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Issue Essays & Rebuttals Topic: School Vouchers
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The Argument
For...
Contributed By Gordon Jones
[Click here to learn about
Gordon and our other contributors]
My reasons for supporting Referendum #1 fall into four areas:
1. A philosophic bias in favor of freedom. In general, I think
the free choices of individuals in markets produce better
results than decisions made in the political system. I believe
that the competition that comes with choice produces better
results all around.
The research seems to bear out that judgment. Where school
choice has been tried, not only do those opting for private
schools do better in school, but the students remaining in the
public schools also do better. The U.S. Postal Service has
vastly improved its service under (fairly limited) competition;
no reasons schools shouldn’t do as well.
Of course for most choices I do not advocate government
subsidies for private choice. But where a decision (to educate
all children) has been made societally, the mechanisms used to
implement that choice should be as market-oriented and free as
possible.
2. The question of an efficient delivery system to attain a
societal goal brings up the question of costs. Utah faces a 30
percent increase in the number of K-12 children over the next 10
years. Utah already has the lowest per-pupil expenditures in
the nation, and the highest pupil-teacher ratios. Those numbers
will worsen inexorably unless we try something different.
On average, Utah spends $7,500 per K-12 pupil per year. The
average cost of an education voucher is anticipated to be
$2,000. If one can purchase $7,500 in savings with the
investment of $2,000, that is a deal one should take.
Anticipating a couple of objections here, let me point out that
since we are talking about future growth, the “fixed costs”
argument does not apply. (In truth, it never did apply; the
growing areas of, say, southwest Salt Lake County have been
“draining” students from east-side schools for generations, and
taking full funding with them. Charter schools “drain” students
from traditional schools in the same geographic area, taking
less than full funding but almost twice what vouchers will
take. The schools on the east side and where charters exist
have managed to make the adjustments just fine.)
Another objection is that $2,000 (or even the maximum voucher of
$3,000) will not cover private school tuition, so the
economically-disadvantaged won’t be helped. The average private
school tuition in Utah is $4,000, so $3,000 will certainly help,
and it will completely cover tuition in many private schools,
particularly the schools that exist in lower-income areas.
Here are some numbers of interest: Total annual education
spending in Utah clocks in at around $3.5 billion dollars.
First-year cost of the voucher program is estimated at $9
million. Fully phased-in (after 13 years) annual cost of the
voucher program is estimated (by voucher opponents) at about $70
million, which would mean that 35,000 students were taking
advantage of it (out of a school-age population then of
something in excess of 650,000), saving the taxpayers $262.5
million, for a net savings of about $190 million a year.
True, some of those 35,000 would be students whose parents would
have sent them to private school anyway, which reduces the net
savings somewhat. Total private school enrollment today is
around 15,000. That number will also grow, so let’s use a
number of 20,000 private school students 13 years from now. If
we were to subtract out that 20,000 and project a diversion of
only 15,000 students as a result of the voucher program, the
savings would still be $112.5 million, or a net $42.5 million
per year.
Sidebar: My recollection is that Utah has about 20,000
teachers. Those annual savings could mean more than $2,000 a
year to those teachers. Alternatively, you could take the
savings and hire 1,400 new teachers, reducing class sizes from
25 to 23. Per pupil expenditures would go up by $65. We’d
still be last, nationally, but we’d be better off than we are
now. End Sidebar.
No doubt there will be some wealthy families that will take the
$500 voucher to reduce the cost of Waterford from $13,000 a year
to $12,500. Another sidebar: The argument is often made
that this program will take from the poor and give to the rich,
but that is obvious nonsense. The poor don’t pay taxes,
particularly if they have children. The rich are already paying
far more in taxes than they are ever going to be able to recoup
with a $500 voucher. The program might take from the childless
rich and give to the fecund rich, but the current system already
does that. End sidebar. Far more numerous will be those
stuck in the worst schools on the west side, who will be able to
take a voucher of $3,000 and use it at a private school,
increasing their range of choice and saving the rest of us
money.
3. Those are the people at whom this program is aimed, those
without the resources to exercise choice today. After all, if
one is a millionaire, one can already send one’s children to
private school if one wants to. But if one is trapped by
economic status in an area of failing schools, one has few
options. And the persisting gap between majority and minority
achievement rates is one of the most glaring failings of the
public schools. That gap would be worse were it not for a
dropout rate that also impacts most heavily those of limited
income.
The appeal of school choice is driving leadership at the
national level to the minority community. Leading voucher
proponents have included Polly Williams, Floyd Flake and Bernice
Gates, leaders in their minority communities, and now the
irreplaceable Howard Fuller, with his
Black Alliance for Educational Opportunity.
In years past, many “liberals” recognized the advantages of
school choice for minorities. Hubert Humphrey said
“I favor the creation of
a tax system where parents would be able to receive a tax credit
when their children attend approved private schools.”
Pat Moynihan: “I
do not think that the prospect of change in this area
[education] is enhanced by the abandonment of pluralism and
choice as liberal ideas and liberal values. If that happens it
will present immense problems for a person such as myself who
was deeply involved in this issue long before it was either
conservative or liberal. And if it prevails only as a
conservative cause, it will have been a great failure of
American liberalism not to have seen the essentially liberal
nature of this pluralist proposition.”
Cleveland Mayor
Michael R. White (who is black, BTW):
“We’ve got to stop having
a knee-jerk opposition to school vouchers and charter schools. .
. . For all the African-American officials that have come out
against vouchers, you will never find my name.”
Robert B. Reich: “The only way to begin to decouple poor
kids from lousy schools is to give poor kids additional
resources, along with vouchers enabling them and their parents
to choose how to use them.”
The Salt Lake Tribune supported school choice until a couple of
years ago: “One way to [stop UEA bullying] would be to offer
Utahns educational choice. Let state education subsidies
accompany each child to whatever school the child happens to
attend, regardless of whether that school is public, private or
parochial.
“This way, UEA members will be focused on improving the schools
in which they teach in order to keep children in them. This way,
whatever resources come their way will be based on how well they
teach, not their ability to bully.”
Democrats in Utah often argue that they are unfairly stigmatized
as “liberal.” Here’s a chance for them to use a truly “liberal”
issue to illustrate their case. But though Bill Orton favored
school choice when he ran for governor, not a single Democrat in
the legislature supported it (including Duane Bourdeaux, who
sent his children to private school).
But aren’t private schools likely to be segregated? How can
minority leaders and parents support that? It would be hard to
find schools more segregated than Utah’s, but studies nationwide
indicate that private schools are in fact more integrated, and
that the behavior of their students is less racially-motivated.
That is, they voluntarily mix more in lunch rooms and at recess.
And this might be a good time to address the “creaming”
argument, that private schools will siphon off the best
students, leaving the “dregs” for the public schools. After
all, the public schools have to take everyone, and private
schools can pick and choose.
Again, the facts don’t bear out this fear. While there are no
doubt some “exclusive” private schools, private schools as a
whole have a more diverse student body on any metric one could
care to name, from race to economics to physical and mental
handicaps and behavioral problems. The public school system
already contracts with a number of private schools to educate
students with certain mental and physical handicaps, and with
certain behavioral problems. These arrangements constitute, by
the way, a “voucher” program, just as the Carson Smith
Scholarship program does.
Voucher opponents try to have this “creaming” argument both
ways. Harvard researcher Caroline Hoxby has found that when
choice is increased, academic performance goes up
both for the students moving from public to private schools and
for the students who remain in the public schools. Since
these are aggregate numbers, she notes, some might try to argue
(some in fact have) that the reason public school scores go up
is not because the public schools improve, but because the worst
students take advantage of choice and leave, causing the average
of the remaining students to jump. Hoxby somewhat dryly notes
that critics can make this “anti-creaming” argument if they want
to.
4. Social tensions. My fourth reason for supporting school
choice is really a derivative of the first: my belief that
markets avoid social tensions in ways that politics cannot.
Politics is a zero-sum game. When a decision is made
politically, one side wins and one side loses. In markets, both
sides win.
Translating that idea to education, consider “Investigations
Math,” as implemented in Alpine School District. Some parents
swear by it, others swear at it. But when the decision is made
politically, one is either going to have it or not have it, and
one side is going to win and the other side is going to lose.
The bitterness of the battle has been prominently on display in
recent years.
With school choice, both sets of parents can win. Those that
want Investigations Math can have it; those that want Saxon math
can have that. Tensions are lowered and civility can prevail.
The range of tension-inducing subjects is large (and growing)
and frankly, I see school choice as the only way to avoid broad
unrest and increasingly bitter political battles. Some of these
are subject matter-related, such as mathematics and reading
instruction methods; others are sex education, creationism v.
evolution, drivers’ ed, the presence or absence of music (and
whose music—John Cage or Mozart?) and the arts (and which
arts—Vagina Monologues or Mark Twain Tonight?), vending machines
and campus demonstrations.
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* * * *
In one sense, the majority of Utahns have had the best of both
worlds for a long time. Education has been provided at taxpayer
expense, and yet it has essentially been delivered by a
relatively homogeneous school system closely mirroring the
dominant socio-religious culture. That is less true today, and
in my opinion less true than most members of that dominant
socio-religious culture think.
In the final analysis, school vouchers are likely to have less
of an impact than either side imagines. Right now, fewer than
three percent of Utah’s school children are in private schools.
The national average is 13 percent. No matter what happens, for
the foreseeable future 90-plus percent of our children are going
to be in the public schools. If we can use vouchers to effect
some modest savings, and at the same time introduce some
innovation through competition, it seems to me that we should do
so, even if there is no immediate, measurable benefit to the
vast majority of us.
For the children of the less fortunate, this is not a small
matter.
Scroll Down for
Rebuttal
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The Argument
Against...
Contributed By Craig Johnson
[Click here to learn about
Craig and our other contributors]
On November 6th, Utah voters will decide whether to
put their stamp of approval on a flawed voucher bill or to send
it back to the legislature.
Some say “just give it a try,” which begs the reply “have they
actually read the bill?"
You’ve seen the ads and heard the soundbites. But you’re not
here for soundbites. The fact that you are reading this article
– along with my opponent’s remarks – is evidence that you care
enough to thoughtfully consider this issue. I applaud you for
this and thank Nick Ramond for creating a site that provides
this opportunity.
Aside from the philosophical arguments pro and con, in which
legitimate and credible points from good folks are raised on
both sides, the bill itself is what we’re actually voting on.
And the bill itself has problems – serious problems. As more
voters become educated on the actual bill, flagging support has
further dwindled with voters rejecting the bill by a nearly
two-to-one margin, according to the latest Dan Jones/Deseret
News poll.
Listed below are three of the reasons voters find the bill so
troubling:
The bill provides far too
little accountability for taxpayer funds
In other voucher programs such as those in Florida, Ohio, and
Wisconsin, accountability has been an Achilles’ heel. Lack of
accountability has left legislators and other public officials
in these states to bemoan the greed, fraud, waste, and abuse
that have accompanied their state’s voucher programs.
They’ve recognized, only too late, that once a bad precedent is
established the resulting problems are extremely difficult to
repair.
A
quick Google search yields many troubling examples. As recently
as yesterday (10/17), two Florida private voucher school owners
were convicted of
swindling over $200,000 from state and federal programs,
including purchasing a Hummer and another car for themselves
using voucher funds.
Given the experiences in other states, it would stand to reason
that a Utah bill would seek to prevent these abuses.
Unfortunately, just the opposite is true. The Utah bill has
even fewer financial controls, curriculum requirements, teaching
and licensure requirements, and accreditation requirements than
these other flawed programs. And, unlike other states, the Utah
bill is universal, encompassing the entire state regardless of
income, NCLB status, or special needs.
Instead of addressing the lack of accountability, the Utah bill
would make matters worse.
As a member of a state charter school committee (charters are
free, public schools of choice), I am keenly aware of the recent
governance and fiscal problems with a few of the charters around
the state. Fortunately, these problems are addressable by state
charter school officials. Like all public schools, Utah charter
schools are subject to state open meeting laws and to sunshine
laws such as GRAMA. Public neighborhood and charter schools are
also required to post 3rd-party audits each year and
those audits are freely available for public review. Spending
decisions are made under the purview of a watchful public eye.
But this is not the case for private voucher schools. They can
operate in a cloud of secrecy. Most of the folks I talk to are
shocked to discover that the private voucher schools that would
receive hundreds of millions of taxpayer dollars would have no
such transparency under this bill. While it is certainly true
that a dissatisfied parent can leave the private voucher school
and take their business elsewhere, this single measure of
accountability is only part of the equation. Parents and
taxpayers expect proper controls of public dollars to be
established. The failure of the bill to enforce even basic
minimum standards for the proper use of funds is an almost
certain guarantee to create wealth where it’s not deserved and
victims where it could have been avoided.
The good judgment of parents to leave a bad-fit school will not
prevent fraud and abuse of public funds. Those controls rest
with our elected officials and public auditors. And while many
schools would act appropriately, this alone is not a sufficient
reason to pass legislation that hands abusers a blank check on
the public’s nickel. Utah has the ignominious reputation as the
fraud capital of the United States. Passing a voucher bill with
even fewer protections than other states is just a really bad
idea!
For a quick summary of the differences in accountability between
public schools and private voucher schools, please review the
link below:
http://www.utahnsforpublicschools.org/facts/public_vs_private.php
While proponents will seek in their upcoming newsletters to
dismiss these concerns as “Halloween scare tactics,” these
problems are real. They’re happening now in other states and
the Utah bill would set the scene for an even larger mess.
*****************
The bill costs far more than it
saves
This is a simple fact and proponents’ claims to the contrary are
either incomplete or are based on grossly overblown speculations
of the number of students who might switch to private schools.
To bring some sense into the discussion of costs vs. savings, I
would recommend reviewing the impartial analysis of Referendum
1. This analysis, conducted by the Lieutenant Governor’s
office in partnership with Legislative Fiscal Analysts (the
folks who assess the financial impact of legislation), concludes
that the voucher bill will cost taxpayers hundreds of
millions of dollars.
The impartial analysis is required by law to be impartial.
Either side may challenge the language or the conclusions.
Neither side did.
Yet this hasn’t stopped voucher proponents from attempting to
discredit the impartial analysis. Paul Mero of the Sutherland
Institute went so far as to call for the elimination of fiscal
analyses for referenda and ballot initiatives.
Some important details of the impartial analysis can be found in
the official voter information guide. In the guide, you can
see, for instance, that in the 13th year of the
program the estimated cost is $71 million while the savings
estimates range from $11-$28 million. This yields a NET COST to
taxpayers in the 13th year of $43-$60 million.
Over the course of the 13-year
phase in, the total net cost
to taxpayers for the program (total costs - total savings) is
estimated at $164-$334 million.
The graph below shows the costs and savings of the program as it
is phased in. The escalation of costs results primarily
from paying vouchers to an increasing number of private school
students who never intended to go to public schools in
the first place.
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A Rebuttal... From Craig Johnson [Click here to learn about Craig and our other contributors] My opponent’s article highlights his personal economic preferences and includes some social commentary. It’s an interesting read and I commend my opponent for a well-written philosophical piece. But it has little to do with the bill we’re about to vote on. As citizen-legislators, our job is to consider the bill before us and to make an informed decision based on facts. My opponent speculates on the costs vs. savings of the bill in wild opposition to the impartial analysis as performed by the Legislative Fiscal Analyst. I leave you to judge which numbers are unbiased. In my article, I presented three grave flaws in the bill – poor accountability, unnecessary high cost, and failure to help most low and middle-income families. Any one of these flaws is sufficient grounds to reject the bill. Ironically, however, the bill also fails to support the market forces arguments raised by my opponent. Let’s review: As the impartial analysis indicates, the skyrocketing costs of the Utah bill as it is phased in would come from paying vouchers to those who never intended to go to public schools in the first place. Such choices are pre-determined. And as any economist will tell you, subsidizing pre-determined choices does not create competitive pressure since it does not alter any outcomes. These parents have already made up their minds to send their children to private schools. There is no point in handing out vouchers to them since it does nothing to influence other schools to improve. We would be spending hundreds of millions of dollars in new, unnecessary costs and receiving no competitive benefits whatsoever in return. This makes no sense. But what about the switchers, proponents ask? Let’s begin with those switchers who would have switched anyway without a voucher. Again, we would be paying out vouchers for no reason. As it stands now, any competitive pressure induced by their departure is already realized. With vouchers, this market force doesn’t change. The only thing that’s different is that we would be spending money – millions of taxpayer dollars – unnecessarily. So, that leaves us with the switchers who would leave because of the voucher. We’ve already spent hundreds of millions of dollars just getting to the point where we might see some competitive forces at work. Was it worth it? Do public schools actually improve because of vouchers? Not really. Multiple studies show that vouchers do not make public schools better. In the New Zealand program, for example, some poorly performing schools simply became worse as they ended up with larger concentrations of difficult-to-teach students. Lawmakers, committed to seeing market forces work, ignored these schools for years. But it didn’t work and in the end they had to intercede and invest in these schools. Returning to our scenario - remember, we would have spent hundreds of millions of dollars needlessly paying for predetermined choices just to get to the point where a few switchers might exert some competitive pressure. In the bill’s impartial analysis, given the price elasticity of demand, the Legislative Fiscal Analyst determined that about 3 students per school per year might switch because of the voucher. This small switch rate is completely insufficient to force whatever improvements proponents claim the bill will generate. So this leaves proponents with only one remaining scenario to talk about – more switchers! With the flaws in the bill becoming clear and with the cost vs. savings argument debunked, we’re now starting to see the “more switchers” argument surface. Senator Bramble recently said: “One way to avoid higher income and property taxes is to offer parents the option to have their children move into the private sector and take some pressure off our public schools. That's what the voucher plan is all about.” (Emphasis added) For the bill to become effective we must somehow greatly increase the number of switchers far in excess of the impartial analysis. Proponents are now making the case that we must increase the switch rate; they’ve even raised the specter of tax increases if we don’t. Ironically, I’ve watched a couple of pro-voucher friends in the blogosphere challenge the Legislative Fiscal Analyst’s findings and try to improve upon the numbers. The result – they have switched their positions and are now voting against the bill. For the sake of argument, though, let’s discuss how this might happen. How do we convince MORE families to LEAVE the public schools? If motivating more families to LEAVE the schools is necessary for the bill to become effective, what does this mean for our public schools? Remember - it took hundreds of millions of dollars just to get to the point where we must now entice thousands upon thousands of additional public school students beyond the impartial numbers to LEAVE our public schools just to recoup the opportunity costs so the bill might exert market forces so it might create some competitive pressure so our schools might improve in spite of studies showing that this hasn’t worked when it’s been tried before. Does this sound like a winning strategy? But even if all of that does happen, just where does that leave the overwhelming majority of students who remain in our public schools? If the goal is to convince students to LEAVE the public schools, then what possible motivation do these lawmakers have to improve our public schools? If we improve our schools, we reduce demand to leave. If we reduce demand to leave, we reduce the switch rate. If we reduce the switch rate, the bill becomes an expensive failure. Why on this green earth would we set up a scenario in which the success of one program is based on the failure of another? Why would we sacrifice the quality of the public schools where 96% of our children attend just to make them SO BAD that people would WANT to leave, just so we can say this bill was not a failure? This bill makes no sense! Let’s vote it down and work together to craft real solutions. |
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A Rebuttal... From Gordon Jones [Click here to learn about Gordon and our other contributors] “Jam tomorrow and jam yesterday—but never jam today.” -Lewis Carroll It is nice to know that there is some common ground. I appreciate Craig’s implication (though he doesn’t really say it) that those on my side of the debate “support excellence in education.” And he really does say nice things about Children First Utah, the private organization that generates scholarships for low-income students. But permit me to doubt that Craig is as positive about school choice as he claims here. I think if he really believed that “Competition, market involvement, and offering a range of options are noble and important values....” he (and the organizations with which he is associated) would at some point over the last seven years have supported some of the other efforts that have been made to provide school choice in Utah. Instead, he opposes parental choice through vouchers in ANY form. At the end of his essay he asks us to “vote down this bad bill” and “work toward real solutions and real reforms to improve the educational opportunities for all of Utah’s schoolchildren.” I’m interested to know what these “real reforms” will consist of. Will they include merit pay for teachers? Will they include alternative certification? I’m willing to bet that they will not include tuition tax credits or vouchers that would put parents back in charge of the education of their children. Will they be “jam today”? I’m dubious. This bill, says Craig, is flawed. Is there, then, a parental choice bill anywhere enacted or proposed in the United States that he could support? I have been a drafter of legislation for 30 years, and I recognize that perfection is elusive the first time. One enacts a bill whose general aims one supports, and one monitors its implementation and corrects it as necessary. One does not simply oppose it as the UEA and the rest of the education Establishment did. When Congress passed the No Child Left Behind Act, the National Education Association did not oppose it, and now seeks to improve it during its reauthorization process. Conceivable including millionaires is a flaw in the bill. I have argued, and still do, that the beneficiaries of this bill will not be the millionaires, who can already afford private schools for their offspring, or who live in areas with excellent schools anyway. The beneficiaries will be low-income parents struggling to improve the lives of their children. But there certainly is a marginal benefit to the millionaire, who can qualify for a $500 voucher. Let’s correct that next February. If we do, will Craig support the bill? Craig says that Children First Utah serves “a legitimate purpose—to offset expensive private school tuition for low-income families,” and he is right, which is why I have supported CFU from its inception. But CFU cannot meet the demand. So many low-income families apply for its scholarships (which are nothing more than vouchers, financed in part by the tax-deductibility of contributions) that it has to choose the lucky children by lottery. What other flaws does the bill have? Craig cites financial accountability, a strange charge, considering that no one has yet been able to figure out what happened to $24 million in textbook money the legislature appropriated to the public schools four years ago; or considering the years-long embezzlement of funds from at least two public schools in Utah that came to light last year. The fact is that private schools accepting vouchers will undergo yearly audits. That’s more than the public schools get. No, I’m afraid it’s “jam tomorrow and jam yesterday, but never jam today.” And the fundamental reason is an unwillingness to trust parents with the education of their children. |