Study Looks At Cost Of Hope Scholarship For Public Schools

The analysis from the West Virginia Center on Budget and Policy published Wednesday estimates the Hope Scholarship costs West Virginia public schools up to $21.6 million.

A new report calculates the state’s education voucher program cost on public schools. 

The analysis from the West Virginia Center on Budget and Policy, published Wednesday, estimates the Hope Scholarship costs West Virginia public schools up to $21.6 million.

The Hope Scholarship allows K-12 students to receive state funds that can be used for tuition at private schools, homeschool curriculum, and other qualifying expenses.

Kelly Allen, executive director of the center, estimates the diverted funding will mean up to 364 paid positions, educators and personnel, could be lost.

“We hear a lot from proponents about the impact on the families and students who utilize the Hope Scholarship, but we really wanted to take a look at what the impact the Hope Scholarship is having on public schools,” she said.

Allen and Sean O’Leary, senior policy analyst for the center, arrived at the figure by multiplying the state school aid formula by the number of Hope Scholarship applicants in its second year. 

“The state aid formula also has a calculation for the number of teachers, educators and the number of school service personnel based on enrollment figures for each county,” Allen said. “We were able to estimate how much less funding they would get for those positions with that drop in attendance related to students leaving the public school district for the Hope Scholarship.”

One of the biggest concerns the report highlights is the lack of public reporting on how Hope Scholarship money is being spent, as well as the academic outcomes for the students receiving the funds. 

“I can go on the Department of Ed’s website right now and look up test scores, assessments for any public school in the state,” Allen said. “But there is no such mechanism for private schools, and there’s no data collected for Hope Scholarship students.”

Another West Virginia Center on Budget and Policy report earlier this year showed that thousands of dollars in Hope Scholarship funds are being spent outside of the state and at unaccredited institutions. The state Treasurer’s office, which oversees the voucher program, previously said spending Hope Scholarship funds in out-of-state school systems is permissible and consistent with the “money follows the student” intent behind the Hope Scholarship.

“We’re seeing our public schools pare back art and music classes, or teachers buying supplies out of their own pockets,” Allen said. “It just seems really, really concerning that these dollars aren’t being accounted for, tracked in the same way that our public schools are accountable.”

Allen applauded Treasurer Riley Moore for voluntarily reporting Hope Scholarship figures, but pointed out he will no longer be in his position after the 2024 election. Moore is running for a Congressional seat in West Virginia’s 2nd district.

“I think it’s really important that robust public reporting be codified,” she said. “He will not be the treasurer next year, so we shouldn’t rely on the generousness of the current treasurer.”

In its second year, the Hope Scholarship program has grown significantly, and Allen expressed concern over the financial impact of continued expansion.

On Tuesday the Hope Scholarship Board approved changes to the program’s legislative rules that will allow eligible students to apply year-round. A press release from the treasurer’s office announcing the rule changes noted that “more than 6,000 students have been awarded the Hope Scholarship for the current 2023-2024 academic year, nearly triple the 2,333 students who received it the previous academic year.”

In an email, Allen told WVPB the expanded application window “will almost assuredly increase costs of the program and create significant disruptions for public schools.”

House Education Committee Hears Report On School Funding

The West Virginia Department of Education, reviewed the Public School Support Program (PSSP) during a House Education Committee meeting this week.

Federal school aid funding was up for review in the House Committee on Education this week.

Samuel Pauley, school operations officer for the West Virginia Department of Education (WVDE), talked about the Public School Support Program (PSSP), or state school aid funding formula.

PSSP is a plan of financial support for the public schools in the State of West Virginia. It covers the state’s responsibilities as well as that of the 55 county school districts.

Pauley provided an overview of the funding formula allowance, including calculations used for areas of funding for school personnel, transportation and fixed costs. 

He explained that local governments provide a local share of funding which is calculated based on the regular levy or tax base of each school system.  

Annually, the WVDE receives information from assessors across the state in each county that enables them to calculate how much is borne by local tax dollars in those counties.

The rest is net state aid to schools – the amount appropriated to school districts by the West Virginia Legislature. It is based on student population and densities of counties.

The student census for school aid funding is conducted each year by Oct 1. Any student entering a school after that date is not eligible for state aid funding. 

Del. Michael Hornby, R-Berkeley, asked about future projections for student counts.

“Are you able to be proactive with the growth counties?” Hornby asked. “Because it seems if you’re doing a calculation, Oct. 1, and a county is growing 15 percent, or declining 15 percent – are you able to project out or do any kind of calculation with those school aid formulas based on previous growth?”

Pauley responded that the only projection his department has authority over in the statute is their increased enrollment funding calculation.

“Essentially, it looks at each individual school district and what their enrollment was the previous year,” Pauley said. “So we have a state policy that governs how we estimate increased enrollment, because we don’t really know what their enrollments are going to do until after the budget bill’s passed and the new school year has already started.”

Melanie Perky, federal programs officer for the West Virginia Department of Education updated the committee with a report on federal programs including the Individuals with Disabilities Education Act, National School Lunch Program and one time COVID-19 relief funding. 

Perky talked about strict auditing and financial procurement requirements or accountability systems schools must meet when using federal dollars.

“Many of these programs have tests built in that counties and states have to verify that they are maintaining the state base level – that we’re using the federal funding to meet the requirements of this and the responsibilities of the state,” Perky said.

Asked by the committee chair if there was a cap on federal funding, Laura Pauley, director of the office of federal programs for the West Virginia Department of Education explained that it depends on how Congress appropriates money. 

“Unfortunately, most of our funding is due to poverty,” she said. “So we do get, you know, a decent share considering our size and our population. I believe we’re one of only a handful of states to where every district in our state qualifies for Title I.”

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