Tag: overregulation

The Folly of Overregulating School Choice: A Response to Critics

Earlier this week, NBER released the first random-assignment study ever to find a negative impact from a school voucher program. Previous gold standard studies had almost unanimously found modest positive effects from school choice, which raises the obvious question: what makes the Louisiana Scholarship Program (LSP) so different?

In an article for Education Next, I argued that, “although not conclusive, there is considerable evidence that the problem stemmed from poor program design.” The LSP is one of the most heavily regulated school choice programs in the nation, and that burden has led to a very low rate of private school participation.  Only about one-third of Louisiana private schools accept voucher students, a considerably lower rate than in most other states. From a survey of private school leaders conducted by Brian Kisida, Patrick J. Wolf, and Evan Rhinesmith for the American Enterprise Institute, we know that the primary reason private schools opted out of the voucher program was their concerns over the regulatory burden, particularly those regulations that threatened their character and identity. For example, voucher-accepting schools in Louisiana may not set their own admissions criteria, cannot charge families more than the value of the voucher (a meager $5,311 on average in 2012), and must administer the state test.

The Unintended Consequences of Regulating School Choice

Yesterday, NBER released the first random-assignment study of a school choice program ever to find a negative result. Students who received a voucher through the Louisiana Scholarship Program (LSP) during the 2012-13 school year were 50 percent more likely to receive a failing score on the state math test than students who applied for but did not receive a voucher. The study also found negative effects on reading, science, and social studies tests.

The previous research on school choice had been almost unanimously positive. Out of a dozen previous random-assignment studies, 11 found positive results overall or for some subgroups, and only one found no statistically significant impact. Until now, none found any harm.

So what happened this time? As I explain at Education Next today:

Although not conclusive, there is considerable evidence that problem stemmed from poor program design. Regulations intended to guarantee quality might well have had the opposite effect. The [Louisiana Scholarship Program]’s high level of private-school regulation appears to have driven away better schools while attracting primarily lower-performing schools with declining enrollments that were desperate for more funding. 

By George, I Think They’ve Got It: ‘Far Too Many Laws’

Occupy protesters come to Washington and finally notice what the problem is:

Timothy Evans, a D.C. taxicab inspector, …  notices too many inside a taxi jerking slowly up Fifth Street NW — not the seven or eight passengers he sometimes sees sardine-stuffed into the Crown Victorias and Town Cars that make up the bulk of the city fleet, but still too many.

He pops on his car’s flashing lights. The cab stops, and out they come, six of them.

While Evans goes to chat with the driver, his partner, Carl Martin, calmly absorbs invective — not from the driver but from the riders, a group of activists from California who are in town for the Occupy Congress protest.

Nadine Hayes, 59, of Camarillo, is none too happy her driver ended up with $50 worth of tickets — $25 for overloading, $25 for an improper manifest. “He was doing us a service and taking us to where we wanted to go,” she said. “I think we’ve got far too many laws. I think the American people are being so oppressed.”

Journalists Warn of Regulation’s Costs

All too often, news stories about proposed new regulations mention all the supposed benefits of the regulation while ignoring such potential costs as higher prices, reduced service, or even the demise of the business. Today I’m glad to see journalists noting those costs right up front in their discussions of a new regulation proposed by Virginia attorney general Ken Cuccinelli. Public radio WAMU says:

Currently there are 21 abortion clinics in Virginia. Abortion service providers say at least 17 of those might shut down if state officials use their authority to regulate those clinics.

Attorney General Ken Cuccinelli says abortion clinics provide many other medical services beyond abortions, so they’re subject to the same regulations as larger medical facilities.

That opinion was issued in response to a request from Virginia State Senator Ralph Smith, who says his only interest is to protect the health of the patient.

“I certainly feel that for the safety of all involved that they should be as regulated as other procedures,” says Smith.

For most clinics, meeting a higher regulatory standard could mean additional equipment or space renovation.

Tarina Keene director of NARAL Pro-choice Virginia says the cost involved could drive some clinics out of business.

Yes, indeed, they noted those potential costs right there in the first line. And so did the Washington Post, front page, third sentence:

Virginia Attorney General Ken Cuccinelli II has concluded that the state can impose stricter oversight over clinics that perform abortions, a move immediately decried by abortion-rights organizations and others as an attempt to circumvent the General Assembly, which has repeatedly rejected similar measures.

Cuccinelli’s legal opinion empowers the Board of Health, if it chooses, to require the clinics to meet hospital-type standards. Abortion-rights advocates say that could force some clinics to close because they would be unable to afford to meet the new requirements.

Now if only we could get journalists to take such prominent note of the costs that new regulations impose on other kinds of services, from lemonade stands to local restaurants to for-profit colleges to internet service providers.