Education Savings Accounts: the Next Evolution in School Choice

“The most basic question is not what is best, but who shall decide what is best.” — Thomas Sowell

Education Savings Accounts, also referred to as ESAs, are the next evolution in school choice. While they are new to New Hampshire, they are not new to other states.

Education Savings Accounts are funds that children receive to a designated account that are used for specified educational purposes. Approved uses often include school tuition, online educational programs, tutoring, textbooks, AP classes, assessments, and other education-related fees. Some ESAs allow funds to roll over year to year and be used for post-secondary education. Some ESAs are limited to students with special needs, military families, or children in zip-code assigned failing schools or districts, while others are less restrictive. They put an expanded range of educational services and options within reach, particularly for low-income families who face the greatest challenges financing their children’s educational needs.

Currently five states — Arizona (2011), Florida (2014), Mississippi (2015), Nevada (2015), and Tennessee (2015) — have ESA programs. Each state’s program is unique with respect to the approved uses, eligibility qualifications, administration, accountability mechanisms, and funding sources. The two established programs have been immensely successful. The AZ program is funded by a state budget line item, and the FL program is funded through private contributions that are eligible for a state tax-credit. They provide good sources of information and serve as models for other states. Arkansas just introduced a universal ESA bill funded by private donations and Texas is expected to consider ESA legislation this year.

Education Savings Accounts have widespread support across demographic groups. A 2015 survey by EdChoice (formerly the Friedman Foundation for Educational Choice) indicates favorable opinions by 62% of all 1002 respondents, 67% of school parents, 69% of urban residents, and higher ratings of 75% of people aged 18 to 34 and 70% of people with family incomes under $40K.

ESAs have withstood constitutional challenges. In the Arizona case, Niehaus v Huppenthal, 233 Arizona 195, 310 P.3d 983 (Ct. App. 2013), Judge Jon Thompson said,

“…the ESA does not result in an appropriation of public money to encourage the preference of one religion over another, or religion per se over no religion. Any aid to religious schools would be a result of the genuine and independent private choices of the parents. The parents are given numerous ways in which they can educate their children suited to the needs of each child with no preference given to religious or nonreligious schools or programs.

” The ESA is neutral in all respects toward religion and directs aid to a broad class of individuals defined without reference to religion. The ESA is a system of private choice that does not have the effect of advancing religion.”

In the Nevada case, Justice James W. Hardesty echoed these opinions.

“Once the public funds are deposited into an education savings account, the funds are no longer ‘public funds’ but are instead the private funds of the individual parent who established the account. The parent decides where to spend that money for the child’s education and may choose from a variety of participating entities, including religious and non-religious schools. Any decision by the parent to use the funds in his or her account to pay tuition at a religious school does not involve the use of ‘public funds.’”

New Hampshire has two bills that will introduce ESAs to the Granite State. The first, SB 193, establishing education freedom savings accounts for students, has a public hearing on Tuesday, February 7th at 10:30am in the Senate Education Committee in room 103 of the Legislative Office Building (LOB). This bill has few restrictions regarding eligibility and is considered a “universal” ESA. This bill requires students to be enrolled in a traditional public school or chartered public school, a kindergarten student, or home educated, and be between the ages of 5 and 20 years old. The funds may be used for a variety of educational services including tuition, textbooks and curriculum, tutoring support, transportation fees to access the educational services, online learning, therapies from a licensed or certified provider, postsecondary tuition, various testing services, and more. Participation in the ESA would not preclude access to curricular and co-curricular programs through resident districts as indicated in RSA 193:1-c. The dollar amount would be 90% of the per pupil state adequacy amount plus any differentiated aid the home district would receive for students in grades 1 and above; 50% for kindergarten students. With 5% going to administration, the state keeps 5% which represents a savings. Enrollment is optional.

The second bill, HB 647, establishing education freedom savings accounts for children with disabilities, will also have a public hearing on Tuesday, February 7 right after at 11:00am in the House Education Committee in LOB 207. This ESA is available for students with a disability – children with IEPs or 504 plans – and attend a traditional public school or chartered public school, or is a kindergarten or first grade student. New homeschoolers are also eligible for this ESA. The approved uses are the same as the senate bill, as are the funding amounts.

When these ESA programs pass and become law, they will expand school choice to thousands more New Hampshire children!

Cato, EdChoice (formerly the Milton Friedman Foundation for Educational Choice), and other respected experts have published excellent resources about Education Savings Accounts to demystify these relatively new school choice options.

Cato: Jason Bedrick Discusses Educational Savings Accounts during National School Choice Week, Hosted by the Wisconsin Institute for Law & Liberty

Cato: Jason Bedrick Testifies in Front of the Michigan House of Representatives on Education Savings Accounts

EdChoice: The ABCs of School Choice – Education Savings Accounts

EdChoice: Education Savings Accounts Policy Handout

EdChoice: What is an Education Savings Account

ExcelinEd: ESAs, read Education Savings Accounts: Giving Parents a Choice by Foundation for Excellence in Education

The Heartland Institute: Universal ESA Bill Could Make New Hampshire a National Leader in Education Choice

National Affairs, Winter 2015: The Next Step in School Choice

 

CONTACT LEGISLATORS

 We encourage parents and caring citizens to be involved in the legislative process. Please consider contacting the Senate and House Education Committee members regarding the upcoming bills, SB 193 and HB 647 before Tuesday, February 7th, or attend the public hearings.

Public hearings are the best chance to communicate with committee members. The Legislative Office Building (LOB) is located immediately behind the State House at 33 N. State Street in Concord. The Senate Education Committee meets in room 103. For the senate bills, sign the white sheet on a side table just inside the door to indicate your support or opposition for a bill, and if you intend to speak. The protocol is a little different in the House, and the House Education Committee meets in room 207. The public may sign the blue sheet near the room entrance to indicate support or opposition to any bill; fill out a pink card if you intend to speak. If possible, provide written copies for each member plus the committee secretary. If you are unable to attend hearings email the committee, or better yet, call them individually and indicate if you are a constituent. Personal stories and messages are helpful. Exec sessions on pending legislation may happen anytime after the public hearing closes so prompt action is encouraged.

To contact the Senate Education Committee, email or call them directly. Members of senate committees do not have a shared email address.

2022 Legislation of Interest

LSR #Prime SponsorAdditional SponsorsTitle
2022-2047Brodie DeshaiesPatrick Long, Linda Massimilla, Dan Wolf, Bonnie Ham, James Allardrequiring parents of public school students to submit a survey when electing an education freedom account
2022-2103Linda TannerSherry Frost, Stephen Woodcock, Jaci Grote, Sue Mullenrelative to the state board of education rules for credit for alternative, extended learning, and work-based programs
2022-2145Sallie Fellowsrequiring a performance audit of the department of education, education freedom account program
2022-2147Timothy LangJason Osborne, Kevin Avard, Michael Moffett, Howard Pearl, Bob Greene, Michael Yakubovich, Judy Aron, Gregg Hough, Aidan Ankarbergrelative to driver education
2022-2166Bill BoydDavid Watters, John Reagan, Rick Ladd, Glenn Cordelli, Mark McLean, James Spillane, Michael Moffett, Kevin Vervillerelative to the definition of a child with a disability for purposes of special education
2022-2172Maureen MooneySharon Carson, Kenneth Weyler, Jeanine Notter, Ruth Ward, Robert Healeyrelative to notice to a chartered public school of a special education services meeting
2022-2178Maureen Mooneyrelative to the provision of special education services by chartered public schools
2022-2342Glenn CordelliCarol McGuire, Jason Osborne, Gregory Hill, Michael Moffett, Alicia Lekas, Tony Piemonte, Deborah Hobsonrelative to eligibility for the education tax credit
2022-2371Marjorie PorterMarjorie Smith, Paul Berch, Mel Myler, Linda Tanner, Mary Heath, Patricia Cornell, Jay Kahn, Stephen Woodcock, Arthur Ellison, Sue Mullen, Suzanne Prentissrelative to the source of funds for education freedom accounts
2022-2376Glenn Cordellirelative to special education services for children in chartered public schools
2022-2407Bonnie Hamrequiring the department of education to administer the education freedom account program
2022-2411Bonnie HamBrodie Deshaiesrelative to verification of eligible students under the education freedom account program
2022-2416Bonnie HamBrodie Deshaiesrelative to funds of the education freedom account program after termination of a student's participation and responsibilities of the scholarship organization
2022-2515Erica Layonrelative to student participation in the education freedom accounts program and relative to administration of the program
2022-2519Patricia CornellRobert Renny Cushing, Marjorie Porter, Mary Heath, Arthur Ellison, Sue Mullenrelative to participation in the education freedom accounts program by students with disabilities
2022-2543Erica Layonrelative to requirements for home education students
2022-2651Susan Almyrelative to driver education and the driver training fund
2022-2739Sue MullenMarjorie Porter, Mel Myler, Mary Heath, Patricia Cornell, Stephen Woodcock, Arthur Ellison, Catherin Rombeaurelative to education service providers under the education freedom accounts program
2022-2757Linda Tannerrelative to unique pupil identification for pupils in the education freedom accounts program
2022-2774David Luneaurelative to eligibility criteria for education freedom accounts
2022-2775David Luneaurelative to misuse of education freedom account funds
2022-2776David LuneauMarjorie Smith, Richard Amesrelative to liability as taxable income of education freedom account payments
2022-2777David Luneaurelative to transfers of adequate education grants under the education freedom account program
2022-2778David Luneaurepealing the education freedom account program
2022-2779David Luneauauthorizing any taxpayer to initiate a private cause of action for misuse or fraud involving education freedom account funds
2022-2780David Luneaulimiting education freedom account funding to budgeted amounts
2022-2782David Luneaurequiring the scholarship organization to refer suspected cases of misuse of funds or fraud in the education freedom account program to the attorney general
2022-2811Patricia CornellRobert Renny Cushing, Mel Myler, Mary Heath, Arthur Ellison, Sue Mullenrelative to record of educational attainment under the educational freedom account program
2022-2812Patricia CornellMarjorie Porter, Suzanne Vail, Mary Heath, Constance Van Houten, Sue Mullenrelative to education service providers under the education freedom account program
2022-2814Alicia Lekasrelative to student eligibility under the education freedom account program
2022-2818Gregory HillKenneth Weyler, Rick Ladd, Glenn Cordelliestablishing an education freedom account program administrator in the department of education and making an appropriation therefor
2022-2834Marjorie PorterMel Myler, Stephen Woodcock, Arthur Ellison, Sue Mullenprohibiting the department of education and the state board of education from directing or limiting school instructional options, such as remote learning
2022-2853David Wattersrelative to dual and concurrent enrollment for career technical education center students
2022-2921Jay Kahnrelative to the authority to offer multiple education instruction options
2022-2978Jay KahnLou D'Allesandro, David Watters, Donna Soucy, Kevin Cavanaugh, Tom Sherman, Cindy Rosenwald, Suzanne Prentiss, Rebecca Whitley, Rebecca Perkins Kwokarepealing the education freedom account program
2022-2999Tom ShermanLou D'Allesandro, David Watters, Donna Soucy, Marjorie Smith, Mel Myler, David Luneau, Jay Kahn, Kevin Cavanaugh, Cindy Rosenwald, Suzanne Prentiss, Rebecca Whitley, Rebecca Perkins Kwokarelative to participation in the education freedom account program

To contact the entire House Education Committee, you may send one email to HouseEducationCommittee@leg.state.nh.us. Below is a list of the House Education Committee members’ emails for an easy copy/paste.

2021 Home Education Enrollment

Participating Agencies20212020201920182017
Public Districts3,8425,8092,9523,0052,865
NH DOE1058431210
Private Schools23821702350
TOTAL4,1856,1102,9553,2522,875
Home education data provided by the NH DOE.

ladd.nhhouse@charter.net
terry.wolf@leg.state.nh.us
beshaw3@comcast.net
glenn.cordelli@leg.state.nh.us
bob.elliott@leg.state.nh.us
carolyn.halstead@leg.state.nh.us
Mel.Myler@leg.state.nh.us
patricia.cornell@leg.state.nh.us
jimgreniersullivan7@gmail.com
josh.moore@leg.state.nh.us
Mary.Heath@leg.state.nh.us
David.Doherty@leg.state.nh.us
joe@joepitre.com
patchessul@comcast.net
Wayne.Burton@leg.state.nh.us
linda.tanner@leg.state.nh.us