RALEIGH (January 2, 2024) – Over the next several weeks, we will publish several short posts to address misinformation circulating about the North Carolina School vouchers called “Opportunity Scholarships.”

These vouchers use public, taxpayer funds to pay for private school tuition.

First up is the claim that Opportunity Scholarships do not divert funding from public schools. This assertion ignores a critical reality: These vouchers disproportionately harm rural counties and small public school districts that rely heavily on state per-pupil funding to survive.

In many rural North Carolina counties, public schools serve as essential community hubs. State and local per-pupil funds are the backbone of their budgets. When students leave for private schools using Opportunity Scholarships, the state funding tied to those students disappears from the local public school system.

Fixed costs—like teacher salaries, transportation, building maintenance, and utilities—do not decrease proportionally when a few students leave. As a result, fewer resources are spread across the remaining students, amplifying inequities.

Impact on Rural Counties: 

• Because rural counties simply don’t have as many private schools, vouchers create a net flow of tax dollars from rural counties to metropolitan counties.

• Many rural counties already face declining enrollment and shrinking tax bases. For instance, in Halifax County, Robeson County, and Warren County, public schools depend on state funds for more than 70% of their operating budgets.

• A reduction in per-pupil funding in small districts can mean cutting crucial services like art, music, advanced courses, and student support programs—resources often not available in private schools that accept Opportunity Scholarships.

The Funding Misconception: 

While Opportunity Scholarships provide roughly $6,500 per student, the funding public schools lose often exceeds this amount due to North Carolina’s funding model. For example:

• The state’s funding formula provides higher per-student allocations for small, rural districts because they lack economies of scale. Losing even a few students can devastate their budgets.

• Private schools accepting vouchers do not face the same accountability standards as public schools. This means taxpayer dollars are often used without transparency or guarantees of academic performance.

Addressing the “Savings” Argument:

The notion that Opportunity Scholarships create “savings” for the state ignores the long-term harm to public education. Public schools are constitutionally mandated to serve all students, including those with special needs, transportation barriers, and other challenges. When funding is siphoned away, these students—who remain in the public system—are impacted the most.

Conclusion:

North Carolina’s public schools, especially in rural counties, are already underfunded.

Vouchers that use taxpayer dollars to subsidize private schools exacerbate this problem, draining essential funds from the very districts that need them the most. Instead of diverting resources, we should invest in strengthening public schools, ensuring they have the resources to serve every child, regardless of zip code.