Education Freedom Account Program To Cost $51.6 Million This School Year

By GARRY RAYNO, InDepthNH

CONCORD, NH — Information released by the Department of Education this month shows the Education Freedom Account program has 10,510 students enrolled this school year.

The figure is based on average daily membership as of Oct. 1.

The program is capped at 10,000 students with exemptions for continuing students, students in the same family, and students from households below 350 percent of the federal poverty level, or $74,025 for a two-member family and $112,525 for a four-member family. According to the DOE information, the program with the current enrollment level will cost the state $51.6 million, while the program is budgeted for $39.3 million, or $12.3 million over budget this fiscal year.

Because the program hit the 10,000 cap this year, the cap will be increased to 12,500 next school year, which, with similar distributions of children from lower income households, special education needs, and English as a second language students, would project to be $61.4 million while $47 million is budgeted for fiscal year 2027, or $14.4 million over budget.

The total cost of the EFA program for the biennium would project to be $113 million, or $26.7 million over budget for the biennium.

The average grant under the program for this school year is $4,911, which is down from last school year when it was $5,204 when the program cost $28 million and served 5,321 students.

The percentage of low-income students who qualify for free and reduced lunch and receive additional money of $2,393 per student has fallen with the expansion of the program this school year to any student qualified to attend school in the state regardless of family earnings.

The percentage of students for low-income families dropped from 37 percent last school year to 19 percent this school year, while the percentage of students needing special education services increased from 7 to 9 percent, while English language learners totaled 20 this school year while there were only two students the year before.

Students qualifying for special education services receive an additional $2,185, and English language learners receive an additional $832 per student.

The base adequacy grant every EFA student receives is the same as public school students $4,266, which goes to the school district.

At the Joint Legislative Performance Audit Oversight Committee meeting Friday, the Legislative Budget Assistant’s Office said the audit of the EFA program is expected to be presented to the Joint Legislative Fiscal Committee by next summer.

Christine Young, director of the LBA’s Audit Division, said her agency is currently doing field analysis and reviewing observations, which are concerns raised about practices or following statutes or rules.

The performance audit is required by law, but the LBA was unable to access program data because the DOE and the Attorney General’s Office said that information belongs to the administrator of the program, Children’s Scholarship Fund NH, which the state hired.

The LBA sought the information from the company, but was denied under the advice of former Department of Education Commissioner Frank Edleblut and told the committee the audit would have to focus on the DOE’s oversight of the program.

Young told the committee to date 40 observations have been noted with 15 finalized, most dealing with eligibility.

She said another 20 observations are being drafted.

A compliance report done by the DOE several years ago of the first two years of the program found about 25 percent of the applications to the program and for additional money for services were approved without the required documentation by the Children’s Scholarship Fund NH.

The organization may retain up to 10 percent for administering the program, which would be over $10 million this biennium.

The program was touted as an opportunity for low-income parents to find alternative educational programs for their children if they do not do well in the public school environment.

But as is the case in other states with similar programs, the vast majority — or about 80 percent — of the students enrolled in the program were not attending public schools, but attended religious and other private schools, or homeschooled when they joined the program.

With the expansion this year, many families whose children attend religious and private schools or homeschools, receive what is essentially a state tax paid subsidy.

The cost of the program when it was expanded to all eligible students in Arizona nearly bankrupted the state, and similar problems occurred in Ohio and North Carolina.

The only vendor listing published by the Children’s Scholarship Fund NH was for the first year of the program and is no longer on the Children’s Scholarship Fund’s website; the vast majority of grants went to religious and private schools.

Critics of the program have long claimed it lacks guardrails and accountability, but program supporters say parents are the best judges whether their child is receiving a good education.

Garry Rayno may be reached at garry.rayno@yahoo.com.

This article first appeared on InDepthNH.org and is republished here under a Creative Commons license.