North Carolina Senate OKs $500M for expanded private school vouchers

North Carolina Senate Republicans pushed legislation through their chamber Thursday to set aside roughly $500 million more — for now — for programs that provide taxpayer money to help K-12 students attend private schools and eliminate their waiting lists.

On a party-line 28-15 vote, the majority-Republican Senate agreed to spend the money. Almost all of it will cover a surge in demand for Opportunity Scholarship grants since the GOP-dominated legislature agreed last fall to eliminate family income limits to receive a grant.

The bill could reach the desk of Democratic Gov. Roy Cooper, a longtime opponent of private-school vouchers, as soon as next week if the House votes on the Senate language. Republicans have narrow veto-proof majorities in both chambers that could override any Cooper veto.

The end of income caps to qualify for the Opportunity Scholarship program and the repeal of another eligibility requirement led to a six-fold increase in new applications for the coming school year. Nearly 55,000 children who qualified for the program this fall won't otherwise be able to access funds unless more money is appropriated.

There is currently only enough money to provide awards to children who already received scholarships this school year and some new applicants whose family income fell below certain levels. A family of four that makes more than $115,440, for example, is being left out.

Republican legislative leaders have said eliminating the waitlist is a top priority in this year's General Assembly work session that began last week. A projected $1.4 billion in additional state revenues make it possible.

Sen. Michael Lee, a New Hanover County Republican shepherding the bill, portrayed the measure as funding fully a policy that colleagues already approved for parents seeking help for education alternatives for their children.

The private-school scholarships began a decade ago focused on children in low-income families. More recently eligibility expanded to middle-class families. Scholarship levels are tiered based on family income — ranging from up to $7,468 for the lowest-income families to $3,360 for the highest income level.

During Thursday's hour-long floor debate on the issue, Senate Democrats argued it was unfair for the wealthiest families to receive taxpayer-funded Opportunity Scholarships so they can send their children to private schools they can already afford when the state's public schools are struggling for more funds. Cooper's budget proposal for the coming year released last week would freeze scholarship awards at this year's levels, resulting in $174 million more for public school students and teachers.

"I stand here with a message from our teachers and our parents," said Sen. Val Applewhite, a Cumberland County Democrat. "They've been dialing 911 for public education to this General Assembly. And they feel like the phone call is going to voicemail or we're just not picking it up."

Republicans counter that they've been spending more money for K-12 public education and raising teacher salaries.

Other critics Thursday said private schools who receive these scholarships lack the same academic accountability as public schools and can screen out some students based on religion, for example. Republicans blocked votes on Democratic amendments that in part would have prevented higher-income families from participating and to require private schools to comply with more public school standards.

GOP senators argued that program opponents mislabeled families where two parents are working and making less than $60,000 each for example, as wealthy and unworthy to receive scholarships.

"This bill is about giving the middle class meaningful access to school choice," said Sen. Amy Galey, an Alamance County Republican, adding that opponents "are terrified that the middle class will access an alternative to government-sponsored education because then they do not control the content and they do not control the results."

North Carolina's median household income in 2022 was $66,186, according to the U.S. Census Bureau.

The bill would spend another $248 million in the coming year to eliminate the Opportunity Scholarship program waiting list and $215.5 million more to increase scheduled spending for the 2025-2026 school year. Similar annual adjustments would be permanent through the early 2030s.

The measure also would spend $24.7 million more annually to do away with a waiting list of about 2,000 students for Education Student Accounts, which provides public funds to students with disabilities to attend private schools or receive services.