Cost of Wisconsin voucher programs nears $350 million as enrollment surges

The number of Wisconsin students attending private, mostly religious, schools on taxpayer-funded vouchers continues to grow, driven by double-digit increases in the state's two newest programs, according to data released by the Department of Public Instruction on Tuesday.

Those two new programs serve students outside Milwaukee and Racine and those with special needs.

In all, Wisconsin taxpayers will spend $349.6 million on vouchers for 43,450 students enrolled in its three Parental Choice and Special Needs Scholarship programs this year. That's up from $302 million for 40,039 students last year.

Most of the growth has been in the Wisconsin Parental Choice Program, which grew by 37% to 9,764 students this year; and the Special Needs program, which jumped 55% to 1,058.

Jim Bender, president of School Choice Wisconsin, called the data "a reflection of parental demand."

Public school advocates voiced concerns, saying the voucher programs divert resources from public schools for private schools that often are not held to the same standards.

"We spend millions and millions in this state without it being clear and transparent to property taxpayers exactly what they're paying for," said Terri Phillips, executive director of the Southeastern Wisconsin Schools Alliance.

According to DPI, the state will withhold or deduct $145.3 million from local school districts where the voucher students reside to fund the programs.

Bender called the numbers misleading, saying the districts keep the students in their headcounts for state aid purposes and then can levy taxpayers to finance any shortfall.

Dan Rossmiller, government relations director for the Wisconsin Association of School Boards, countered, saying the revenue associated with voucher students often falls short, leaving districts few options but to turn to local taxpayers to fill the gap.

"When aid is deducted from schools to pay for the vouchers, the district has the choice of accepting that loss and cutting programs and staff, or raising property taxes," he said.

Wisconsin operates four distinct voucher programs: the Milwaukee, Racine and Wisconsin Parental Choice programs; and a statewide program for children with special needs. Choice schools receive $8,046 for K-8 students this year and $8,692 for high-schoolers. Schools on the special needs program receive about $12,000 but can exceed that under certain circumstances.

The choice programs are income-based; the special needs scholarships are not.

The Milwaukee program, the nation's oldest, is by far the largest in the state, serving 28,978 students in 130 schools at a cost of $230.1 million this year, according to the state. In its seventh year, the statewide program now dwarfs Racine's, serving 9,764 students in 254 schools at a cost of $77.3 million.

The special needs program serves 1,058 students in 97 schools at a cost of $13 million.

Tuesday's release is also likely to reignite the debate over the reimbursement of special education costs for Wisconsin's public schools. For the first time, three schools taking part in the Special Needs Scholarship Program have asked DPI to reimburse them for the actual cost of educating four of their students — a total of about $69,549. 

It comes just months after the Legislature rejected a bid by Gov. Tony Evers to boost the public school reimbursement to 60% of special education costs, from about 24%. Instead, lawmakers approved a budget that boosts it to 25% in the first year and 30% in the second.