The Indiana Voucher Mess

Costs increase by 263% over five years

Photo by Lumin Osity on Unsplash

Back in 2017, I wrote about how when Mike Pence was Governor of Indiana (just before his arrival on the Trump ticket), he set in motion a potentially devastating expansion of school vouchers.

Back then, public education advocates were worried about school vouchers in Indiana expanding from a relatively small program serving less than 10,000 students annually to a program that would cost state taxpayers $54 million. To be clear, that would mean all the same schools existed and all the fixed costs stayed the same - so Pence was asking taxpayers to pay $54 million for the status quo.

Worse, though, the plan would siphon state funds from local public schools, likely causing some districts to raise local property taxes to maintain the same level of service. More money, same services. Not exactly conservative or efficient.

Fast forward to now. 2024.

That worry of new costs has been realized.

Only instead of $54 million in new money being spent on vouchers, the total cost is expected to exceed $300 million.

Started in 2011 under former Gov. Mitch Daniels as an avenue to help low-income students escape failing public schools, the voucher program has changed dramatically in the last decade. While it has helped thousands of families choose their preferred school, the cost is projected to grow 263 percent in just five years. This expansion is predicted to force public school districts to either make severe cuts or ask taxpayers for more money through public referendums.

The expansion Pence started has effectively created a “voucher school district” subsidized by taxpayers. This voucher district both costs extra state money and takes money from local districts - which means local property tax increases.

As noted back in 2017:

“If the idea behind a voucher program is we’re going to have the money follow the student, if the student didn’t start in a public school, the money isn’t following them from a public school, it’s just appearing from another budget,” [Researcher Molly] Stewart said. “And we’re not exactly sure where that’s coming from.”

But what if the Pence voucher expansion meant better student outcomes, would the expense be worth it?

Well, it didn’t.

Researchers examined an Indiana voucher program that had quickly grown to serve tens of thousands of students under Mike Pence, then the state’s governor. “In mathematics,” they found, “voucher students who transfer to private schools experienced significant losses in achievement.” They also saw no improvement in reading.

Vouchers are expensive. And ineffective.

Tennessee voucher students have performed lower than their public school peers in the same district and below the statewide average.

We’re paying more and getting less.

In other education news:

The New Lunchroom Bully

One report suggests families spend as much as $100 million a year in transaction fees just to load money onto student accounts in K-12 schools.

Families pay as much as $3.25 each time they load money onto a student account. This can amount to $40-$50 a year depending on the number of times an account is loaded. Families living paycheck-to-paycheck often load more often, unable to pay a large amount at once.

Those least able to pay extra fees end up paying the most. And, at an average of $42 a year in fees, the costs add up to as much as two weeks’ worth of school lunch.