Taxpayers Statewide Subsidizing Religious Organizations

Religious organizations participating in the Milwaukee private school voucher program are enjoying a financial windfall funded by taxpayers throughout the state, according to a new study.

Religious schools are charging much higher tuition for taxpayer-funded voucher students than for non-voucher students, according to the study by the American Federation of Teachers and People for the American Way Foundation.

For example, the study found, the average tuition paid by non-voucher families in low-cost religious schools was $1,126, while the average amount taxpayers spent per voucher student in these schools was $4,256. In high-cost religious schools, the average tuition paid by non-voucher families was $1,726, while the average amount taxpayers spent per voucher student was $4,773.

The disparity is not the result of wrongdoing but "is the result of the very generous and unconventional provisions of the voucher legislation itself," according to the study, titled "Revenues, Expenditures and Taxpayer Subsidies in Milwaukee's Voucher Schools." The study is based on data voucher schools are required to provide to the state.

According to the study, religious schools generally charge non-voucher families a tuition rate that is far below the actual cost of educating a child. The rest of the cost is made up through church support and/or financial contributions, including facilities and equipment, from parents and donors.

These schools, however, can factor in other costs such as facilities depreciation when determining the tuition level for voucher students. The result, the study concluded, is that taxpayers are charged three to four times more in tuition for voucher students than families are for non-voucher students at the same school. That raises "troubling state-church concerns," the study concluded.

"Because religious schools, like other private schools, have complete budgetary discretion, their Wisconsin taxpayer revenue can be used, for example, to reduce their tuition for non-voucher students, build a chapel or buy religious books. The result is taxpayer support for religion in general and for particular religions to which individual taxpayers may not necessarily subscribe," it concluded.

Since 1998-99, half the cost of the Milwaukee voucher program has been funded through assessments on every school district in the state. School districts can bypass revenue controls to cover those costs, meaning taxpayers throughout the state are funding the voucher program, in effect subsidizing religious organizations in Milwaukee.

Other findings of the study:

• After adjusting for services that private schools do not provide (e.g., special education), on average, private schools participating in the Milwaukee voucher program spent about the same per pupil as the Milwaukee Public Schools. Total costs in high-cost religious schools were $5,564 per pupil, slightly more than the Milwaukee Public School costs of $5,528 per pupil. Low-cost religious schools spent about $1,500 per pupil less than the public schools, while non-religious schools spent about $800 per pupil more.
• Private and religious schools in the voucher program spend more on buildings and equipment than the Milwaukee Public Schools, while the latter spends more on personnel and education programs.
• Salary represented about 52% of operating expenditures for Milwaukee Public Schools, 44% at low-cost religious schools, 52% at high-cost religious schools, and 48% at non-religious schools. However, benefits at private and religious schools were meager, ranging from about 6% to 9% of operating expenditures, compared to about 22% for Milwaukee Public Schools.

The executive summary and complete study (external link)
Resource page on private school vouchers