Proposition 174 (The Voucher Initiative)

Policy Analysis for California Education (PACE) has analyzed the financial, legal, and social ramifications of Proposition 174, the school choice initiative, to provide Californians and policymakers with accurate, unbiased information. This brief contains important questions and answers about the initiative, summaries of PACE's financial analysis and polling report, and background information on PACE and its directors. PACE has published five separate analyses of Proposition 174, covering financial impacts, legal considerations, public opinion, and comparisons with other school choice efforts across the nation.

Proposition 174 would provide parents with state-funded vouchers worth approximately $2,500 annually to apply toward private or public school tuition, with an estimated cost of $1.35 billion if all existing private school students qualify. The financial implications of the initiative are uncertain, as savings depend heavily on how many public school students transfer to private voucher-redeeming schools. PACE’s analysis suggests that substantial taxpayer savings could occur only if policymakers decide not to reinvest the savings in public education, potentially increasing disparities between rich and poor school districts. Legal concerns include issues related to the separation of church and state, admissions discrimination, and the potential dilution of public school funding guarantees.

A statewide poll conducted by PACE reveals that while 63 percent of Californians support the school voucher concept, the public also favors strong accountability measures for private schools receiving state funds. Overwhelming majorities believe voucher schools should meet state academic, fiscal, and safety standards, hire certified teachers, and provide additional support for students with special needs. Despite general support for school choice, most Californians oppose initiatives that would reduce public school funding, highlighting the tension between promoting educational choice and maintaining adequate support for existing public schools.