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Education Savings Accounts Archives - North Carolina Coalition for Charter Schools

Sep 03
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Report: Widespread school choice impacts charter enrollment

By News

A new report from the American Enterprise Institute sheds light on the future of the charter sector amid broader school choice expansion. The report, authored by Ian Kingsbury and David Marshall, includes survey data from 285 charter leaders in Arizona, Utah, and Florida. Each of these three states has a well-established and universal ESA (Education Savings Account) program.

School choice expansion, charter leaders said, has ushered in negative enrollment impacts for charter schools. And they expect more is coming.

Titled “The Future of Charter Schools in an Evolving School Choice Landscape,” the report indicates these states each had “robust” charter sectors when lawmakers passed ESAs.  They therefore “represent ideal case studies” for evaluating impacts of widespread choice on charter schools.

North Carolina is not included in the report. School choice expansion here includes an ESA+ Program for students with disabilities and a universal voucher (Opportunity Scholarship). Lawmakers removed income limits on the voucher in 2023.

Key findings from the report:

  • Nearly half of respondents reported enrollment losses due to students using an ESA for noncharter options (e.g., private school tuition or subsidized homeschooling), and nearly the same proportion anticipated a future decline in total enrollment. Enrollment impacts were most pronounced in Arizona.

  • Respondents reported a growing perception that private and microschool models now offer superior flexibility and autonomy.

  • The evidence offers a warning: Charter schools, long celebrated for innovation and choice, risk marginalization unless they undergo a fundamental shift away from a system-centric approach toward a parent-centric model.

Here is the breakdown of charter enrollment impacts:

The need to ‘modernize’ the charter sector

Charter school leaders also said laws should be updated to “modernize” the sector. Regulation and funding topped the list of areas that warranted change.

  • 65% cited the reduction of regulation and bureaucracy.
  • 58% referenced funding equity and facilities support.
  • 42% proposed relief around special education and compliance.

Here’s the table outlining responses:

Read more about the report from Carolina Journal or AEI.

Shutterstock photo above.