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PRIVATE SCHOOL VOUCHERS COST JOHNSTON, URBANDALE SCHOOLS MORE THAN $1 MILLION
EACH IN 1ST YEAR

Iowa Gov. Kim Reynolds reacts after signing a bill that creates education
savings accounts, Tuesday, Jan. 24, 2023, at the Statehouse in Des Moines, Iowa.
(AP Photo/Charlie Neibergall)

By Zachary Oren Smith

October 16, 2024



JOHNSTON AND URBANDALE STUDENTS WITH SCHOOL VOUCHERS PULLED MORE THAN $1 MILLION
AWAY FROM THEIR PUBLIC SCHOOL DISTRICTS IN THE FIRST YEAR OF SCHOOL VOUCHERS IN
IOWA.

Iowa’s private school voucher program is in year two of its roll out, and
hundreds of millions of taxpayer dollars now follow students into private
schools.

In the first year of the program, each voucher was worth $7,635. The voucher’s
value is based on how much the state gives to public school districts for each
student they have enrolled. But when a student uses a voucher to leave a public
school to go to a private school, the money goes with them.

The district does get a small kickback, with the state giving the district
$1,205 as a kind of consolation prize for losing a student. But that’s just over
15% of what the district would make if the student stayed.


JOHNSTON: $1.1 MILLION GONE

In the 2023-2024 school year, there were 144 students in the Johnston Community
School District using school vouchers worth a combined $1.1 million. 

This comes as districts are preparing to pay more for professional development
and curriculum services from the Area Education Agencies, another change led by
Gov. Kim Reynolds. Add in costs from inflation and a small 2.5% increase in
state funding and one thing is clear: Public school budgets are tight.

Johnston School Board member Lya Williams that it’s not one change that’s
creating the challenge. It’s “a trickle that has a big impact.”

Jason Arnold, another Johnston School Board member, said this confluence of
changes puts pressure on the district as it tries to meet student needs and keep
lights on. The voucher program has already spent $360 million over its first two
years. He said even a fraction of that would go a long way for his school.

“To me, that money could have been better spent giving it to our schools,”
Arnold said. “If they have the money to do that, why not give that to the
[public] school districts themselves?”

Both Williams and Arnold noted they were speaking for themselves and not the
school board.




URBANDALE: $1.2 MILLION GONE

In nearby Urbandale,163 students took vouchers worth $1.2 million in the
2023-2024 school year. To put that in context, Urbandale Schools budgeted $1.8
million for student transportation in fiscal year 2024. It budgeted $2.1 million
for student support services, and $1.2 million for general administration.

In the 2023-2024 school year, voucher use was concentrated in the most populous
counties. At the time, only 41 of Iowa’s 99 counties had private schools and
another 23 only had one private school. 

Kindergarten tuition at Iowa private schools shot up anywhere from 21%-24% since
the Reynolds voucher program began, according to a study by Brown and Princeton
universities. On average, costs for kindergarten tuition increased by $1,280 and
higher grades increased by $830.

“To the extent tuition levels outpace the [voucher] payment, families unable to
further contribute to tuition may be priced out of schools, thus defeating the
program’s stated goal,” the researchers wrote. “If this is the case, [vouchers]
act as tuition subsidies for families who can already afford private school.”


PRIVATE OPERATORS FIND A ‘WILD WEST’ OF VOUCHER FUNDING

Since signing it into law in 2023, the cost of Reynolds’ private school voucher
program has consistently blown past estimates.

In year one of private school vouchers, the state’s Legislative Services Agency
estimated it would cost $106.9 million. However, the program would need $128
million before the end of the 2023-2024 school year—weighing in at 20% over
budget.

In year two, that same estimate had this school year’s voucher program
(2024-2025) costing the state $132.3 million. But at the governor’s
recommendation, the Iowa Legislature raised its allocation to $179.2 million—a
staggering 35% over budget. 

The state has declined to release data on the number of students using private
school vouchers. It is expected to release this information in January. 



READ MORE: Election Day is Nov. 5. Check out Iowa Starting Line’s Voting Guide
ahead of Election Day Nov. 5.

But we do know the cost will be large, easily eclipsing the $179.2 million the
legislature agreed to.

On stage with voucher advocate Betsy DeVos in July, Gov. Kim Reynolds said her
Department of Education approved more than 30,000 Iowans to use private school
vouchers. That’s an 11,000 student jump from last year and 10,000 more than the
state estimated.

If 30,000 vouchers were approved and each voucher was worth $7,826, the floor of
the private school voucher program’s cost is $235 million. That’s $55 million
over budget at a minimum. 

And during the 2025-2026 school year, eligibility requirements loosen. The
income restrictions of the first two years of the program are set to disappear,
increasing the pool of eligible students. The state estimated year four would
cost $365 million annually, costing the state $1 billion in the program’s first
four years.

“It’s the Wild West for these for-profit schools,” said Jean Hessberg,
communications director for the Iowa State Education Association. “They’re
taking taxpayer money to fund private—and in most cases for-profit—schools.”


 * ZACHARY OREN SMITH
   
   Zachary Oren Smith is your friendly neighborhood reporter. He leads Starting
   Line’s political coverage where he investigates corruption, housing
   affordability and the future of work. For nearly a decade, he’s written
   award-winning stories for Iowa Public Radio, The Des Moines Register and Iowa
   City Press-Citizen. Send your tips on hard news and good food to
   zach@iowastartingline.com.
   
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CATEGORIES: Election 2024

Election 2024


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