Do Private Schools Get State Funding?

Private schools offer an alternative education path outside the public school system. But do private schools get funding from the state? The answer is multifaceted and varies significantly across different states and types of private schools.

State Funding Sources for Private Schools

There are generally three main sources of potential state funding for private schools:

1. School Voucher Programs
2. Education Savings Accounts (ESAs)
3. Tax Credit Scholarship Programs

Let’s explore each one:

School Voucher Programs

School vouchers provide state funds directly to eligible students to pay partial or full tuition at participating private schools, including religious schools. Currently, 15 states plus Washington D.C. have voucher programs.

The nation’s oldest voucher program is the Milwaukee Parental Choice Program which started in 1990. It allows students from low-income families to use tax dollars to attend participating private or public charter schools.

Other examples are the Ohio Educational Choice Scholarship Program and Indiana’s Choice Scholarship Program. Each state’s voucher program has specific eligibility requirements based on factors like family income level, student disability status, school performance ratings and zip code.

ESAs (Education Savings Accounts)

Education savings accounts allow parents to withdraw their children from public schools and receive a portion of the funds allocated for their child’s education from the state. These funds can cover private school tuition and fees, tutoring services, curriculum materials, and other educational expenses.

Currently, 7 states offer ESA programs – Arizona, Florida, Mississippi, North Carolina, Tennessee, Nevada and New Hampshire.

Tax Credit Scholarship Programs

In a tax credit scholarship program, individuals and corporations receive full or partial tax credits when they donate to nonprofits that provide private school scholarships. In essence, these programs use tax revenues to fund private school scholarships for eligible students.

Currently, 21 states have tax credit scholarship programs in place, including Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Montana and South Carolina.

The different types of school choice programs available across America, state by state. (source: EdChoice)

Debate Around State Funding for Private Schools

Whether states should fund private education using tax dollars remains a contentious debate:

Proponents argue that school choice programs like vouchers, ESAs and tax credits give families more education options, especially those unable to afford private tuition. They contend these programs create healthy competition that raises standards across all schools.

Opponents feel state funds should be reserved for public schools accessible to all students. They argue privatization undermines the public education system. Some are concerned about vouchers funding religious schools and the separation of church and state.

State Funding for Private Schools at a Glance

• Currently, 37 states have at least one form of private school choice program funded by the state.
• These programs vary significantly by state in structure, requirements, and funding levels.
• Most state funding goes towards private school options for low-income families, students with disabilities or those in low-performing school districts.
• In general, non-sectarian private schools receive limited to no direct state funding though tax programs may indirectly support them.

Key Factors Impacting State Funding

State Education Budgets – The amount of funding available for school choice programs depends on each state’s overall education budget and spending priorities. Economic conditions can impact funding levels year-to-year.

Legal Precedents & Challenges – Court rulings at the state level have defined boundaries around permissible use of public funds for private education. Programs are consistently challenged on legal grounds.

Public Opinion – Public support or opposition can sway legislators when it comes to regulating or expanding school choice programs funded by state dollars.

Ultimately, while private schools operate independently from the state public school system, many do receive some level of state funding through various choice programs. The details vary dramatically from state to state. As school choice remains a heated debate nationwide, funding policies for private schools through tax dollars will likely continue evolving.

Private school choice programs enacted by year (src: FutureEd)

Types of Private Schools That Receive State Funding

While the types of private schools able to access state funding varies across different programs, most of the funding flows to a few main categories:

Religious Schools

Many state voucher and tax credit programs allow families to use the funding at religiously-affiliated private schools, despite some objections over separation of church and state issues. Catholic schools tend to enroll a significant portion of voucher students in areas with larger programs.

Non-profit Private Schools

Non-profit, non-religious private schools are eligible for most of the state funding programs available. These include non-denominational private schools as well as those with specialized philosophies like Montessori schools.

Schools for Students With Disabilities

Some states specifically target a portion of their vouchers or education savings accounts for students with special needs to attend specialized private schools designed to serve those populations.

Do Private Schools Get State Funding? 5 FAQs:

What types of private schools are eligible for state funding?

The types of private schools eligible for state funding can vary, but generally include religious schools (like Catholic schools), non-profit private schools, and private schools serving students with special needs or disabilities. The eligibility criteria differs across the various state funding programs like vouchers, education savings accounts (ESAs), and tax credit scholarships.

How much state funding do private schools receive on average?

There is no set national average, as state funding levels for private schools fluctuate based on each state’s education budget and the specific program’s parameters. However, most state voucher programs cover between $4,000 to $7,000 per student on average to attend private school. ESA funding amounts also vary, but are typically around 90% of the state’s per-pupil spending for public schools.

What are the main programs that provide state funding for private schools?

The three primary mechanisms are:

• School voucher programs: Allow students to use state funds to pay tuition at participating private schools.
• Education savings accounts (ESAs): Give families a portion of per-pupil state funds to pay private school tuition and other education expenses.
• Tax credit scholarship programs: Allow individuals/corporations to get tax credits for donating to nonprofits that fund private school scholarships.

Are there any restrictions or requirements for private schools that accept state funds?

Yes, most state funding programs impose certain accountability measures like:

• Requiring participating private schools to administer standardized tests
• Mandating open admissions policies and not discriminating based on ability
• Imposing financial reporting and performance standards
• Establishing credential/certification requirements for private school teachers

What are the arguments for and against state funding for private schools?

Arguments in favor suggest funding promotes school choice, allows money to follow the student, and creates competition to improve education quality. Critics argue it undermines public schools by redirecting funds, raises church/state issues for religious schools, and reduces accountability for how taxpayer money is used.

The debates around using public funds for private education remain heated, with proponents touting choice and opponents defending the public school system. Policymakers must weigh these concerns as they determine funding policies for private school options in their states.