Tag: tuition

Thanks, but I’d Rather Keep My Money under This Mattress

If his election rhetoric, or stories about tonight’s State of the Union, are any indication, this evening President Obama will talk a lot about “investing” in education. And that sounds nice, doesn’t it? I mean, who doesn’t want to wisely and profitably put money into the American people? The problem is, such federal spending has never been wise or profitable, unless the profit you seek is political points.

To demonstrate the dangerous folly of federal education spending, I offer the following chart on higher education. And shortly, Andrew Coulson will be delivering a damning graphic on k-12.

What does this chart show? That inflation-adjusted student aid—the vast majority of which came through the federal government—has exploded over the last thirty years, but probably hasn’t made college more affordable. No, it has fueled a more than doubling of inflation-adjusted college prices, all while median household income has been basically flat. Schools have simply raised their prices to capture the aid.

That’s some investment: students and taxpayers are out bigger and bigger sums of money while colleges—and approval-seeking politicians who want to show how much they “care”—reap the big profits. Probably not the payoff most people had in mind.

Is It Good to Have More Kids in the Inefficient and Less-Effective Government School System?

The Los Angeles Times editorializes today on our new research demonstrating the high cost of charter schools in terms of tax dollars and an impoverished private sector in education.

The editors still “see a lot to celebrate” in charter schools and I would heartily agree. Charter schools often provide a safe, better alternative to the existing public schools for many kids who desperately need one.

Oddly, the editors at the LAT seem most celebratory not about choice, empowerment, and competition-driven improvements in education, but about the prospect of “more enrollment and resources,” “more money,” and “more funding” that the formerly private school students will likely bring to the government school system.

But money isn’t the problem with government schools, otherwise the LA school district would be tops. LAUSD spent nearly $30,000 per student in 2008, over $20,000 excluding local bond revenue (they claimed just $10,000 that year).

Government schools, even government charter schools, are inefficient and a poor reflection of the educational diversity possible in the private sector. A Ball State University study estimated that charters received over $9,000 per student in 2007. The average tuition in Catholic schools, where most of the private charter students come from, was just $6,000 in 2008 according to the government’s NCES.

In other words, charter schools cost over 50 percent more than the average tuition at a Catholic school. And the charter school might well be worse for the kid who switches on average. After all, the private school would be that family’s first choice if money weren’t an issue. And because private schools have to charge tuition, they need to provide enough value to compete with taxpayer-funded schools. That means a private school needs to provide a value worth more than $15,000 while charging just $6,000 (the $9,000 parents could get in the charter school plus the $6,000 they have to pay out of pocket for tuition).

Because of financial hardships and a high tax burden to support government schools, many families are choosing to move their child out of the private school that’s best for their child to a newly acceptable, “free” charter school.

If we want the best education for the largest number of kids while lowering the tax burden at the same time, expanding government charter schools isn’t the way to do it. Private school choice through education tax credits is the route to sustainable, continuous improvements in educational achievement and efficiency.

 

‘Education’: The Relentless Political Weapon

On at least six occasions in his address to the nation last night President Obama invoked the words “education,” “student,” or “college” to scare listeners into thinking that the federal government must have increased revenues. Typical was this bit of cheap, class-warfare stoking rhetoric:

How can we ask a student to pay more for college before we ask hedge fund managers to stop paying taxes at a lower rate than their secretaries? How can we slash funding for education and clean energy before we ask people like me to give up tax breaks we don’t need and didn’t ask for?

Now, I’m all for eliminating economy-distorting tax loopholes, incentives, etc. But there is simply no way on God’s green Earth that the President—or anyone else—could look at what the federal government has done in the name of education and conclude that it has been anything but a bankrupting, multi-trillion-dollar failure:

  • Spending on Head Start is ultimately just money down a rathole according to the federal government’s own assessment
  • In K-12 education, Washington has dropped ever-bigger loads of cash onto schools out of ever-bigger jumbo jets, but has gotten zero improvement in the end
  • In higher education, all the money that supposedly makes college more affordable is actually a major driver behind students having ”to pay more for college”—just what the President decries—because it enables colleges to raise their prices at rates far outstripping normal inflation

The only people who regularly benefit from federal education profligacy are not students, but school employees and, especially, their lobbyists. They are teachers’ unions, tenure-track college professors, school administrators of all varieties, but not students, and definitely not taxpayers. Oh, and one other group: politicians who, despite the overwhelming evidence that all their spending on education is utterly useless, just keep exploiting students to buy votes and beat down anyone who would return the federal government to a sane—and constitutional— size.

Education, for our politicians, is not a thing to be fostered. If it were, they’d get out of the business. No, it is a political weapon, and it continues to be used to deadly effect.