Tag: school choice

Markets and Social Justice in Housing and Education

For decades, discriminatory housing policies in the U.S. restricted the ability of black citizens to purchase homes outside of predominantly black ghettos. From the 1950s through the 1970s, real estate speculators called “blockbusters” made some progress opening up white-only neighborhoods to black families until an odd coalition of segregationists and left-wing activists succeeded in regulating blockbusters out of existence. Tragically, the U.S. housing market has remained largely segregated even until today. Moreover, because a family’s access to a quality education is determined primarily by the location of their home, black children are disproportionately assigned to low-performing district schools, depriving them of opportunity. 

Sadly, misguided suspicions about the market led left-wing leaders to support paternalistic regulations that harmed the very people they intended to help – a disastrous mistake that many modern progressives are now repeating in education policy.

In a recently updated version of his 1998 paper, “A Requiem for Blockbusting,” Dmitri Mehlhorn of the Progressive Policy Institute details the sordid history of discriminatory housing policy in the U.S. When Southern agricultural jobs dried up in the early 20th century, black workers began migrating to the industrial North. The response was ugly:

White Americans mostly reacted to this migration with coordinated and violent hatred. Driven by xenophobia, they used physical, political, and economic power to drive blacks into strictly circumscribed ghettos. The ugliness was a team sport, including local governments, state and federal agencies, courts, businesses, and the media.

At the federal level, the Federal Housing Administration encouraged racial covenants, stating that they “provide the surest protection against undesirable encroachment and inharmonious use.” These covenants contractually prohibited homes from being resold to black families. By the 1940s, integrated neighborhoods had ceased to exist in every major city in the United States.

The U.S. Supreme Court eventually ruled against racial covenants in housing, but racists found workarounds. As Mehlhorn details:

For instance, both federal and local agencies encouraged white flight by steering resources to whites seeking segregated suburban houses and schools, while cutting those resources for black families. So-called “urban renewal” laws were used to raze expanding black neighborhoods that threatened white institutions. Federal funds were used to construct massive public housing projects for the displaced black residents.

We are still feeling the effects of these discriminatory policies today, particularly in education, which is intimately linked with housing policy. According to a 2012 study by the UCLA Civil Rights Project, “80% of Latino students and 74% of black students attend majority nonwhite schools (50-100% minority), and 43% of Latinos and 38% of blacks attend intensely segregated schools (those with only 0-10% of whites students) across the nation.”

Reclaiming Liberal Support for School Choice

Aside from repeated promises about “free” college education that are prohibitively expensive and would create perverse incentives, last night’s Democratic presidential debate contained very little talk of education, particularly K-12 education. That’s much to the chagrin of most education policy wonks, but it’s for the best. Constitutionally, the federal government has little to no role in K-12 education nationwide outside of civil rights. Moreover, there’s little evidence that federal involvement in the classroom has improved education. 

One area the feds do have a role in K-12 education is in Washington, D.C., where Congress recently voted to reauthorize the D.C. Opportunity Scholarship Program (OSP), which has significantly higher graduation rates and costs much less per pupil than the district schools. Sadly, though the primary beneficiaries of the school voucher program are members of the Democrats’ base, elected Democrats mostly want to do away with it. President Clinton vetoed the OSP when it was first proposed and President Obama has repeatedly left it out of his proposed budget. The Democratic presidential frontrunner, Hillary Clinton, is not likely to be any more supportive than her predecessors–there is a reason, after all, that she scooped up early endorsements from the nation’s two largest teachers unions, which vociferously oppose educational choice. Indeed, none of the Democratic candidates even want to talk about the role of choice in education, as evidenced by their unanimous refusal to participate in the Seventy Four’s education forum with Campbell Brown.

Montana Bureaucrats: Religious Families Need Not Apply

Montana’s scholarship tax credit (STC) law was already crippled and now bureaucrats are attempting to issue the coup de grâce

Montana’s STC law offers individuals and corporations tax credits in return for donations to nonprofit scholarship organizations that help families send their children to the school of their choice. All Montana students are eligible to apply for a tax-credit scholarship and the value of the scholarships is capped at half the statewide average per-pupil expenditure at the district schools (just over $5,300).

The only catch is that donations are capped at $150 per donor, far lower than in any other state. That means it would take at least 34 donors to fund a single $5,000 scholarship–a monumental task for scholarship organizations seeking to fund thousands of students.

But even if the scholarship organizations manage to raise the requisite funds, families may not be allowed to use the scholarships at their preferred school due to Montana Department of Revenue’s proposed rule barring the use of tax-credit scholarships at religious schools

The proposed regulations would bar schools from participating in the program if they’re “owned or controlled in whole or in part by any church, religious sect, or denomination.”

The proposed regulations also note schools are barred if their accreditation comes from a faith-based organization. […]

Republican state Sen. Kristin Hansen, who supported the bill, said the department was out of bounds.

“It’s the opposite of the intent of the legislation,” she said. “When we drafted the bill, we intentionally drafted a substantial definition of who qualified, so there wouldn’t be any questions about who would be eligible. I think the department has exceeded its authority by adding its own interpretation … when the Legislature was very clear. Absolutely, I think this proposed rule exceeds the department’s authority on more than one level.”

The bureaucrats claim they’re just following the state constitution’s historically anti-Catholic Blaine Amendment, which prohibits the appropriation of “any public fund or monies” to churches, religious schools, and other religious institutions. However, as the U.S. Supreme Court and several state supreme courts have held, tax-credit scholarships constitute private funding, not public funding, because the funds never enter the state treasury. Constitutionally, tax credits are no different than tax deductions or tax exemptions. Has the Montana Department of Revenue prohibited donors to churches from receiving charitable tax deductions? Has it prohibited the churches themselves from taking property tax exemptions? If not, why is it treating the tax credit law differently?

The department will hold a hearing on its proposed rules on November 5th. Hopefully the bureaucrats will see the error of their ways and change course. If not, they are inviting a lawsuit–one they are likely to lose.  

Protecting School Choice from the State

As economists have understood for more than half a century, government agencies charged with regulating industries are often subject to regulatory capture. Rather than protect consumers from bad actors in the industries they were created to oversee, regulators too often develop cozy relationships with industry leaders and work at their behest to advance their interests. In Free to Choose, Milton and Rose Friedman detailed a particularly egregious example: the Interstate Commerce Commission (ICC).

Established in 1887, the ICC’s mission was to regulate the powerful railroad industry, which critics accused of engaging in cartel-like price fixing and market sharing. Instead, the railroad industry took almost immediate control of the ICC. The ICC’s first commissioner, Thomas Cooley, was a lawyer who had long represented the railroads and, as the Friedmans explained, many of the agency’s the bureaucrats “were drawn from the railroad industry, their day-to-day business tended to be with railroad people, and their chief hope of a lucrative future was with railroads.” 

The Year of Educational Choice: Update V

This is the sixth post in a series covering the advance of educational choice legislation across the country this year. As of my last update in early July, there were 18 new or expanded choice programs in 14 states. A few days after that update, Wisconsin enacted a new voucher program for students with special needs. And on Friday, North Carolina lawmakers finally passed a long-overdue budget that expanded the state’s two school voucher programs for low-income and special-needs students, bringing the total number to 21 new or expanded programs in 15 states. The updated tally is below.

A lawsuit against the Tar Heel State’s voucher law impeded implementation so only 1,216 low-income students participated last year, barely 10 percent of the 12,000+ applications the state received. In July, the North Carolina Supreme Court upheld the program, clearing the way for the legislature to expand it. 

Pope’s Visit Good Time to Contemplate Educational Freedom

The nation is abuzz with the visit of Pope Francis. There is, of course, a lot that could be discussed with the coming of the Pope, but for education it is a good time to remember the crucial importance of freedom. After all, for much of our history the biggest fights in education were over the public schools’ inability to accommodate Roman Catholics.

From the earliest advocacy of public schooling, arguably the primary goal has been to unite diverse people. As Founding Father Benjamin Rush put it in his Thoughts upon the Mode of Education Proper in a Republic, “Our schools of learning, by producing one general and uniform system of education, will render the mass of the people more homogeneous and thereby fit them more easily for uniform and peaceable government.”

Of course, there is a fundamental problem with this: diverse people will almost certainly want diverse things out of education, so conflict – and suppressing of politically weak minorities to end it – is inevitable.

For much of American history, there was no bigger flashpoint than religion.

Notably, the first religious disputes over “common schools” were not between Catholics and Protestants, but among Protestants. In the Massachusetts of common schools “father” Horace Mann, many orthodox Protestants took issue with the public schools that were to teach “nonsectarian” Christianity, a lowest-common-denominator Protestantism that, among many things, appeared to be Unitarian – Mann’s denomination. It is likely that Mann just wanted to avoid doctrines that would spur theological disputes, but even that proved impossible, with the absence of such doctrines also appearing sectarian.

ACLU v. Nevada Children

The American Civil Liberties Union announced today that it is filing a legal challenge against Nevada’s new education savings account program. The ACLU argues that using the ESA funds at religious institutions would violate the state’s historically anti-Catholic Blaine Amendment, which states “No public funds of any kind or character whatever…shall be used for sectarian purposes.”  

What “for sectarian purposes” actually means (beyond thinly veiled code for “Catholic schools”) is a matter of dispute. Would that prohibit holding Bible studies at one’s publicly subsidized apartment? Using food stamps to purchase Passover matzah? Using Medicaid at a Catholic hospital with a crucifix in every room and priests on the payroll? Would it prohibit the state from issuing college vouchers akin to the Pell Grant? Or pre-school vouchers? If not, why are K-12 subsidies different?

While the legal eagles mull those questions over, let’s consider what’s at stake. Children in Nevada–particularly Las Vegas–are trapped in overcrowded and underperforming schools. Nevada’s ESA offers families much greater freedom to customize their children’s education–a freedom they appear to appreciate. Here is how Arizona ESA parents responded when asked about their level of satisfaction with the ESA program:

 Parental satisfaction with Arizona's ESA program

And here’s how those same parents rated their level of satisfaction with the public schools that their children previously attended:

Parental satisfaction among AZ ESA families with their previous public schools 

Note that the lowest-income families were the least satisfied with their previous public school and most satisfied with the providers they chose with their ESA funds.

Similar results are not guaranteed in Nevada and there are important differences between the programs–when the survey was administered, eligibility for Arizona’s ESA was limited only to families of students with special needs who received significantly more funding than the average student (though still less than the state would have spent on them at a public school). By contrast, Nevada’s ESA program is open to all public school students, but payments to low-income families are capped at the average state funding per pupil ($5,700). Nevertheless, it is the low-income students who have the most to gain from the ESA–and therefore the most to lose from the ACLU’s ill-considered lawsuit.