Vouchers in Pennsylvania: School Choice or the School’s Choice?
- Carol Kuniholm
- Aug 12, 2025
- 4 min read
The debate around school funding in Pennsylvania is a complex one, pitting the constitutional mandate for a "thorough and efficient" public education system against the growing push for school choice initiatives, such as private school vouchers. While the General Assembly grapples with a court order to fix Pennsylvania’s inequitable school funding system, existing voucher programs are raising concerns about accountability and transparency.
The Constitutional and Legal Context ⚖️
Pennsylvania's Constitution sets a high bar for public education. Article 3, Section 14 mandates that the General Assembly must provide for a "thorough and efficient system of public education." Section 15 also explicitly states that "no money raised for the support of the public schools" can be used for sectarian schools.
In 2023, a landmark ruling by the Commonwealth Court found that the legislature had failed to meet its constitutional obligation, noting that Pennsylvania has one of the widest funding gaps between its wealthiest and poorest school districts. The court's decision now requires state officials to devise a plan to address these "constitutional deficiencies." The ruling requires the state to reform its school funding system to guarantee adequate resources for all public schools. To date, the legislature has still not addressed school funding reform.
The Rise of School Vouchers 🏫
Despite the court's directive to address public school funding, private school vouchers have become a persistent point of contention in recent state budget negotiations. Programs like the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) have expanded significantly since their inception in 2001. In 2023, 2024, and 2025, budget impasses centered mainly on the push for more voucher funding, with proponents arguing for parental choice, particularly for students in underperforming schools.
However, the expansion of these programs has come at a cost to public education. A 2019 analysis indicated that state-level funding for public schools had dropped to 31.6%, a significant decrease from a high of 55% in 1974. While the state-level funding is now approximately 37%, Pennsylvania remains one of the few states where local taxes are the primary source of public school funding. The 2025 State of Education report by PSBA has Pennsylvania currently ranked 5th nationally in terms of local contribution to public school funding, with only four states having a higher local contribution rate.
By contrast, the state’s contribution to EITC/OSTC tax credit programs has grown exponentially, especially over the last few years. According to the 2024 Education Voters of Pennsylvania report, businesses that contribute to these programs have received a total of $2.6 billion in state tax credits since their inception, instead of tax revenue available for public school funding. The 2024-2025 budget increased the amount available for EITC/OSTC tax credits by $55 million, bringing the total amount available for both programs to $525 million annually.
Lack of Accountability and Transparency 🕵️
A significant problem with Pennsylvania's current voucher programs is their lack of accountability. Unlike public schools, private schools that receive EITC and OSTC funding are not required to report on student academic progress or provide data on student demographics. This means there is no way to measure the impact of these programs on student achievement. The state also prohibits the Department of Community and Economic Development from collecting more detailed information on scholarship recipients.
In 2024 the Keystone Research Center reported the following:
No academic data is collected on students receiving scholarships.
No socio-economic data is gathered on voucher recipients or their families.
The state does not require students on EITC and OSTC scholarships to take any tests to measure academic status or progress. This lack of information makes it impossible to measure the impact this program has—positive or negative—on student achievement.
Unlike public schools, private schools can refuse admission to students based on their disability, religion, sexual orientation, academic record, or simply because they are not a good “fit.”
Scholarship organizations are allowed to retain up to 10% of the funding they receive, a significantly higher percentage than similar programs in other states.
As shown in the map below, most private schools receiving EITC/OSTC funds are located in urban areas, leaving students in rural Pennsylvania with limited access to these opportunities and creating even further school funding disparities.
The question of whether these programs truly provide "school choice" or are a matter of "the school’s choice" remains. While the state pushes for more school choice, it has failed to create a transparent and consistent system of accountability for all K-12 options that are funded with taxpayer dollars. Rather than expand an unproven private school program, the General Assembly should meet the requirements of the 2023 Commonwealth Court ruling—and its constitutional mandate—by adequately funding Pennsylvania’s public schools.
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