Tag: school vouchers

Defending Privilege in a World of Disruptive Innovation

Two front-page stories in the Metro section of Monday’s Washington Post depict protected service providers desperately trying to fight off innovations that might serve customers better and threaten the comfortable incomes of the established providers.

First up, Tesla and the automobile dealers:

Don Hall, president of the Virginia Automobile Dealers Association, was making the hard sell.

Staring directly into the camera, using the language of war, he urged car dealers to unite against a force that he said threatened their livelihoods: electric-car-maker Tesla….

The reason that Hall was sounding the alarm: Tesla, which sells its cars directly to consumers rather than through franchise dealers, is trying to open a second store in Virginia.

Car dealers in Virginia and across the country have been fighting Tesla, seeing the company’s direct-to-consumer sales model as a threat to the franchise system that they say protects consumers as well as their own business interests.

In Virginia, as in most states, it is generally illegal for manufacturers to sell cars directly to consumers.
Like all regulatory rent-seekers, the automobile dealers have some public interest rationales, such as the claim that customers benefit by being able to shop for service among multiple dealers of the same automobile. But their arguments may rest more firmly on the fact that “over the past decade, VADA has given Virginia politicians $4 million in campaign contributions.”
 
Private companies aren’t the only protected providers. Just below the Tesla story was one about advocates of the federally funded school voucher program in the District of Columbia hoping that a new president will be more supportive of school choice than President Obama has been. Defenders of the traditional school monopoly are not giving up:

The prospect of an expanded voucher program is not a welcome one among the District’s elected officials, who chafe as Congress — where the District has no vote — passes laws that shape the landscape of city education. Many also are ideologically opposed and worry that an expanded voucher program could threaten the progress and growth of the city’s traditional public and public charter schools.

“I’m 100 percent opposed to public dollars going to private schools like this,” said D.C. Council Member David Grosso (I-At Large), who has spoken forcefully against the voucher program for years.

In a world where millions of students, especially low-income and urban kids, are getting a poor education, teachers unions and school bureaucracies have been fighting choice programs for more than two decades. Just like automobile dealers, they put their own interests ahead of those of their customers.

I should note that Clayton Christensen, who coined the term “disruptive innovation,” would probably say that these examples don’t qualify. Maybe I should just use the older term “creative destruction.” By any name, it’s people trying to protect their own lucrative position against competitors who think they can serve consumer needs better.

Scholarship Tax Credits: Still the Reigning School Choice Champion

Today, Education Next released the results of its annual survey of public opinion on education policy. The 2016 results are somewhat disappointing for advocates of school choice because support for some types of choice programs has diminished over the last decade, particularly for voucher programs targeted to the poor. However, support for scholarship tax credit (STC) programs – once again, the most popular type of school choice program – has remained high and steady.

When asked whether they favored or opposed a proposal to offer a “tax credit for individuals and corporate donations that pay for scholarships to help low-income parents send their children to private schools,” 53 percent responded favorably while only 29 percent expressed opposition. Respondents were nearly evenly divided over universal vouchers, with 45 percent in support and 44 percent opposed. However, nearly half of respondents opposed targeted vouchers while only 37 percent supported them. Charter schools fared better, but many people don’t know what they are. When the survey asked about charter schools without defining what they are, nearly half of respondents were neutral. However, when the survey defined them as “publicly funded” schools that are “not managed by the local school board” that “are expected to meet promised objectives, but are exempt from many state regulations,” the amount of respondents who expressed no opinion dropped to 21 percent while support increased from 34 percent to 51 percent and opposition increased from 17 percent to 28 percent.

2016 Education Next Survey: Support for Various Types of School Choice

2016 Education Next survey results.

Unfortunately, once again the survey failed to ask about education savings accounts.

Support for STCs was even higher among parents (60 percent), African-Americans (64 percent), and Hispanics (62 percent). This is not surprising since minorities are more likely to be low-income and therefore choice deprived. Interestingly, support for STCs was higher among self-described Democrats (57 percent) than Republicans (49 percent), although the GOP has generally been more supportive of school choice than the Democratic Party. Democrats were also more likely to support both universal and targeted vouchers (49 and 42 percent, respectively) than Republicans (41 and 31 percent, respectively). 

Previous Education Next surveys also found that STCs garnered the highest amount of support from among the various school choice policies. Since 2009, support has increased from 46 percent to 53 percent, although it is down from a high of 60 percent in 2014. However, at 29 percent, opposition to STCs is also at its highest level since EdNext began including the question in their survey. Neverthess, there is a 24 percentage point advantage for those who favor STCs. (Note: EdNext did not ask about STCs in their 2013 survey.)

Education Next Surveys: Support for STCs

Education Next survey results, 2009-2016 

With the addition of South Dakota earlier this year, there are now 17 states that have 21 STC programs. Last year, more than 230,000 students used tax-credit scholarships to attend the private school of their choice, compared to about 150,000 students who used school vouchers and about 6,000 who used education savings accounts ESAs. Their high level of public support makes them the most politically viable form of school choice and because they are privately (rather than publicly) funded, they have a perfect record of being upheld as constitutional, making them the most constitutionally viable form of school choice yet devised as well.

Although ESAs have some advantages over both vouchers and traditional STC programs because they allow for greater customization, it is possible to combine the advantages of ESAs and STCs by privately funding the education savings accounts with the assistance of tax credits. For more information, see the report I coauthored with Jonathan Butcher of the Goldwater Institute and Arizona Justice Clint Bolick (then of Goldwater): “Taking Credit for Education: How to Fund Education Savings Accounts through Tax Credits.”

The EdNext survey also covered topics such as Common Core, testing, merit pay, tenure, teachers unions, blended learning, and more. You can find the full results along with ten-year trend data here.

NH Governor Vetoes School Choice Bill

For a few years now, the town of Croydon, NH (population 651) has been fighting with the governor and state board of education over their school choice policy. The town isn’t large enough to sustain its own K-12 district school, so it contracts with a neighboring town to educate most of its residents’ children starting in 5th grade. But when its contract was approaching expiration a few years ago, the town decided to give local parents the option of sending their children to private schools as well, and the town would cover tuition up to the amount that it was spending per pupil at the neighboring district school (about $12,000).

That’s when the governor and state education bureaucrats got involved. They objected to the town’s use of tax revenue at non-government schools, though they had difficulty pointing to exactly which law or statute the town was violating. They’re currently embroiled in a lawsuit to sort out whether Croydon has the authority to decide how to spend its local tax dollars, but meanwhile the state legislature passed a bill clarifying that Croydon and similar towns have the authority to enact their own school choice policies. 

Last week, NH Gov. Maggie Hassan vetoed that bill citing two arguments I had already refuted in a Union Leader op-ed earlier in the week. In her veto message, Gov. Hassan wrote:

House Bill 1637 diverts taxpayer money to private and religious schools with no accountability or oversight, a clear violation of the New Hampshire Constitution, which states, ‘… no money raised by taxation shall ever be granted or applied for the use of the schools of institutions of any religious sect or denomination.’ Not only is the bill unconstitutional, it also has no mechanism to ensure a student’s constitutional right to the opportunity to receive an adequate education and would undermine the state’s efforts to ensure a strong and robust public education system for all New Hampshire students.

“Under current New Hampshire law, public schools are required to provide the opportunity for an adequate education, as defined by the Legislature, and are held accountable through laws and rules that require monitoring and review by the Department of Education. Additionally, as required by statute and as a result of Supreme Court decisions requiring a statewide education accountability system, New Hampshire schools are required to participate in the Statewide Educational Improvement and Assessment Program. If House Bill 1637 is enacted, public funds would be used to send students to private schools – which are only approved by the Department of Education for attendance and not curriculum, without the same accountability standards as the public schools – violating the requirements of state law and the state Constitution.

Congress Voting to Save School Choice in D.C.

Tomorrow, Congress is scheduled to vote on the Scholarships for Opportunity and Results (SOAR) Act, which would reauthorize the D.C. Opportunity Scholarship Program (OSP). The OSP was scheduled to expire later this year. Back in December, I expressed skepticism about a standalone reauthorization bill because the Obama administration has repeatedly worked to undermine or eliminate the school choice program, even though the OSP has the support of local Democratic politicians such as D.C. Mayor Muriel Bowser and a majority of the D.C. City Council. Fortunately for the low-income children attending the schools of their choice through the OSP, the president has signaled that he does not intend to veto the legislation:

“While the administration continues to strongly oppose the private school vouchers program within this legislation, known as the D.C. Opportunity Scholarship Program, the administration will continue to use available SOAR Act funds to support students returning to the program until they complete school, so that their education is not disrupted,” the Office of Management and Budget said.

The White House stopped short of issuing a veto threat. But the administration made clear its distaste for the voucher program, which President Obama has tried to kill several times. The measure, a priority of former Republican Speaker John Boehner of Ohio, provides money for some students in D.C. to attend private school.

Predictably, the White House claimed that studies of the D.C. OSP show it has “not yielded statistically significant improvements in student achievement by scholarship recipients compared to other students not receiving vouchers,” ignoring that the OSP achieves those similar results at a fraction of the cost (less than $9,000 per voucher on average versus about $30,000 per district school student), and that the same random-assignment study found that OSP students were 21 percentage points more likely to graduate from high school than the control group. 

Low-income students shouldn’t be condemned to low-quality schools just because their parents cannot afford a home in a wealthy neighborhood. As the Washington Post wrote in a recent editorial, “The scholarships provide a lifeline to low-income and underserved families, giving them the school choice that more affluent families take as a given.” The D.C. OSP was an important step toward breaking the link between home prices and school quality, so it’s encouraging to see that D.C. is not likely to take a step backward. Ideally, though, Congress would take the next step from school choice to educational choice by enacting a universal education savings account program.

The Folly of Overregulating School Choice: A Response to Critics

Earlier this week, NBER released the first random-assignment study ever to find a negative impact from a school voucher program. Previous gold standard studies had almost unanimously found modest positive effects from school choice, which raises the obvious question: what makes the Louisiana Scholarship Program (LSP) so different?

In an article for Education Next, I argued that, “although not conclusive, there is considerable evidence that the problem stemmed from poor program design.” The LSP is one of the most heavily regulated school choice programs in the nation, and that burden has led to a very low rate of private school participation.  Only about one-third of Louisiana private schools accept voucher students, a considerably lower rate than in most other states. From a survey of private school leaders conducted by Brian Kisida, Patrick J. Wolf, and Evan Rhinesmith for the American Enterprise Institute, we know that the primary reason private schools opted out of the voucher program was their concerns over the regulatory burden, particularly those regulations that threatened their character and identity. For example, voucher-accepting schools in Louisiana may not set their own admissions criteria, cannot charge families more than the value of the voucher (a meager $5,311 on average in 2012), and must administer the state test.

Survey Says: Black Voters Support School Choice

The Black Alliance for Education Options released the results of a new survey of black voters in four states on education policy. The poll found that more than six in ten blacks in Alabama, Louisiana, New Jersey, and Tennessee support school vouchers.

BAEO Survey: Support for School Vouchers 

Source: BAEO Survey on Education Policy

The results are similar to Education Next’s 2015 survey, which found that 58 percent of blacks nationwide supported universal school vouchers and 66 percent supported vouchers for low-income families.

The survey also asked about black voters’ views on charter schools (about two-thirds support them), “parent choice” generally (three-quarters support it), and the importance of testing. However, it appears that BAEO is overinterpreting the findings on that last question, claiming:

The survey also indicated solid support among Black voters that believe educational standards such as Common Core and its related assessments is essential to holding education stakeholders responsible for student learning outcomes.

If the wording of the survey question was identical to how it appears on their website, then it says absolutely nothing about black support for Common Core. The question as it appears on their website is: “Do you think that testing is necessary to hold schools accountable for student achievement?” The question doesn’t mention Common Core at all. For that matter, it doesn’t mention standardized testing specifically, nor explain how the testing is meant to “hold schools accountable.” Perhaps it means publishing the score results so parents will hold schools accountable. Or perhaps it means the state government will offer financial carrots or regulatory sticks. Or maybe it means whatever the survey respondent wants it to mean. 

BAEO Survey: Support for Testing

Source: BAEO Survey on Education Policy

If Acme Snack Co. asked survey respondents, “Do you like snacks that are delicious and nutritious?” and then claimed “two-thirds of Americans enjoy delicious and nutritious snacks such as Acme Snack Co. snacks,” they would be guilty of false advertising. Maybe the survey respondents really do like Acme Snacks–or Common Core–but we can’t know that from that survey. Just as some people may enjoy carrots (delicious and nutritious) but find Acme Snacks revolting, lots of parents may support some measure of testing while opposing Common Core testing for any number of reasons.

BAEO’s question on vouchers was clear: “Do you support school vouchers/scholarships?” Yes, most blacks do. But its question on testing is much less clear, and therefore so are the results. All the BAEO survey tells us is that most blacks support using some sort of testing to hold schools accountable in some undefined way. Interpreting these results as support for Common Core is irresponsible.

The School Choice Myth That Just Won’t Die

The myth that there’s no evidence that school choice works has more lives than Dracula. Worse, it’s often repeated by people who should know better, like the education wonks at Third Way or the ranking Democrat on the U.S. Senate education committee. In a particularly egregious recent example, a professor of educational leadership and the dean of the University of Wisconsin-Madison School of Education wrote an op-ed repeating the “no evidence” canard, among others:

The committee also expands the statewide voucher program. There is no evidence privatization [sic] results in better outcomes for kids. The result will be to pay the tuition for students who currently attend private school and who will continue to attend private school—their tuition will become the taxpayers’ bill rather than a private one. Additionally, the funds for the expansion would siphon an estimated $48 million away from public schools, decreasing the amount of money available for each and every school district in the state.

It is astounding that a professor and a dean at a school of education in Wisconsin would be unfamiliar with the research on the Milwaukee voucher program, never mind the numerous gold standard studies on school choice programs elsewhere. Fortunately, Professor James Shuls of the University of Missouri-St. Louis and Martin Lueken of the Wisconsin Institute for Law & Liberty set the record straight:

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