Tag: school choice programs

Ensuring that Indiana’s New Voucher Program Lives up to Budgetary Expectations

A new voucher program in Indiana looks likely to be signed by Gov. Daniels soon, but without a slight modification it may not have the benign budgetary impact that is expected.

As written, the program could have a significant negative impact on state finances if families claim both the vouchers and funds from the state’s existing education tax credits.

There is nothing that precludes children who receive a voucher from also topping off that amount with private funds from the existing education tax credit program. That means a voucher student could accept, for example, $4,500 in government funds and then apply for a tax credit scholarship that reduces state revenue by, say, $2,000. The voucher student would cost the state $6,500, not the $4,500 that would be counted on the books. If state funding is 100 percent sensitive to enrollment, the state would save $5,000 on that student switching, and the net impact on state finances would be a $1,500 loss. In other words, the program could have a negative net impact on state finances due to double-dipping.

From a fiscal standpoint, the state would show an apparent “savings” based on the $4,500 voucher, but this would fail to take into account the reduced revenue due to the credit. And the law requires these on-paper-only savings to be passed out to public schools districts. The result? The state government could be out $7,000 on the student in this example, not the $4,500 it paid out in a voucher. The net impact wouldn’t be neutral, it would be a $2,000 loss.

This scenario looks only at how the vouchers might impact state finances. At the local level, the program is likely to have a strongly positive impact on the resources available for each student. But a school choice program’s impact on state finances – ensuring financial transparency, certainty, and a neutral or positive impact – is a critical concern in its own right.

Critics of expanding educational freedom always claim, incorrectly, that school choice programs are a drain on public resources. But the double-dipping that is allowed under this program could inadvertently prove them right – it would also make Indiana’s existing education tax credit program a mere appendage to the new government voucher system. In short, it’s an unforced error, and worth fixing.

“… your month, or even your year”

At one time or another over the past two decades, most school choice supporters have felt like the subject of the “Friends” theme song; that it hasn’t been their day, their week, their month, or even their year.

Things are different now. For one thing, choice programs have proliferated and grown over time, more are being introduced this year than perhaps ever before. And for another, well, this IS their week: the first national School Choice Week.

Events are being held all over the country to celebrate the idea that families should be able to easily choose the best schools for their kids, and that schools should have to compete for the privilege of serving them.

Here at Cato’s Center for Educational Freedom, we’re dipping into the future to see what it holds. How are large scale public/private school choice programs working out in countries that have had them for two or three decades? To find out, we’ve invited the founder of the largest private school chain in Sweden and a Chilean economist researching his own nation’s program to share their experiences and findings on Friday at noon.

Given how alien for-profit k-12 schooling appears to most Americans, imagine the reaction Peje Emilsson got in 1999 when he proposed founding a chain of for-profit schools in Sweden. Already the founder of a multinational communications firm, Peje broached the idea with some of his nation’s top entrepreneurs and economists. If you’d like to find out what they had to say, and how his idea has turned out in practice, you won’t get another chance any time soon. Hope you can join us on Friday – to register for free, click here!

“You’ve Got to Admit It’s Getting Better…”

“…a little better all the time.”

Some school choice supporters and philanthropists began to suffer burnout a few years ago, disappointed that private school choice programs had not yet scaled up massively a decade-and-a-half after the first modern program was launched in Milwaukee. That disappointment is likely to give way in the coming years to new hope, and looking back a generation from now, 2010 may well be seen as a turning point in the history of educational freedom.

Last week, a private school choice bill sponsored by a Democrat (the Rev. James Meeks), passed the Democratic-controlled Illinois Senate. Even if this particular bill isn’t enacted into law, the impact of its passage in the Senate will reverberate around the country. Also in the past week, the Florida Senate passed a major expansion of its education tax credit program that would allow that program to expand every year in which demand for it has grown. Should current trends continue, that would allow it to become the biggest private school choice program in the country in a matter of years. It, too, was defended on the Senate floor by African American Democrats. And just a few weeks before that, a Democratic filmmaker saw his pro-school-choice education documentary picked up by Paramount Pictures.

It’s not even April yet!

2010 is shaping up to be a very good year indeed.

Why National Democrats are Like Wile E. Coyote

Illinois state senator James Meeks, an African American Democrat and long-time opponent of school choice, just switched sides.

In doing so, he swells the small but growing ranks of Democrats in Florida, New Jersey, and the nation’s capital, among others, who support giving parents an easy choice between public and private schools.

Like Wile E. Coyote, national Democrats have run off a political cliff in their reflexive opposition to educational freedom.  And like Wile,  they’re experiencing a temporary suspension of the law of gravity – not yet suffering for their mistake.

But we all know that the cloud at Wile’s feet eventually dissipates, and he realizes that he’s no longer on solid ground. By then, it’s too late.

As someone much happier under divided government than one party rule, I hope national Democratic leaders get a clue, and notice that the’ve left solid ground on education. There is still time for Obama and company to make it back to the cliff’s edge, calling for the expansion rather than the termination of DC’s K-12 scholarship program, and voicing support for education tax credits at the state level, as many of the party’s state leaders have already done. 

States are going to continue passing and expanding private school choice programs with or without the support of national Democrats. If president Obama and friends continue clinging to the anvil of government schooling while that happens, we all know how it’s going to turn out.

Beep. Beep.

(HT: Alexander Russo)

Women’s Suffrage Abandoned. “Too Unpopular,” says Anthony.

Reversing his earlier support for private school choice in the District of Columbia, Washington Post columnist Jay Mathews now calls for the end of the DC Opportunity Scholarship program. Why? “Vouchers help [low income] kids, but not enough of them. The vouchers are too at odds with the general public view of education. They don’t have much of a future.”

So private school choice programs work, but because they are not growing quite fast enough for Mr. Mathews’ taste we should abandon the entire enterprise? Why keep striving for total victory when can seize defeat today!

The thing is, major social changes are usually, what’s the word… oh yes: hard. Susan B. Anthony co-founded the National Women’s Suffrage Association in 1869. She died in 1906 – 14 years, 5 months and five days before passage of the 19th Amendment. If a social reform is right and just, it will inspire reformers who will fight for it every bit as long as it takes.

And even those who decide what social reforms to support based on their popularity should take note that school choice programs are proliferating all over the country. And newer tax credit programs, such as Florida’s, Pennsylvania’s, and Arizona’s, are all growing at a faster rate than older voucher programs like the one in Milwaukee. More than that, the politics of school choice have already begun to change at the state level. While Democrats in Congress had no qualms slipping a shiv into the futures of 1,700 poor kids, more and more of their fellow party members at the state level are deciding to back educational freedom.

Why Vouchers?

Yesterday a universal voucher bill heavily promoted by state Sen. Eric Johnson died in the Georgia legislature.

I can’t understand why anyone continues to push for a brand-new voucher program when they already have a universal education tax credit.

Tax credits are more popular and pose less of a threat to private schools and homeschoolers than vouchers, and Georgia already has a tax credit program. All they need to do is lift the cap on available tax credits, which is set at $50 million.

School choice programs actually save money — billions of dollars in fact — so there is no sense in capping the program, especially during an economic downturn.

And there is no sense in pushing for a new, inferior policy when you can focus your efforts on increasing funding for an existing law.

The Early-Ed Big Lie

In a speech on education this morning at the U.S. Hispanic Chamber of Commerce, President Obama repeats questionable statistics in support of his bid to expand the government’s monopoly on education back to the womb, asserting that “$1 of early education leads to $10 in saved social services.”

Unfortunately he’s referring to small-scale programs that involved extensive and often intensive total-family intervention rather than simple “early education.”

In contrast to the– real-world school choice programs have been tested extensively with solid, random-assignment studies. Nine out of ten of these studies find statistically significant improvement in academic achievement for at least one subgroup.

Obama should follow the scientific evidence on what works in education; school choice, not “early education.”