Over the past two decades, Teach Coalition has advocated for expanded programs to support students in nonpublic schools. One of the key questions in these debates is simple: do nonpublic schools save taxpayers money?
The answer, as our analysis of New Jersey data in this new white paper, is yes – and by a significant amount.
This analysis focuses only on variable costs – the expenses that actually increase when a new student enrolls (like instruction and student support). It deliberately excludes fixed costs such as buildings and administration, which public schools largely pay regardless of enrollment. It also accounts for differences across districts, grade levels, and student needs—providing a more accurate and conservative estimate than earlier studies.
What We Found
1. Public schools spend heavily on variable costs
New Jersey’s 580 public school districts serve about 1.32 million students and spend $40.4 billion annually (excluding capital costs). Of that, about $26.8 billion—two-thirds of all spending—is variable, averaging $20,316 per student.
2. Nonpublic schools reduce the burden on taxpayers
Roughly 160,000 students attend nonpublic schools across 741 schools in New Jersey. If those students entered the public system, districts would need to absorb them immediately. By educating these students outside the public system, nonpublic schools generate an estimated $2.9 billion in annual savings.
3. The savings add up quickly
- Each nonpublic school saves its local district about $3.95 million per year
- Each nonpublic school student saves about $18,187 annually
4. Public school budgets would need to grow significantly
If all nonpublic school students moved into public schools, district budgets would need to increase by approximately 7.2% just to keep up.
A Conservative Estimate
These figures likely understate the true savings. They exclude fixed costs like facilities and administration. But in reality, a large influx of students would eventually require new classrooms, more staff, and expanded infrastructure—driving costs even higher.
They also do not fully account for the higher costs associated with certain student populations, including some special education services.
Nonpublic schools are not just an educational option – they are a major fiscal asset to the state. By educating more than 160,000 students, they reduce pressure on public school systems and save taxpayers billions each year.
Read the Full Report Here: https://teachcoalition.org/content/uploads/sites/9/2026/03/White-Paper-22-23-Cost-Savings-to-NJ-School-Districts_v1.2.pdf