Tag: vouchers

Government Can Tax Your Income, But It Doesn’t Own It in the First Place

As Andrew and Adam have already explained, today’s decision in ACSTO v. Winn, though grounded in the technical legal doctrine of “standing,” is a big win for school choice and state flexibility in education reform.  Even more importantly, it makes clear that there is a difference between tax credits and government spending; to find that tax money was used for unconstitutional ends here would have assumed that all income is government property until the state allows taxpayers to keep a portion of it.  That is not, to put it mildly, how we think of private property.

Of course, even had the Court found that Arizona’s scholarship scheme involved the use of state funds, the program would have been insulated from Establishment Clause challenge because it offered the “genuine and independent choice” that the Court has long required in such cases (most notably the 2002 school voucher case of Zelman v. Simmons-Harris). Many layers of private, individual decisionmaking separate the alleged entanglement of taxpayer funds with religious activities: the choice to set up a scholarship tuition organization (STO), the choice by an STO to provide scholarships for use at religious schools, the choice to donate to such an STO, the choice to apply for a scholarship, and the choice to award a scholarship to a particular student.  

Far from being an impediment to parental control over their children’s education or an endorsement of religious schooling, the autonomy Arizona grants taxpayers and STOs ultimately expands freedom for all concerned.  For more on that, see Cato’s amicus brief.

Also interesting about the case is that it offers us Justice Elena Kagan’s first significant opinion, for the dissenting four justices.  While not surprising that she would be in dissent here, in a “conventional” 5-4 split – although the “conservatives” adopted the position advocated by the Obama administration – there do appear to be some eyebrow-raising turns of phrase.  I won’t comment until I finish reading the opinion, but Ed Whelan offers an initial reaction at NRO’s Bench Memos blog.

Obama’s Little Evidence Problem

Last month I wrote a post on President Obama’s selective citation of evidence when debating which education programs to kill and which to keep. Well yesterday the administration struck again, issuing the following statement opposing a bill that would revive DC’s bleeding-out voucher program:

STATEMENT OF ADMINISTRATION POLICY

H.R. 471 – Scholarships for Opportunity and Results Act

(Rep. Boehner, R-Ohio, and 50 cosponsors)

While the Administration appreciates that H.R. 471 would provide Federal support for improving public schools in the District of Columbia (D.C.), including expanding and improving high-quality D.C. public charter schools, the Administration opposes the creation or expansion of private school voucher programs that are authorized by this bill.  The Federal Government should focus its attention and available resources on improving the quality of public schools for all students.  Private school vouchers are not an effective way to improve student achievement. The Administration strongly opposes expanding the D.C. Opportunity Scholarship Program and opening it to new students. Rigorous evaluation over several years demonstrates that the D.C. program has not yielded improved student achievement by its scholarship recipients compared to other students in D.C.  While the President’s FY 2012 Budget requests funding to improve D.C. public schools and expand high-quality public charter schools, the Administration opposes targeting resources to help a small number of individuals attend private schools rather than creating access to great public schools for every child.

So, as I wrote last month, while the Prez. has no problem calling for heaps of dollars for such proven failures as the 21st Century Community Learning Centers – $1.27 billion, to be exact – he won’t support $20 million for something that rigorous research actually works, quoting Andrew Coulson’s recent congressional testimony:

that students attending private schools thanks to this program have equal or better academic performance than their peers in the local public schools, and have significantly higher graduation rates. This, and very high levels of parental satisfaction, com[ing] at an average per pupil cost of around $7,000. By contrast, per pupil spending on k-12 public education in the nation’s capital was roughly $28,000 during the 2008-09 school year.

And such positive results, again in contrast to the President’s statement, are not an aberration for school choice. The highest-calibre research on choice has almost always found clear benefits stemming from it, and has never found negative outcomes.

Obviously I can’t read the President’s mind – he might oppose the voucher program but otherwise love big education spending for philosophical reasons, or he might just be appeasing teachers’ unions – but one thing I do know is that a fair examination of the evidence simply cannot support killing DC vouchers while spending lavishly everywhere else.

Why Ryan-Rivlin Beats ObamaCare on Costs — and Spending

Washington Post blogger Ezra Klein asks of Rep. Paul Ryan’s (R-Wisc.) Medicare voucher proposal (co-authored with former Congressional Budget Office director Alice Rivlin):

Why are the cost savings in his bill possible, while the cost savings in the Affordable Care Act aren’t?…when it comes to the ACA, Ryan firmly believes that seniors will quickly and successfully force Congress to reverse any reforms that degrade their Medicare experience. That’s a fair enough concern, of course. What’s confusing is why it isn’t doubly devastating when applied to Ryan-Rivlin.

Set aside that Klein violates Cannon’s First Rule of Economic Literacy: Never say costs when you mean spending.  And that he uses the word “affordable” to describe ObamaCare.

There are two reasons why the Medicare spending restraints in the Ryan-Rivlin proposal are more likely to hold than those in ObamaCare.

First, ObamaCare’s restraints amount to nothing more than ratcheting down the price controls that traditional Medicare uses to pay health care providers.  Structuring Medicare subsidies in this way – setting the prices that Medicare pays specific providers – makes it very difficult to lower those prices, because the system itself creates huge incentives for providers to organize and lobby to undo those restraints.  As I explain more fully in this op-ed from September 2010, Medicare vouchers would change that lobbying game by reducing the incentives for provider groups to expend resources in the pursuit of higher Medicare spending.  That gives the Ryan-Rivlin restraints a much better shot at surviving.  (Seriously, it’s a pretty cool feature.)

Second, Klein predicts a backlash against Medicare vouchers because he says it amounts to “giving seniors less money to purchase more expensive private insurance.”  The notion that Medicare is less costly than private insurance is pure, uninformed nonsense.  Medicare and a “public option” are attractive to the Left precisely because such programs hide the full cost of their operations from enrollees and taxpayers.  It is a virtue of vouchers that they would reveal to Medicare enrollees the actual prices of the coverage and services they demand, because that information will spur enrollees to be more cost-conscious when selecting a health plan and consuming medical services.  That, in turn, will force insurers and providers to compete on the basis of cost to a degree never before seen in this nation, competition that will generate the sort of cost-saving innovations that Jim Capretta discusses here.

Both of these reasons boil down to the truism that nobody spends other people’s money as carefully as they spend their own.  We’ll make a lot of progress in this country when the Left realizes how much damage they’ve done by ignoring that truism.

How to Think & Talk About Vouchers & Ed Tax Credits

School Choice Week is here, and there are a lot of people trying to spread the good word about the benefits of increasing educational freedom.

But what benefit of choice is best to focus on?

You can make at most a few points in an oped or on talk radio. On TV, and even in print reporting, you’re lucky to get one point across. And with friends and family, and even politicians, you need to keep the focus where it will do the most good.

So, should you focus on how horrible inner-city schools are, how many lives are destroyed in a failing government system? Maybe. Depends on the person, certainly.

But the evidence suggests that the best message overall is one that focuses on the financial benefits of school choice (and this is even before the financial crisis). People think about vouchers and education tax credits differently. And be careful trying to pull at Democratic heart-strings with arguments that choice will increase educational equity for poor kids … there’s evidence that it backfires!

Take a look at this slide presentation that describes how the public thinks about private school choice, what you should emphasize, and what you should be careful with … it’s not just my opinion, it’s based on evidence from a unique message experiment:

Remarkable Interest in School Choice in Colorado?

In Douglas County, CO, a jurisdiction with 240,000 residents south of Denver, there is strong public interest in the possible implementation of a sweeping school choice program.  Here’s a blurb from the Denver Post:

Douglas County School District officials say an unexpected level of interest in a retreat exploring school choice today and Saturday is forcing them to add an overflow room and a video feed to allow the public to watch the discussion. The school board is investigating a voucher program that would allow students to use public money to help with tuition at approved religious schools and other private ones. The two-day retreat will discuss the findings of a school-choice task force that has been mulling several issues, including vouchers.

…The board will officially discuss the school-choice recommendations at a meeting Tuesday night, during which the public will be allowed to comment. No Colorado school district has a voucher program.

Here’s a link to the full proposal. I’m told that parents will have a voucher for about $4,500 per child that can be used to finance tuition at any qualifying school. This is more than enough money to cover costs at most non-government schools, and the population is sufficiently large to make this program a dramatic test case.

Keep your fingers crossed that Douglas County officials resist special-interest groups that are seeking to thwart this reform. The teacher unions have been vicious in their efforts to stop this kind of development. If Douglas County succeeds in putting kids first, this could break the logjam and lead to better education policy across the nation.

Election Results in School Choice States

While most of the election punditry to date has been focused at the national level, major gains by Republicans in states that already have k-12 education tax credits or school vouchers could lead to the expansion of such programs or the passage of new ones. To see where the action might lie, I offer the chart below, showing post-election party control of the legislative and executive branches of government in school choice states (the height of each bar represents degree of control, with the height of the executive branch = 100%). The states are sorted by the number of branches of government that changed hands (represented on the chart by the yellow circles, which correspond to the axis on the right).

There might be gridlock at the national level, but at the state level we may see some interesting school choice developments over the next 2+ years.

ObamaCare: a Downward Spiral of Rising Costs and Deteriorating Quality

Here’s my contribution to a “one-minute debate” on ObamaCare in the Christian Science Monitor:

The new health-care law’s mandates are already causing health insurance premiums to rise 3 to 9 percent more than they otherwise would. Its price controls are pushing insurers to abandon the market for child-only coverage and will soon begin rationing care to Medicare patients, partly by driving nearly 1 in 6 hospitals and other providers out of the program.

Starting in 2014, when the full law takes effect, things will get really ugly. ObamaCare’s “individual mandate” will drive premiums even higher – assuming the courts have not declared it unconstitutional, as they should. Because the penalty for violating the mandate is a fraction of those premiums, healthy people will wait until they are sick to buy coverage, driving premiums higher still. This is already happening in Massachusetts, which enacted a nearly identical law in 2006. ObamaCare’s price controls will force insurers to cover sick patients at artificially low premiums, guaranteeing that insurers will avoid, mistreat, and dump the sick, because that’s what the price controls reward. ObamaCare’s private health-insurance subsidies will expose low-wage workers to implicit tax rates higher than 100 percent, potentially trapping millions in poverty.

With real reforms like Medicare vouchers and large health savings accounts, and letting consumers purchase health insurance across state lines, a free market would reduce costs and improve quality through innovations such as integrated health systems, nurse-practitioner-staffed primary care clinics, telemedicine, and insurance that offers even sick patients a total satisfaction guarantee.

But until Congress or the courts discard ObamaCare’s mandates, price controls, and new entitlement spending, there is literally nothing that can arrest this downward spiral of rising costs and deteriorating quality.

The above link will also take you to a counter-point by Kavita Patel of the New America Foundation.