NC school choice: Growth comes with challenges

Back in 2011, the first year that North Carolina celebrated National School Choice Week; approximately 87% of all students attended traditional public schools, over 41,000 students were enrolled in 99 charter schools, less than 100,000 students attended private schools. And, there were no public programs to encourage private school choice.

A decade-and-a-half later, the steady growth of alternative educational options make North Carolina look like a different state. Now about 75% of all students attend traditional public schools, while 25% attend either charter, private, or home schools. Over 156,00 students are enrolled in over 200 charter schools. The state also has one of the largest home school populations at over 165,200 students. The Opportunity Scholarship Program (OSP) provides scholarships of up to $7,700 for over 100,000 students to attend a private school of their choice.

These numbers rightly suggest school choice is alive and growing in North Carolina, an ostensibly purple state. There is much to celebrate, and reflection is good. Continued growth, however, is not guaranteed. Tests lie ahead. To ensure school choice continues to flourish, focus and effort is required to meet numerous challenges looming over the movement.

These include:

Can the Opportunity Scholarship Program change with the times? OSP vouchers have helped students secure education in a private school. New education models, however, don’t necessarily fit the traditional definition of a private school. Other alternative educational models, such as hybrid schools and microschools, have much different characteristics and operating environments. The definition of a private school may need to be revisited. In addition, greater flexibility in how vouchers are used may also help encourage the growth of alternative education models.

Can the Federal Tax Credit Scholarship Program (FTCSP) be successfully implemented? FTCSP will allow a dollar-for-dollar credit of up to $1,700 to those who donate to approved scholarship granting organizations, which will distribute funds to eligible children. FTCSP can supercharge existing choice programs or jump start programs in blue states that do not have state funded school choice programs. While the program won’t begin until 2027, the stakes are still high.

Final regulations from the IRS won’t be available until later this year. However, people are waiting to see if the regulations will be flexible and respect the autonomy and discretion of the states or the federal regulations will be overly proscriptive and homogenize programs formerly left to states and the private sector.

States are required to opt in to make taxpayers eligible for the deduction. North Carolina passed legislation (HB 87) to opt in last August, but Gov. Josh Stein vetoed the legislation. In his veto statement, Stein said he feared the legislation would hurt public schools. Still Stein did give a glimmer of hope. He said, he “could see opportunities for the program to benefit public schools.” If the final regulations allow that, Stein said he would opt in. Democratic governors, like Stein, will be under intense pressure to sign opt-in legislation or face losing the scholarship money that has been donated in North Carolina to other states. To date, Jared Polis of Colorado is the only Democratic governor who has signed opt-in legislation for his state. Could Stein be the next?

Will North Carolina Democrats continue to oppose school choice? Articles (see here and here) suggest the public trusts Republicans more than Democrats to address education issues, an advantage long-held by Democrats. That advantage switched during COVID and was propelled largely by Republicans backing parents in opposition to school shutdowns and favoring more parental choice.

North Carolina’s political landscape mirrors the national. The state’s Democratic Party has long sided with teacher unions and, with the exception of charter schools, has opposed school choice. Over time North Carolina Republicans and a handful of school choice Democrats — who have now largely vanished — have been able to work together and pass school choice legislation. 

In 2023, state Rep. Tricia Cotham famously switched parties to become a Republican and became the crucial final vote to allow Republicans to override Gov. Cooper’s veto and make all North Carolina families eligible for the Opportunity Scholarship. The point: Republicans have needed Democrats to move forward with much school choice legislation. Now even the majority of registered Democrats say parents are best suited to choose where a child goes to school. Other Democrats  are saying the battle for school choice is over and openly lobbying their party to support school choice, albeit a more Democratic and progressive version, one with their preferred provisions regarding testing and transparency and guardrails around civil rights.

Will Democrats like Josh Stein choose to embrace such a vision, or will they limit choice to public schools? The crack in the door that Josh Stein left in his veto message mirrors the internal changes roiling the Democratic Party. Can Republicans and Democrats in North Carolina come to the table and work together on school choice? The answer will dictate what school choice looks like in the years ahead.

The last 15 years have brought significant growth and expansion to the school choice movement in the Tar Heel state. The wins come with new problems and opportunities to innovate and work together for the good of all families. Only by surmounting these challenges can we ensure that North Carolina will be celebrating National School Choice Week for years to come.