Tag: andrew coulson cato

By Grapthar’s Hammer… What a Savings

Researchers Patrick Wolf and Michael McShane write in the National Review Online today that the DC Opportunity Scholarships Program saves money. They estimate that the ultimate net savings from the private school choice program’s initial 5 year trial period will amount to $113 million ($183 million in savings set against a cost of $70 million). That’s good news, but I, like Alan Rickman’s character in Galaxy Quest, am somewhat ambivalent about this savings figure.

The trouble is that the real savings are substantially greater, because the above estimate doesn’t seem to take into account not having to pay for these students to attend DC public schools (which would have been necessary, without the private school scholarship program). And as readers of this blog may remember, DC spends a whole lotta money on its public schools. Just shy of $30,000 per student, per year in fact. Assuming that the average program enrollment during the trial period was 1,500 students, it saved taxpayers an additional… $225 million. Added to the Wolf/McShane figure, the total savings is $338 million—for just a tiny program.

By Grapthar’s Hammer, that IS a savings!

The Real Problem with Highly Regulated “School Choice”

A Fordham Institute paper released today seeks to answer the question: do private schools really refuse to participate in heavily regulated school choice programs? Its authors tell us that “many proponents of private school choice… take [this] for granted,” citing two examples—one of them being the Cato Institute, whose Center for Educational Freedom I direct. The authors even cite a relevant commentary by former Cato policy analyst Adam Schaeffer.

The only problem is that the cited commentary says precisely the opposite. Describing Indiana’s voucher program, Schaeffer writes: “Because participating schools will have a significant financial advantage over non-participating schools, lightly regulated [non-participating] schools will face increasing financial pressure to participate.” This captures Schaeffer’s concern as well as my own (which I expressed over a decade ago in the political economy journal Independent Review): We do not fear that private schools will refuse to participate in heavily regulated school choice programs. We know that they ultimately will participate, or be driven out of business by their subsidized counterparts.

We know this because there is extensive evidence to that effect from all over the world and across history. Everywhere that private elementary and secondary schools are eligible for government subsidies, the share of unsubsidized school enrollment falls. The higher the subsidy and the longer it has been in place, the more the unsubsidized sector is generally diminished. The Dutch enacted a heavily regulated nationwide voucher program nearly a century ago. Unsubsidized private schooling remains legal, but has been reduced to a statistical asterisk—now making up less than one percent of enrollment, compared to roughly 70 percent for subsidized private schools.

Our reason for concern over this pattern is also grounded in empirical evidence: it is the least regulated, most market-like private schools that do the best job of serving families. That is the consensus of the worldwide within-country research, which I reviewed and tabulated for a 2009 paper in the Journal of School Choice. The Fordham paper does not discuss this evidence.

Despite imputing to Cato scholars the exact opposite of the view we hold, the paper does include some interesting data. In particular, it offers a new corroboration that voucher programs are more heavily regulated than tax credit programs (a difference whose magnitude and statistical significance was previously established here). This will make it even harder for objective observers to cling to the notion that vouchers and credits are functionally equivalent.

Where Will the Senate ‘School-to-Prison Pipeline’ Hearing Lead?

The Senate hearing at which I testified yesterday, chaired by Sen. Dick Durbin, seemed designed to raise support for legislation imposing federal mandates on states or districts to curtail the use of out-of-school suspensions, to make suspension policies uniform across schools, or both.

The motivations for such legislation are understandable. Out-of-school suspensions do little to help the suspended students educationally and they are correlated with arrests and incarceration. The Judiciary Subcommittee on the Constitution, Civil Rights, and Human Rights, which Sen. Durbin chairs, is particularly interested in these facts because African American students are much more likely to be suspended than whites.

But the facts do not support the kind of legislation that seems to be under consideration. Two recent and highly sophisticated studies by Rochester University professor Joshua Kinsler shed new light on the well-established trends noted above. For the first time, Kinsler factored-in between school variations in discipline policy when looking at the racial disparity in out-of-school suspensions. He discovered that, within any given school, black and white students sent to the principal’s office for a given reason are issued the same suspensions at the same rates. The disparity is all between schools.

Schools with predominantly black student bodies are more likely to issue suspensions, and to issue longer ones, for a given offense. White students at those schools get the same treatment, but most white students are in predominantly white schools that are less severe in their discipline policies. Black students at mostly white schools also get less severe punishments.

Kinsler did find that African American students were more likely to be referred to the principal’s office, which has long been seen as evidence of systemic racism.  To investigate that explanation, Kinsler looked for any relationship between teachers’ referral rates to the principal’s office and the race of those teachers and of the students they refer. He found none. This does not mean that racism plays no role, but it calls into question the view that racism is a dominant factor in referrals to the principal’s office.

In a subsequent empirical study, Kinsler investigated what would happen if all schools were compelled to observe a more lenient suspension policy, to close the black/white discipline gap. He found that this would disproportionately hurt the achievement of African American students, widening the black/white achievement gap.  The reason for this, according to Kinsler’s findings, is that serious suspensions do in fact discourage misbehavior, and that removing disruptive students from the class does improve the achievement of the other students.

Kinsler’s methodology, which jointly models discipline policy, student behavior and student academic achievement, is the most advanced I’ve seen used in this field. Unless and until his findings are found to be in error, or are contradicted by similarly sophisticated research, it would be unconscionable and counterproductive to impose a blanket reduction in suspensions on the nation’s schools.

None of this is meant to defend the cavalier use of out-of-school suspensions. As I explain in my written testimony to the Committee, there are much better alternatives and there are policies that will systematically encourage the use of those superior alternatives. I sincerely hope that Senator Durbin and his Committee do not leap before they look at these alternatives and at professor Kinsler’s findings.

Public Prefers Education Tax Credits to Charters, Vouchers

In a recent public opinion study conducted by Harvard University researchers, education tax credits were found to attract more public support (72%) than either charter schools (62%) or vouchers (50%).

The authors seem to find this puzzling, in part due to their belief that “most economists think the difference between vouchers and tax credits more a matter of style than substance.” I have no idea whether this is an accurate assessment of economists’ opinions, but it is certainly a mistaken view, for several reasons.

First, based on a set of regression studies I reported last year in the Journal of School Choice, vouchers, but not tax credits, impose a large and highly significant extra burden of regulation on participating private schools (the link is to an essentially identical pre-publication version). In that study, I offer a suggested explanation for why this pattern may exist.

Second, tax credit programs confer freedom of choice and conscience not just on families but also on taxpayer/donors. As I argued in U.S. Supreme Court amicus briefs in ACSTO v. Winn, and a subsequent op-ed on the Winn verdict, this avoids the compulsion that has plagued state-funded school systems since their inception and has precipitated our endless “school wars.” Vouchers, by compelling all taxpayers to support every type of schooling, perpetuate that compulsion and so perpetuate the conflicts that flow from it.

To my knowledge, in the whole history of the world there hasn’t been a system of government funding for the education of children that has long avoided extensive regulatory constraints. Those constraints defeat the purpose of “school choice” programs, by homogenizing the schools from which parents are permitted to “choose.” There is evidence that tax credits, which make use of only private funds, avoid that fate. Perhaps many economists have not yet become aware of this distinction, but it is one they should take a keen interest in.

Will Khan Academy Fulfill Its Potential?

In today’s Washington Times I review Salman Khan’s new book, The One World Schoolhouse. Pedagogically, the man is brilliant. But he seems to have a blind spot when it comes to the economics of education. Here’s how the review leads off:

In “The One World Schoolhouse,” Salman Khan presents a simple thesis: We learn best when we learn actively and at our own pace, mastering each new skill before proceeding to the next. What sets Mr. Khan apart from most pedagogical theorists, besides the fact that he’s actually right, is that he’s giving his services away. His website, KhanAcademy.org, hosts thousands of instructional videos and interactive lessons. Millions of people around the world have used them and sing their praises.

Given his growing success, Mr. Khan’s goal is suitably ambitious: “A free, world-class education for anyone, anywhere.” But he seems to want to change the way the world learns without changing the way the world schools.

Mr. Khan’s focus is inside the classroom on instructional practices and tools. He is largely silent on, and seems indifferent to, the ways schools are managed and how students choose or are assigned to them and the way teachers are trained and compensated.

Continue reading here…

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Taking Education Policy from Quackery to Science

I recently bewailed the peddling of education policy snake-oil – advocacy based on non-sequiturs and false/misleading/incomplete data. At the end of it, I teased a forthcoming piece suggesting how the field could be kicked up a notch in seriousness and value. It ran today on the Washington Post’s Answer Sheet blog.

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