529881.pdf. More broadly, ESA parents have struggled to navigate a complicated set of rules and regulations governing what expenditures are allowed. Likewise, if a district or charter’s enrollment declines, they no longer receive the funding for those students whom they no longer educate. Yet even this much larger impact from charter schools is dwarfed by the share of students leaving their local district schools for other district schools. 21 FY 2020 Baseline Book – Department of Education. In each of these cases, the ESA amounts represent a smaller cost than would have been spent on the students in a public school setting. Arizona’s FY 2020 budget directs $3 million of ESA savings to overhaul the state’s IT system used to calculate the payments to every single public school in the state, benefitting over 1.1 million public school students. 12 EJ Montini, “Expanded School Voucher Scam (Prop. The Empowerment Scholarship Account (ESA) program is an account administered by The Arizona Department of Education that is funded by state tax dollars to provide educational options for qualified Arizona students. Moreover, ESAs help redirect Title I monies back toward low-income public school students when higher-income students exit the public school system as well. Similarly, the International Space Station and microgravity research are financed by optional contributions. Especially given the large percentage of students with severe disabilities served by the program, that amount would almost certainly have exceeded $100 million. ESA Business Applications offers funding and support to businesses from any sector who intend to use space (satellite navigation, earth observation, satellite telecommunication, space weather, space technologies) to develop new commercial services. 18 All Arizona K-12 Funding, Arizona Joint Legislative Budget Committee, July 10, 2018,  http://www.azleg.gov/jlbc/allfunding2001.pdf; “Gov. To the contrary, policymakers should aggressively safeguard taxpayer money. Most public school advocates agree that per pupil funding—rather than total funding—is the more important barometer of our investments in K-12 education. One common retort is that policymakers should simply increase the amount of funding going into these pools of money rather than allow alternative pathways like ESAs. Throughout the state, 408 students from Native American reservations also benefitted from the program in FY 2019, as did 399 students coming from failing public schools and 359 students from the foster care system. ESA’s allow parents to receive their child’s allotted education dollars to pay for: IS YOUR CHILD ELIGIBLE?Here are just 7 easy questions for you. While critics thus seize on this fact to argue ESAs cost more “state money,” they are conspicuously referring to just a single component of the funding formula while ignoring all other state funds as well as the thousands of dollars of local property taxes that go into supporting a typical district student on average. The following sections address many of the chief arguments put forward against the ESA program. 1 HB 2474, “Lifeline for Student Crime Victims Act,” Arizona 54th State Legislature, First Regular Session. Ducey’s FY 2019 Budget Plan Fails Arizona Schools,” Budget & Taxes (blog), Children’s Action Alliance, January 12, 2018, https://azchildren.org/gov-duceys-fy-2019-budget-plan-fails-arizona-schools. Source: ESA FY 2019 program data provided by the Arizona Department of Education, April 23, 2019. In comparison, 18 percent of public school students statewide have opted to attend a charter rather than district school as of FY 2019. 16 FY 2020 Baseline Book – Department of Education. To illustrate this in more concrete terms, Arizona spent an additional $84 million in FY 2019 simply to absorb the costs of more students enrolling in the public school system.

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