ed by the findings of economists such as Chiswick
28. See, for instance, Keating Holland, "Poll:
and Koutroumanes: "The supply curve for private
Americans Generally Favor School Vouchers, But
schooling is assumed to be perfectly elastic in the
Unsure of Bush Plan," CNN/USA Today/Gallup
long run, although in the short run the supply
Poll, January 10, 2001; and "On Thin Ice: How
curve may be upward rising because of limitations
Advocates and Opponents Could Misread the
in factor mobility." Chiswick and Koutroumanes,
Public's Views on Vouchers and Charter Schools,"
p. 217. However, in the short term, there may be a
Public Agenda, New York, 1999, p. 13.
lag between the increase in demand and the
increase in supply. Private schools are not a good
29. Recent history suggests that spending on K-12
that can be quickly produced to meet sudden
education will increase at a rate greater than infla-
surges in demand. It requires time to hire teach-
tion. For example, total revenue available for K-12
ers; purchase supplies; and, when there is a large
education in Arizona increased 59 percent in the
enough increase, to locate or build a new school.
last decade. After adjusting for increases in the
Although there may be a temporary shortage in
number of students, the overall increase was 10.4
supply, the market will respond over time to a sus-
percent. Michael Hunter and Mary Gifford,
tained increase in demand by increasing supply.
"School Finance Primer," Goldwater Institute,
February 2000. Proposition 301, the legislation
32. Center for Market-Based Education, www.
that increased the donation for married couples
azschoolchoice.org/issues_facts/cs_factsheet.ht
to $625, also increased educational spending
m. For a discussion of the unique characteristics
through guaranteed automatic inflation-adjust-
of Arizona's education system, see Jay P. Greene,
ed growth in base-level school funding, excess
"The Educational Freedom Index," Manhattan
utilities funding, school building deficiencies
Institute Civic Report no. 14, September 2000.
funds, and other adjustments. The total increase
Greene created an "education freedom index"
in funding from Proposition 301 will be approxi-
based on the availability of charter school
mately $350 per pupil. Arizona Tax Research
options, government-funded vouchers, the level
Association, p. 4.
of restrictions on home schooling, the ease with
30. The average private school enrolled 191 stu-
which a family can relocate to qualify for a differ-
dents during the 199394 school year, the last
ent public school, and the choice of different pub-
year for which a nationwide estimate is available.
lic schools without relocating. Greene concluded
U.S. Department of Education, National Center
that Arizona has the highest level of educational
for Education Statistics, Schools and Staffing in the
freedom of any state in the nation. For example,
United States: A Statistical Profile, 199394, p. 23,
Arizona scored 4.84 on Greene's index for the
http://nces.ed.gov/fastfacts/display.asp?id=55.
availability of charter schools, and the next closest
state, Michigan, scored 1.96.
31. The assumption that the supply of private
33. Hoxby, p. 145.
schools will increase to meet demand is support-
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