The Impact of Vouchers on School Districts and State Budgets

     Colorado does not have a voucher program. Voters have said “NO” to vouchers three times in recent years. Eighteen states have adopted a universal voucher program using state tax dollars and are now dealing with the challenges of funding two separate systems of education.

Arizona – –this voucher program’s costs skyrocketed from an initial estimate of $65 million to roughly $332 million in just one year, contributing to a $1.4 billion state budget shortfall.

New Hampshire -- the program was originally estimated to cost $130,000 and has ballooned to $14.7 million in one year.

Ohio -- significant pressure is on the budget. Lawsuits are pending over funding issues.

Texas -- costs start at $1 billion and potentially will rise to $ 5 billion by 2030.

School districts experiencing enrollment loss due to vouchers still must cover fixed costs such as personnel, transportation, building maintenance, lunch programs and debt. Vouchers siphon away vitally needed state funding from public schools which can lead to loss of programs, higher class sizes and painful decisions to consolidate or close schools. 

For the federal tax credit vouchers, which will become law in 2027, the law requires Scholarship Granting Organizations (SGO’s) to give priority to students who were awarded a scholarship in the previous year and priority to their siblings as well. If donations are insufficient some year, the state may be forced to pick up the tab for families who have been promised ongoing tuition subsidies for their children. 

Governor Polis opted Colorado into this voucher program, and the state is ultimately responsible for this program even though they will have no control over it. Every year, the Governor decides to opt into or out of the program.

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“No Accountability, No Transparency: Scholarship Granting     Organizations under the Federal Voucher Program”

                          Watch this webinar from May 15.

Presented by the Education Law Center, this webinar explored the role of Scholarship Granting Organizations (SGOs) under the federal voucher program, focusing on concerns around transparency, accountability, and discrimination against students and families. Speakers also discussed why public schools will be harmed rather than benefit from the program and shared tools and strategies advocates can use to encourage governors not to opt in. The conversation underscored the importance of investing public funds in strengthening public schools.

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                          UPCOMING Webinar: June 4, 12:00 MT

“What Almost Everybody Gets Wrong About the Federal Voucher Scheme: Answers to Your Burning Questions” With PFPS Director Jessica Levin

Misconceptions about the federal voucher program have reached a fever pitch. On Thursday, June 4, at 12 p.m. MT, Director of Public Funds Public Schools, Jessica Levin, will address common questions and misinterpretations that are impacting the national conversation about the Trump administration’s dangerous federal voucher scheme, which was passed by Congress in 2025 and will begin in 2027. 

Register here for this timely webinar: What Almost Everybody Gets Wrong About the Federal Voucher Scheme. 

Please share this message with your neighbors, friends, principals, superintendents, and everyone who cares about public education. Hopefully, the legislature will take action on this critical issue in 2027.