The Hope Scholarship Program was established in West Virginia in 2021 as an expanded school voucher-style program which diverts taxpayer funds from the public school system to families who can use them for private school or homeschool-related costs. Research shows that these programs primarily benefit families whose children were never enrolled in public schools. After ballooning in cost over the first two years of the program, a recent policy decision by the Hope Scholarship Board to allow year-round enrollment into the program likely means costs will grow even faster—potentially presenting a challenge for lawmakers to budget adequately for the program.
Earlier research from the WVCBP shows that the students who remain in public schools—about 90 percent of students in our state—are significantly impacted by the enrollment losses and subsequent declines in funding leading to school consolidations, reduced course offerings, fewer support programs, and fewer teachers and support staff. Kanawha County—the state’s largest school district—lost over 500 students last school year. As a result, over 80 positions were in jeopardy for the 2024-25 school year and the Board of Education recently voted to close and consolidate two middle schools after this year. Futher, four elementary schools remain at risk of closure and consolidation.
West Virginia’s Hope Scholarship Program is not the first or only voucher-style program in the country, but it is unique. The Hope Scholarship has no caps on program cost or overall enrollment. As a result, the costs of the program have risen significantly over the past three years, with more cost increases on the horizon due to the universal expansion of the program slated for 2026. Additionally, with the recent expiration of federal relief funds in September and further tax cuts taking effect in January, public schools are faced with exacerbated financial strain and uncertainty going forward.
Research on school voucher programs in several states illustrates the significant and rapid rise in costs caused by these programs even when they start with limited eligibility. In its first year, the Hope Scholarship Program was budgeted for approximately $23.4 million and disbursed nearly $9.2 million in awards. The following year, the program budget rose to almost $24 million while the amount disbursed to families nearly tripled to an estimated $26.9 million. Now going into its third year, the Hope Scholarship Program is expected to exceed its budget yet again. The budget for this year is $45.5 million compared to an estimated $50.1 million being disbursed to families. Notably, this estimate is based on the number of scholarships awarded as of September 30 and could grow throughout the year due to the newly adopted year-round application model of the program. With its current trajectory involving eligibility expansion to all students in the state, Hope Scholarship costs are projected to dwarf early cost estimates of the program.
The year-round application model allows families to apply for the program throughout the school year with prorated scholarship award amounts based on when they apply. According to the Hope Scholarship Board, as of September 30, approximately 565 applications were being processed and 10,250 students were awarded scholarships for the 2024-25 school year (an increase from the July 1 count of 9,980 scholarship students and applications under review). This number is only expected to climb as many students recently met the 45-day public school attendance requirement and numerous new applications have been submitted.
This model makes it difficult to accurately estimate and budget for the cost of the program. Only four months into the current fiscal year, the Hope Scholarship Program has already reached a $4.6 million funding gap that could require additional state budget allocations unless there are available carryover funds from previous years.
Arizona’s universal school voucher program cost the state approximately $700 million last year. This is nearly four times the cost of the previous targeted voucher program, $188.8 million. The exponential growth in the cost of this program played a significant role in the $1.4 billion budget shortfall that resulted in cuts to funding for public education, community colleges, universities, water and roads earlier this year. Year-round enrollment is also driving significant growth in the cost of the program. Last school year from September 30 to March 31, participation in Arizona’s voucher program rose by over 8,500 students.
The year-round application model also poses significant disruptions for public schools which are already faced with funding and enrollment hardships. State funding for public schools in West Virginia is highly dependent upon student enrollment. The losses in enrollment due to increased Hope Scholarship participation will be felt by public schools next year through reduced funding, school closures and consolidations, and staff terminations and transfers.
Public education is at the heart of many communities and serves as a connection point for children and families across social, cultural, and economic backgrounds. Children in our state deserve high-quality and equitable education. To achieve that goal, state policymakers need to halt the rapid expansion of the Hope Scholarship and implement commonsense guardrails on the program through cost caps, enrollment caps, and a limited application period.
