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The pursuit of

the school choice movement into a new and

Introduction

more successful phase.

highly regulated

This study begins with a detailed analysis of

and targeted

the two most powerful kinds of school choice

Formidable obstacles to spreading educa-

programs impedes

reform: education vouchers and tax credits.

tional freedom abound. Powerful teachers'

The national discussion on private school

unions and a huge government education

the rise of a

choice is dominated by talk of vouchers.

industry want to preserve their prerogatives;

competitive

However, tax credits have clear advantages over

and a broad range of middle-class parents are

vouchers on many levels. Tax credits are more

eager for reform but anxious about major

education

popular with the public and politicians, less

changes to a system they often believe per-

industry.

forms adequately in their own communities.1

likely to be challenged in court, and more like-

ly to survive most court challenges. They create

These are daunting hurdles for any policy to

powerful, positive political dynamics that

clear, but most school choice reform efforts to

strengthen the policy over time and make

date have taken forms that put them at a dis-

defense and expansion more likely.

advantage to these status-quo forces.

The school choice movement's focus on

Policy elites play a large role in setting the

targeted programs is not a helpful short- or

agenda: they produce the articles, papers,

long-term strategy, regardless of whether the

arguments, and ideas that legislators draw on

goal is specifically to serve disadvantaged chil-

when writing legislation. Long before any

dren or children from all families. Broad-based

model legislation is drawn up, policy

programs are more likely to lead to long-term

researchers produce the ideas and strategies

legislative success, program success, program

that legislators read or talk about with mem-

survival, and program expansion.4 And yet, tar-

bers of the policy elites. Considering the lim-

ited time legislators have for exploring policy

geted programs dominate the discussion and

alternatives, those who go looking for a

legislative agenda. Also, under targeted pro-

school choice proposal will likely be influ-

grams, special regulations are often imposed

enced by the dominant policy discussion.

on schools that accept students supported

Therefore, the school choice policy discus-

through school choice programs. Such regula-

sion must reflect the best ideas available.2

tions limit those programs' effectiveness in

delivering choice and increased student

School choice efforts will more likely suc-

achievement, and sideline many of the most

ceed if greater attention is paid to principles of

natural allies of school choice reform. Nonethe-

good policy and politics in the design of legis-

lation.3 More than 50 years have passed since

less they are a common feature of legislation.

The discussion that follows explains these pol-

the birth of the modern school choice idea in

icy issues in detail as well as the considerations

America. Serious political efforts have been

that underpin the structure of the model legisla-

under way for over a quarter century. And for

tion presented in this paper. No existing model

perhaps 15 years America has enjoyed what can

legislation is structured in a way that addresses all

properly be called an organized and active

of these concerns. The Public Education Tax

school choice movement. School choice policy

Credit model legislation embodies the principles

during this period has been driven by certain

of good policy and good politics described here.

implicit preferences that are, on closer exami-

Toward that end, this paper

nation, inimical to effective educational choice

reform. Specifically, the pursuit of highly regu-

· Explains why nonrefundable personal

lated and targeted voucher programs impedes

the rise of a competitive education industry

use and donation education tax credits

and creates unnecessary political disadvan-

are preferable to vouchers;

· Explains the importance of passing

tages for school choice supporters. A new

approach that rests on timeless principles,

broad based rather than narrowly tar-

empirical research, and polling data can move

geted school choice programs;

2