1. Education Savings Accounts A primer for 21st Century Education Policy report

2. What is an ESA?
Education Savings Account (ESA): allow education dollars to flow from the state to parents which unbundles education by allowing families to spend money on their child’s education, wherever and however they choose

3. How Does It Work?

4. Why ESAs? Customization of a child’s education Cost savings
3. Better options for students with special needs and gifted students

7. Arizona Empowerment Scholarship Accounts created in 2011
2,503 students
$11,400; weighted for students with disabilities up to $28,000
Eligibility: students with disability; children with parents in military; failing school districts; foster care system; Native American reservations; gifted students
Pre-paid cash card
Department of Education

9. Nevada Education Savings Program passed in January 2016
Available to all students who have been enrolled in public school for over 100 days
$5,100
Nevada’s Treasury Department disperses funds to parents’ accounts on a quarterly basis with option for direct pay
The ESA program is currently held up in court

10. Other States
Florida
Mississippi
Tennessee

12. Criticism of ESAs Increases inequality Funding of religious schools
A solution in search of a problem and not necessary
Parents are incapable of making choices for their children
A drain on resources for public schools

13. Questions to Consider Universal eligibility vs. means tested?
What can ESAs be spent on?
How should it be funded?
Direct payment vs. reimbursement?
Which agency should administer?
How much regulation is needed?
Relationship to the MPCP?

14. Conclusion ESAs are the present of ed reform, not just the future
850,000 students currently eligible in the U.S.
Much potential:
Customization
Competition and increased quality
Cost savings
Much to be discussed:
Funding
Mechanism
Interrelation with vouchers, etc.

15. Thank you!
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