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individuals. Such policies would begin to

schools, publicly funded voucher programs,

loosen the government's monopoly on edu-

tuition tax credits, private scholarships, and

cation and allow the natural growth of a

homeschooling. For instance, in 1991

vibrant education marketplace.

Minnesota became the first state to open a

charter school.11 Today 36 states, Puerto

Rico, and the District of Columbia have laws

Kindergarten­12th Grade

allowing charter schools.1 2 Milwaukee,

Education

Cleveland, and Florida have adopted voucher

programs; Minnesota, Arizona, Iowa, and

Illinois have adopted tuition tax credits. At

Most national discussions about educa-

the same time, a growing number of organi-

tional reform focus on kindergarten through

zations are privately funding scholarship

12th grade. The K­12 marketplace consists

programs. For example, the Children's

of more than 116,000 public and private

Scholarship Fund had awarded approxi-

schools, which served an estimated 53.5 mil-

lion children in 19995 at a cost of approxi-

mately $160 million in scholarships as of

mately $360 billion.6 Statistics and anecdotes

October 1, 1999, helping to send 40,000 chil-

dren to private schools.1 3 The Home School

showcasing the failure of the government-

run schools to educate students adequately

Legal Defense Fund estimates that the num

-

are commonplace:

ber of children being educated at home has

been increasing at a rate of 15 percent per

At fourth grade (ten years old),

year since 1990; as of the 1997­98 school

American children score better in

year, there were approximately 1.5 million

homeschoolers.1 4

reading and science than most

pupils in 20 other countries, and are

Despite the growing demand for alterna-

about average in mathematics. At

tives to state-run education, government still

eighth grade, they are still slightly

controls most of the money spent on educa-

better than average in math and sci-

tion in the United States. Of the $740 billion

ence but fall behind in reading. By

the United States spends on education,

12th grade, they are behind 95 per-

approximately 75 percent is collected, con-

trolled, and spent by government.15 Government-

cent of the children in other coun-

tries. The longer children stay in

run elementary and high schools, which teach

American schools, the worse they

approximately 88 percent of U.S. students,

The average grade

seem to get.7

enjoy near-monopoly status.1 6

that parents and

Although researchers offer many explana-

tions1 7 for the failure of public schools, the

the public gener-

The average grade that parents and the

public generally give the schools in their

lack of competition appears to be a funda-

ally give the

community and in the nation at large has

mental cause of the system's stagnation.

schools in their

declined since 1974 and hovers between C

Lewis Perelman, author of School's Out, puts it

and C+.8 At the same time, parental and pub-

this way: "In essence, the public school is

community and

America's collective farm. Innovation and

lic support for school choice--that is, allow-

in the nation at

productivity are lacking in American educa-

ing students and parents to choose a private

large has declined

tion for largely the same reasons they were

school to attend using tax dollars--has dou-

bled since 1991.9 Numerous polls show that

scarce in Soviet agriculture: absence of com

-

since 1974 and

18

petitive, market forces."

the majority of voters support this type of

hovers between

school choice.1 0

Edupreneurs are attempting to address

C and C+.

the need for improving K­12 education both

Dissatisfaction with public schools and

by working within and by competing against

support for alternatives are manifest not just

the state-run schools with a variety of prod-

in polls but in reality: witness the tremen-

ucts and services. Some companies are

dous growth over the past decade in charter

4