Garry Rayno of InDepthNH keeps a close watch over the legislature in New Hampshire. He is particularly interested in the state’s relatively new voucher plan. It was sold, as usual, as a plan to help poor kids “escape failing schools.”
That wasn’t what happened.
Predictably, the legislature removed income limits and the program now subsidizes affluent families whose children never went to public school.
The program this year will cost $51.6 million. Almost $50 million goes to students already enrolled in private or religious schools.
Meanwhile, the funding for vouchers is drawn from the state’s Education Trust Fund, which was intended for public schools. That means the subsidy for nonpublic schools comes right out of the public schools’ budget, with no tax increases to compensate public schools. The vast majority of New Hampshire’s students are now subsidizing the nonpublic schools.
There is a new regime at the Department of Education that has released more than the most basic information about the Education Freedom Account program.
For the program’s first four years, the department released spreadsheets detailing the numbers of students, where they live and how much each student received in grants with a total cost of the program and the quarterly state distributions to cover those grants.
The money does not really go to the parents, its goes to the Children’s Scholarship Fund NH, which takes its cut and sends the rest in the child’s name to ClassWallet, a company that received early stage investments twice from the Chinese-based venture capital firm Sinovation Ventures.
A 2018 Defense Department report flagged the company as participating in China’s “technology transfer strategy,” a state initiative to acquire foreign innovation.
Several states that also use ClassWallet for voucher money distribution have raised concerns about data security and foreign influence like Arizona and Missouri, but not New Hampshire, although Gov. Kelly Ayotte issued Executive Order 2025-04 which would appear to prohibit doing business with a company with investors like ClassWallet.
ClassWallet does not technically work for the state, but it was hired by a state contractor, Children’s Scholarship Fund of NH, which administers the EFA program.
How many parents of EFA students would want their education spending data potentially accessed by a foreign country like China?
That information is not what was released late last month by the Department of Education, but is easily found with a Google Search, which ironically also brings up that Sinovation Ventures was co-founded by former China Google President Kai-Fu Lee.
The information released last month provides far greater detail than released under former DOE Commissioner Frank Edelblut, who kept the program’s details out of the public’s eye, such as where the money went and if the children’s foundation was carefully vetting income levels and other requirements to access additional grant money.
A small sample compliance report by the now long gone DOE overseer of the EFA program, indicated it was not following guidelines.
The 100 applications sampled for the report over the first two years of the program had a 25 percent error rate that resulted in a rebate to the state for only those applications improperly approved not for 25 percent of the program’s costs.
One of the biggest criticisms of the program is that very few of the students using the state’s money are actually leaving public schools to join the program. Instead the vast majority of the students using EFAs were already in religious or private schools or homeschooled when their parents applied to participate in the state-funded program that draws its funding from the Education Trust Fund, which also pays for the bulk of state aid to public schools, no matter how meager compared to every other state in the country.
This year the program is projected to cost $51.6 million and will cost an additional $61.9 million next year, totaling $113.5 million for biennium, which makes it $26.7 million over budget.
And if you read the fine print of the data released last month, only $1.68 million on the low end, to $4.42 million on the high end for this school year, and $2.52 million if you use the four-year average is going to kids who were not in public schools when they joined the program out of the $51.6 million for this school year.
The data from the DOE notes that for the current school year only 343 students left public schools to join the program whose enrollment is now 10,510 students, which is nearly double what it was last year before the Republican-controlled legislature removed any earnings cap for the program.
That 3.26 percent of the students is the low end of the estimate above, and if you use the number of new students this year compared to last school year, which is 4,745, the new students from public schools is 7 percent and the high figure.
If you add the kids leaving public schools for the last four years, the number is 1,162 which compared to enrollment over those four years of 23,937 and the number is the four-year average.
That means state taxpayer money going to support students who were not in public schools when they joined the EFA program for this school year would be between $49.92 million and $47.18 million.
That is money the state was not paying to educate these kids because they were in religious or private schools or homeschooled and not supported by state dollars.
In essence that is a new education cost for the state, but no new taxes, or fees or anything was created to pay for it.
Instead, it is money drawn from the Education Trust Fund which was established after the Claremont education decisions to support public education.
As Rayno writes: For those receiving the money on the upper end of the income scale, the little less than $5,000 grant average is a subsidy that allows another ski trip to Aspen or Tahoe this winter.
So when lawmakers say the state doesn’t have the money to increase its share of public education costs, it really means “we do not want to increase the state’s share, but we are OK subsidizing religious and private schools and homeschooling.”
For those receiving the money on the upper end of the income scale, the little less than $5,000 grant average is a subsidy that allows another ski trip to Aspen or Tahoe this winter.
But the above figures are probably a little generous because they do not account for the kids who joined the EFA program from public schools and then returned to public schools either before or after one year.
Data released by the department indicates that last school year, 101 of the former public school students who switched to the EFA program, re-enrolled in public schools.
For the 2023-2024 school year, 75 EFA students returned to public schools, and for the 2022-2023 school year, 38 re-enrolled in public schools.
But those are not the only ones leaving the EFA program every year.
It also does not include EFA students who either graduated or completed their course of instruction that school year or left for unexplained reasons.
For the 2024-2025 school year, 151 EFA students left the EFA program because they graduated or completed their course of study along with the 101 who returned to public schools, and the 887 who left for unexplained reasons.
The total number of students leaving the program that school year was 1,139 or 21 percent of the total EFA enrollment for the year.
For the 2023-2024 school year, 108 students either graduated or completed their course of study, with the 75 who returned to public schools, and 525 who left for unexplained reasons.
The total number of students leaving the EFA program that school year were 708, or 19 percent of the total EFA enrollment.
For the 2022-2023 school year, 76 students graduated or completed their course of studies, along with the 38 who re-enrolled in public schools and the 344 who left for unexplained reasons.
The total number of students leaving the program was 458 students or 15 percent of the enrollment that year.
Total students leaving over the three-year period was 2,305 from a total three-year enrollment of 12,557 or 18.4 percent.
What would we say about a dropout rate of nearly 20 percent if it were a public school?
This is not the widely successful program its advocates tout on the floor of the House and Senate and does not save school districts the amount of money Edelblut used to claim because more than 90 percent of the students in the program were not in public schools, but he counted them as savings to school districts.
This program is not serving the children of low-income parents who want an alternative to public schools, but those parents who can already afford to pay for their children to attend those alternatives without the state’s taxpayers’ help.
That is not government helping the most vulnerable, it is Robin Hood in reverse, a system New Hampshire knows very well.
Garry Rayno may be reached at garry.rayno@yahoo.com.




