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EMPOWERMENT SCHOLARSHIP ACCOUNTS

                          BY CLEMENTINA CARLYLE
                          Surviving the Enrollment Rollercoaster:

                          Financial Strategies for Arizona Schools in
        Clementina Carlyle
                          the Era of Universal Vouchers


        Arizona’s school voucher program, known as             "The  challenge?  Maintaining  fiscal
        Empowerment Scholarship Accounts (ESAs), was           stability in an environment where the
        initially implemented in 2011. The program was
        originally limited to students with disabilities,      rules keep changing."
        military families, foster children, and students
        attending low-performing schools.                      The Enrollment Effect
                                                               •  Declining Revenue: State aid tied to average
        In 2022, the program was expanded to become                daily membership (ADM) decreases when
        a universal voucher program, making all K-12               students leave mid-year, but utility bills,
        students eligible regardless of income or other            insurance, and staffing costs remain largely
        criteria.  This program allows all families,               fixed.
        regardless of income or prior school enrollment,       •  Unpredictable Shifts: Families can now move
        to receive state funds to use  for  private  school        between public, private, and homeschool
        tuition,  homeschooling  expenses,  or  other              options with relative ease, making forecasting
        qualified education costs. The program has faced           more complicated.
        criticism for lack of accountability and potential     •  Equity Concerns: Schools serving higher-need
        to increase existing inequalities. Critics argue the       populations may face disproportionate cuts if
        program is lacking in oversight and accountability         families  with  more  resources  take  advantage
        measures, allowing for potential misuse of funds           of voucher programs at higher rates.
        and a lack of transparency.
                                                               Strategies for Stability

        The New Normal                                         1.      Scenario-Based Forecasting
        Universal Empowerment Scholarship  Accounts            Build three budget models — best case, moderate,
        (ESAs)  have  transformed  Arizona’s  education        and worst case — based on projected enrollment
        funding landscape. For school business officials,      changes. Update quarterly with real-time  ADM
        this means that enrollment — once relatively           data from the state.
        predictable — is now a moving target. Each student     2.      Optimize Staffing Models
        who leaves for a voucher-supported option takes        Use flexible staffing structures, such as shared
        per-pupil funding with them, leaving districts to      specialists or cross-trained support staff, to adjust
        juggle fixed costs with shrinking budgets.             more quickly to enrollment changes without over-
                                                               hiring.
                                                               3.      Maximize State and Federal Grants
                                                               Aggressively seek grant funding to supplement
                                                               lost  ADM revenue.  Title I,  and  targeted  state



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