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Jan Resseger: Ohio Legislature Robs Public Schools to Fill Pockets of the Rich

By dianeravitch
July 25, 2025 //
1

Jan Resseger writes here about the injustice of the budget for public schools passed by the Ohio legislature. Firmly in the control of hard-right Republicans, the legislature eagerly funds vouchers and charter schools while underfunding the public schools. As in every other state, the vast majority of Ohio students attend public schools. The only evaluation of the Ohio voucher program showed that most students who used the vouchers were already attending private schools; those who transferred from public schools fell behind the peers they left behind.

Ohio legislators know that vouchers and charters do not increase educational opportunity. They don’t care. Parents of public school students must inform themselves and act to protect their public schools.

She writes:

In the last week of June, two important events happened almost simultaneously in Ohio: A district court in Columbus found the state’s EdChoice voucher program unconstitutional, and the state legislature passed a budget that at the same time shorts the state’s public schools that serve the mass of our state’s children, significantly cuts the state income tax, and increases funding for private school vouchers over the next two years.

We all desperately hope the Vouchers Hurt Ohio lawsuit will save our public schools, but appeals of the case to higher courts will likely take several years, a period when the  new budget’s underfunding of the Fair School Funding Plan, the effect of the income tax cuts and the diversion money to private school vouchers will inevitably continue to diminish the state’s investment in Ohio’s public schools.

In the new budget, the legislature technically phased in a new Fair School Funding Plan—a mathematical formula to ensure that the state will guarantee adequate and equitably distributed state school funding. However, after the House Speaker called the plan unsustainable, the legislature failed fully to fund the new formula’s provisions and thereby ensured the new formula’s ultimate failure before Ohio can even try it out.

The Ohio legislature’s income tax reduction along with lawmakers’ choice to permit continuing growth of publicly funded, universal EdChoice private school tuition vouchers emerges from a philosophy that government’s responsibility is to protect individual parents’ freedom. Solid support for the state’s public schools would instead embody a commitment to what we call the social contract, explained here by economist Joseph Stiglitz:

“A social contract defines the relationship between individuals and societies, much as an actual contract would, outlining the obligations of the parties to the contract and to each other. There is one big difference between the social contract and ordinary contracts. When an actual contract is breached, there are consequences both for the relationship and especially for the breaching party… But when the state violates what it is supposed to do, there is no corresponding mechanism for enforcing the social contract.” The Road to Freedom, p. 86)

Article VI, Section 2 of the Ohio Constitution definesthe state’s responsibility to provide a strong system of public education as part of the social contract: “The General Assembly shall make such provisions, by taxation, or otherwise, as, with the income arising from the school trust fund, will secure a thorough and efficient system of common schools throughout the state; but no religious or other sect, or sects, shall ever have any exclusive right to, or control of, any part of the school funds of this state.”

Here are three ways in which the new state budget undermines Ohio’s public education social contract.

The New Ohio Budget Does Not Commit the State to Equitable and Adequate Public School Funding.

In a new brief, Lawmakers Underfund Ohio Schools by $2.86B in FY26-27; Veto Overrides Risk Another $330M, along with an attached PowerPoint slide presentation, Policy Matters Ohio shows how Ohio’s Fiscal Year 2026-2027 budget undermines the new Fair School Funding Plan just as it is being launched.

The first slide of Policy Matters’ PowerPoint presentation summarizes the impact of the new budget for the state’s public schools: “Ohio lawmakers give a billion-dollar annual tax break to Ohioans earning six figures, underfund (public) schools by $2.86 billion, and leave behind students with the greatest need.”

In Slide 3, Policy Matters compares the amount of public school funding allocated in the new state budget to the amount the new Fair School Funding Plan (FSFP) would have awarded to each school district if the legislature had, as the formula requires it to do, correctly factored in the district’s current costs instead of old cost data from FY 2022. “Under the enacted plan, 74% of Ohio’s school districts will receive less than what the FSFP says they need to meet the costs of an adequate education.”

In a recent Hannah News Service publication, Howard Fleeter, Ohio’s well known school finance expert, explains¹ exactly how the legislature robs school districts of what they had expected under the Fair School Funding Plan: “One of the most important features of the Fair School Funding Plan is its utilization of an inputs-based approach to determining adequacy, which results in a base per-pupil amount which can vary across districts based on the number of students and their distribution across grade levels… In order to not just fully phase in the funding formula but to adequately fund it, the base cost in FY 26 should be based on FY 24 input data and the base cost in FY 27 should be based on FY 25 data.” However, this year the legislature used old, FY 2022 cost data, thereby failing accurately to measure school districts’ costs. In other words, the state should recognize that school district expenses rise year after year due to inflation, and the formula should recognize that school districts have to keep up or risk losing teachers and services.

In Policy Matters’ Slide 5, a bar graph demonstrates that in the new budget, legislators leave farthest behind the school districts serving concentrations of the state’s poorest students. These school districts will fall 107% behind what the FSFP would have brought them in state funding. Their school funding is actually being cut this year.

Part of the loss to school districts serving masses of poor children comes from a recalculation of Disadvantaged Pupil Impact Aid.  Slide 7 explains that the legislature used “direct certification, a process of identifying low-income students by relying on public benefits data that will lead to fewer low-income students being counted in the system and fewer DPIA dollars going to the places that desperately need them.” Why has the legislature chosen to base DPIA on a data set that will, “cut more than $200 million in DPIA funds over the next biennium, from FY 2025 levels of support”?

Slide 7 adds, as a preface to Slide 8, that the new budget, “appears use that money to offset the ‘performance’ supplement which is estimated to cost $215 million over the biennium.”  What is the Performance Supplement? Slide 8 explains: “The Performance Supplement would rely on (each district’s)  state report card data, increasing funding by $13 per student times the number of stars on their state report card or progress report… Report card scores are built on testing performance as well as factors like chronic absenteeism, and the ‘breadth of coursework available in the district.’ ”

Policy Matters Slide 8 clearly identifies the injustice embedded in the Performance Supplement: “Low scores on these indicators should signal to policymakers that the school and the community it serves are devalued, under-resourced, and in need of more help, not less.  It explicitly reverses course on closing opportunity and education gaps, which would help schools improve.” In Slide 8, we also learn that the budget adds a $225 per student Enrollment Growth Supplement for the fastest growing suburban school districts. While the supplement will help meet the costs of serving new students moving to these districts, it is important to remember that these are districts serving wealthier families.

In the brief itself, you can link to your own school district’s profile to see how your district fares under the new budget here.

The New Budget Reduces Ohio’s State Income Tax—Undermining the State’s Capacity to Raise Its Share of Public School Funding.

The Plain Dealer‘s Anna Staver explains: “Lawmakers eliminated the state’s top income tax bracket, collapsing Ohio’s tax structure from two rates to one. It’s the last step in a decade-long push for a flat tax —and this final move amounts to a $1.14 billion cut.”  Signal Ohio‘s Andrew Tobias adds: “That new top tax rate of 2.75% is lower than any surrounding state and lower than any time in the past five decades… About 96% of the $1.1 billion in annual lost revenue… will stay in the pockets of those earning $138,000 or more….” Policy Matters Ohio’s Slide 10 depicts the legislature’s new flat tax diverting a billion dollars of essential state revenue to wealthy individuals and away from the state’s social contract. The new budget exacerbates a long trend of tax slashing in Ohio. Last fall, Policy Matters Ohio’s Bailey Williams tracked two decades of Ohio tax cuts that have progressively reduced Ohio’s capacity to support the needs of the public and to support the system of common schools promised in the Ohio Constitution.

The New Budget Allows Private School Vouchers to Continue Eating Up School Revenue.

In his June 27th On the Money¹ school funding expert Howard Fleeter describes another primary drain on state revenue: private school tuition vouchers will continue to eat up an increasingly large chunk of the new state budget. Fleeter compares the legislature’s investment in public school funding to the legislature’s investment in private school vouchers. Fleeter calculates, “that state foundation funding for Ohio’s traditional school districts—spread across the state’s 609 local school districts—will increase by $281.9 million over the Fiscal Year 2026-2027 biennium compared to current funding levels.” He continues: “Voucher funding is slated to increase by $327.1 million over the FY26-27 biennium…. This increase is $45 million more than the increase slated for the traditional K-12 districts over the biennium, despite the fact that K-12 districts educate roughly 8 times as many students as do private schools.”

In the New Budget, Legislators Shift the Responsibility for Funding Public Schools More Heavily onto Local School Districts.

We continue to hear a lot from our legislators about the danger of rising property taxes, but ironically, by reducing the state’s investment in public education, the legislature itself has made it necessary for school districts to increase reliance on local property taxes or cut programs and teachers. Howard Fleeter concludes¹ that, in the current fiscal year (FY 2025) under the budget that passed two years ago, the state is paying 38.4% of public school funding in Ohio. In the new budget, in which the legislature has failed to update the cost data in the formula, has cut the state income tax, and has kept on letting an uncapped voucher program grow,“the average state share (of total public school funding) will drop to 35.0% in FY 26 and to 32.2% in FY 27….”

When a state violates the social contract by reneging on its responsibility to fund public schools, the funding burden falls more heavily and more inequitably on local school districts.

¹Howard Fleeter, “On The Money,” Hannah News Service, June 27, 2025, (available free in many public library research collections).

Categories Accountability, Budget Cuts, Charter Schools, Democracy, Education Industry, Elections, Ethics, Extremism, Funding, Inequity, Injustice, Ohio, Parents, Privatization

David Dayen: What Else Is Included in the Big Ugly Budget Bill?

By dianeravitch
July 1, 2025 //
5

Since this is a mostly education blog, I have covered the budget debate by focusing on what the GOP is doing to maim public schools and enrich private (especially religious schools). In the past, Republicans were strong supporters of public schools. But the billionaires came along and brought their checkbooks with them.

The rest of the Ugly bill is devastating to people who struggle to get by. Deep cuts to Medicaid, which will force the closure of many rural hospitals. Cuts to anything that protects the environment or helps phase out our reliance on fossil fuels. Well, at least Senator Schumer managed to change the name of the bill, new name not yet determined.

One Republican vote could have sunk the bill. But Senator Murkowski got a mess of pottage.

David Dayen writes in The American Prospect:

Welcome to “Trump’s Beautiful Disaster,” a pop-up newsletter about the Republican tax and spending bill, one of the most consequential pieces of legislation in a generation. Sign up for the newsletter to get it in your in-box.

By the thinnest of margins, the U.S. Senate completed work on the One Big Beautiful Bill Act on Tuesday morning, after Sen. Lisa Murkowski (R-AK) decided that she could live with a bill that takes food and medicine from vulnerable people to fund tax cuts tilted toward the wealthy, as long as it didn’t take quite as much food away from Alaskans.

The new text, now 887 pages, was released at 11:20 a.m. ET. The finishing touches of it, which included handwritten additions to the text, played out live on C-SPAN, with scenes of the parliamentarian and a host of staff members from both parties huddled together.

At the very end, Senate Minority Leader Chuck Schumer knocked out the name “One Big Beautiful Bill Act” with a parliamentary maneuver, on the grounds that it was ridiculous (which is hard to argue). It’s unclear what this bill is even called now, but that hardly matters. The final bill passed 51-50, with Vice President JD Vance breaking the tie.

Murkowski was able to secure a waiver from cost-sharing provisions that would for the first time force states to pay for part of the Supplemental Nutrition Assistance Program (SNAP). In order to get that past the Senate parliamentarian, ten states with the highest payment error rates had to be eligible for the five-year waiver, including big states like New York and Florida, and several blue states as well. 

The expanded SNAP waivers mean that in the short-term only certain states with average or even below-average payment error rates will have to pay into their SNAP program; already, the language provided that states with the lowest error rates wouldn’t have to pay. “The Republicans have rewarded states that have the highest error rates in the country… just to help Alaska, which has the highest error rate,” thundered Sen. Amy Klobuchar (R-MN), offering an amendment to “strike this fiscal insanity” from the bill. The amendment failed along party lines.

The new provision weakens the government savings for the bill at a time when the House Freedom Caucus is calling the Senate version a betrayal of a promise to link spending cuts to tax cuts. But those House hardliners will ultimately have to decide whether to defy Donald Trump and reject the hard-fought Senate package, which only managed 50 votes, or to cave to their president.

In addition, Murkowski got a tax break for Alaskan fishing villages and whaling captains inserted into the bill. Medicaid provisions that would have boosted the federal share of the program for Alaska didn’t get through the parliamentarian; even a handwritten attempt to help out Alaska on Medicaid was thrown out at the last minute. But Murkowski still made off with a decent haul, which was obviously enough for her to vote yes.

All Republicans except for Sens. Rand Paul (R-KY), Thom Tillis (R-NC), and Susan Collins (R-ME) voted for the bill. Tillis and Collins are in the two most threatened seats among Republicans in the 2026 midterm elections; Tillis decided to retire rather than face voters while passing this bill. Paul, a libertarian, rejected the price tag and the increase in the nation’s debt limit that is folded into the bill.

Other deficit hawks in the Senate caved without even getting a vote to deepen the Medicaid cuts. That could be the trajectory in the House with Freedom Caucus holdouts. But the House also has problems with their handful of moderates concerned about the spending slashes in the bill.

The bill was clinched with a “wraparound” amendment that made several changes, including the elimination of a proposed tax on solar and wind energy production that would have made it impossible to build new renewable energy projects. The new changes now also grandfather in tax credits to solar and wind projects that start construction less than a year after enactment of the bill. Even those projects would have to be placed in service by 2027. The “foreign entities of concern” provision was also tweaked to make it easier for projects that use a modicum of components from China to qualify for tax credits.

The bill still phases out solar and wind tax credits rather quickly, and will damage energy production that is needed to keep up with soaring demand. But it’s dialed down from apocalyptic to, well, nearly apocalyptic. And this is going to be another source of anger to the Freedom Caucus, which wanted a much quicker phase-out of the energy tax credits.

The wraparound amendment also doubled the size of the rural hospital fund to $50 billion. The Senate leadership’s initial offer on this fund was $15 billion. Overnight the Senate rejected an amendment from Collins that would have raised the rural hospital fund to $50 billion. Even at that size—which will be parceled out for $10 billion a year for five years—it hardly makes up for nearly $1 trillion in Medicaid cuts, which are permanent. The hospital system is expected to buckle as a result of this legislation, if it passes.

Some taxes, including a tax on third-party “litigation finance,” were removed in the final bill. But an expanded tax break for real estate investment trusts, which was in the House version, snuck into the Senate bill at the last minute.

The state AI regulation ban was left out of the final text after a 99-1 rejection of it in an amendment overnight.

The action now shifts to the House, where in addition to Freedom Caucus members concerned about cost, several moderates, including Reps. David Valadao (R-CA) and Jeff Van Drew (R-NJ), have balked at the deep spending cuts to Medicaid and other programs.

Categories Accountability, Billionaires, Budget Cuts, Cruelty, Democracy, Disruption, Economy, Education Industry, Environment, Ethics, Extremism, Funding, Health, Injustice, Privatization, Religion, Trump

Carol Burris: Update on the School Funds in Trump’s Big Ugly Budget Bill

By dianeravitch
July 1, 2025 //
0

Most attention has focused on the horrible cuts to Medicaid and food assistance (SNAP) in the bill just passed by the GOP majority in the Senate. It has some differences with the version passed by the GOP House, so there will be changes and compromises.

Carol Burris, executive director of the Network for Public Educaruon, wrote this update on the education portion of the Senate bill that passed, called the Educational Choice for Children Act (ECCA). She refers to the Big Ugly Budget Bill as BBB.

She writes:

Despite the efforts of Democratic senators to get the Parliamentarian to override ECCA entirely, ECCA was significantly weakened in the Senate BBB and is no longer a universal voucher program. 

  •  The $4 billion cap for total contributions was removed. It is now unlimited. However, it is no longer a tax shelter for stocks, making contributions far less attractive. The maximum credit has been reduced to $ 1,700. 
  • States, as well as the Treasury, can now regulate the program; therefore, states without a voucher program are not mandated to have one. Additionally, the credits are only available to individuals residing in a state with an approved Scholarship Granting Organization (SGO).
  • Because the bill allows public school students to access scholarships and the list of allowable activities includes tutoring, payment for courses, and payment for tests (for example, AP exams), I am trying to determine whether states without vouchers could create SGOs for public school students only.
  • BBB needs to go back to the House, so all of this will likely change again. 

Categories Budget Cuts, Charter Schools, Cruelty, Education Industry, Ethics, Extremism, Funding, Inequity, Republicans, School Choice, Trump, Vouchers

Senate Parliamentarian Removes Vouchers from GOP “One Big Ugly Bill”

By dianeravitch
June 27, 2025 //
2

Politico reports great news for America’s public schools. The Senate Parliamentarian, Elizabeth MacDonough, removed the private school voucher part of Trump’s “One Big Ugly Bill,” because it runs afoul of the Byrd Rule. The Byrd Rule prevents the inclusion of extraneous issues that are not directly related to fiscal issues. She also ruled that the Senate’s effort to protect religious colleges from an onerous tax on their endowment had to be removed from the bill. Here is the official history and definition of the Byrd Rule, which applies only in the Senate.

Juan Perez Jr. writes:

A Republican proposal to enact a multibillion-dollar private school tax credit program would be subject to a 60-vote threshold if it is included in conservatives’ domestic policy megabill, the Senate parliamentarian advised early Friday in a significant challenge to what would be a sweeping federal school choice program.

Senate Parliamentarian Elizabeth MacDonough also determined that an effort to carve religious schools — including Hillsdale College in Michigan — out of a planned expansion of the federal college endowment tax does not meet the Senate Byrd rule’s criteria for the filibuster-skirting reconciliation process, according to Senate Budget Democrats.

Republicans on the Senate Finance Committee had proposed a permanent, $4 billion annual tax credit for individuals who donate to organizations that support educational expenses including private-school tuition, which was projected to cost $26.046 billion between 2025 and 2034, according to estimates from the Joint Committee on Taxation.

The tax credit scholarship plan, which is based on the Educational Choice for Children Act, would allow scholarships to students whose families make up to 300 percent of the area median gross income.

The committee also aimed to soften the blow of expanded taxes on private college and university endowments compared to a House-passed tax bill, though many qualifying private schools would still be in line to pay a tax rate of up to 8 percent of their net annual investment income.

It’s not yet clear if Republicans would try to rework some of the tax provisions that MacDonough found violated the Byrd rule, effectively blocking their inclusion in a GOP-only reconciliation measure. Republicans have successfully tweaked other proposals to the parliamentarian’s liking, but her rulings this week certainly helped upend GOP senators’ efforts to bring their fiscal package up for a vote.

Categories Education Industry, Vouchers

Stephen Dyer: Vouchers in Ohio Are a Disaster! I Told You So!

By dianeravitch
June 27, 2025 //
18

Stephen Dyer is a public policy expert, a specialist in school finance, and a former legislator in Ohio. He warned 11 years that vouchers would drive the state budget over a fiscal cliff. The court decision a few days ago proves that he was right on target.

Let this be a warning to all the other states that are adopting vouchers (without the consent of the governed, in every case).

He writes:

Proponents have claimed for years that Ohio and U.S. Supreme Court cases from the program’s infancy allows for explosive growth. Judge Jaiza Page warns, “Not so fast.” Just like I did 11 years ago.

Dyer wrote the following 11years ago:

“Overall, the state is sending nearly $144 million to private schools this year. In 2010-2011, that number was $78.85 million — nearly half the amount. Makes you wonder whether the case upholding Ohio’s Vouchers in 2002 would have the same outcome today. Also makes me want to kind of find out.” — Stephen Dyer on 10th Period blog, Jan. 25, 2014

Now he writes:

I guess we found out Tuesday, didn’t we?

To be clear, I had no idea that anyone would actually file a lawsuit against Ohio’s unconstitutional Voucher system when I wrote that on Blogspot 11 years ago (though I really did want someone to do that). But given the Ohio and U.S. Supreme Court’s rulings on vouchers at the turn of the century, I did question whether the state’s explosive funding of vouchers actually was justified under those rulings.

Guess who else agreed with me? Franklin County Judge Jaiza Page. While I focused in 2014 on the 2002 U.S. Supreme Court case Zelman v. Simmons-Harris, Judge Page focused on the 1999 Ohio Supreme Court case Simmons-Harris v. Goff. 

Goff reached a similar conclusion as Zelman — that given the program’s then-small educational footprint, both in terms of kids and money — it did not interfere with Ohio’s overall ability to educate its public school students, so the program (which at the time only included Cleveland) was ok.

However, when Goff was decided, the Cleveland Voucher Program cost $5.7 million. The just-passed state budget allocated $2.5 billion over the biennium to the current program.

And that’s where voucher proponents got waaaay out over their skis. I realized this 11 years ago. But now, it’s even more obvious. The programs examined by the U.S. and Ohio Supreme Courts at the turn of the century look very different from the current budget hog Judge Page examined.

And she made that factual difference really clear in her ruling:

“As to the thorough and efficient challenge, the court ultimately held, “[w]e fail to see how the School Voucher Program, at the current funding level, undermines the state’s obligation to public education.” (Emphasis added.) Id. From this language, the Court concludes that the Goff court foresaw a renewed challenge to a larger scholarship or voucher program like EdChoice as an unconstitutional state supported system of private schools. Goff warned that a system that does not create but supports nonpublic schools in a way that jeopardizes the thoroughness and efficiency of the State’s system of public schools violates Article VI Section 2 of the Ohio Constitution.”

Added to this is this incredible fact that was brought out in the court case: 

Not a single penny of voucher money goes to a single parent or student. It goes directly to private, mostly religious schools.

Let me repeat that for those of you in the back:

Not a single penny of voucher money goes to a single parent or student. It goes directly to private, mostly religious schools.

That’s right. This whole money-following-the-kid/parental-choice narrative that voucher proponents are still spilling out is complete, utter Grade A Bullshit.

In 1999, the money did go to parents and kids. Page was quite concerned about this payment change because the Ohio Constitution bans state establishment of religious schools. And if state money flows directly to religious schools that rely heavily on taxpayer subsidies (she mentioned that some private schools have 75% or more of their kids on vouchers), that is establishment and unconstitutional.

“By bestowing participating private religious schools with complete control over prospective students’ participation, the “school choice” here is made by the private school, not “as the result of independent decisions of parents and students.””

It’s as if the original creators of the Voucher program carefully crafted the legislation to pass judicial muster. Then when they got a favorable ruling, the gloves came off.

Oh yeah. One more thing: Not a single penny of the nearly $9 billion we will have spent on vouchers since 1997 has ever been audited. So we have no idea how the money on this unconstitutional program has actually been spent.

But I digress.

Luckily for Ohio’s 1.5 million public school kids, Judge Page recognized the program’s current reality rather than voucher proponents’ fictional account.

Just as your friendly neighborhood blogger did 11 years ago.

Not to brag. 

Well, maybe a little!

Categories Accountability, Budget Cuts, Disruption, Education Industry, Extremism, Funding, Ohio, Privatization, Vouchers

Trump Tax Bill Harms Public Schools by Funding Private Choices

By dianeravitch
June 23, 2025 //
9

Matt Barnum and Richard Rubin of The Wall Street Journal describe the harm that Trump’s One Big Ugly Budget Bill will do to public schools.

They wrote:

Republicans’ tax-and-spending megabill would give the school-choice movement a major, long-sought victory—and deliver an unusually generous tax break to wealthy taxpayers.

The bill includes a new way for taxpayers—whether they are parents or not—to direct tax dollars to private-school scholarships instead of the Treasury. There is an extra twist: It could deliver virtually risk-free profits to some savvy investors.

The proposal has excited school-choice advocates, infuriated public school leaders and stunned tax experts.

“Overnight, this would give millions of students access to the school of their choice,” said Tommy Schultz, CEO of the American Federation for Children, an advocacy group pushing the provision. “This is a revolution within the tax code.”

The American Federation for Children is the far-right wing group created by Betsy DeVos to promote charter schools and vouchers.

The incentive is structured as a dollar-for-dollar federal tax credit. Give to a charity known as a scholarship-granting organization and you would get the same amount subtracted from your federal tax bill. 

It is equivalent to redirecting your taxes to a scholarship-granting organization (SGO), with the benefit capped at 10% of adjusted gross income or $5,000, whichever is greater. That is a far better deal than what is offered by normal charitable donations, which generally just reduce your taxable income and only if you itemize deductions….

For people with appreciated stock, the proposal could be even more attractive than a dollar-for-dollar credit, potentially creating net profits. 

Consider someone who bought a stock for $100 that is now worth $1,100. Selling that stock would trigger capital-gains taxes of up to $238. But under the bill, he could donate the $1,100 stock to an SGO. The government would give $1,100 back and he wouldn’t pay capital-gains taxes. 

He could then buy the same $1,100 stock on the open market. The result? He’s better off than when he started, spending nothing to erase a potential capital-gains tax liability. 

“In terms of something that is deeply offensive to basic tax logic, it’s hard to beat this,” said Lawrence Zelenak, a law professor at Duke University who expects donors to line up every Jan. 1 to take advantage. “Unless you actively hate the charity, you would want to do it…”

A federal program would expand private-school tuition subsidies into states such as New York and California that have resisted school choice programs….

The House bill caps credits at $5 billion annually, which would climb by 5% in subsequent years if the program is heavily used. That bill would run from 2026 through 2029. The Senate version released Monday includes $4 billion annually, starting in 2027 but without an expiration date. 

The credit would mark a significant injection of resources to private education as the Trump administration separately seeks to cut federal grants for public schools. Still, it would pale in comparison to funding for public schools, which receive several hundred billion dollars annually, mostly from state and local governments. 

Democrats hope the breadth of the policy changes will prompt the Senate parliamentarian to determine that it’s out of bounds for the budgetary fast-track process Republicans are using.

Public school advocates say the program would benefit better-off families at religious private schools. “The federal government needs to fund the neighborhood school that serves children from every walk of life,” said Sasha Pudelski, a lobbyist with the school superintendents’ association.

Opponents also say the idea has been rejected by voters. In November, three states voted down school-choice ballot measures.

Note: not only were vouchers defeated in three states last November, voters have rejected vouchers in every state referendum since 1967.

The new tax credit could become a model for Congress to direct money to other causes through the tax code, said Carl Davis, research director at the Institute on Taxation and Economic Policy, a progressive group that criticizes the plan.

Civil rights laws prohibit certain forms of discrimination in schools that receive federal funding, but it isn’t likely this would apply to private schools that benefit from the proposed tax credit, said Kevin Welner, a research professor at the University of Colorado Boulder. The House bill includes a provision barring discrimination against students with disabilities in school admissions; the Senate version doesn’t. 

State voucher plans do not bar discrimination in voucher-receiving schools. They can and do discriminate at will. Some require that families are members of their faith. Some bar LGBT students and families. Some bar students with disabilities. Some bar students with low test scores.

Trump’s funding of school choice is the fever dream of Christian nationalists. With one blow, they eliminate the separation of church and state, they get funding for religious schools, and they gut civil rights laws that barred discrimination.

It also permits the revival of school segregation, under the once-discredited banner of school choice. White Southerners who don’t like “race mixing” have dreamed of this day since May 17, 1954.

Categories Budget Cuts, Charter Schools, Disruption, Education Industry, Ethics, Extremism, Funding, Privatization, Trump, US Education, Vouchers

Joyce Vance: The Kids Are Alright Despite Trump’s Efforts to Kill Public Education and Academic Freedom

By dianeravitch
June 17, 2025 //
5

Joyce Vance is a former federal prosecutor for North Alabama. She writes an important blog called Civil Discourse, where she usually explains court decisions and legal issues. Today she turns to education.

Today I’m recovering from the graduation tour, one in Boulder and one in Boston in the last two weeks, and getting back into the groove of writing as I continue to work on my book (which I hope you’ll preorder if you haven’t already). The graduations came at a good moment. 

Watching my kids graduate, one from college and one with a master’s in science, was an emotional experience—the culmination of their years of hard work, sacrifice, and growth, all captured in a single walk across the stage. They, like their friends, my law students, and amazing students across the county, now enter society as adults. Even beyond the individual stories of hardships overcome and perseverance, witnessing these rites of passage makes me feel profoundly hopeful. The intelligence and commitment of the students—many of whom are already tackling big problems and imagining new, bold solutions—gives me a level of confidence about what comes next for our country. In a time when it’s easy to get discouraged, their commitment and idealism stands as a powerful reminder that they are ready to take on the mess we have left them. 

The kids are alright, even though they shouldn’t have to be. Talking with them makes me think they will find a way, even if it’s unfair to ask it of them and despite the fact that their path will be more difficult than it should be. Courage is contagious, and they seem to have caught it. Their educations have prepared them for the future we all find ourselves in now.

As students across the country prepared to graduate this year, Trump released his so-called “skinny budget.” If that’s how they want to frame it, then education has been put on a starvation diet—at least the kind of education that develops independent thinkers who thrive in an environment where questions are asked and answered. Trump pitches the budget as “gut[ting] a weaponized deep state while providing historic increases for defense and border security.” Defense spending would increase by 13% under his proposal.

The plan for education is titled, “Streamline K-12 Education Funding and Promote Parental Choice.”Among its provisions, the announcement focuses on the following items:

  • “The Budget continues the process of shutting down the Department of Education.” 
  • “The Budget also invests $500 million, a $60 million increase, to expand the number of high-quality charter schools, that have a proven track record of improving students’ academic achievement and giving parents more choice in the education of their children.”

As we discussed in March, none of this is a surprise. Trump is implementing the Project 2025 plan. In December of 2024, I wrote about how essential it is to dumb down the electorate if you’re someone like Donald Trump and you want to succeed. A rich discussion in our forums followed. At the time I wrote, “Voters who lack the backbone of a solid education in civics can be manipulated. That takes us to Trump’s plans for the Department of Education.” But it’s really true for the entirety of democracy.

Explaining the expanded funding for charter schools, a newly written section of the Department of Education website reads more like political propaganda than education information: “The U.S. Department of Education announced today that it has reigned [Ed: Note the word “”reigned” is misspelled] in the federal government’s influence over state Charter School Program (CSP) grant awards. The Department removed a requirement set by the Biden Administration that the U.S. Secretary of Education review information on how states approve select entities’ (e.g., private colleges and universities) authorization of charter schools in states where they are already lawful authorizers. This action returns educational authority to the states, reduces burdensome red tape, and expands school choice options for students and families.”

There are already 37 lawsuits related to Trump’s changes to education. Uncertainty is no way to educate America’s children. Cutting funding for research because you want to score political points about DEI or climate change is no way to ensure we nurture future scientists and other thinkers and doers…

I am reminded again of George Orwell’s words: “The most effective way to destroy people is to deny and obliterate their own understanding of their history.” The historians among us, and those who delve into history, will play a key role in getting us through this. Our love and understanding of history can help us stay grounded, understanding who we are, who we don’t want to become, and why the rule of law matters so damn much to all of it….

Thanks for being here with me and for supporting Civil Discourse by reading and subscribing. Your paid subscriptions make it possible for me to devote the time and resources necessary to do this work, and I am deeply grateful for them.

We’re in this together,

Joyce

Categories Academic Freedom, Budget Cuts, Censorship, Charter Schools, Education Industry, Ethics, Extremism, Freedom, Freedom of Speech, Freedom to Learn, Freedom to Read, Funding, Trump

Arizona: Cost of Universal Vouchers Reaches $872 Million per Year

By dianeravitch
June 17, 2025 //
0

The Grand Canyon Institute has been tracking the growth and cost of vouchers and charter schools in Arizona for several years. The vast majority of students who take vouchers (almost 3/4). But this year, a larger share were drawn from district schools and charter schools.

The report contains a number of excellent graphics. Open the lin to see them.

This is the Grand Canyon Institute release:

FOR IMMEDIATE RELEASE

Cost of Universal ESA Vouchers

Contact: Dave Wells, Research Director, dwells@azgci.org or 602.595.1025 ex. 2.

Summary of Findings

  • 73% of Universal ESA voucher enrollees have never attended district or charter schools (including adjustments for students entering Kindergarten).
  • In FY2025, however, net new Universal ESA voucher enrollees primarily came from charter and district schools.
  • While the total cost of the overall ESA program in FY2025 is expected to be $872 million, the net cost after adjusting for where students would have otherwise attended is $350 million for those in the universal ESA voucher program. This represents a slight increase from the $332 million estimated by the Grand Canyon Institute last year.

The Grand Canyon Institute (GCI) estimates a $350 million net cost to the state’s General Fund in FY2025 (July 2024-June 2025) for the universal component of Arizona’s Empowerment Scholarship Account (ESA) voucher program based on a student’s school of origin. This represents a slight increase over the estimated FY2024 cost of $332 million. The estimate assumes basic student funding weights. 

The Joint Legislative  Budget Committee currently estimates the total annual cost of the ESA program to be $872 million, which includes the original targeted program and the universal component. Because student-level data on the universal program is not separated out by the Arizona Dept. of Education, GCI must estimate the origin of universal program enrollees. GCI’s estimate reflects the net cost the state would have incurred if the universal ESA voucher program did not exist. Almost every single child in the original targeted program had to attend a district or charter school for at least 45 days before enrolling in the program. GCI uses historical data on where the targeted students had come from previously, dating back to FY2017, along with current data on where all ESA students have left district or charter schools to estimate the distribution of students across district and charter schools for the original targeted program and the remainder are allocated to the universal program. 


In FY2025, the net growth in the universal ESA vouchers was 7,660 of the total enrollment of 61,688. GCI estimates that 73% of ESA universal voucher recipients never attended a district or charter school, slightly lower than the rate of 80% in FY2025. This includes estimates for kindergarten students using ESA universal vouchers. 

The primary driver of the change in FY2025 was a significant increase in the portion of net new enrollees from district and charter schools. GCI examined the marginal changes since last year and estimates that nearly half the net gain in universal participants of 7,660 from FY2024Q2 to FY2025Q2 came via Kindergarten. Analyzing changes in the portion of students previously attending a district or charter school, GCI estimates that less than 10% never attended (or would have never attended for Kindergarten) while half came from charter schools and just over 40% came from districts.

This change helped lessen the growth of the net cost of the program. GCI presumes that Kindergarten students do not have a record of prior attendance but would mirror the same distribution.  Given that charter school enrollment is about one-fourth of district enrollment, charter schools have been significantly disproportionately impacted by the Universal ESA program.

Despite the change in FY2025, the majority of participants in the universal ESA program never attended a district or charter school should be self-evident. For FY2025, the Quarter 3 Executive and Legislative ESA report identifies that of the total 87,602 students enrolled in the ESA voucher program (targeted and universal), regardless of when they first enrolled, only 33,942 students  moved from charter or district schools to an ESA. Virtually all targeted participants must first enroll in a district or charter school first. The universal program does not require prior attendance. 

Access the full report here.

The Grand Canyon Institute, a 501(c) 3 nonprofit organization, is a centrist think tank led by a bipartisan group of former state lawmakers, economists, community leaders and academicians. The Grand Canyon Institute serves as an independent voice reflecting a pragmatic approach to addressing economic, fiscal, budgetary and taxation issues confronting Arizona.

Categories Accountability, Arizona, Charter Schools, Data, Education Industry, Funding, School Choice, Students, Vouchers

Jan Resseger: Trump’s Ugly Budget Bill Defunds Public Schools

By dianeravitch
June 12, 2025 //
1

Jan Resseger is a social justice warrior who fights for the underdog. She describes here how Trump’s budget enacts the fever dreams of evangelicals and billionaires. He would change federal aid from its historic purpose–equitable funding–and turn it into school choice, diverting funds from the poorest children to those with ample resources. Since 1965–for 70 years–federal education funding for public schools has enjoyed bipartisan support. Trump ends it.

She writes:

Earlier this week, Education Week‘s Mark Lieberman released a concise and readable analysis of the likely impact for public education of two pieces of federal funding legislation: the “Big, Beautiful” tax and reconciliation bill currently being debated in the U.S. Senate to shape public school funding beginning right now in FY 2025, and also President Trump’s proposed FY 2026 federal budget for public schooling in the fiscal year that begins October 1st.

Trump’s  FY 2026 budget proposal saves Head Start.

Lieberman shares one important piece of positive news about Trump’s treatment of Head Start in next year’s federal budget: “Some programs survived the cut—including Head Start.” In early May, the Associated Press‘s Moriah Balingit reported: “The Trump administration apparently has backed away from a proposal to eliminate funding for Head Start… Backers of the six-decade-old program, which educates more than half a million children from low-income and homeless families, had been fretting after a leaked Trump administration proposal suggested defunding it… But the budget summary… did not mention Head Start. On a call with reporters, an administration official said there would be ‘no changes’ to it.”

Federal funding for U.S. public schools looks bleak.

Lieberman’s assessment of federal public education funding is not so encouraging.  Overall, “The administration is aiming to eliminate roughly $7 billion in funding for K-12 schools in its budget for fiscal 2026, which starts Oct. 1. Several key programs will be maintained at today’s funding level, without an increase: “Flat funding amounts to a de-facto cut given inflation. The administration is proposing to maintain current funding levels for key programs like Title I-A for low-income students ($18.4 billion), the Individuals with Disabilities Education Act, Part B for special education ($14.2 billion) and Perkins grants for K-12 and postsecondary career and technical education ($1.4 billion).”

What has been historically a key purpose of federal public education funding—to compensate for vast inequity in the states’ capacity and the states’ willingness to fund public education—is being compromised.  Lieberman explains that much of federal funding, “is currently geared toward supporting special student populations including English learners, migrants, students experiencing homelessness, Native students, and students in rural schools. Longstanding federal programs that support training for the educator workforce; preparing students for postsecondary education; reinforcing key instructional areas like literacy, civics, and the arts… would disappear. A new K-12 grant program would offer a smaller pool of funds to states and let them decide whether and how to invest in those areas. And for the first time, all federal funding for special education would flow to states through a single funding stream…. Experts view Trump’s budget as part of an effort to roll back a half-century of effort by the federal government to help make educational opportunities more consistent and equitable from state to state and district to district.”

The “Educational Choice for Children Act,” an alarming federal school voucher bill, is hidden inside the “Big Beautiful” bill.

Lieberman worries about the enormous tuition tax credit voucher plan embedded deep in the weeds of the “Big, Beautiful” tax and reconciliation bill now being considered in the U. S. Senate: “Separate from the federal budget process, Congress is currently advancing a massive package of tax changes, including a proposal for a new tax-credit scholarship program that fuels up to $10 billion a year in federal subsidies for private K-12 education. Annual spending on that program could approach the amount the Trump administration is proposing to cut from elsewhere in the education budget.”  The voucher proposal is called the Educational Choice for Children Act (ECCA).

In a separate analysis of the “Big, Beautiful” bill as the House passed it in late May, Lieberman describes this proposed ECCA tuition-tax-credit voucher program: “House lawmakers narrowly approved a sweeping legislative package with $5 billion in annual tax credits that fuel scholarships and related expenses at K-12 private schools. The federal subsidies would come in the form of dollar-for-dollar tax credits for individuals and corporations that donate to largely unregulated state-level organizations that give out scholarship funds for parents to spend on private educational options of their choosing. Any student—even in states that have resisted expanding private school choice—from a family earning less than 300 percent of the area median gross income would be eligible to benefit from a scholarship paid for with a federally refunded donation.”

Lieberman adds: “No other federal tax credit is as generous. The Internal Revenue Service doesn’t currently supply tax credits worth the full donation amount for any cause, as the private school choice scholarship credit would do. The federal government currently offers tax credits on donations for disaster relief, houses of worship, veterans’ assistance groups, and children’s hospitals at roughly 37 percent of the donated amount.  A $10,000 donation to those causes would yield a tax credit of $3,700.  By contrast, under the proposed legislation, if a taxpayer donates $10,000 to a scholarship (voucher)-granting organization, the IRS would give them a tax credit of $10,000.”

The Institute for Taxation and Economic Policy’s Carl Davis explains that because these federal school vouchers are primarily a tax shelter, they might appeal to wealthy people who are not even supporters of school privatization: “The tax plan…  includes a provision granting extraordinarily generous treatment to nonprofits that give out vouchers for free or reduced tuition at private K-12 schools. While the bill significantly cuts charitable giving incentives overall, nonprofits that commit to focusing solely on supporting private K-12 schools would be spared from those cuts and see their donors’ tax incentive almost triple relative to what they receive today. On top of that, the bill goes out of its way to provide school voucher donors who contribute corporate stock with an extra layer of tax subsidy that works as a lucrative tax shelter. Essentially, the bill allows wealthy individuals to avoid paying capital gains tax as a reward for funneling public funds to private schools.” “We estimate the bill would reduce federal tax revenue by $23.2 billion over the next 10 years as currently drafted, or by $67 billion over the next ten years if it is extended beyond its four-year expiration date… As currently drafted, the bill would facilitate $2.2 billion in federal and state capital gains tax avoidance over the next 10 years.”

The Brookings Brown Center on Education Policy’s Jon Valant warns that the vouchers are so deeply buried in the “Big, Beautiful” bill that lots of people would not be aware of the plan’s existence until after it is passed: “The Educational Choice for Children Act (ECCA) continues to move, quietly, towards becoming one of America’s costliest, most significant federal education programs. Now part of the One Big Beautiful Bill, ECCA would create a federal tax-credit scholarship program that’s unprecedented in scope and scale.  It has flown under the radar, though, and remains confusing to many observers…  ECCA’s stealthiness is partly due to the confusing nature of tax-credit scholarship programs. These programs move money in circuitous ways to avoid the legal and political hurdles that confront vouchers.”

Valant explains how tax-credit vouchers work: “Tax-credit scholarship programs like ECCA aren’t quite private school voucher programs, but they’re first cousins. In a voucher program, a government gives money (a voucher) to a family, which the family can use to pay for private school tuition or other approved expenses. With a tax-credit scholarship, it’s not that simple. Governments offer tax credits to individual scholarship granting organizations (SGOs). These SGOs then distribute funds… to families.”

Valant creates a scenario that shows how this tax credit program could help the wealthy and leave out poorer families. A rich donor, Billy, donates $2 million in stock to an SGO: “Billy’s acquaintance, Fred, lives in the same town as Billy, which is one of the wealthiest areas in the United States. In fact, Fred set up the SGO, looking to capture ECCA funds within their shared community… Like Billy, Fred doesn’t particularly care about K-12 public education… It might seem that Fred’s SGO couldn’t distribute funds to families in their ultra-wealthy area, since ECCA has income restrictions for scholarship recipients. That’s not the case. ECCA restricts eligibility to households with an income not greater than 300% their area’s median income. In Fred and Billy’s town, with its soaring household incomes, even multimillionaire families with $500,000 in annual income are eligible… So, Fred is looking to give scholarship money to some wealthy families in his hometown.”

Valant summarizes the result if the “Big, Beautiful” bill is enacted: “This bill would introduce the most significant and costliest new federal education program in decades. It has virtually no quality-control measures, transparency provisions, protections against discrimination, or evidence to suggest that it is likely to improve educational outcomes. It’s very likely to redirect funds from poor (and rural) areas to wealthy areas.”

Categories Budget Cuts, Cruelty, Democracy, Disruption, Education Industry, Ethics, Evil, Extremism, Funding, Privatization, School Choice, Vouchers

EPIC Charter Downsizes, Fires the Principals, Cuts Teachers’ Salaries

By dianeravitch
June 12, 2025 //
8

When enrollments declined, EPIC virtual charter schools in Oklahoma reacted like any other business: management shrunk the workforce and cut the salaries of those who were not laid off. The remaining teachers found themselves wondering if the charter model itself was flawed.

KFOR in Oklahoma City reported the story:

OKLAHOMA CITY (KFOR) — After Epic Charter Schools laid off hundreds of employees Tuesday, the teachers left behind say they’ve been given no answers, and some are now questioning whether the charter system that they work for truly puts students first.

Those teachers say they don’t know who is in charge, how the school plans to move forward, or whether their jobs are truly safe. At least one teacher says the chaos has her rethinking the charter-school model entirely—and what it means for students.

News 4 reported that more than 350 Epic Charter Schools employees were blindsided on Tuesday with an email informing them that they were being let go….

The state-funded online charter school laid off 357 employees Tuesday, including 83 teachers and nearly 300 administrators.

“We know that there are guidance counselors affected, transition coordinators,” a current Epic teacher said.

The teacher told News 4 that Epic did not inform teachers that the district layoff included eliminating the roles of every principal, leaving teachers unclear about who they now answer to.

“We would love to know. We are very interested in what that looks like,” she said. “And we have not been told any information on how do you have a school without a principal?”

While this teacher still has her job—that has come at a price.

“They cut our pay again two weeks ago,” she said.

She said the new pay scale dropped teachers’ base salaries to $40,000 a year.

“I was hired with the agreement that $60,000 a year would be base pay,” she said. “That’s quite a significant pay cut.”

Categories Budget Cuts, Corporate Reform, Cruelty, Education Industry, Ethics, Funding, Oklahoma
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