Education

‘We intentionally structured it this way’: School choice freeing up millions for Oklahoma public schools

September 9, 2026

Ray Carter

When state lawmakers created Oklahoma’s major private-school choice program several years ago, opponents argued it would drain money from public schools.

But new data indicates the opposite has occurred. Instead, thanks to private-school choice, as much as $110 million in funding may have been freed up for reallocation in public schools.

That’s because the per-pupil revenue that students leave behind when they exit public schools to attend private schools can be used for other public-school students, and that per-pupil public-school revenue far exceeds the size of the tax credit provided for private-school choice.

The Oklahoma Parental Choice Tax Credit program provides refundable tax credits of $5,000 to $7,500 per child to cover the cost of private school tuition. The largest tax credits go to those with the lowest incomes, and families with incomes under $150,000 per year are prioritized.

At the same time, the research arm of the National Education Association (NEA), a national teachers’ union, reports that Oklahoma’s public schools had $15,111 in revenue receipts per student, based on average daily attendance, during the 2024-2025 school year, the most recent for which full data are available

As a result, every time a student uses the PCTC program to leave public school and enroll in a private school, it effectively frees up $15,111 in the public school. The offsetting cost of the tax credit, which is funded separately from public schools’ funding, is no more than $7,500.

In the 2025-2026 and 2026-2027 school years combined, more than 7,300 students have used the program to switch from public schools to private schools in Oklahoma.

Based on those students’ family incomes and the average tax-credit award in their brackets, Oklahoma Tax Commission data indicate those students received around $48.9 million in credits this year while effectively freeing up as much as $110.4 million in public schools.

The fact that the PCTC program benefits public schools even as it boosts students’ access to private schools is no accident.

“Roughly $49 million has helped more than 7,300 students move from public to private schools in just two years. Parents have made it clear that they want the freedom to choose the educational environment that works best for their children,” said state Rep. Chad Caldwell, an Enid Republican who chairs the House Appropriations and Budget Subcommittee on Education. “And when a family receives a tax credit of no more than $7,500 for a student who would otherwise cost considerably more to educate in the public system, taxpayers benefit, too. We’re giving families more choices while reducing the cost to taxpayers, which challenges the argument that parental choice comes at the expense of our public schools. That may be an inconvenient truth for critics of parental choice, but the numbers deserve an honest look.”

In June, House Speaker Kyle Hilbert noted the PCTC program benefits public-school finances.

“The Parental Choice Tax Credit was created to expand opportunity and give Oklahoma families more control over their child’s education. Every time a parent chooses the PCTC, per-pupil funding in public schools increases. We intentionally structured the tax credit this way in 2023 to provide choice while protecting funds for public education,” said Hilbert, R-Bristow. “While some champions of the status quo continue to cherry-pick numbers to criticize the program, Oklahoma has received national attention for becoming a universal school choice state and giving parents more options to find the best fit for their children.”

The children whose families have used the PCTC program to shift from a public school to a private school over the two most recent years of the program include 1,085 students who qualify for welfare programs such as food stamps. Of the more than 7,300 “switcher” students, 69 percent come from low-income or middle-class families with no more than $150,000 in income.

The fiscal benefit of PCTC is occurring against a backdrop of record-high public-school funding in Oklahoma. The $15,111 in revenue receipts per student provided to public schools during the 2024-25 school year represented a 55% increase from 2017-18, when a prior edition of the NEA report found per-student revenue receipts of $9,724.