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States Across the Nation Pursuing Education Savings Accounts

• Adam Peshek

There is growing interest by states in Education Savings Account (ESA) programs, with at least 22 state legislatures pursuing or considering the policy in 2015. The programs take funds that otherwise would be spent educating children in traditional public schools and sets them aside into accounts controlled by parents.

The parents then can use the money to customize education plans for their children. The accounts are particularly beneficial for families that have students with disabilities because the funds also can be used for expenses such as therapy and educational aids.

Arizona became the first state to pass an ESA bill in 2011 and Florida passed the country’s second program last year. Both target students with disabilities. This year, ESA bills have been filed in 14 states, with at least 8 others seriously considering the policy this session.

ESA MAP_revised


ESAs create a system of education that is both accountable and truly personalized for each child. Examples of how parents can use the funds include the following:

  • Private school tuition
  • Tutoring
  • Therapy for students with disabilities
  • Instructional materials/curriculum
  • Online programs/courses
  • Á-la-carte public school courses
  • Exam fees
  • Savings for future college costs

The key is customization. ESAs allow parents to plan for their child’s unique needs. They create an entirely customized and flexible approach to education, where the ultimate goal is maximizing each child’s natural learning abilities.

For example, the parents of a visually impaired child could pay for private school tuition, hire a tutor with expertise in teaching visually-impaired students, and put any leftover funds into a college savings plan.

Parents of a student with autism could send their child to a private school for half of the day and spend the remaining funds on educationally-related therapies and educational software that allows them to direct some of their child’s education at home.

There are numerous options. Parents can homeschool children in subjects they know, use vetted online providers for other subjects, and hire tutors for courses in which their children struggle.

Such out-of-the-box approaches to education are not possible through the traditional public school funding model in which parents are limited to options provided by their school districts. Parents know when a school is not meeting their child’s needs. An ESA empowers these moms and dads with the financial resources to choose better alternatives.

Through an ESA, education is no longer “use it or lose it.” Parents decide where the best values are, and they have the ability to direct their child’s funds in the most efficient way.

Students and families are better served and at no additional cost to the state.

About the author

Adam Peshek @AdamPeshek

Adam Peshek is Managing Director of Opportunity Policy at ExcelinEd, where he provides strategic support to state leaders interested in developing, adopting, and implementing policies that increase educational options for children. He has provided expert testimony in more than a dozen state legislatures and is a frequent commentator on ESAs, school choice, and education policy across the country. He is also the is the co-editor of the first published volume on ESAs, Education Savings Accounts: The New Frontier in School Choice. Adam currently resides in Atlanta, Georgia and is a Senior Fellow with the Beacon Center of Tennessee.