georgia

Win for School Choice in Georgia

Lost in all the commotion over the U.S. Supreme Court’s several decisions today is another important decision with ramifications for school choice. The Georgia Supreme Court unanimously ruled in Gaddy v. Georgia Department of Revenue that plaintiffs had no standing to challenge the state’s tax-credit scholarship program because the scholarship funds are private funds, not a government expenditure:

We also reject the assertion that plaintiffs have standing because these tax credits actually amount to unconstitutional expenditures of tax revenues or public funds. The statutes that govern the Program demonstrate that only private funds, and not public revenue, are used.

The program allows donors to receive tax credits in return for contributions to qualified nonprofit scholarship organizations that help families send their children to the schools of their choice. Plaintiffs asserted that the program violated Georgia’s Blaine Amendment, which prohibits the state from giving public funds to religious schools. However, as we explained in our amicus brief, no public funds are involved. “Taxpayers choose to donate voluntarily using their own private funds and receive a tax credit for the amount of the donation; no money ever enters or leaves the treasury.” Neither does the state direct where the funds are used. “The state exercises no control over which scholarship organizations donors choose to support, which students receive scholarships, or at which schools parents choose to use the scholarships.” The Georgia Supreme Court agreed:

Individuals and corporations chose the [scholarship organizations] to which they wish to direct contributions; these private [scholarship organizations] select the student recipients of the scholarships they award; and the students and their parents decide whether to use their scholarships at religious or other private schools. The State controls none of these decisions. Nor does it control the contributed funds or the educational entities that ultimately receive the funds.

“Today’s victory has secured Georgia parents’ right to continue choosing the best education for their children,” stated Erica Smith, an attorney for the Institute for Justice, which represented scholarship parents in the Gaddy case. “This Court correctly recognized that government should promote educational opportunity and choice, not limit it as the plaintiffs proposed.” 

A Solution in Search of a Problem

Last week, Georgia Governor Nathan Deal’s Education Reform Commission released its draft recommendations for improving and expanding the state’s school choice programs. While some of the commission’s proposed changes are meritorious, the commission failed to recommend expanding the state’s highly popular, nearly universal scholarship tax credit (STC), instead proposing that the state create a new STC that is highly regulated and much more limited in scope.

The commission’s two proposed changes to the existing STC (having the Department of Revenue count actual contributions against the tax credit cap rather than mere pledges and changing the start date for claiming credits) would make it easier for scholarship organizations to raise funds. The commission also explored the possibility of converting the STC into an education savings account (possibly still funded through tax credits, though the report is not clear about that), enabling families to use the scholarship funds for a variety of educational goods and services beyond private school tuition along the lines of what I described in my testimony before the commission in May. 

How School Choice Improves Public Schools

The Atlanta Journal-Constitution reports that district school bureaucrats are “proceeding with an ambitious plan to offer a wider range of education options.”

Superintendent Robert Avossa is leaving the 96,000-student district for the larger Palm Beach County system in Florida. Ken Zeff, who takes over as interim superintendent next week, shares Avossa’s view that parents want and deserve choices.

An array of choices may lessen the exodus of by parents who want a non-traditional setting for their children. More than 15 percent of Fulton families opted for private schools this school year.

While Fulton has increased its number of district-approved charter schools, the AJC reports more than 1,600 families are on charter school wait lists for next fall, largely in south Fulton where school performance is not as high as north Fulton. 

(North Fulton is one of the state’s most affluent areas and boasts some of the highest achieving high schools in Georgia. Its schools are a major draw for new families moving to the metro region.)

Not every student learns in the same way so Fulton is expanding school design options.

“This is not an attempt to dismantle traditional public schools,” said Zeff in an AJC news story by Fulton Schools reporter Rose French. “Traditional-model schools are performing great for a lot of kids. But some parents want and some students would do better in a different environment.”

In other words, when parents chose schools other than their child’s assigned district school–perhaps using Georgia’s tax-credit scholarships–the government school system responded by being more responsive to parental demands. 

E-Verify in the States

Many state legislatures are proposing to expand E-Verify – a federal government-run electronic system that allows or forces employers to check the identity of new hires against a government database.  In a perfect world, E-Verify tells employers whether the new employee can legally be hired.  In our world, E-Verify is a notoriously error-prone and unreliable system.

Parents and Taxpayers Want More Educational Choice

Ever since Georgia enacted a scholarship tax credit law in 2008, individual and corporate taxpayers in the Peach State could receive dollar-for-dollar tax credits in return for contributions to nonprofit scholarship organizations—at least until the $58 million cap is reached.

Remembering Georgia’s Freedom Fighter

Sometimes a person’s genuine significance can be assessed only after their passing. That seems to be the case of Kakha Bendukidze, Georgian entrepreneur, reformer, and philanthropist, who died unexpectedly early last month. While he was very well-known among libertarians in Eastern Europe and the former USSR, the reactions of some of the world’s leading media outlets suggest that his influence extended far beyond narrow ideological lines, making him one of the most important voices on public policy in the region.

Auto Dealers Attempt to Ban Tesla from Georgia

Rather than selling cars through independent dealers, the upstart electric car maker Tesla sells its automobiles directly to consumers. However, many states prohibit direct auto sales, thanks to laws from the mid-20th century that ostensibly were intended to protect dealers from automakers’ market power. The need for that protection was questionable when the laws and regulations were adopted and are even more dubious in today’s highly competitive auto market. But they are especially inappropriate when applied to a small new automaker that solely wants to engage in direct sales.

School Choice Lawsuits and Legislation Roundup

We’re only at hump day but this week has already seen the filing of a new anti-school choice lawsuit, the dismissal of another, the potential resolution of a third, and the adoption of a new school choice program. [UPDATE: Plus the passage of a second school choice program. See below.]

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