Topic: Education and Child Policy

Which State Will Expand School Choice Next?

With over 150,000 participating students in 12 states, scholarship tax credit (STC) programs constitute the largest and most popular form of private school choice. STC programs have expanded rapidly in recent years with six states adopting them since 2011, including Alabama this year. So which state will be next? After yesterday’s disappointing defeat in South Carolina, the answer may lie on the opposite side of the continent.

Earlier this week, Rep. Liz Pike introduced an STC bill to the Washington state legislature. The bill would provide tax credits to corporations donating to state-approved scholarship organizations that fund children from low-income families and children with disabilities attending the schools of their choice.

Like the STC program that New Hampshire enacted last year, the WA legislation follows the best practices from STC programs around the nation and avoids the flaws of the recent bills in Virginia and Alabama. Washington’s proposed STC program would be capped at $100 million in the first year and includes an “escalator” so that the program will grow over time to meet demand and it eschews unnecessary new regulations. The $5,000 cap on scholarships is high enough to benefit low-income families but low enough that the state still has the potential to save money, as shown in this chart from the Freedom Foundation comparing the maximum scholarship size to Washington state’s total public school spending per pupil: 

How Tax Credits Result in Savings. Image courtesy of the Freedom Foundation.

The bill could go farther still by expanding the use of the scholarships to include educational expenses beyond just private school tuition. For example, under New Hampshire’s STC program, scholarships can cover expenses such as tutoring, textbooks, homeschool curricula, and online learning. Adding a similar provision would move the bill from school choice to educational choice, which would foster greater customization and innovation in the delivery of education.

But even without such provisions, school choice programs have been proven effective at improving student outcomes and adopting one would be a great leap forward for Washington’s education system.

Dear Arne: States Have “Unique Circumstances.” Please Coerce Uniformity

The Common Core curriculum standards, we’re all told, are “state led” and “voluntary.” So why are the Chiefs for Change – a group of Core-supporting state education chiefs – writing to U.S. Secretary of Education Arne Duncan to oppose a moratorium on Common Core accountability?

On behalf of Chiefs for Change, thank you for your continued leadership and collaboration on education reform issues, especially as states across the nation work to raise standards and strengthen accountability….

Recently, some members of the national education community have advocated for pulling back on accountability in our schools. With the majority of states across the nation adopting new assessments – based on higher academic standards – in the 2014-2015 academic school year, it is important for state education leaders to communicate in detail how we will sustain strong accountability during this transition.

The members of Chiefs for Change reject any calls for a moratorium on accountability. This position overstates the challenge and undervalues our educators. A one-size-fits-all suspension of accountability measures denies the unique circumstances each state faces. We will not relax or delay our urgency for creating better teacher, principal, school and district accountability systems as we implement more rigorous standards. That is a disservice to our students and would undermine the tremendous amount of preparation our states’ education agencies, districts, schools and educators have contributed to this multi-year effort….

We welcome additional opportunities to work with other states and with our federal partners on strengthening accountability in education.

What the heck is going on here? If this is all truly state led and voluntary, why are the chiefs writing to Secretary Duncan? Doesn’t he have zippo to do with it? And if they are really worried about states having the ability to deal with their own, “unique circumstances,” why do they positively refer to the 2014-15 school year, when Common Core-aligned national tests – selected and paid for by Washington – are supposed to kick in? And if they actually want Washington to have nothing to do with this, why didn’t they just write the following letter, saving themselves lots of time and pixels?

Dear Secretary Duncan,

Please don’t get involved.

Your friends,

The Chiefs for Change

The almost certain answer to all of these questions is that the chiefs know that Washington, through Race to the Top and NCLB waivers, has been the key to Common Core’s spread, and they want the Feds to keep twisting states’ arms. But since few Americans want Washington controlling standards or assessments, they can’t just come out and say this. So they write an obtuse open letter to the U.S. Secretary of Education that talks of states’ “unique circumstances,” and decries a possible accountability moratorium without saying who would, or would not, enact it. And, ultimately, the intended message seems to be “thanks for pushing states to do what we want. Now don’t go wobbly on high-stakes testing.”

Thankfully, as the recent explosion of Common Core resistance is making clear, people aren’t being fooled by the rhetorical tap dancing anymore. They know this is federal, and they are tired of efforts to deceive them.

Great Moments in Government Waste: University Edition

Last year, officials at the Univerity of New Hampshire complained bitterly about legislative budget cuts. UNH President Mark Huddleson, who earns more than three times the salary of New Hamphire’s governor at over $330,000 a year, called the cuts “a devastating and historic loss of $31 million,” which is just under six percent of UNH’s $583.5 operating budget. The wailing and gnashing of teeth made the recent revelation that UNH was paying a New York City marketing firm between $91,400 and $108,200 to redesign the school’s logo particularly surprising.

UNH's current logo

University officials felt that the school’s current logo, which features a clock tower from a building on campus, was not competitive enough in the 21st century so they paid the NYC firm to produce three proposed logos. Apparently this is what $100,000 gets you:

Proposed UNH logos

Unsurprisingly, a number of students and alumni are not happy with any of the proposed designs and some created a Facebook page to organize the opposition:

The Facebook page — UNH Students Against the Change of the Thompson Hall Logo — was created May 13 and had 572 likes as of Tuesday evening. Not all posts are supportive of Thompson Hall, but most are critical of the three finalists proposed by the design team.

“I think that a bunch of first graders could have come up with better designs! These are awful!” wrote Julie Glover, a 1983 UNH graduate.

Scotty Arsenault said the university should hire a local artist. “You’re paying a ridiculous amount for insultingly mediocre designs. Don’t limit yourselves to this shield/crest concept,” he wrote.

Grant Bosse, the editor of New Hampshire Watchdog (and my former colleague at the Josiah Bartlett Center), responded by creating a public Facebook page to crowdsource a new logo. Within 24 hours, there are already several submissions that at least as good as the $100,000 logos, including these:

Crowdsourced UNH logo designs

Not only is crowdsourcing free, it’s likely to create a better logo from an involved community that is clearly more invested in the product.

Student Loans: From Completely Disastrous, to Just 99 Percent

the state of higher ed fundingOn Thursday, the U.S. House of Representatives is scheduled to take up The Smarter Solutions for Students Act, which would end the practice of Congress designating interest rates for federal student loans, and instead link rates to the 10-year Treasury note. It would be a miniscule improvement. Basically, this change is like banging out a single dent in a car that’s careened off a cliff, rolled over twenty times, and caught fire.

It seems reasonable that if Washington is going to provide student loans, interest rates should be pegged to broader rates. There is disagreement about how much you add to base rates—Rep. George Miller (D-CA), for instance, is unhappy that the act’s rates could result in profits that would be used for deficit reduction—but letting Congress designate set rates is why we are once again scrambling to keep the subsidized loan rate from suddenly leaping to 6.8 percent from 3.4 percent. 

Of course, the root problem is that Congress furnishes student loans at all, killing the natural discipline that comes from people paying for something with their own money, or money they get from others voluntarily. Getting major dough from taxpayers has enabled massive overconsumption of higher education punctuated by dismal completion rates and huge underemployment for those who manage to finish. And giving people cheap money largely just enables colleges to raise their prices at breakneck speeds, often to provide frills that heavily subsidized students seem to happily demand.

Congress may inject a milliliter of sanity into a swimming pool of irrationality, but what it really needs to do is drain the whole thing.

Cross-posted at seethruedu.com

Public School Spending. “Officials” vs. “Some Critics”

The Wall Street Journal reports today that according to the latest Bureau of the Census figures there was a 0.4% drop in nominal U.S. public school operating spending from 2010 to 2011. The story then makes this unobjectionable factual observation:

Education officials say decreased spending will make it more difficult to prepare U.S. students for an increasingly competitive global marketplace. Some critics argue that public education costs are skyrocketing while academic achievement has not kept pace. They want the system overhauled before more money is spent.

What the story does not provide readers is any measure of student achievement that would allow them to determine who is right. Let’s see if we can help out. Below is an updated version of a chart some of you will already be familiar with. It shows the performance over time of U.S. 17-year-olds on the “Long Term Trends” testing program of the National Assessment of Educational Progress. The spending line corresponds to the trend in the total cost of a complete K-through-12 public school education (i.e., what it cost to send a high-school graduate all the way through public school). For good measure, it shows how the number of public school employees has roughly doubled since 1970–from about 3.3 to about 6.4 million people. 

So, who seems to be right: “Education officials” or “some critics”?

Incidentally, the WSJ only gives the partial “operating” figures for per-pupil spending. Actual total per pupil spending in 2010, adjusted to today’s dollars, was $13,871. That was down from the all-time inflation-adjusted high of $14,090 in the previous year. Still, $346,767 per class of 25 kids doesn’t seem too shabby.

Who’s Afraid of School Profits?

Should there be a separation of school and profit? Many opponents of education reform seem to think so.

Case in point, a blog post at the Washington Post yesterday decried “outside forces that want to make big profits on the backs of our nation’s most vulnerable children.” Setting aside that the vast majority of private schools are nonprofit, the author apparently misses the fact that parents choose to send their kids to these schools. (Does it make sense to complain that other businesses are profiting “on the backs” of their paying customers?) In order to persuade parents to switch to private schools, they must offer parents something that the free-to-attend government schools do not. Even when a school choice program covers the full cost of private school tuition, the parents would merely be financially indifferent. To motivate parents to choose something other than the default government school option, private schools still must offer something better.

Moreover, it is absurd to think that profit—in the sense of financial gain—is limited only to the for-profit sector. Do teachers, principals, and other school staff from janitors to bus drivers “profit” from their salaries or wages? What of the profits made by the corporations that publish the textbooks that students read? Or construct school buildings? Or manufacture desks, whiteboards, pens, pencils, and playgrounds? Whether government- or privately-run, nearly every adult involved in the formal education process is earning a “profit” short of the parents who volunteer to chaperone the high school dance.

Those who denounce “profits” in education simply don’t understand the role of profits in a market. Perhaps they are confused because in the government-run education system with which they are familiar, there is little connection between financial gain and meeting the needs of students. In a competitive market, by contrast, profits (and, just as importantly, losses) provide valuable information. As explained in Herbert Walberg and Joseph Bast’s excellent book, Education and Capitalism: How Overcoming Our Fear of Markets and Economics Can Improve America’s Schools (which is celebrating its 10th anniversary):

In a capitalist economy, profits are the reward earned by firms that maximize the quality of services and goods, minimize overhead and bureaucracy, motivate their workers to achieve high and consistent levels of productivity, and avoid unnecessary expenditures. Successful firms sell better, cheaper, or better and cheaper products and services than do other firms. Customers notice, and business gradually shifts from inefficient to efficient firms. […]

Low-performing government schools don’t gradually lose customers and face the threat of closure, the way an inefficiently run business does. As a result, there is little urgency for reform. Their assets do not move from the control of those who have misused them into the hands of others who could do a better job. (Pages 98-9)

In our existing education system, only the financially well-off can afford to live in the expensive districts with high-performing government schools or to pay for private schooling. Without school choice programs, low-income families are locked out of these markets. Instead, their only option is the local, assigned, government school. If I blogged for WaPo, I might say that these underperforming schools are built on “the backs of our nation’s most vulnerable children.”

DOJ vs. School Choice

Claiming that private schools in Milwaukee are discriminating against students with disabilities, the Department of Justice (DOJ) sent a letter to the Wisconsin Department of Public Instruction (DPI) demanding that private schools participating in the Milwaukee school choice program comply with Title II of the Americans With Disabilities Act. As Professor Patrick Wolf explains over at Education Next, the DOJ is wrong on the facts and wrong on the law.

Wolf is part of a team of researchers that has studied the Milwaukee school choice program over five years. Their statistical analysis “confirmed that no measure of student disadvantage—not disability status, not test scores, not income, not race—was statistically associated with whether or not an 8th grade voucher student was or was not admitted to a 9th grade voucher-receiving private school.” This is exactly what the law requires. Wisconsin law forbids discrimination on the basis of disability and requires schools participating in the voucher program to accept students on a random basis. 

Moreover, the DOJ is wrong on the law in treating private schools participating in the program as though they were government contractors. As Wolf explains:

Private organizations normally are exempt from Title II of ADA but the DOJ argues that the law applies to private schools in the MPCP because the government is contracting with them to provide a public service (the education of K-12 students). This claim flies in the face of the facts and case-law surrounding the program. The voucher program does not involve any contracts, of any kind, between any government organization and the participating private schools. Students need to meet certain eligibility restrictions to participate in the program, as do interested private schools. Once both are deemed eligible by the state, students choose schools and government funds flow to the private schools based on the choices families have made and consistent with the laws governing the program, not based on any “contract.” In fact, the Wisconsin State Statute that governs the MPCP, §119.23, is entirely separate from Wisconsin State Statute §119.235 entitled “Contracts with Private Schools and Agencies.” Nothing could make the point clearer that the MPCP is not a case of government contracting for education services.

Wolf suspects that the DOJ’s letter came as a result of the Wisconsin DPI’s report that 1.6 percent of choice students have a disability. Since the DPI is not authorized to collect that information, they estimated the number of students with disabilities using the number of choice students given accommodations on the state accountability exam. However, as Wolf explains, that is a highly flawed proxy since only a minority of students with disabilities are given such accommodations. Wolf’s team of researchers estimated that the number of choice students with disabilities between 7.5 and 14.6 percent, with their best estimate being 11.4 percent.

The DOJ’s overreach may be unsurprising in light of other recent scandals, but it also sets a terrible precedent. Parents choosing to use their vouchers at private educational institutions do not render those institutions “government contractors” any more than grocery stores become “government contractors” when citizens use their EBT cards to purchase food there. The Obama administration’s unlawful and misguided attempt to hamper school choice programs with additional red tape should be vigorously resisted.