School Choice & Charters

Report Offers Caution on Costs Of Operating Voucher Plans

By Olivia Doherty — November 05, 2003 3 min read
  • Save to favorites
  • Print

Voucher programs may cost more, and require more administrative work, than policymakers believe, a recent study concludes.

The report, “Administrative Costs of Education Voucher Programs,” is available online from the Center on Reinventing Public Education. A summary is also available. (Full report requires Adobe’s Acrobat Reader.)

Contrary to the notion that voucher systems could simply reallocate existing money, additional funding and staffing would be required to run such programs, says the report by the University of Washington’s Center on Reinventing Public Education.

The study, “Administrative Costs of Education Voucher Programs,” delves into the specific structural and financial changes that would be required to operate a voucher program authorized by state law and financed by state and local public money.

Given the complexities, the report questions the readiness of school districts to deal with the changes necessary to run voucher programs, which give families public aid to use toward tuition at private schools.

“A lot of communities really haven’t done a lot of things that have to be done,” said Paul T. Hill, the author of the report and the director of the center.

Mr. Hill estimated the financial costs that state and local education agencies would have to face by examining a hypothetical voucher system comparable to the system in place in Cleveland.

State government agencies, local education offices, special voucher-program offices, and private schools each hold responsibilities in implementing voucher programs, he said, and need to have sufficient administrative support in several areas.

But an area that many districts have difficulty with, Mr. Hill said, is in tracking student records. Primitive data-keeping systems, often found in large city school districts, pose serious hurdles in verifying the eligibility of student applicants and in transferring information between schools—functions crucial to making a voucher program work, the report says.

“Choice only makes it more evident they don’t have those competencies,” Mr. Hill said, “when they should have had them anyway.”

‘A Real Cost’

While various voucher programs may assign duties in different ways, the report says, the many functions that must be performed do not change. They include qualifying private schools for participation, conducting lotteries to select students, and evaluating achievement results.

In addition to requiring accurate and easily accessible records, a voucher program demands additional human resources and changes to existing district structures, the report says.

Unless districts prepare for real administrative changes, such as setting up a central voucher office, Mr. Hill said, costs will run high.

According to Mr. Hill’s estimates, with 2,000 students each receiving tuition vouchers averaging $4,000, and allocating $500 in categorical money for each student and $600 in transportation costs per student, state and local agencies would face more than $10 million in annual gross costs. That figure also includes management and evaluation expenses.

Even after considering possible reductions in public school spending brought about by shifts in enrollment to private schools, the net costs would come to $3.2 million, the report says.

“There is a real cost to local districts,” said Marc Egan, the director of the voucher strategy center at the National School Boards Association, which opposes publicly funded tuition vouchers. He said lawmakers should consider the effects a voucher program would have on public school funding.

But assessing the costs of a hypothetical voucher system might be harder than it seems, said Lawrence Patrick, the president of the Black Alliance for Educational Options, which supports vouchers. That is because of the wide variety of forms a voucher program could have, he said.

“Administrative costs are inextricably linked to how the voucher program works,” Mr. Patrick said. “It really does depend on the way it’s designed.”

Still, Mr. Hill said, the analysis could help states considering voucher programs to identify potential costs and their implications.

“With the exception of a couple places that have tried out programs for themselves, nobody has figured out what this implies for the school district budget and the state budget, and what new capacities have to be built,” he said. “So this was just an effort to get people thinking about it.”

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Stop the Drop: Turn Communication Into an Enrollment Booster
Turn everyday communication with families into powerful PR that builds trust, boosts reputation, and drives enrollment.
Content provided by TalkingPoints
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education Webinar
Integrating and Interpreting MTSS Data: How Districts Are Designing Systems That Identify Student Needs
Discover practical ways to organize MTSS data that enable timely, confident MTSS decisions, ensuring every student is seen and supported.
Content provided by Panorama Education
Artificial Intelligence Live Online Discussion A Seat at the Table: AI Could Be Your Thought Partner
How can educators prepare young people for an AI-powered workplace? Join our discussion on using AI as a cognitive companion.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School Choice & Charters Opinion Should States Mandate Student Testing for Choice Programs?
There are pros and cons to forcing state tests on private schools receiving tax dollars.
7 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
School Choice & Charters Opinion 'This Place Feels Like Me': Why My School District Needed a Microschool
A superintendent writes about adding a small, flexible learning site to his district's traditional schools.
George Philhower
4 min read
Illustration of scissors, glue, a ruler, and pencils used to create a cut paper collage forming a small school.
iStock/Getty
School Choice & Charters Private School Choice Gets Supercharged in Trump's 2nd Term
At the same time, his administration is pledging to dial back the federal role in education.
6 min read
Penelope Koutoulas holds signs supporting school choice in a House committee meeting on education during a special session of the state legislature Tuesday, Jan. 28, 2025, in Nashville, Tenn.
Penelope Koutoulas holds signs supporting school choice in a House committee meeting on education during a special session of the state legislature on Jan. 28, 2025, in Nashville, Tenn. The federal government has made its biggest push yet for school choice under the Trump administration.
George Walker IV/AP
School Choice & Charters Opinion What Could the New Federal Tuition Tax Credit Mean for School Choice?
Just what this new program will mean for your state is still uncertain.
7 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week