The recent closure of 16 public schools in Iowa has stirred up heated debates between Democrats and Republicans, with the blame placed squarely on the introduction of Education Savings Accounts (ESA). Since the law was passed in 2023, allowing public funds to be used for private school expenses, the education landscape in Iowa has seen dramatic changes. According to Iowa Democrats, this new legislation is causing a significant strain on public schools, while Iowa Republicans are pushing back, claiming the numbers and narratives are misleading. But what’s really happening here?
What are Education Savings Accounts?
Before we dive into the debate, let’s clarify what Education Savings Accounts (ESAs) are. Essentially, ESAs allow families to apply for public funds, typically allocated to public schools, to cover private school tuition or related expenses. The state provides approximately $7,000 per student annually, which can be used for private school costs, including tuition, books, and other school-related expenses.
This move was part of Governor Kim Reynolds’ broader push to offer families more school choice. The law was seen as an opportunity to provide alternatives for families dissatisfied with their local public schools. However, critics argue that diverting funds from public schools has resulted in closures and financial strain.
The Closure of Public Schools: Is ESA to Blame?
According to Iowa Democrats, since the introduction of ESAs, 16 public schools have closed their doors. Jennifer Konfrst, the Iowa House Democratic Leader, emphasized that the $363 million allocated to ESAs over the past two years has drained resources from public schools. She argues that this reduction in funding has directly contributed to these closures.
However, Republicans refute these claims, pointing out that not all the schools listed by Democrats actually closed because of ESAs. For example, one of the schools cited, Buchanan Elementary, closed before the ESA law took effect. Moreover, Mason Mauro, a spokesperson for the governor’s office, claimed that some of the public schools mentioned are still open, and others closed for reasons unrelated to the program, such as facility upgrades.
The real issue, according to Konfrst, is that public schools are losing funds while private schools are rapidly expanding. In the two years since ESAs were introduced, 36 private schools have opened across Iowa. Critics of the program are concerned that this shift is creating a two-tier education system, leaving public schools struggling to keep up.
The Expansion of Private and Charter Schools
The introduction of ESAs isn’t happening in isolation. In addition to expanding private school access, Iowa lawmakers have made significant changes to open enrollment laws and allowed more charter schools to open. These changes have provided parents with a variety of educational options, which proponents argue is good for students.
Yet, critics of the program, like state Rep. Sue Cahill, argue that while school choice is a positive development, it shouldn’t come at the cost of public schools. They believe that these programs are undermining public education by siphoning off funds that would otherwise be invested in improving public schools.
On the other hand, Republicans like Pat Grassley, the Speaker of the House, argue that they have allocated record-level funding for public schools, to the tune of $5.7 billion for the fiscal year 2025. This, they argue, proves their commitment to public education, despite the ESAs only accounting for 2.01% of the state budget. Grassley has accused Democrats of exaggerating the impact of ESAs and misleading the public on the numbers.
The Real Impact of Education Savings Accounts on Iowa’s Budget
One of the primary concerns surrounding ESAs is their financial impact. In the program’s first year, 16,757 students received funding, which cost the state $129.9 million. This was $23 million more than state officials initially projected. As more students apply for these funds, the program’s cost is expected to rise even further.
For the 2024-25 school year, over 30,000 students have been approved for ESAs, but the Iowa Department of Education has yet to release specific data on how many of those students are attending private schools. The income limits for the program will be lifted by 2025-26, potentially increasing the number of students eligible for ESAs.
While the ESA program is expensive, it’s important to note that the law also provides public school districts with approximately $1,200 for each student who leaves for a private school. Critics argue that this is a small consolation for schools that are losing significantly more in per-pupil funding.
The Odyssey Contract: Another ESA-Related Controversy
Further fuelling the debate is the recent audit of the ESA program by State Auditor Rob Sand. The audit revealed that the Iowa Department of Education was paying an out-of-state company, Odyssey, more than originally contracted to manage the ESA program. The contract, initially set at $682,333 for the first year, ended up costing the state closer to $985,000 due to additional transaction fees.
This discovery has raised questions about whether the ESA program is being managed efficiently and whether taxpayers are getting their money’s worth. Sand estimated that over three years, the Odyssey contract could cost the state $3.7 million, sparking further criticism of the program’s long-term viability.
Are Private Schools Benefiting at the Expense of Public Schools?
A key question at the heart of this debate is whether private schools are benefitting at the expense of public schools. With $363 million now flowing into private education, some argue that public schools are being starved of the funds they need to stay open. However, supporters of school choice argue that providing families with more educational options benefits everyone by creating competition and innovation in the education sector.
Governor Kim Reynolds and other Republicans maintain that public schools, private schools, and charter schools all serve essential roles in the state’s education system. They reject the notion that these institutions are in a “zero-sum struggle,” arguing that the success of each encourages the success of the others.
Conclusion: What Does the Future Hold for Iowa’s Education System?
The future of Iowa’s education system is uncertain as both sides continue to clash over the impact of ESAs. Public school closures, the rapid growth of private schools, and rising costs have raised concerns among many. Yet, Republicans insist that school choice empowers parents and improves educational outcomes for students.
As the debate continues, one thing is clear: Iowa’s education landscape is changing, and the effects of Education Savings Accounts will be closely watched in the coming years.
Learn More:
- Education Savings Accounts (ESAs) [https://example.com/education-savings-accounts]
- Iowa public school closures [https://example.com/iowa-public-school-closures]
- Iowa private schools growth [https://example.com/iowa-private-schools-growth]
- School choice in Iowa [https://example.com/school-choice-iowa]
- Iowa education budget [https://example.com/iowa-education-budget]
