The number of applications for Iowa’s new program providing state funding to pay for private school has more than doubled estimates.
A total of 29,025 applicants are seeking education savings accounts created by Gov. Kim Reynolds’ signature school choice program passed in January known as the Students First Act. Each account will be worth $7,635 dollars in the next school year.
State contractors are still reviewing applications but, of the 17,481 students approved as of Thursday morning, 60% percent are existing private school students. The remaining 40% are incoming kindergartners or public school students interested in attending a private school.
Reynolds said the response shows there is demand for different education options.
“The tremendous response from Iowa families demonstrates there’s both a need and a strong desire for school choice in our state,” Reynolds said in a statement. “Allowing parents to choose the education that’s best for their children levels the playing field and creates equal opportunities for Iowa’s students.”
Bringing in more than twice the number of estimated applicants means the cost of the program will likely grow to a level beyond what state lawmakers budgeted.
The legislature set aside $107 million to provide ESAs in the first year, although there is no limit on what the state will spend to fund the program. Any additional funding will come from the state’s general fund.
The final cost will depend not only on how many students are approved for ESAs but also the number of students who are able to enroll in a private school. According to the governor’s office, that count will not be clear until later this fall when enrollment numbers from schools across the state are certified.
Trish Wilger, executive director of the Iowa Alliance for Choice in Education, said there is a limit to the number of new students private schools are able to accept.
“There’s some schools that are really full in certain parts of the state," Wilger said. "Some schools might have a situation where they have a lot of space in certain grades but not others."
The governor’s office said private schools have reported they have 9,000 open spots. Students approved for state funding are not guaranteed enrollment. If a student is approved for an ESA but cannot enroll in a private school, their account will be closed and the funding will return to the general fund.
In the first year, ESAs are open to all new kindergartners, any student switching from a public school, and existing private school students in households earning less than 300 percent of the federal poverty level, or $90,000 for a family of four.
At this point, 14% of the applicants approved for an ESA live in a household earning less than the federal poverty level. A majority, 67%, live in households earning an income ranging from 101% to 300% of the poverty level.
The average household income for a student seeking to move from a public school is $128,507, while the average income for a current private school student is $62,199.
In the third year of the program, income limits for existing private school students will be lifted and ESAs will be universally available to all Iowa students.
