New Report: Implementing K–12 Education Savings Accounts

After legislative victories, it’s time for the hard work of making school choice real

New York, NY – The school choice movement is experiencing unprecedented success. In the last two years, seven states have enacted or expanded education savings account (ESA) programs with universal or near-universal eligibility, which provide students with public resources they can use for educational expenses such as private school tuition. In a new report, Manhattan Institute senior fellow Nicole Stelle Garnett and EdChoice’s Michael McShane argue that moving beyond ESA legislation into implementation will involve unique challenges, and offer guidance for overcoming them.

Garnett and McShane explain why ESA’s will prove more difficult to implement than other school-choice initiatives such as vouchers and scholarship tax programs. First, rather than limiting eligibility to some students, ESA’s in most states are universal. And second, ESA’s cover a variety of educational expenses, not just private school tuition. This universal and complex scope calls for robust implementation strategies, and Garnett and McShane present five essential ones:

• Inform and engage parents: Handbooks, webinars, and training, as well as organizations dedicated to helping parents explore their options, are crucial to successful implementation.
• Prepare schools and other providers: Schools need to integrate ESA’s with their distinct faith-based, academic, and other commitments; protect their own autonomy; and promote a competitive environment.
• Adopt thoughtful regulations: After ESA legislation come regulators and regulations, and these need to thoughtfully address program management, rulemaking, as well as academic and financial standards.
• Establish robust operational procedures: Simplifying parent onboarding, adopting appropriate payment platforms, and instituting purchase reviews could make or break ESA implementation.
• Prepare for legal challenges: The report details how schools, other providers, and state officials can plan for disruptive litigation, minimize legal risks, and address unavoidable legal challenges.

Read the full report here.