What is an ESA?

(BATON ROUGE, La) There is much contention about the topic of Education Savings Accounts (ESAs), which has been getting around the public sphere more and more. There is a significant argument for their benefit and an equally significant argument for their detriment.

First, let's define what an ESA is. An ESA Educational Savings Account is a financial tool designed to help parents pay for their children's educational expenses. These funds can be used for a variety of purposes up to and including private school tuition, textbooks, technology, tutoring, etc.

The Senate Bill by Rick Edmonds can be summed up online, taken directly from the bill itself: "To create an opportunity for each parent to set aside part of their tax dollars in an educational savings account in order to provide the best educational opportunities for their child, whether the child's best opportunities are found at a public school, charter school, private school, home study program, or at a faith-based or religious school."

The bill intends to put an end to overcrowding of school districts and overdevelopment of areas due to families following sought-after schools, ensure that every person is afforded an equal opportunity at a quality education, and prohibit the state from using state dollars in a manner that would have the effect of discrimination in providing these equal opportunities.

You can read the bill for yourself here.

Those against this bill have ramparted that the bill will take money from already stretched public schools and encourage Louisiana families to adopt the usage of more private schools. However, the ESA program has done in several other states, including our fellow southern states, Mississippi and Florida, that did not stop those such as Senator Royce Duplessis, D-New Orleans, from calling them anything but the title with names such as experimental spending accounts.

With this much contention, clarity is a necessity. Here are some arguments commonly used for and against the ESA program.

Arguments in Favor of ESAs:

Increased Choice and Flexibility: ESAs provide families with more educational options, allowing them to choose schools and services that best meet their children's needs. This can particularly benefit students in underperforming public schools or those with special needs.

Customization of Education: ESAs allow for a more personalized education experience. Parents can use the funds for private school tuition, tutoring, online courses, or other educational services that align with their child's learning style and requirements.

Encouragement of Savings: ESAs encourage families to save for educational expenses early, potentially reducing the financial burden of higher education and other educational costs later on.

Tax Benefits: Many ESAs offer tax advantages, such as tax-free growth on investments and tax-free withdrawals for qualified educational expenses, which can make saving more attractive and beneficial in the long run, though this is contingent upon the state and the legislation.

Arguments Against ESAs:

Equity Concerns: Critics argue that ESAs may exacerbate educational inequality. Families with higher incomes are more likely to have the resources to contribute to these accounts, potentially widening the gap between wealthy and low-income students.

Impact on Public Schools: ESAs might divert funds away from public schools, decreasing the resources available for students who remain in the public education system. This could further disadvantage students in already underfunded schools.

Variable Quality and Oversight: The quality of private educational services funded by ESAs can vary significantly. There is also concern about the lack of oversight and accountability for how these funds are used, potentially leading to misuse or fraud.

Complexity and Access: The rules and regulations surrounding ESAs can be complex, and not all families are equally equipped to navigate these complexities. This could limit access for those who might benefit the most from such accounts.

You can hear commentary on this topic on our show, The Elephant in the Room, with Mason Batts as he delves into the arguments for and against the ESA program right here on our network!