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

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


    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.



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  • Conflict over race, LGBTQ issues cost schools more than $3 billion last school year

    Conflict over race, LGBTQ issues cost schools more than $3 billion last school year


    Conservative groups and LGBTQ+ rights supporters protest outside the Glendale Unified School District offices in Glendale on June 6, 2023. Several hundred people gathered at district headquarters, split between those who support or oppose teaching that exposes youngsters to LGBTQ+ issues in schools.

    Credit: Keith Birmingham/The Orange County Register via AP

    Conflicts between parents, teachers and school leaders over parental rights policies focusing on LGBTQ+ students, limitations on teaching about race and racism, and book bans have come with a cost — both socially and financially.

    The conflicts are disrupting school districts, negatively impacting schools and classrooms, and costing districts money that could be used to better serve students, according to “The Costs of Conflict, The Fiscal Impact of Culturally Divisive Conflicts on Public Schools in the United States,” released last month.

    Researchers from UCLA, the University of Texas at Austin, American University and UC Riverside conducted a national survey of K-12 public school superintendents from 46 states — 467 in all — and found that these conflicts are prevalent.   

    Since the 2020-21 school year, uncivil discourse and hostile political rhetoric at school board meetings and on school campuses has been an ongoing problem. Two-thirds of the school superintendents surveyed for the study said they have experienced moderate to high levels of culturally divisive conflict in their districts, including misinformation campaigns, violent rhetoric and threats.

    Cultural conflicts cost U.S. school districts about $3.2 billion last school year, according to the study. Researchers estimate that districts with high levels of conflict spent about $80 per student. Districts with moderate levels of conflict spent $50 per student, and districts with low conflict spent $25 per student.

    “This is costing us general fund dollars,” said a superintendent from a midsize school district in a Western state. “In the 2023-24 school year, the district spent an additional $100,000 on security, hiring armed plainclothes off-duty officers … because people coming to the board meetings are unpredictable and sometimes violent.” 

    Researchers allowed superintendents to remain anonymous in the report.

    The superintendent also said the district spent more than $500,000 in legal fees on lawsuits associated with a board member and a campaign against the LGBTQ+ community, and lost $250,000 in outside funding from social services organizations because of the dispute. It also spent $80,000 on recruiting and training new staff to replace teachers, counselors and administrators who left because they did not want to work in such a divisive setting. 

    “Culturally divisive conflicts have substantial costs to the public and to our capacity as a state to mount quality learning experiences for all students,” said John Rogers, director of the UCLA Institute for Democracy, Education and Access and lead researcher on the report. “It has a fiscal cost that we’ve tried to lay out with some specificity, and it has broader social costs as well — there’s an undermining of social trust, there’s a deepening sense of stress and all of this is hugely consequential for how educators experience public schools and how young people are experiencing public schools.”

    Costs of conflict can’t always be counted in dollars

    Average-sized school districts of about 10,000 students spent about $811,000 each last school year to cope with cultural division, according to the study. The money was spent on legal fees, added security, additional staff time and on community, school board and government relations. Districts also incurred indirect costs because of staff turnover related to the conflict and because staff had to take time away from their other duties to deal with discord.

    According to the survey, the largest expense for districts with cultural conflict came from staff turnover, with districts of about 10,000 students spending between $148,000 and $461,000, depending on the level of conflict. 

    One superintendent said that cultural conflict has caused “incredible stress on leaders and teachers as they navigate imaginary slights and online drama in the community.” A Pennsylvania superintendent called the emotional stress and anxiety “nearly crippling.”

    “This research makes clear that culturally divisive conflicts in the nation’s schools are generating fear, stress and anxiety that is disrupting school districts and taking a personal toll on the educators and staff members who work in them,” Rogers said. 

    The stress has also led to increased staff absenteeism at schools, even in districts with lower levels of conflict, according to the report.

    Half of the superintendents surveyed said they had been personally harassed at least once during the school year. Ten percent reported being threatened with violence, and 11% had their property vandalized.

    As a result, superintendent turnover has also increased — from 14.2% to 17.1% — over the past four years. More than 40% of the superintendents who left their jobs in the last year said their decision was related to conflict, stress and politics, according to the report.

    “The relentless demands of leading a district can easily overshadow their own well-being, which, if neglected, not only affects their personal health but also the health and stability of students, educators, and families they serve,” said Rachel S. White of the University of Texas at Austin in a statement. “Reducing the extent to which superintendents experience unwarranted divisiveness is an important step to change the trajectory of increasing superintendent churn.”  

    Superintendents who were surveyed expressed concern that the time they spent managing cultural conflict, including responding to Freedom of Information Act requests, and unsubstantiated rumors and misinformation, is keeping them from focusing on improving instruction.

    California not immune to divisive conflict

    Rogers said that while cultural conflict wasn’t as common in California as in other parts of the country in 2021-22, it has grown over the last few years.

    Donald Trump’s election is likely to bring more cultural division to school campuses, Rogers said.

    “I think that a Trump victory will lead some on the right to take a message that these sorts of cultural attacks, that have been playing out across the United States and across California in the last couple of years, are an effective strategy for mobilizing the base and for energizing the electorate,” said Rogers, in an interview the day before the election.

     “A Trump victory will mean that Donald Trump will have more of a presence in our public life in the months to come. And so, that too will mean that he will be using language and framing that will further activate attacks on public schools around these culturally divisive issues.”





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