Hundreds of students were rejected from receiving Education Freedom Accounts in 2024 because their families earned more than the program’s income limits.

If Republicans have their way in the State House this session, any family, regardless of how much money they make, will be eligible for the funding this time next year.

If the 314 denied students were given school choice vouchers, it would add about $1.5 million to the EFA program’s growing fiscal footprint. As more families join, that amount continues to climb.

The argument for EFAs has long centered on providing an alternative for lower-income families who feel the public schools have failed them.

A proposed bill by Salem Rep. Valerie McDonnell would remove the income cap and make EFAs universally available.

“It does look favorable to this,” McDonnell said about the prospect of her legislation passing. “I’m standing somewhat on the shoulders of giants and tons of representatives who have tried to do this before but didn’t have a favorable situation.”

Democrats stand firmly opposed to expanding the eligibility requirements, sounding the alarm on a program they say siphons much-needed funding away from public schools.

Rep. Tony Caplan, a former high school teacher and who represents Warner, Henniker and Bradford, said he can sympathize with the need for a nontraditional education.

“They’re intended to meet everyone’s needs, but inevitably, there are going to be people who fall through the cracks,” Caplan said.

Still, the teacher-turned-Democratic lawmaker said EFAs aren’t the answer.

“What’s happening is that most of the funds from the EFAs are going to people who have their children already in private schools, and so we’re basically just funding private schools through the taxpayer,” Caplan said. “That’s a radical departure from everything we’ve ever tried to get from our educational system in this country.”

Despite Democrats’ opposition, EFAs are more likely than ever to be expanded in the coming year.

With solid majorities in the Legislature, high-ranking Republicans from both the House of Representatives and Senate have signed on to McDonnell’s bill, including Rick Ladd from Haverhill and Glenn Cordelli from Tuftonboro, who are set to chair the two House education committees, and Ken Wyler from Kingston, who chairs the Finance Committee.

The program, which started in 2021, currently has 5,321 students and costs the state about $23 million. Expanding EFAs would likely run up the budget by millions of dollars, as it provides $5,000 to each student annually.

McDonnell said she’s paying attention to the fiscal impact and wants EFAs to be an effective use of taxpayer money, though she’s still waiting to see an estimate of what universal availability could cost.

As for how far the program is allowed to expand, McDonnell hasn’t proposed any specific guidelines. In its initial form, the bill would allow the program to keep growing without imposing a limit on how many students can participate or on how much money the state can spend.

McDonnell said she’s open to a conversation about that.

“I’m sure there’ll be an amendment or solution that may be suggested if there is some opposition to this,” McDonnell said. “I’d be willing to talk about that and work together with other representatives.”

The EFA program is administered by a nonprofit called the Children’s Scholarship Fund. Kate Baker Demers, who heads up the fund, said the expansion is needed because the income restriction is unforgiving. Even families who make just a tiny bit over the limit, which currently sits at 350% of the poverty level, are prohibited from using EFAs.

One ineligible family this year, Baker Demers said, was a single mom and child in Manchester. The income limit for a household of two is $71,540; the mom makes just a little more.

“In my opinion, [it’s] still not enough money to be able to afford to do whatever she might need to do for her child academically, right?” Baker Demers said. “Private school tuition might be $10,000. You’re earning $70,000. You’re probably just making ends meet, and you don’t have that money you might need to be able to get your kids something that they want to do.”

As far as operating EFAs, Baker Demers said she’s prepared to handle whatever comes her way.

“That’s my job, is making sure it runs well,” Baker Demers said. “We can implement whatever the Legislature gives us.”

Caplan takes issue not just with the funding, but with the policy and operation of EFAs. He said the program defies the separation of church and state by allowing public dollars to fund religious schools, and he thinks the system lacks accountability.

“As a former educator … and as a parent, I would be really concerned about, what sort of education are these kids getting?” Caplan said. “Are we just turning the other way while they’re basically falling through the cracks?”

That’s been a hot topic on the legislative committee that oversees EFAs. Baker Demers said participants are required to take and submit assessments, although committee members have said they don’t see that data. Baker Demers also said there isn’t one uniform assessment – there are several kinds, which use various scores and measurements – and they’re intended to help parents determine how their child is doing. Any action resulting from those assessments is up to parents, Baker Demers said.

The idea of EFAs becoming universally available, Caplan said, is a “potential fiasco” – not just in undermining public education, but for the state’s already precarious situation with education funding.

As legislators face a tough budget cycle with looming lawsuits over adequate state aid for education, McDonnell said EFAs are cheaper for taxpayers. The annual cost per student exceeds $20,000, according to state data, most of which is raised by local taxes. McDonnell argues EFAs can cut out the local tax burden by just giving students a $5,000 EFA from the state each year.

In addition, she said, some students who receive EFAs stay in public schools. For those who leave, the state provides phase-out grants to public schools to offset the financial loss. Those grants are set to expire in 2026.

“The argument against the program is this somehow hurts the taxpayer – which it doesn’t, it’s very fiscally responsible – or that it somewhat hurts the public schools, and again, it doesn’t,” McDonnell said. “No one gets hurt by school choice, and the only people that really benefit the most are the students, who again have more opportunities to succeed.”
 

Charlotte Matherly is the statehouse reporter for the Concord Monitor and Monadnock Ledger-Transcript in partnership with Report for America. Follow her on X at @charmatherly, sign up for her Capital Beat newslet ter and send her an email at cmatherly@cmonitor.com.