Parents and students often fear the threat that if they opt out of state exams, their school could lose funding. However, this is an empty threat: no school has lost funding because of opting out.
In fact, the Every Student Succeeds Act (ESSA) specifically authorizes states to allow parents to opt their children out of exams. Ten states (Alaska, California, Colorado, Idaho, North Dakota, Minnesota, Oregon, Pennsylvania, Utah and Wisconsin) have laws specifically allowing parents to opt their children out. None has ever been sanctioned.