The Economic Case for Choice - Scafidi

8/9/2019 The Economic Case for Choice - Scafidi

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The Economic Casefor School Choice

Ben Scadi

Kennesaw State University

Friedman Foundation for EducationalChoice

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Evidence on School ChoiceOutcomes

Students who receive schoolchoice opportunities enet

Students who remain in pulicschools enet

http!""www#edchoice#or$"%esearch"%eports"&'(in'(in'Solution''The'Empirical'Evidence'on'School'Choice#as ) 2
http://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspxhttp://www.edchoice.org/Research/Reports/A-Win-Win-Solution--The-Empirical-Evidence-on-School-Choice.aspx


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%oadmap

Sta*n$ in +ulic Schools

U#S#, -ichi$an, and Ohio

Opportunity Costs

.oes School Choice /arm StateBud$ets0

.oes School Choice /arm Bud$ets of

ocal School .istricts0

Bonus Covera$e

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0%

100%

200%

300%

400%

500%

600%

700%

800%

345

2645

7875

9:75

;rowth in Students and +ulic School +ersonnelUnited States, F< 138: to F< 7::3

Source:U#S# .epartment of Education, =ational Center for Education

Statistics 1331 .i$est of Education Statistics Tales 23 and 6>? 7::6 .i$est

of Education Statistics Tale 69

:

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Some =otes &out the+ulic School /irin$ Spree

Student achievement did not rise

=ationally, pulic hi$h school $raduation rates areaout the same as they were in 139:

=o evidence the @Aids are worse

=o Child eft Behind did not maAe us do it#

nherent tradeoD etween class sie andteacher uality#


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Opportunity Costs

of the Sta*n$ Sur$e

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(hat if U#S# pulic schools had increasednon'teachin$ staD at the same rate as its

increase in students0

(ould have saved U#S# pulic schoolsG74,8::,:::,::: per year in annualrecurrin$ savin$s#

(hat could U#S# pulic schools do withG74#8 illion per year0

;ive every teacher a G6,8:: raise %educe property ta)es

ODer 2#2 million children G6,:::scholarships to private schools


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(hat aout -ichi$an0


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(hat if -ichi$an pulic schools had reducednon'teachin$ staD at the same rate as its

decline in students0

(ould have saved -ichi$an pulicschools G29>,:::,::: per year in annualrecurrin$ savin$s#

(hat could -ichi$an pulic schools dowith G29> million per year0

;ive every teacher a G>,2:: raise %educe property ta)es

ODer >4,::: children G6,::: scholarships toprivate schools


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(hat aout Ohio0


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(hat if Ohio pulic schools had reducednon'teachin$ staD at the same rate as

its decline in students0

(ould have saved Ohio pulic schoolsG7,2::,:::,::: per year in annualrecurrin$ savin$s#

(hat could U#S# pulic schools do withG7#2 illion per year0

;ive every teacher a G71,8:: raise %educe property ta)es

ODer 73:,::: children G6,::: scholarshipsto private schools


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Fiscal EDects of SchoolChoice on State and

ocal Bud$ets

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t is strai$htforward to desi$n aschool choice pro$ram that savesthe state money H

-aAe state funds thatfollow the child less than

avera$e state spendin$per student#

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The Fiscal EDectsof School Choice +ro$ramson +ulic School .istricts

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(h t d t l


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(hen some students leavetraditional pulic schools via

school choice, are students who

remain in pulic schoolsharmed0

They are not harmed academically, andthey may enet academically#

/owever, do students whoremain in traditional pulic

schools have fewer resourcesavailale for their education0

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The scal eDect of a $iven schoolchoice pro$ram on local schooldistrict ud$ets is morecomplicated than it is for stateud$ets#

Specically, school choicepro$rams that allow school

districts to retain fundin$ for any)ed costs would not harm thescal health of pulic schools or

decrease resources availale to 22


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'' ;eneral&dministration

' School&dministration

' Operations J-aintenance

' Transportation' Other SupportServices

' nstruction

' Student Support

' nstructional StaDSupport

' Enterprise 24


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/ow to .ivine (hichof These Costs are Fi)ed0

f a si$nicant numer of students lefta pulic school district for any reasonfrom one year to the ne)t, is it feasile

for the district to reduce the costs ofthese items commensurate with thedecrease in its student population0

Usin$ > school districts in ;eor$ia, analyed how they were ale to reducee)penses when they lost students forreasons not related to school choice#

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%esults

n F< 7::3, U#S#pulic schools spent an avera$eof G17,>8: per student#

Usin$ the methodolo$y in my report, 4>5 of this

G17,>8: are short'run variale costs LG9,349M#

The other G>,>62 per student are short'run )edcosts that states could let school districts retainwhen they lost students via school choice#

n the lon$'run, all costs are variale#

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Thus, any school choice pro$ram where G9,349 per student or lessLon avera$eM follows a child to the school of his or her choice

improves the scal situation of a pulic school district, on avera$e#

&nd, students who remain in pulic schools would have moreresources devoted to their education#

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Keep in -ind H

By lettin$ school districts retain fundsfor students they no lon$er serve,

T/E< ( BE ;ETT=; +&.FO% STU.E=TS T/E< =OO=;E% SE%IENNNN

/ow many other industries have that@usiness model0

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f school districts say they


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f school districts say theycannot reduce costs when

they lose students, thenH They are su$$estin$ that all of

their costs are )ed#

f that were reallytrue, then H

They should not $et e)tra fundin$when they add studentsecauseall of their costs are )ed#

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So what does all of this mean0

The est time to e)pand school choice iswhen the economy and ud$et are $rowin$#

The ;reat %ecession has passed#

States have a choice!

.esi$n school choice pro$rams that save yourstate money and leave more resources for

students who remain in pulic schools#

Or, $ive more state fundin$ to pulic schoolsand wonder why the ureaucracy $rows andstudent achievement does not#

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Friedman %eports are availaleH

www.edchoice.orgClicA on @research

Then, clicA on @national research or @stateresearch

For upcomin$ research H

www#edchoice#or$"upd

ates 32
http://www.edchoice.org/http://www.edchoice.org/updateshttp://www.edchoice.org/updateshttp://www.edchoice.org/updateshttp://www.edchoice.org/updateshttp://www.edchoice.org/


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-ore than Scores! &n &nalysis of (hyand /ow +arents Choose +rivate Schools

www#edchoice#or$"morethanscores

+arents choose private schools for a

wide variety of reasons, utstandardied test scores are not amon$the most important reasons#

nstead of tryin$ to turn privateschools into pulic schools, statesshould allow a @spontaneous educationorder to arise#
http://www.edchoice.org/morethanscoreshttp://www.edchoice.org/morethanscores


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Balderdash

African-American families are the ones who(were) most prone to enroll their kids in they-by-night schools that cropped up aftervouchers existed !African-American families"

don#t know how to make good choices for theirchildren $hey really don#t $hey didn#t have

parents who made good choices for them orhelped them learn how to make good choices%so they don#t know how to do that&

%acine Unied School .istrict

Superintendent &nn ain$, (isconsin L7:17M

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+reviews Sta*n$ Sur$e 2

(here do you thinA pulic schools reducedstaD durin$ the ;reat %ecession0

&merica is ecomin$ more raciallyinte$rated

=ei$horhoods

-arria$e

&doption Iotin$

(hat aout &merican pulic schools0

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The Economic Case for Choice - Scafidi

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