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January 14, 2025

Florida Continues to Drain Much-Needed Funds Away from Public Schools to Private and Home-School Students

In 2023, Florida passed HB 1,[1] which expanded eligibility for vouchers to all students, regardless of income, and enabled home-school students to apply for vouchers at the same level of funding[2] as public school students. At the time of the bill’s passage, Florida Policy Institute and Education Law Center estimated that $4 billion[3] would be spent on private school tuition and home-school students. In fiscal year (FY) 2023-24, $2.1 billion[4] was diverted from the Florida Education Finance Program (FEFP), the state’s public school funding formula, for the Family Empowerment Scholarship (FES) voucher program. An additional $1.1 billion[5] was approved for the Florida Tax Credit Scholarship voucher program and Personalized Education Program (PEP) vouchers (home-schoolers), for a total of roughly $3.2 billion. (See Table 1.)

As shown in the interactive map below, there has been tremendous growth in voucher expenditures over time.

For FY 2024-25, $2.8 billion[6] is allocated to vouchers from the FEFP, and $1.1 billion[7] is approved for tax credit scholarships by the Department of Revenue, for a total of $3.9 billion. In the past few years, Florida has increased state funding through the FEFP school funding formula. However, at the same time, the amount of funding being rerouted from public schools to private education through this formula has increased, and state funding to private education through tax credit vouchers has increased as well. This means that in FY 2024-25, an estimated $3.9 billion in state funding is heading to private education, while $12.7 billion in state funding is supporting public schools in the state. As shown in Table 2, 77 percent of state funds to education are going to public schools in FY 2024-25, compared to 88 percent of state funds in FY 2021-22. The proportion of funding for vouchers has roughly doubled in the past four years.

There will be continued growth in the number of students using vouchers as the numeric cap on the number of PEP/home-school students increases each year through July 2027, at which time the cap will be removed. This continued growth is accompanied by limited accountability and safeguards that protect taxpayer dollars from fraud and abuse.[8]

Florida’s Office of Economic and Demographic Research’s Long Range Financial Outlook[9] forecasts that there will be an additional 138,717 students by FY 2027-28 (FES students). It further estimates that per pupil costs will increase by 4.2 percent in the three-year average. Per pupil cost increases were projected for FY 2024-25 at 2.75 percent.[10] While statewide revenue is projected to increase through FY 2027-28, the pace of the increasing costs of education, an important budgetary driver, is expected to outstrip growth in revenue and eat into budgetary reserves.[11]

Proponents of vouchers often cite parental choice[12] as the foundation for their support. However, the vast majority of parents, 87 percent, choose[13] public schools. Eighty–seven percent of Florida parents and 85 percent of the general public[14] value increasing investments in public schools. These schools benefit students and non-students alike and provide important social and economic returns on investment.[15] Educational attainment has a positive relationship to an individual’s earnings and enhances the overall workforce, which benefits all citizens.

Vouchers are a contributing factor in Florida’s school closures,[16]  have a negative effect on academic outcomes[17] for recipients, and — especially in the case of universal expansion — are awarded to children who were never in public schools[18]. Vouchers remove resources for public schools in an already chronically underfunded system in which Florida is ranked 50th in average teacher pay[19] and received an ‘F’ grade[20] in per pupil funding.  

Conclusion

Florida public schools have not received the adequate funding that they deserve and are legally entitled to since at least the Great Recession as measured by inflation-adjusted, per pupil funding.[21] As noted, there are no income limits on FES-EO vouchers and no numeric caps on the number of vouchers awarded, so spending will only increase.

There are several steps that Florida lawmakers could take to address cost and transparency issues in the state’s universal voucher program:

  • Increase investment in public schools and implement protections for when costs outpace revenue, as foreshadowed in the Long-Range Financial Outlook.
  • Require greater accountability and oversight of the business practices of scholarship funding organizations that give out vouchers.
  • Ensure that private schools use the same outcome measures as public schools so that academic outcomes can be fairly compared and the return on investment, or lack thereof, can be understood.

Mary McKillip is a senior researcher at Education Law Center.

Notes

[1] Chapter 2023-016, Education, Laws of Florida, https://laws.flrules.org/node?field_list_year_nid=8756.  

[2] The Family Empowerment Scholarship for Educational Options vouchers and the Florida Tax Credit Scholarship vouchers have universal eligibility. HB 1 established numeric limits for Personalized Education Program students until 2027, after which there will be no caps on home-school students. Family Empowerment Scholarships for Unique Abilities, awarded to students with disabilities, are capped at 3 percent of the total Exceptional Student Education (special education) students.

[3] Norín Dollard and Mary McKillip, “The Cost of Universal Vouchers:  Three Factors To Consider in Analyzing Fiscal Impacts of CS/HB1,” Florida Policy Institute and Education Law Center, March 1, 2023, https://www.floridapolicy.org/posts/the-cost-of-universal-vouchers-three-factors-to-consider-in-analyzing-fiscal-impacts-of-cs-hb-1

[4] Florida Department of Education, “Florida Education Finance Program 2023-24 Fourth Calculation,” June 4, 2024, https://www.fldoe.org/core/fileparse.php/7507/urlt/23-24FEFP4thCalc.pdf

[5] Florida Department of Education, Florida Tax Credit Scholarships, https://www.fldoe.org/schools/school-choice/k-12-scholarship-programs/ftc/.

[6] Florida Department of Education, “Florida Education Finance Program 2024-25 Second Calculation, https://www.fldoe.org/core/fileparse.php/7507/urlt/24-25FEFP2ndCalc.pdf.

[7] Florida Department of Revenue, Tax Information Publication (TIP) 23ADM-05, https://floridarevenue.com/taxes/tips/Documents/TIP_23ADM-05.pdf.

[8] Florida Policy Institute, “Florida Needs More Transparency and Accountability Around School Vouchers,” June 10, 2024, https://www.floridapolicy.org/posts/florida-needs-more-transparency-and-accountability-around-school-vouchers

[9] Florida Legislature, Office of Economic and Demographic Research, Florida: Long-Range Financial Outlook, September 6, 2024, https://edr.state.fl.us/Content/presentations/long-range-financial-outlook/3YearPlanLBCPresentationFall2024_9-6-24.pdf.

[10] Florida House of Representatives, “Public School Funding The Florida Education Finance Program (FEFP) Fiscal Year 2024-25, Conference Report for House Bill 5001,” March 5, 2024, https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=Florida+Education+Finance+Program+FEFP.pdf&DocumentType=Conf&BillNumber=5001&Session=2024.

[11] Florida TaxWatch, “Florida’s Budget Outlook: Is the Party Over? Long-Range Financial Outlook Forecasts Coming Budget Deficits,” October, 2024, https://floridataxwatch.org/Research/Full-Library/budget-watch-october-2024.

[12] Cato Institute, “Parental Choice and Responsibility,” https://www.cato.org/education-wiki/parental-choice-responsibility.

[13] Florida Department of Education, “Florida’s Private Schools, 2022-23 School Year Annual Report,” https://www.fldoe.org/core/fileparse.php/7562/urlt/PS-AnnualReport2023.pdf.

[14] Southern Poverty Law Center, “2024 Survey of Floridians’ Support for Public Education,” https://www.splcenter.org/sites/default/files/com_pol_fl-survey-support-public-education_v3.pdf.

[15] Dana Mitra, “Pennsylvania’s Best Investment: The Social and Economic Benefits of Public Education,” https://www.elc-pa.org/wp-content/uploads/2011/06/BestInvestment_Full_Report_6.27.11.pdf.

[16] Accountabaloney, “Florida: Defunding And Closing Public Schools While Encouraging The Building Of More Private Options,” October 16, 2024, https://accountabaloney.com/florida-defunding-and-closing-public-schools-while-encouraging-the-building-of-more-private-options/.

[17] Brookings Institute, “Research on School Vouchers Suggests Concerns Ahead for Education Savings Accounts,” August 15, 2023, https://www.brookings.edu/articles/research-on-school-vouchers-suggests-concerns-ahead-for-education-savings-accounts/.

[18] Albert Shanker Institute, “School Vouchers: There is No Upside,” February 23, 2023, https://www.shankerinstitute.org/blog/school-vouchers-there-no-upside.

[19] National Education Association, Rankings of the States 2023 and Estimates of School Statistics,” April 2024, https://www.nea.org/sites/default/files/2024-04/2024_rankings_and_estimates_report.pdf.

[20] Education Law Center, Making the Grade 2023, https://edlawcenter.org/research/making-the-grade-2023/.

[21] “Florida FY 2023-24 Budget: Summary by Issue Area,” Florida Policy Institute, August 9, 2023, https://www.floridapolicy.org/posts/florida-fy-2023-24-budget-summary-by-issue-area.

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