Authors: Steve Salvo, ISM Adjunct Faculty
Sarah Wilson, Executive Director, Tennessee Association of Independent Schools
When public dollars enter private schools, what changes — and what’s at stake?
Many private-independent school leaders are wrestling with these questions as state-funded voucher programs expand across the country. On paper, these programs promise increased access, new families, and more revenue. But in practice, they can raise difficult questions about mission alignment, regulatory compliance, and long-term financial sustainability.
If you’ve found yourself weighing the appeal of additional resources against the complexity of participation, you’re not alone. This post outlines the key considerations, risks, and recommendations for heads of school and leadership teams who are thinking critically (and carefully) about whether voucher participation is the right move for their community.
Start With Mission (Not Money)
Before you run the numbers, return to your “why.” Voucher programs may help families afford tuition, but they may also require trade-offs in how you deliver on your school’s promise.
That’s why the first question to ask yourself isn’t financial, it’s foundational: Can we participate in a voucher program and still fully live our mission?
This isn’t theoretical. School leaders are dusting off their articles of incorporation, reviewing bylaws, and revisiting their core values to answer that very question. If your school is built around educational approaches, community values, or religious instruction that could be restricted or reshaped by government involvement, you need to examine the risks closely.
Define Your Dealbreakers
Even if a voucher program seems mission-compatible today, government regulations can (and often do) change. That’s why it’s wise to define clear non-negotiables with your board and leadership team. Here are some examples of conditions under which your school might walk away:
- If religious instruction is restricted.
- If the state mandates curriculum or testing that conflicts with your values.
- If admission autonomy is compromised.
- If staffing or hiring policies are dictated externally.
Understanding these boundaries up front provides clarity and confidence, especially when things shift mid-year or mid-budget cycle.
Know What You’re Signing Up For
Voucher programs are not one-size-fits-all. Some have minimal oversight. Others are deeply entangled in red tape. It’s essential to understand the details — especially those that impact your day-to-day operations.
Key questions to ask:
- Are there teacher certification or conduct codes we’d now be subject to?
- Will we be required to administer state-mandated tests or report student data we don’t currently collect or share?
- How do these requirements align (or clash) with our accreditation?
- Do we need to adjust HR, admission, or academic programming to comply?
Don’t just read the surface-level FAQs. Talk to your association. Confer with peer schools that have opted in and out. Consult with legal counsel.
Financial Realities: More Complicated Than They Look
On the surface, vouchers look like a windfall. But many school heads are already seeing the hidden costs stack up.
Here’s what to watch:
- Cash flow challenges: In many states, funds are disbursed in quarterly or monthly installments, which are often misaligned with your tuition cycle.
- Administrative lift: You may need additional staff to manage compliance, reporting, audits, or parent communications.
- Budget instability: What happens if a student qualifies one year but not the next? What if the state reduces funding or caps participation midyear?
- Financial aid implications: Will you require families to apply for vouchers before accessing school-based aid? How does this impact your aid philosophy, policies, and equity?
Don’t forget: Even if your families receive voucher funds, you’re still responsible for delivering the full student experience. That means balancing new funding sources without compromising your standards — or your financial health.
Admission, Enrollment, and Expectations
Voucher programs can change how families perceive your school and how your school must navigate admission season.
Some states require schools to accept voucher-holding students regardless of typical admission timelines or expectations. Others ask for data your school may not currently collect, like demographic or disability status.
Then there’s this: How do you make sure families understand that they are contractually obligated to pay full tuition, even if the state delays or reduces payment, or if they leave mid-year or are dismissed, regardless of the reason.
These somewhat thorny operational issues touch multiple teams at your school — admission, finance, legal, and advancement. You’ll want to establish a clear policy and process before the school year begins, not in reaction to a sticky situation.
Public Perception and Donor Pressure
Speaking of perception, bear in mind the scrutiny you’re likely to face if your school chooses to participate. Conversely, if you choose not to, you may face external pressure.
In some communities, accepting state funds is seen as a way to expand access. In others, it’s viewed as compromising independence and undermining public schools.
Donors, too, may have strong opinions. Some will ask, “Why should I give if the state is footing the bill?” Others may question why you're turning away state dollars in the first place.
Your advancement and communications teams must be ready with a clear, values-based narrative that answers both sides of the issue.
Seven Steps for School Leaders
Here are seven considerations to approach this decision strategically.
1. Reaffirm your mission. Let it guide everything, especially when the path seems unclear.
2. Engage your board early. This is not just a leadership or operations issue; it’s a governance issue.
3. Define your red lines. Know where your school draws the line — before someone else does.
4. Create a compliance plan. Assign someone to own oversight, monitor policy changes, and manage communication.
5. Communicate clearly. Articulate your school’s decisions and rationale with your entire community.
6. Stay informed. Policy shifts are frequent. Stay connected to your state association and peer network.
7. Think beyond this year. Consider what voucher participation means for your school’s reputation, values, and financial model in the long run.
Final Thought: Students First, Always
At the end of the day, your reason for being is your students. Voucher programs can open doors for families who might not otherwise be able to enroll at your school, but you can’t serve them — or the rest of your community — if the programs interfere with the full integrity of your educational mission.
There’s no single right answer. But there is a right process: one grounded in your values, aligned with your vision, and designed to protect the long-term health of your school and the students you serve.
About the Authors
Steve Salvo is head of school at St. Mary's Episcopal Day School in Florida and is part of ISM's adjunct faculty. Steve serves on the Board of Directors of the Florida Council of Independent Schools and is part of the faculty for the organization's Prospective Head of School Institute. A 2023 Klingenstein Head of School Fellow at Columbia University, Steve has presented on advancement and leadership topics at AISAP, EMA, and NAIS.
Sarah Wilson is Executive Director of the Tennessee Association of Independent Schools. Sarah works with independent school leadership, faculty, and students on such topics as change management, leadership roles and structures, authentic student voice and leadership, and skills-based approaches to equity and inclusion and civil discourse.
