By HawaiiHokuNews Staff Writer

An examination of school voucher programs, their effects on public school funding, and Hawaiʻi’s current policy status

Introduction

School voucher programs and Education Savings Accounts have become central topics in education policy debates across the United States. These programs influence how families navigate K to 12 systems and shape discussions about the future of public school funding. This overview presents a neutral analysis of the major policy considerations relevant to school choice and Hawaiʻi’s current legal and educational context.

School Vouchers and Education Savings Accounts

School vouchers are publicly funded allocations that allow families to use state education dollars to pay for private school tuition. When a voucher is used, funds that would have gone to the public school follow the student to the private institution.

Education Savings Accounts operate similarly but provide families with greater flexibility. Funds are deposited into state-authorized accounts that can be used for tuition, tutoring, online learning, and other approved educational expenses. These programs collectively shift portions of public education funding from traditional public schools to alternative educational options selected by families.

Public School Funding Structure

Public school funding in Hawaiʻi is derived primarily from state allocations, with smaller contributions from local property taxes and federal programs. Hawaiʻi’s statewide system centralizes funding, and most allocations are determined using a per-pupil formula. When students leave public schools for voucher or ESA programs in states where such programs exist, districts lose the associated per-pupil funding but continue to carry fixed operational costs such as facilities, utilities, and core staffing requirements.

Findings From Research Literature

Reported Benefits

Research has documented several potential benefits of voucher programs. Families who participate often report increased satisfaction with their children’s education, noting that school selection allows them to align educational environments with family values (Wolf, 2017). Some analysts argue that competitive pressures may prompt schools to innovate and increase efficiency (Chubb & Moe, 1990). Additionally, studies of certain targeted programs have observed academic gains for specific student groups, including findings from the Washington D.C. Opportunity Scholarship Program (Howell et al., 2002). Other research suggests improved high school graduation rates among some voucher recipients (Chingos & Peterson, 2011).

Identified Challenges

Research also identifies several concerns. When students exit public schools through vouchers, districts lose per-pupil revenue while retaining most fixed costs, creating budgetary pressures that may require program adjustments or staff reductions (Baker, 2012; Ladd & Fiske, 2021). Private schools participating in voucher programs generally operate under different accountability frameworks than public schools, which are bound by extensive state and federal requirements (Au, 2009). Some studies raise questions about equitable access, as private schools may maintain admission criteria or additional fees that limit participation for certain families, particularly those with lower incomes or children with disabilities (Lubienski, 2005; Egalite & Wolf, 2016).

Recent Legal Developments Across the United States

Several 2025 court cases illustrate the evolving legal landscape of school choice programs. In Ohio, a state court found that the statewide voucher program violated the state constitution based on its financial impact on public schools. In Idaho, litigation continues regarding parental choice tax credits, and the outcome may influence similar debates in other states. In Oklahoma Statewide Charter School Board v. Drummond, the United States Supreme Court issued a 4-4 decision, allowing a state ruling to stand that prohibited public funding for a religious charter school. Because the decision resulted from a tie, it does not establish nationwide precedent.

Hawaiʻi’s Current Policy Position

Hawaiʻi does not operate any state-funded voucher or ESA programs. The state’s education system directs all public funding to traditional public schools and public charter schools, which must be nonsectarian. Article X, Section 1 of the Hawaiʻi State Constitution requires the state to maintain a “general and uniform system of public schools,” and interpretations by the State Attorney General suggest this requirement may limit the redirection of public funds to private institutions.

Legislative proposals related to vouchers, including House Bill 1272 introduced in 2023, have not advanced. Families seeking alternatives to traditional public schools may enroll in public charter schools, pursue private education using personal funds, or engage in homeschooling.

Central Policy Considerations

Current national and state discussions highlight several recurring questions:

1. How do voucher programs influence public school district budgets, especially in areas serving high-needs student populations?

2. What accountability standards should apply to private schools that receive public funds?

3. How do state constitutional provisions interact with proposed school choice legislation?

4. How do voucher and ESA programs affect educational access for students with disabilities, English learners, and low-income families?

5. What long-term outcomes emerge for students across different educational settings?

References

Au, W. (2009). Unequal by design: High-stakes testing and the standardization of inequality. Routledge.

Baker, B. D. (2012). Revisiting the age-old question: Does money matter in education? Albert Shanker Institute.

Chingos, M. M., & Peterson, P. E. (2011). Experimentally estimated impacts of school vouchers on college enrollment. Educational Evaluation and Policy Analysis, 33(3), 283–303.

Chubb, J. E., & Moe, T. M. (1990). Politics, markets, and America’s schools. Brookings Institution.

Egalite, A. J., & Wolf, P. J. (2016). A review of the empirical research on private school choice. Peabody Journal of Education, 91(4), 424–443.

Howell, W. G., Wolf, P. J., Campbell, D. E., & Peterson, P. E. (2002). The education gap: Vouchers and urban schools. Brookings Institution Press.

Ladd, H. F., & Fiske, E. B. (2021). The competitive effects of school choice. Journal of Policy Analysis and Management, 40(2), 558–586.

Lubienski, C. (2005). Public schools in marketized environments: Shifting incentive structures and school behavior. American Educational Research Journal, 42(2), 277–304.

The 74. (2025). Ohio court decision on voucher programs.

Wolf, P. J. (2017). School vouchers and student outcomes: Experimental evidence from Washington, D.C. Journal of Policy Analysis and Management, 36(2), 390–416.