By Erik Twist |
In the school choice ecosystem, Arizona has made commendable strides, particularly with the Empowerment Scholarship Account (ESA) program which, as reported by AZ Capitol Times, has seen an enrollment surge of nearly 50,000 students this year. The Arizona Department of Education (ADE) is predicting, according to the article, “there could be as many as 100,000 students enrolled by this time next year, growth that ADE says reflects the popularity of the program.” This highlights a thriving demand side, driven by policy shifts that have democratized access to private education. However, the narrative doesn’t end here; the supply side awaits a similar unlocking.
The current influx of families into the ESA program underscores a burgeoning demand that is at risk of outpacing supply. Despite the newfound ability to opt for private schooling, many families are soon to find the seats in private schools limited. This reality sheds light on an imperative for the school choice movement—the need to scale up the supply side to match the demand for private education across the state.
Transitioning focus toward facilitating the establishment and expansion of private schools is the logical next step in Arizona’s school choice trajectory. However, achieving this necessitates robust financial instruments that go beyond traditional funding avenues, made even more pressing in an economic environment where the cost of capital limits traditional debt financing. Introducing a blend of philanthropic and mission-driven financing instruments can propel the growth of private educational institutions. By creating a conducive financial landscape, private school operators can be better positioned to expand to accommodate the growing demand.
Business leaders, foundations, philanthropists, and financial intermediaries committed to ensuring parents have the very best education choices for their children should band together to form capital market instruments tuned to the current supply side needs of the private school ecosystem. Something like a Private School Growth Fund is well overdue, and those hungry to see private school expansion should look to the lessons learned from the charter school world over the past 15 years. Examples like the Charter School Growth Fund and the Drexel Fund will help point the way for how supply side financing solutions play an indispensable role in turning policy advances into actual choices for parents.
Additionally, fostering a collaborative environment among policymakers, private school operators, and financiers will be instrumental in creating a sustainable model for private school expansion. This should be coupled with regulatory adjustments that encourage the sprouting and scaling of private schools.
Arizona stands at the cusp of realizing a fully-fledged school choice landscape. The momentum gained on the demand side presents a compelling case to now unlock the supply side. As the state navigates this new phase, the blend of policy, philanthropy, and private enterprise will be crucial in molding a balanced school choice market, capable of serving the educational needs of parents and children from every community across the state.
While the ESA program has significantly opened school choice options, the real testament to success will be in establishing a market where the supply of private schools meets the burgeoning demand, ensuring that the choice remains a genuine one for every family in Arizona.
Erik Twist is the Principal Partner and President of Arcadia Education. He served as President of Great Hearts Arizona from 2017 to 2022.
