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Research & Commentary: Report Shows Indiana’s Education Choice Programs Have Saved Hoosier State Taxpayers Up to $1.5 Billion through Fiscal Year 2018

January 8, 2022

Results Find Up To $6,800 In Per-Pupil Savings

EdChoice has released an updated version of their Fiscal Effects of School Choice analysis, bringing up to date the latest data and demonstrating the large savings education choice programs have provided taxpayers, and the results are good news for Indiana families.

The analysis looked at two of the Hoosier State’s four education choice programs—the Choice Scholarship Program and the School Scholarship Tax Credit—and found these programs have saved Indiana taxpayers between $554.9 million and $1.5 billion through Fiscal Year 2018. This works out to a savings of between $2,504 and $6,871 per each student participating in these programs.

Because of the age of all these programs, the report notes that the “fiscal effects are likely closer to the upper bound estimate.”

“The results from this fiscal analysis should not be surprising given that educational choice programs are funded at a significantly lower public expense than public school systems,” the analysis concludes. “While educational choice programs enroll just 2.3 percent of publicly funded K-12 students overall, these programs receive just 1.0 percent of total public spending. These basic facts provide important context for evaluating arguments that private educational choice programs harm students who remain in district schools. Given this context, it is difficult to see how expanding educational opportunities for families via educational choice programs could harm public school systems fiscally. To be sure, many studies have examined educational choice programs’ effects on students enrolling in nearby public schools. Nearly all find that students who remain in district schools experience modest and positive gains in learning. Contrary to claims that students in district schools are harmed by increasing educational choice, the evidence suggests otherwise.”

As this report and copious other empirical research on school choice programs makes clear, these programs offer families improved access to high-quality schools that meet their children’s unique needs and circumstances, and that these programs improve academic performance and attainment and deliver a quality education at lower cost than traditional public schools. Additionally, these programs benefit public school students and taxpayers by increasing competition, decreasing segregation, and improving civic values and practices.

Research also shows students at private schools are less likely than their public school peers to experience problems such as alcohol abuse, bullying, drug use, fighting, gang activity, racial tension, theft, vandalism, and weapon-based threats. There is also a strong causal link suggesting private school choice programs improve the mental health of participating students.

It is probably for these reasons, and also because teacher unions have repeatedly played politics with school closings during the COVID-19 pandemic in direct conflict with students’ best interests, that education choice programs such as education savings accounts (ESAs) are more popular with parents than ever before. Polling by EdChoice released in December 2020 found 81 percent support for ESAs, for example, among the general public and 86 percent among current school parents, the highest level of support the program has received in the organization’s eight years of polling on the issue. This represents a 4-percentage point increase over 2019. These findings are mirrored in the American Federation for Children’s seventh-annual National School Choice Poll, released in January 2021, which saw 78 percent support for ESA programs. 

Expanding Indiana’s education choice programs would be a monumental benefit to the state’s children. Ideally, expanding the just-launched Education Scholarship Account Program into a universal program would be the best step legislators could take.

The goal of public education in the Hoosier State today and in the years to come should be to allow all parents to choose which schools their children attend, require every school to compete for every student who walks through its doors, and make sure every child has the opportunity to attend a quality school. There has not been a time when providing these opportunities has been more urgent and more needed than right now. Legislators should recognize that and allow families as many options as possible to get their children the education they need and deserve.

The following documents provide more information about education choice programs.

Fiscal Effects of School Choice
https://www.edchoice.org/wp-content/uploads/2021/11/Fiscal-Effects-of-School-Choice-Condensed.pdf
This EdChoice analysis of 40 private educational choice programs in 19 states plus D.C. summarizes the facts and evidence on the fiscal effects of educational choice programs across the United States and finds they have provided up to $28.3 billion in net fiscal savings to state and local taxpayers through Fiscal Year 2018. The programs in the analysis include three education savings accounts programs (ESAs), 19 school voucher programs, and 18 tax-credit scholarship programs.

Competitive Effects of the Indiana Choice Scholarship Program on Traditional Public School Achievement and Graduation Rates
https://www.edchoice.org/wp-content/uploads/2020/08/EdChoice-Working-Paper-2020-3-Competitive-Effects-of-the-Indiana-Choice-Scholarship-Program.pdf
This EdChoice study examines how the Indiana Choice Scholarship Program affects students in traditional public schools, looking at the change in academic outcomes and graduation rates of students in Indiana traditional public schools based on their proximity to private schools participating in this statewide K–12 private school voucher program.

Why Indiana Parents Choose: A Cross-Sector Survey of Parents’ Views in a Robust School Choice Environment
https://www.edchoice.org/research/indiana-parents-choose/
This survey developed by EdChoice and conducted by Hanover Research aims to measure what motivates parents from all sectors—private, public, and charter—to choose schools, as well as their awareness of school choice options, their satisfaction levels, and the goals they set for their children’s education.

 

The 123s of School Choice (2020 Edition)
https://www.edchoice.org/wp-content/uploads/2020/04/123s-of-School-Choice-2020-4.pdf
This report from EdChoice is an in-depth review of the available research on private school choice programs in America. Areas of study include: private school choice program participant test scores, program participant attainment, parent satisfaction, public school students’ test scores, civic values and practices, racial/ethnic integration and fiscal effects.

A Win-Win Solution: The Empirical Evidence on School Choice (Fourth Edition)
http://www.edchoice.org/wp-content/uploads/2016/05/A-Win-Win-Solution-The-Empirical-Evidence-on-School-Choice.pdf
This paper by EdChoice details how a vast body of research shows educational choice programs improve academic outcomes for students and schools, saves taxpayers money, reduces segregation in schools, and improves students’ civic values. This edition brings together a total of 100 empirical studies examining these essential questions in one comprehensive report.

The Public Benefit of Private Schooling: Test Scores Rise When There Is More of It
https://object.cato.org/sites/cato.org/files/pubs/pdf/pa830.pdf
This Policy Analysis from the Cato Institute examines the effect increased access to private schooling has had on international student test scores in 52 countries. The Cato researchers found that a 1 percentage point increase in the share of private school enrollment would lead to moderate increases in students’ math, reading, and science achievement.

The Effects of School Choice on Mental Health
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3272550
This study from Corey DeAngelis at the Cato Institute and Angela K. Dills of Western Carolina University empirically examines the relationship between school choice and mental health. It finds that states adopting broad-based voucher programs and charter schools witness declines in adolescent suicides and suggests that private schooling reduces the number of times individuals are seen for mental health issues.

Child Safety Accounts: Protecting Our Children through Parental Freedom
https://www.heartland.org/_template-assets/documents/publications/CSAccountsPB.pdf
In this Heartland Policy Brief, Vicki Alger, senior fellow at the Independent Women’s Forum and research fellow at the Independent Institute, and Heartland Policy Analyst Tim Benson detail the prevalence of bullying, harassment, and assault taking place in America’s public schools and the difficulties for parents in having their child moved from a school that is unsafe for them. Alger and Benson propose a Child Safety Account program, which would allow parents to immediately have their child moved to a safe school – private, parochial, or pub­lic – as soon as parents feel the public school their child is currently attending is too dangerous to their child’s physical or emotion­al health.

 

Nothing in this Research & Commentary is intended to influence the passage of legislation, and it does not necessarily represent the views of The Heartland Institute. For further information on this subject, visit School Reform News, The Heartland Institute’s website, and PolicyBot, Heartland’s free online research database.

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