Tag: vouchers

Despite Court Ruling, Louisiana Still Has School Choice

The Louisiana Supreme Court struck down Louisiana’s nascent school voucher program today. There were about 5,000 LA students already receiving vouchers and about 8,000 were approved to receive vouchers in the next school year. The court ruled that once public funds are allocated to the state’s Minimum Foundation Program (MFP), the constitution prohibits reallocating those funds for other purposes.

Fortunately, there is another school choice program that rests on much firmer constitutional ground. Louisiana’s scholarship tax credit program avoids the voucher program’s constitutional troubles because its funds never enter the MFP. Indeed, they actually never enter the state treasury at all. Instead, taxpayers receive a credit for donations to nonprofit “school tuition organizations” that fund low-income students attending the schools of their choice. The program gives priority to students living in districts with failing government schools.

While Governor Jindal and school choice supporters across the Pelican State are disappointed with the decision, they need not despair. Instead, they should channel their efforts toward expanding the scholarship tax credit program. 

School Choice Works

The evidence is in: school choice works. Yesterday, the Friedman Foundation for Educational Choice released their third edition of their report “A Win-Win Solution: The Empirical Evidence on School Choice.” The report provides a literature review of dozens of high-quality studies of school choice programs around the country, including studies from scholars at Harvard University, Stanford University, Cornell University, the University of Arkansas, the Brookings Institution, and the Federal Reserve Bank. The studies examine the impact of school choice programs on the academic performance of participants and public school students, the fiscal impact on taxpayers, racial segregation, and civic values.

The report’s key findings included the following:

  • Twelve empirical studies have examined academic outcomes for school choice participants using random assignment, the “gold standard” of social science. Of these, 11 find that choice improves student outcomes—six that all students benefit and five that some benefit and some are not affected. One study finds no visible impact. No empirical study has found a negative impact.
  • Twenty-three empirical studies (including all methods) have examined school choice’s impact on academic outcomes in public schools. Of these, 22 find that choice improves public schools and one finds no visible impact. No empirical study has found that choice harms public schools.
  • Six empirical studies have examined school choice’s fiscal impact on taxpayers. All six find that school choice saves money for taxpayers. No empirical study has found a negative fiscal impact.
  • Eight empirical studies have examined school choice and racial segregation in schools. Of these, seven find that school choice moves students from more segregated schools into less segregated schools. One finds no net effect on segregation from school choice. No empirical study has found that choice increases racial segregation.
  • Seven empirical studies have examined school choice’s impact on civic values and practices such as respect for the rights of others and civic knowledge. Of these, five find that school choice improves civic values and practices. Two find no visible impact from school choice. No empirical study has found that school choice has a negative impact on civic values and practices.

On the same day, a new study from researchers at Harvard University and the Brookings Institution found that a school choice program boosted college enrollment among African-American participants by 24 percent.

While many of the findings show only modest improvement, they consistently show that school choice programs produce the same or superior results across a gamut of measures. Moreover, not all the benefits of choice are easily measurable. Some families are looking for a school that better meets a student’s special needs, instills the parents’ values, inspires a lifelong love of learning, or where a student is safe from bullying. These outcomes are sometimes difficult if not impossible to measure in the aggregate, but parents are in the best position to tell the difference for their own children.

WaPo Blogger Still Won’t Let Facts Get In Her Way

There she goes again.

Just a few weeks ago, Valerie Strauss of the Washington Post falsely accused scholarship tax credit programs of being “welfare for the rich,” an absurd claim that was easily debunked. Now Strauss is making similarly absurd claims about voucher programs in response to the Indiana Supreme Court’s unanimous decision upholding their constitutionality:

The notion is that families deserve to have a “choice” of schools for their children. The reality is that the amount of money provided in each voucher isn’t enough to cover tuition at a great many private schools, especially the elite ones that get most of the media’s attention, such as Sidwell Friends, which the Obama daughters attend.

The implication is that since school choice programs do not provide enough funding to make all choices affordable for low-income families, they don’t really provide “choice” at all. Moreover, Strauss seems to be arguing that if we can’t afford to send every child to the same school as the children of the president of the United States, then we shouldn’t do anything to expand educational options for low-income families. One wonders if Strauss also opposes food stamps because recipients can’t afford filet mignon every night.

While hiding behind weasel words that are technically correct—a “great many private schools” are too expensive for most low-income families even with vouchers—Strauss ignores the “great many private schools” that school choice programs do make affordable for low-income families. Take, for example, this story from yesterday’s New York Times:

Some parents of modest means are surprised to discover that the education savings accounts put private school within reach. When Nydia Salazar first dreamed of attending St. Mary’s Catholic High School in Phoenix, for example, her mother, Maria Salazar, a medical receptionist, figured there was no way she could afford it. The family had always struggled financially, and Nydia, 14, had always attended public school.

But then Ms. Salazar, 37, a single mother who holds two side jobs to make ends meet, heard of a scholarship fund that would allow her to use public dollars to pay the tuition.

She is now trying to coax other parents into signing up for similar scholarships. “When I tell them about private school, they say I’m crazy,” she said. “They think that’s only for rich people.”

GOP Senators Playing With Federal Education Fire

It’s easy to understand why several prominent GOP Senators, including Sens. Lamar Alexander, Mitch McConnell, Rand Paul, and Marco Rubio, are sponsoring federal school voucher legislation. State-level voucher programs have raised student achievement, increased high school graduation rates, and boosted college matriculation. School choice programs are also market-based initiatives that aid and appeal to low-income voters. As Senator Paul argued:

“School choice for low-income parents and students across America is a way out of the poverty cycle,” Mr. Paul said in a statement. “Allowing Title 1 funds to follow the student creates an opportunity for students to get the most out of their education in the best environment possible.”

Moreover, a recent survey from Harvard University’s Program on Education and Governance found a high level of support for expanded school choice programs. All that said, the GOP should resist the temptation of a federal voucher system.

Even setting aside the question of constitutionality (education is not listed in the Constitution as one of the federal government’s enumerated powers), there are practical reasons for being skeptical about increased federal involvement in America’s education system. It is very likely that a federal voucher program will lead to increased federal regulation of private schools over time. While there’s no law of the cosmos that states that federal dollars must come with strings attached, they most often do. And while the GOP legislators proposing the vouchers will likely keep regulations light at the outset, when the political pendulum swings—as it inevitably will—opponents of vouchers might find that it’s politically easier to add regulations to the program than to kill it outright. Once private schools become dependent on the federal money that their students bring with them, the vast majority will accept the new regulations rather than forgo the funding.

Instead of playing with federal fire, the GOP should embrace federalism. As David Boaz wrote in the Cato Handbook for Congress a decade ago, the case against federal involvement in education:

is not based simply on a commitment to the original Constitution, as important as that is. It also reflects an understanding of why the Founders were right to reserve most subjects to state, local, or private endeavor. The Founders feared the concentration of power. They believed that the best way to protect individual freedom and civil society was to limit and divide power. Thus it was much better to have decisions made independently by 13–or 50–states, each able to innovate and to observe and copy successful innovations in other states, than to have one decision made for the entire country. As the country gets bigger and more complex, and especially as government amasses more power, the advantages of decentralization and divided power become even greater.

School choice programs have been expanding rapidly among the states in recent years (albeit not as rapidly as I would like). Supporters of school choice should be encouraging that trend, working hard at the state level to expand educational opportunities. Expanding choice all across the fruited plain in one swoop may be tempting in its immediacy, but it’s not worth the price.

By Grapthar’s Hammer… What a Savings

Researchers Patrick Wolf and Michael McShane write in the National Review Online today that the DC Opportunity Scholarships Program saves money. They estimate that the ultimate net savings from the private school choice program’s initial 5 year trial period will amount to $113 million ($183 million in savings set against a cost of $70 million). That’s good news, but I, like Alan Rickman’s character in Galaxy Quest, am somewhat ambivalent about this savings figure.

The trouble is that the real savings are substantially greater, because the above estimate doesn’t seem to take into account not having to pay for these students to attend DC public schools (which would have been necessary, without the private school scholarship program). And as readers of this blog may remember, DC spends a whole lotta money on its public schools. Just shy of $30,000 per student, per year in fact. Assuming that the average program enrollment during the trial period was 1,500 students, it saved taxpayers an additional… $225 million. Added to the Wolf/McShane figure, the total savings is $338 million—for just a tiny program.

By Grapthar’s Hammer, that IS a savings!

The Real Problem with Highly Regulated “School Choice”

A Fordham Institute paper released today seeks to answer the question: do private schools really refuse to participate in heavily regulated school choice programs? Its authors tell us that “many proponents of private school choice… take [this] for granted,” citing two examples—one of them being the Cato Institute, whose Center for Educational Freedom I direct. The authors even cite a relevant commentary by former Cato policy analyst Adam Schaeffer.

The only problem is that the cited commentary says precisely the opposite. Describing Indiana’s voucher program, Schaeffer writes: “Because participating schools will have a significant financial advantage over non-participating schools, lightly regulated [non-participating] schools will face increasing financial pressure to participate.” This captures Schaeffer’s concern as well as my own (which I expressed over a decade ago in the political economy journal Independent Review): We do not fear that private schools will refuse to participate in heavily regulated school choice programs. We know that they ultimately will participate, or be driven out of business by their subsidized counterparts.

We know this because there is extensive evidence to that effect from all over the world and across history. Everywhere that private elementary and secondary schools are eligible for government subsidies, the share of unsubsidized school enrollment falls. The higher the subsidy and the longer it has been in place, the more the unsubsidized sector is generally diminished. The Dutch enacted a heavily regulated nationwide voucher program nearly a century ago. Unsubsidized private schooling remains legal, but has been reduced to a statistical asterisk—now making up less than one percent of enrollment, compared to roughly 70 percent for subsidized private schools.

Our reason for concern over this pattern is also grounded in empirical evidence: it is the least regulated, most market-like private schools that do the best job of serving families. That is the consensus of the worldwide within-country research, which I reviewed and tabulated for a 2009 paper in the Journal of School Choice. The Fordham paper does not discuss this evidence.

Despite imputing to Cato scholars the exact opposite of the view we hold, the paper does include some interesting data. In particular, it offers a new corroboration that voucher programs are more heavily regulated than tax credit programs (a difference whose magnitude and statistical significance was previously established here). This will make it even harder for objective observers to cling to the notion that vouchers and credits are functionally equivalent.

Public Prefers Education Tax Credits to Charters, Vouchers

In a recent public opinion study conducted by Harvard University researchers, education tax credits were found to attract more public support (72%) than either charter schools (62%) or vouchers (50%).

The authors seem to find this puzzling, in part due to their belief that “most economists think the difference between vouchers and tax credits more a matter of style than substance.” I have no idea whether this is an accurate assessment of economists’ opinions, but it is certainly a mistaken view, for several reasons.

First, based on a set of regression studies I reported last year in the Journal of School Choice, vouchers, but not tax credits, impose a large and highly significant extra burden of regulation on participating private schools (the link is to an essentially identical pre-publication version). In that study, I offer a suggested explanation for why this pattern may exist.

Second, tax credit programs confer freedom of choice and conscience not just on families but also on taxpayer/donors. As I argued in U.S. Supreme Court amicus briefs in ACSTO v. Winn, and a subsequent op-ed on the Winn verdict, this avoids the compulsion that has plagued state-funded school systems since their inception and has precipitated our endless “school wars.” Vouchers, by compelling all taxpayers to support every type of schooling, perpetuate that compulsion and so perpetuate the conflicts that flow from it.

To my knowledge, in the whole history of the world there hasn’t been a system of government funding for the education of children that has long avoided extensive regulatory constraints. Those constraints defeat the purpose of “school choice” programs, by homogenizing the schools from which parents are permitted to “choose.” There is evidence that tax credits, which make use of only private funds, avoid that fate. Perhaps many economists have not yet become aware of this distinction, but it is one they should take a keen interest in.