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Montana HB 320: School Vouchers Were Supposed to Save Taxpayer Money. Instead They Blew a Massive Hole in Arizona’s Budget.
February 13, 2025/
Arizona, the model for voucher programs across the country, has spent so much money paying private schoolers’ tuition that it’s now facing hundreds of millions in budget cuts to critical state programs and projects.
The state this year faced a $1.4 billion budget shortfall, much of which was a result of the new voucher spending
Montana HB 320 passed in the Appropriations Committee today. It will be presented for the third reading next week. Probably Monday or Tuesday.
This bill allows corporations and individuals to get tax credits for donating into a fund to provide money to those who want their kids to attend private schools or get home schooled. So it is your taxpayer dollars going for such private education. The parent(s) can leave their child in school for most of the day and pull them out for educational activities or tutoring or therapy or whatever and receive up to about $7300 for those expenses. Oversight is minimal. Children fully enrolled in public schools are not eligible.
So–taxpayer dollars for private schools, little to no accountability. Discriminates against public-only school kids. Is likely to discriminate against special needs kids because most private schools will not welcome them; on the other hand, if home schooled that’s not the issue.
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MATR Supporters (view all)
Please urge your legislators to vote NO on this attack on public education.
Arlene Walker-Andrews
Missoula, MT
Submits:
There are many reasons to oppose HB 320, a bill that would allow tax credits for parents or corporations to send students to private schools in Montana.
HB 320 proposes tax credits for expenses incurred by parents of private school students, yet it unjustly denies the same financial relief to public school parents for identical costs. This disparity not only undermines the principle of equitable educational support but also places an unfair burden on families who choose to send their children to public schools. Recent developments in Arizona illustrate some of the common concerns regarding such a system:
Who benefits? Primarily wealthy families use these funds to send their children to private schools or enrichment programs.
Where are the opportunities? Parents in urban areas can access private schools and various educational resources, such as therapists and special camps. Conversely, rural families have limited options except through their public schools which are undermined and underfunded when limited resources are diverted to private programs like this.
Is safety guaranteed? Public schools conduct background checks and monitor students throughout the day. Educators can lose their licenses for inappropriate behavior.
Where does the money go? Individuals may exploit the system by offering nonexistent or substandard services. Additionally, some may submit fraudulent paperwork to claim funding.
What happens to public schools? Public school students suffer when students in small numbers leave for private lessons due to funding losses. For instance, when 20 out of 300 students depart, the impact on classrooms is significant, even though full-time teachers remain required but without sufficient state financial support.
How are state finances affected? What is the true cost of maintaining a voucher system? Quick calculations show that this program, along with others recently passed, could grow to over $70 million per year
What has transpired in Arizona, home to universal Empowerment Scholarship Accounts, provides further insight:
Only five percent of the families using ESA vouchers earn less than $49,000 annually, while fifty-two percent earn more than $81,000. This intensifies educational inequality. A “gift certificate” for 20% off a high-priced education does little to assist low- to medium-income families.
Moreover, seventy-one percent of students whose families obtained vouchers were already enrolled in private schools. Therefore, taxpayer money now subsidizes their expenses. Voucher usage disproportionately benefits wealthy areas, particularly in Maricopa County. Rural communities, which rely on public schools as vital hubs, are struggling as funding primarily supports urban and suburban voucher programs.
The lack of safety measures, such as background checks or fingerprinting, has resulted in individuals previously dismissed from public schools in Arizona becoming voucher tutors, vendors, or private school teachers.
From 2022 to 2024, a couple in Colorado allegedly submitted ESA applications for 43 nonexistent children, receiving up to $110,000, which they spent on personal expenses.
Initially estimated at just under $65 million, voucher costs in Arizona surged to around $330 million in 2023; Forbes magazine predicted they might reach $500 million in 2024, while the Arizona Department of Education estimates costs at $900 million.
Ultimately, the key question is whether educational outcomes have improved. The World Population Review ranks Arizona 50th in education among all states, while U.S. News and World Report places it 47th for PreK-12 education. A Consumer Affairs study ranked Arizona in last place in October 2024.
HB 320 hasn’t been a good deal in Arizona, and it isn’t a good deal for Montana.