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below projections in each of the next three

then the highest spending states would have

years. The same was true in New Jersey. New

the finest education systems in the land, and

York is perhaps the most amazing story of all.

the lowest spending states would be perform-

Tax increases in the late 1980s produced ane-

ing poorly. But state officials who believe that

mic revenue growth for the state treasury. But

increased education funding is the key to bet-

revenues have been climbing so rapidly since

ter school performance may be interested to

Gov. George Pataki's tax cuts in 1995 that,

learn that in 1997 the 10 highest spending

according to the Empire Foundation, a New

states spent twice as much as the 10 lowest

York taxpayer watchdog group, "Even when

spending states, but average SAT scores in

the final and deepest phase of New York's

the more frugal states were 16 percent higher

than in the big-spending states.35

income cut was implemented [in 1997], the

state's resurgent economy generated more

As does any monopoly, the government's

income tax revenue under Gov. George Pataki

educational monopoly tends to provide poor

than it ever did under former Gov. Mario

service for its customers and have inflated

Cuomo."31

costs. Per pupil spending in our public school

system is nearly double the average tuition at

An analysis by state budget analyst Michael

America's private schools.36 That private tui-

Flynn of the American Legislative Exchange

Tax cuts can be

Council finds that the New York experience

tion figure includes all of the nation's most

an act of fiscal

was not unique. Table 11 shows that in the 15

expensive nonsectarian private schools, like

states that cut income taxes by at least $75 mil-

Sidwell Friends where Washington's elite

prudence and pro-

lion between 1995 and 1998, income tax rev-

send their children. When those exclusive

vide an economic

enues climbed by a robust 10 percent or more

high-cost schools are omitted, the contrast

stimulus for

in every state except Michigan (where income

between the cost of public and private

tax revenues fell by 18 percent). In 8 of the 15

schools is even greater. Public education

states.

states income tax revenue growth was at or

spending per student is more than two and a

above the rate for all 50 states (29 percent).32

half times the average tuition at Catholic

schools, many of which are in the inner cities,

Clearly, tax cuts can be an act of fiscal pru-

and double the tuition at other religious

dence and provide an economic stimulus for

schools.37 For a fraction of the price, those

states.

The second objection to tax cuts is that

schools provide a better education than do

money should be reserved for underfunded

most government-run schools. They spend

public schools. It is understandable that politi-

less because they have less bureaucracy,

cians are sensitive to this argument. Public

concentrate on the basics, impose discipline,

opinion polls consistently show that educa-

and are held accountable for their perfor-

tion is a top priority in our society. But the

mance by parents and students who are there

reality is that school funding already has been

by choice.

rising dramatically for a very long time. In

There is no debate that America's schools

1970 spending on the public schools was

need to do a better job of educating our chil-

roughly $3,400 per pupil (in today's dollars).33

dren if the nation is to remain international-

ly competitive in the next century. Spending

By 1997 per pupil expenditures had nearly

more money on the public schools, however,

doubled to $6,600, even after adjusting for

has been tried in earnest for decades, and it

inflation. Smaller class sizes are the latest fad

has yielded at best mixed results. As educa-

in public education. But class sizes have been

tion analysts John Chubb and Terry Moe of

steadily declining for the past quarter century.

the Brookings Institution have noted:

Since 1970 the number of pupils per teacher

has declined by 23 percent, from 22.6 to 17.3.

As for money, the relationship

There is no evidence that greater funding

between it and effective schools has

has led to better schools.34 If more money

been studied to death. The unani-

were the answer to improving education,

23