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Lawmakers warn EFA growth could strain education budget; officials point to rules and set-aside
Summary
Committee members pressed Department officials on whether the $309 million appropriated for Educational Freedom Accounts (EFAs) will cover applications, citing uncertainty about homeschool applicants and potential impacts on foundation/adequacy funding; officials said the governor set aside $70 million and the State Board of Education will adopt rules to manage demand.
Members of the committee questioned whether the $309,000,000 appropriated for Educational Freedom Accounts (EFAs) will be sufficient as the application portal remains open and participation numbers evolve.
A committee member asked whether the $309 million matches the current funding level; Department staff answered that the figure does match present participant estimates and that the governor’s balanced budget set aside $70 million in case applications increase. Department officials said applications are still being processed and that accurate tallies — particularly for homeschool students — are uncertain because filing of intent does not capture all eligible students.
The chair warned of long-term fiscal pressure and invoked adequacy concerns: "We cannot continue to fund it at the level we're funding it... we're headed for financial disaster if we don't get a handle on these applications," the chair said, citing comparisons to other states and saying the legislature needs to watch rules and applications closely. A committee co-chair urged reliance on the State Board of Education, noting the law tasks the board with issuing rules for efficient administration of funds.
Officials gave rough participant estimates in the tens of thousands: department staff cited estimates around 37,000 and 44,000 participants for the year and said the $309 million covers these numbers for now; they also said the EFA amount is 90% of foundation funding and will change proportionally with any changes to the foundation funding figure.
Why it matters: Rapid growth in EFA participation could require further appropriations or adjustments to foundation funding, affecting public school budgets and long-term adequacy obligations. Lawmakers signaled they may need to revisit appropriations if applications exceed current estimates.
What happens next: Committee members asked staff to monitor application counts and rules from the State Board of Education; officials said they would return if additional appropriation is necessary.
