School Choice Murder-Suicide in Pennsylvania
A huge school choice opportunity has been lost for the moment in Pennsylvania. But that lost opportunity is not the voucher program that has drawn so much attention.
The political conflagration touched off by the push for a targeted, failing-schools voucher program incinerated along with it a massive expansion of an existing, popular, successful, bipartisan-supported, and better program; the Educational Improvement Tax Credit (EITC). The House passed this expansion of credit program by a massive margin. And when I say “massive,” I mean 96 percent in favor to 4 percent opposed. Unfortunately, a stand-alone credit bill was not considered in the Senate, and the expansion fell by the wayside as the voucher battle raged.
In the next session, it would be good policy and politics to consider vouchers and credits separately. They are substantively different means of fostering choice, and the public deserves a clear debate and vote on both policies in separate bills.
The Educational Improvement Tax Credit program is vastly superior to all of the voucher bills. Vouchers are open to credible legal challenges, afford no accountability directly to taxpayers, and government money brings stifling government regulations. Furthermore, giving vouchers only to kids in or around “failing schools” won’t produce a dynamic market because there is an ambiguous, limited, and potentially shifting customer base. A failing-schools voucher program is a terrible policy design.
The EITC should not be legislatively handcuffed to vouchers. Vouchers are an inferior policy and a proven political liability. For once the popular, politically smart, most principled, and most effective thing to do are all the same; drop the voucher drama and expand the education tax credit program.
Dear Journalists, Donations Are Not ‘State Money’
Oklahoma has just joined the ranks of a half-dozen other states by enacting a K-12 education tax credit program. Under the new program, individuals or businesses that donate to non-profit School Tuition Organizations receive a tax cut worth 50 percent of the donation. STOs then use the funds to help low income families afford private schooling.
Journalists for the Associated Press and countless other media outlets routinely refer to donations made under education tax credit programs as “state money.” According to the United States Supreme Court’s recent ACSTO v. Winn decision, “that is incorrect.” This is a matter of settled law. To call these private donations “state money” is to misrepresent the facts and mislead readers.
It would be bad enough if the journalists and wire services misrepresenting these programs were simply unaware that they were distorting the facts, but in at least some cases they continue to do so even after having been apprized of their error. Brandon Dutcher, vice president for policy at the Oklahoma Council of Public Affairs, wrote to the AP last week to correct their earlier erroneous coverage. He received no reply and the errors continue.
I never cease to be amazed by this kind of behavior from an industry that is clinging for its life. The purpose of journalism is to apprize customers of the facts. Demonstrating indifference to the facts cannot be good for business.
VICTORY! Supreme Court Upholds Education Tax Credits
Ruling in ACSTO v. Winn today, the United States Supreme upheld Arizona’s k-12 scholarship tax credit program. Under this program, individuals receive a tax cut if they donate to a non-profit scholarship fund that gives out private school tuition aid.
Today’s decision, a reversal of an earlier ruling by the 9th Circuit, found that the respondents had no right to sue to stop the AZ program because they have not been harmed by it. And the reason they have not been harmed is central to why, for nearly 20 years, I have favored education tax credit programs over both traditional public schooling and voucher programs.
Respondents alleged that cutting a person’s taxes is equivalent to spending government money — and since taxpayers are receiving credits for donations to religious organizations, that was ostensibly equivalent to the government giving to those organizations. The Court answered, quite simply: “That is incorrect.” Elaborating, the Court ruled that:
tax credits and governmental expenditures do not both implicate individual taxpayers in sectarian activities. A dissenter whose tax dollars are “extracted and spent” knows that he has in some small measure been made to contribute to an establishment in violation of conscience…. [By contrast,] awarding some citizens a tax credit allows other citizens to retain control over their own funds in accordance with their own consciences. [emphasis added]
That is precisely the argument I have been making for a very long time (last Friday, at a conference in Berkeley; last year in a blog post, here; a dozen years ago, in my book Market Education: The Unknown History).
With this ruling, the way forward for the school choice movement is clearer than it has ever been. Education tax credits — both the scholarship form operating in Arizona and the direct form operating in Illinois and Iowa — allow for universal access to the education marketplace without forcing any citizen to subsidize instruction that violates their convictions. No other school choice system offers that advantage and it is an advantage that is central to the values of our nation. As Thomas Jefferson wrote in the Virginia Act Establishing Religious Freedom:
To compel a man to furnish contributions of money for the propagation of opinions which he disbelieves… is sinful and tyrannical
Public schooling has long been a source of social conflict because it engenders just such compulsion. Education tax credits offer a way of securing universal public education without this blight. It is time to adopt them more widely.
The Ninth Circuit as a Denial of Service Attack on American Justice
The Supreme Court is expected to decide tomorrow whether to summarily overturn a Ninth Circuit Court ruling, hear an appeal of that ruling, or let the Ninth Circuit’s decision stand. The case involves Arizona’s k-12 scholarship tax credit program that helps families afford private schooling, which the Ninth Circuit found last year to violate the First Amendment.
Before the Ninth Circuit handed down its decision, I predicted that it would rule against the tax credit program, and that it would eventually be overturned by the Supreme Court. The first part of that prediction came to pass, and I still expect the second part to as well. For the reasons why SCOTUS will overturn the Ninth Circuit, see Cato’s brief in the case.
Ilya Shapiro (with whom I co-wrote that brief) draws attention today to a great column by George Will in which Will likens the Ninth Circuit to a “stimulus package” for the Supreme Court. It’s a funny analogy, but it’s too benign. It’s more accurate to see the Ninth Circuit as a Denial of Service Attack on American justice. A D.O.S. is a computer attack that prevents Internet surfers from accessing a particular website/server by flooding it with spurious requests. By failing to take Supreme Court precedents seriously, as the Ninth Circuit routinely does, it creates a torrent of ridiculous rulings that demand the Supreme Court’s attention, thereby preventing the nation’s highest court from taking other important cases.
If there is a way for SCOTUS to reprimand the Ninth Circuit for spuriously consuming the nation’s most important legal resources, it would be in the interest of justice for it to do so.
A Severe Irony Deficiency
Tomorrow night at 8:00pm, Fox Business News will air a John Stossel special on the failures of state-run schooling and the merits of parental choice and competition in education. I make an appearance, as do Jeanne Allen and James Tooley.
News of the show is already making the rounds, and over at DemocraticUnderground.com, one poster is very upset about it, writing:
When will these TRAITORS stop trying to ruin this country?
HOW can AMERICANS be AGAINST public education?
Stossel is throwing out every right-wing argument possible in his namby pamby singsong way while he “interviews” a “panel” of people (who I suspect are plants) saying things like preschool is a waste of money and why invest in an already-failing system….
I hate Stossel and I hate all of those who think the way he does.
This poster goes by the screen name “Live Love Laugh.” I guess there wasn’t enough space to tack “Hate” onto the end.
What this poster–and many good people on the American left–have yet to grasp is that critics of state monopoly schooling are NOT against public education. On the contrary, it is our commitment to the ideals of public education that compels us to pursue them by the most effective means possible, and to abandon the system that has proven itself, over many many generations, incapable of fulfilling them. I wrote about this crucial point more than a decade ago in Education Week, in a piece titled: “Are Public Schools Hazardous to Public Education.”
Fortunately, a small but steadily growing number of American liberals have already grasped this pivotal difference between means and ends, as the growing Democratic support for Florida’s school choice tax credit program evinces. Giving all families, particularly low income families, an easier choice between state-run and independent schools is the best way to advance the ideals of public education.
The Case of the Missing Evidence
Last fall, the 9th Circuit Court of Appeals reinstated a lawsuit against Arizona’s K-12 scholarship donation tax credit program. Under the program, citizens can donate to non-profit organizations that help families pay for private school tuition, and in return, the donors receive a dollar-for-dollar tax cut. The 9th Circuit, ruled that the program violates the Establishment Clause of the First Amendment, because many taxpayers choose to donate to religious scholarship-granting organizations whose scholarships are only usable at religious schools. This, in the Court’s view, meant that the program unconstitutionally favored religious scholarship-seeking parents over secular ones.
Supporters of the program will soon be appealing this decision to the U.S. Supreme Court. They’re very likely to win, for a variety of reasons. Foremost among them, the Establishment Clause forbids only governments from favoring religion, but imposes no similar limit on individual citizens. It is for this reason that charitable tax deductions can be claimed for donations to both religious and secular charities without running afoul of the First Amendment — even if taxpayers overwhelmingly choose to donate to religious charities.
In rereading the original complaint, I noticed something interesting: even if the 9th Circuit’s misconstrual of the Establishment Clause were correct, plaintiffs still wouldn’t have a case. That’s because the evidence they presented did not — and still does not — support their claim that secular parents have been at a comparative disadvantage in obtaining scholarships. To see why, read on….
Arizona Republic Corrects its Tax Credit Savings Estimate in Response to Cato Input
Last Wednesday, the Arizona Republic published a fiscal impact assessment of the state’s education tax credit programs for k-12 private school choice. While the story itself was a good faith effort, there were errors in both its data and assumptions. I wrote an op-ed intended for the Republic correcting those errors and e-mailed a copy to the story’s author, Ron Hansen, the same day his story was published.
While the paper’s editorial page expressed no interest in printing my submission, the Republic published a correction today based on the accurate spending and savings figures I provided. In a phone call, Hansen indicated that the correction was precipitated by my e-mail, though he opted not to mention that in his story, saying that he didn’t think the source of the correction was important.
On the one hand, Hansen and the Republic are to be commended for publishing a correction, and it should be noted that the bad data were provided to them by Arizona Director of School Finance, Yousef Awwad. On the other hand, their correction is incomplete — acknowledging only the bad data and not the mistaken assumption explained in my op-ed.
So while the Republic has now raised its savings estimate from their originally reported $3 million to a corrected $8.3 million, they have yet to explain that this figure could actually understate the total savings.
Still, their response is better than I expected. Most newspapers, in my experience, do absolutely nothing when factual and reasoning errors in their education stories are brought to their attention, and in fact go on to repeat those same errors in subsequent stories.
And they wonder why two thirds of the public now doubt their credibility….
Education Tax Credits Pass in Indiana
Despite the economy and the dogged opposition of powerful Big Ed, education tax credits are surviving and thriving. The latest state to jump into k-12 tax credits is Indiana. From the Friedman Foundation yesterday:
Indiana lawmakers today approved a $2.5 million scholarship tax credit program in the home state of the Friedman Foundation for Educational Choice. The new scholarship program was inserted into the state’s budget and won approval in the late hours of the special legislative session. The bill, which passed the Senate 34-16 and the House 61-36, now goes to the governor who is anticipated to sign it in the coming days.
Unfortunately, the credit is only 50% for each dollar donated, unlike the more powerful ones in PA, FL, and AZ. But I know Friedman, School Choice Indiana and their allies will be fighting hard in coming years to increase the credit amount and program cap.
Sounds like Governor Mitch Daniels deserves kudos for keeping the bill in his budget and pushing for the program. And the word is that around 27 percent of the House Democrats voted for the budget despite the tax credit and virtual charter school programs that the teachers unions opposed. Big Ed ain’t what he used to be.
Education Tax Credits to Rescue Overturned Voucher Program
The AP reports on a plan unfolding in Arizona to help keep foster children and kids with disabilities in schools of their choice:
Republican-backed legislation to create new tax credits to help hundreds of foster children and disabled children attend private schools is advancing in the Legislature.
On a special session’s second day, Senate and House committees on Tuesday endorsed the bill creating new corporate and insurance premium tax credits for donations for private school tuition grants.
Priority would go initially to foster and disabled children who received vouchers that have been ruled unconstitutional by the Arizona Supreme Court.
The Arizona Supreme Court has specifically and emphatically upheld education tax credits, so this effort should succeed if passed and signed. The ever-wacky 9th Circuit Court of Appeals recently created some confusion over the details of tax credit program administration, but the credit approach to funding school choice has never been eliminated by the courts . . . they should be put back in their place on this case as they have in so many others.
Good luck to the children who had their voucher program overturned . . . this should be a no-brainer for the politicians.
School Choice Going, Going, Gone Bipartisan (In Some States)
The USA Today takes note of the fact that support for school choice is growing among Democratic, often black, politicians:
While vouchers will likely never be the clarion call of Democrats, they’re beginning to make inroads among a group of young black lawmakers, mayors and school officials who have split with party and teachers union orthodoxy on school reform. The group includes Sacramento Mayor Kevin Johnson, Newark Mayor Cory Booker and former Washington, D.C., mayor Anthony Williams.
I’d only add that this broadening support is hardly limited to black Democrats, and that support for education tax credits is spreading even more quickly among Democrats. And while choice might never become a Democratic “clarion call,” it just might become the new consensus among serious education reformers in both parties.
For instance, a Democrat-controlled and, I assume, mostly white legislature in Rhode Island passed a donation tax credit. And Democratic governor and legislature in Iowa raised their tax credit dollar cap by 50 percent in 2007. The paper mentions black mayor Corey Booker’s support for school choice in New Jersey, but the white, former Democratic state party chair, and current state Senator Ray Lesniak is also pushing for a donation tax credit bill.
The model case is Florida. When the Florida legislature passed its education tax credit program to fund private school choice in 2001, only one Democrat supported the measure. Last year, the state legislature expanded the program with the votes of one third of statehouse Democrats, half the black caucus and the entire Hispanic caucus.
In the past few weeks, nearly a third of Senate Democrats and half of House Democrats voted to significantly expand the program’s revenue base. Virtually all Republicans did the same, and Republican Governor Crist is expected to sign the bill soon. In all, 43 percent of state Democratic legislators in Florida voted in favor of education tax credits.
The toothpaste is out, and the teachers unions can’t put it back in with all the dues money in the world.
Bipartisan Support for Choice Grows Every Year
When the Florida Legislature passed its education tax credit program in 2001, only one Democrat supported the measure.
Last year, the legislature expanded the program with votes from one third of statehouse Democrats, half the black caucus and the entire Hispanic caucus.
Last week, nearly half of House Democrats —47 percent—voted to significantly expand the revenue base for the state’s business donation tax credit program. House Republicans voted 100 percent in favor.
And yesterday, nearly a third of Senate Democrats—31 percent—voted to expand the tax credit program. And 92 percent of their Republican colleagues voted for the bill.
In all, 43 percent of state Democratic legislators voted in favor of education tax credits. Governor Crist is expected to sign the bill shortly.
They are not alone.
In 2006, Democratic governors in Arizona, Iowa and Pennsylvania signed new or expanded tax-credit initiatives. That same year, a Democrat-controlled legislature in Rhode Island passed a donation tax credit. A Democratic governor and legislature in Iowa raised their tax credit dollar cap by 50 percent in 2007.
Partisanship on choice is fading away because many politicians have come to realize that school choice saves money and children. The truth is beginning to spread; school choice is the most proven and effective systemic reform available.
The future of education reform is looking bright in the Sunshine State and across the nation.
The Sunshine State Lives Up to Its Name
Just when I was getting so jaded by federal education politics that I could have been displayed as part of this exhibit, the Sunshine State comes along and brightens my day.
It’s not just that the Florida Assembly voted to strenghten its k-12 scholarship tax credit program yesterday, it’s that the vote was 94 to 23. In addition to almost universal Republican support, the bill garnered the votes of half the entire state Democratic caucus!
As I wrote on this blog last year, “the [school choice] times they are a changin’.”
Democrats in Washington don’t understand that yet. Perhaps they spend too much time with DC’s NEA lobbyiests. Whatever the reason, the long term health of the Democratic Party depends on its celebration of its pro-school-choice state-level leaders. If the DNC embraces those state leaders and their policies, it will grow a heart, a brain, and a spine all at once, and secure its viability for the long term.
If they don’t, the national party’s current wretched treatment of poor families and cowtowing to education establishment special interests will drag it down to an ignominy from which it will not soon recover.
And as someone who prefers a balance of power between the two major political parties to the dominance of either, I really don’t want to see the DNC ride the NEA’s bandwagon off a cliff.
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