Education Savings Accounts A primer for 21st Century Education Policy report

What is an ESA? Education Savings Account (ESA): allow education dollars to flow from the state to parents which unbundles education by allowing families to spend money on their child’s education, wherever and however they choose

How Does It Work?

Why ESAs? Customization of a child’s education Cost savings 3. Better options for students with special needs and gifted students

Arizona Empowerment Scholarship Accounts created in 2011 2,503 students $11,400; weighted for students with disabilities up to $28,000 Eligibility: students with disability; children with parents in military; failing school districts; foster care system; Native American reservations; gifted students Pre-paid cash card Department of Education

Nevada Education Savings Program passed in January 2016 Available to all students who have been enrolled in public school for over 100 days $5,100 Nevada’s Treasury Department disperses funds to parents’ accounts on a quarterly basis with option for direct pay The ESA program is currently held up in court

Other States Florida Mississippi Tennessee

Criticism of ESAs Increases inequality Funding of religious schools A solution in search of a problem and not necessary Parents are incapable of making choices for their children A drain on resources for public schools

Questions to Consider Universal eligibility vs. means tested? What can ESAs be spent on? How should it be funded? Direct payment vs. reimbursement? Which agency should administer? How much regulation is needed? Relationship to the MPCP?

Conclusion ESAs are the present of ed reform, not just the future 850,000 students currently eligible in the U.S. Much potential: Customization Competition and increased quality Cost savings Much to be discussed: Funding Mechanism Interrelation with vouchers, etc.

Thank you! For any questions or comments, contact us at: (414) 727-WILL(9455) info@will-law.org