Data: Under expanded EFA program, few students switched from public schools

In the first months after lawmakers removed a family income eligibility requirement for New Hampshire’s education freedom account program, nearly all of the students who enrolled for the first time had not attended public school previously, according to data released by the state late last month.

Despite the universal eligibility, just 343 students left public schools to participate in the EFA program — a fraction of one percent of the 163,000 enrolled in public schools last year.

While the number of “switchers” has always been small, the percentage dropped from 32% last year to less than 8% this year — a sign that nearly all the new students who enrolled in the program already attended private schools or participated in homeschooling before the income caps were lifted.

The Department of Education’s data report provides the first snapshot of how the elimination of the cap has affected the demographics of enrollees. The data could serve as fuel for opponents of the program who have argued it largely serves students who are already enrolled in private schools or participating in homeschooling, rather than providing a choice for families unhappy with the public school system.

The program, which was launched in 2021, was originally hailed as a way to give low-income families access to an expanded array of educational options.

When Republican lawmakers lobbied for the elimination of the income cap, they updated their pitch, arguing the program would allow all families — regardless of income — more control over how government funding for their children’s education is spent.

The removal of the income cap caused enrollment to nearly double – from 5,765 students at the beginning of last year to 10,510 students this fall.

Despite the large enrollment spike, the raw number of students who submitted income information that showed they qualified for free and reduced lunch actually decreased — from 2,261 to 2,017 students. However, it is possible that some families who qualify failed to submit financial information because it is no longer required.

The state did not publish data on the percentage of new students whose family income would have made them ineligible under the old cap, which was 350% of the federal poverty guidelines, or $112,525 for a family of four.

The program, which is funded through the state’s education trust fund, gives the family of each enrolled student an amount of money equal to what the local public school district would receive in state adequacy funding if they were enrolled there. They may spend that money on private school tuition, or on a wide array of other expenses, including curriculum materials, tutors, and activities that are typically considered extracurricular.

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This school year, each student will receive a base amount of $4,265 and additional allocations if the student qualifies for free and reduced lunch, has a disability, or is an English language learner.

With the income cap eliminated, the percentage of students who received the additional free and reduced lunch allocation decreased from 39% to 19%. As a result, the total average payment also shrank — from $5,265 last year to $4,911 this year.

In all, the state is set to spend at least $51.6 million on the program this year, up from the $30.3 million projected for last school year at the same time. This year’s projected spending is roughly 30% more than the $39.3 million that had been budgeted.

The racial demographics of this year’s EFA enrollees changed slightly. 87% of students are white, up from 84% last year. The percentage of students who are Black and Hispanic both decreased slightly.

Students in the EFA program are six percentage points more likely to be white than students enrolled in public schools in the state.

Unlike in previous years, the state did not release data on the exact number of new students, but it exceeded the difference between last year’s and this year’s enrollments, as some students graduate or exit the program each year.

The state classified 83% of enrollees as “priority” students. This classification refers to students who fit into at least one of the following categories: they were previously enrolled, they have a sibling who is enrolled, they have a disability, or their family earns less than the old income cap.

A total of 1,753 students did not fit into any of those categories, according to the report.

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