Younger millennials and Gen-Zs criticized for their spending habits, like buying avocado toast, face real challenges in the housing market. Home prices in the U.S. almost doubled from 2015 to 2025. A starter home costing $175,000 in 2015 required an $835 monthly mortgage. By 2025, similar homes cost $350,000 with monthly payments of $2,259. The issue is deeper than spending on small luxuries.
Examining Educational Spending and School Choice
A similar logic applies to education funding. Critics of school choice blame these programs for state budget issues. ProPublica argued that Arizona’s school choice program severely impacts the state budget. However, in states supporting school choice, related expenditures amount to only 0.7% of total state spending. States with expansive programs still only reach about 1.3% of expenditures.
If such programs were significantly affecting state budgets, their costs would need to rise disproportionately, but they do not. These programs must also lack any cost-saving measures, which they do not. They remain a minor fraction of overall state budgets. Arizona’s school choice program, the most extensive in the nation per person, accounted for only $882 million. This represents approximately 8% of total K-12 spending, 5.4% of the state’s general fund, and just over 1% of all state spending.
If a state’s budget crisis arises, it stems from within the other 99% of its spending. In Arizona during fiscal 2025, there were 1.1 million students in public K-12 schools and 85,000 in school choice programs. Arizona’s choice program served 7.6% of students with only 5.5% of the funds for this purpose, suggesting financial efficiency rather than burden.
Increased Public School Spending
The U.S. saw per-student public school spending rise from about $13,000 to $19,000 between 2015 and 2025, marking a 31% rise. Inflation-adjusted, this is still a 7% increase. Since most students are in traditional public schools, this uptick strains budgets.
Examining specific districts reveals trends in spending. The Phoenix Elementary School District, despite losing 39% of students, boosted staff by 5%. This increase came from non-teaching roles while teacher numbers dropped by 7%. National trends show similar patterns. Denver Public Schools saw a 2% student decline but raised staff by 3%. Chicago’s student body dropped by 10%, yet staff surged by 20%. Even fiscally cautious Miami-Dade lost 5% of students but enlarged staff by 1%.
Blaming school choice for budget issues in public schools overlooks larger inefficiencies. Dr. Michael McShane, Director of National Research at EdChoice, emphasizes this disparity in understanding school finance impacts.