Florida Lawmakers Propose Legislative Overhaul of School Voucher System Following Critical Audit

Florida lawmakers filed a bill to reform the school voucher system after audits revealed $270 million in unaccounted funds.
View of the Washington DC Capitol building under a cloudy sky View of the Washington DC Capitol building under a cloudy sky
By MDL.

Executive Summary

  • Senator Don Gaetz introduced SB 318 to reform the Florida Empowerment Scholarship program following a critical state audit.
  • Auditors identified up to $270 million in daily unaccounted funds and discrepancies in student enrollment data.
  • The bill proposes separating scholarship funds from district budgets, mandating annual audits, and strictly verifying student enrollment.
  • The legislation has received bipartisan support as a necessary measure to prevent a potential state budget crisis.

Florida state legislators have unveiled a bipartisan proposal to restructure the Florida Empowerment Scholarship program after state auditors identified significant administrative failures and financial discrepancies within the current system. The proposed legislation, Senate Bill 318, aims to implement strict regulatory guardrails on the school choice program, which currently serves approximately 20% of the state’s students.

According to Senator Don Gaetz (R-Escambia), who filed the bill, the measure is a direct response to a recent legislative audit that exposed severe accounting gaps. Auditors reported that on any given day, the amount of money the state cannot account for could exceed $270 million. The report highlighted systemic issues, including payments made to ineligible recipients and discrepancies regarding the enrollment status of tens of thousands of children.

Senate Bill 318 proposes several structural changes to address these findings. The legislation seeks to separate scholarship funding from general school district budgets to prevent commingling of funds. Additionally, the bill would establish standardized application windows and uniform paperwork requirements to allow for better planning by both families and educational institutions. To ensure public funds are correctly allocated, the proposal mandates new verification steps, such as cross-checking enrollment records, and requires annual audits of the program.

The bill has garnered bipartisan support. Senator Rosalind Osgood (D-Broward) stated that the Democratic caucus supports the move toward greater accountability, noting that the current trajectory of the program poses a potential budget crisis for the state. Under the new provisions, public schools would also be permitted to offer services to scholarship students on a fee basis, potentially aiding districts facing declining enrollments.

Legislative Accountability and Fiscal Oversight

The introduction of SB 318 signals a significant shift in Florida’s approach to school choice, moving from rapid expansion to regulatory stabilization. By proposing the decoupling of scholarship funds from district budgets and mandating annual audits, lawmakers are attempting to mitigate the fiscal risks associated with the rapid growth of the Florida Empowerment Scholarship. This legislative effort underscores the administrative challenges inherent in scaling privatized education subsidies and establishes a framework for stricter state oversight of public funds diverted to private education entities.

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