Financing Education
Goal
To encourage and assist your group to discuss whether or not
educational choice is a way to finance education that promotes
equity and excellence.
The Present System: Realities and Options
Education is indeed a very expensive enterprise. Billions
of dollars are spent each year in the United States for elementary
and secondary schooling. Still, many schools lack financial
resources to provide good education. Numerous public schools are
severely crippled by a shortage of funds, and many independent
schools constantly live on the edge of closing.
Public schools receive almost all of their revenues from two
sources: local property taxes and general revenue of the state.
Federal funding for elementary and secondary schools usually
amounts to approximately 7 percent of the cost.
Local school districts have different tax bases and tax rates.
Consequently, different amounts of money are available for
education. State funding formulae attempt to compensate for these
differences by allocating more state dollars to poorer districts.
In spite of these adjustments, great disparities in the amount of
per pupil expenditures exist among school districts. Some school
districts within the same state spend over $10,000 per student per
year; others, less than $5,000.
Furthermore, the way districts spend their income also varies
and helps to create inequities in education. Some examples:
Nationwide, the amount spent on repairing school facility
damages caused by vandalism is about the same as spent on
textbooks. In some districts, however, vandalism costs are ten
times that of other districts. The reduction of financial
resources for the classroom is obvious.
School District A pays five million dollars for security.
School District B, with the same number of students, spends
$250,000.
In School District A, one-third of the elementary school
population comes from homes whose primary language is other than
English. School District B has only four students from the same
population. If their per pupil funds were equal, would equity be
ensured?
School District A regularly passes bond issues to build modern,
well equipped, air conditioned schools. School District B
regularly defeats bond issues even for the repair of antiquated
school facilities.
Educational outcomes also demonstrate great disparities among
school districts. For instance, some public schools graduate 90
percent of their high school students and 80 percent of those go
on to college. Other public schools graduate 45 percent of their
high school students and send 35 percent of those to college. Our
present system falls short of its ideal of providing equal access
to high quality education for all students. In the face of
existing realities, what are the options? There are basically six
ways for parents to improve access to better schools:
1. Organize the community to work with the school
to get better education with the money available.
2. Work to raise the tax base or the tax rate
in the school district or pressure the state legislature to
increase its support of education, or seek new federal funds so
there is more money available for schools.
3. Move out of the community with poorer
schools to a community with better schools. Buy or rent a more
expensive dwelling that will give you access to better schooling.
4. Use your own money to enroll your children
in an independent school.
5. Work through the political process to
change the local property tax system for funding public schools.
6. Work through the political process to
increase choice within the public school system through magnet
schools, cross district choice and charter schools. Supporters
propose that educational choice should be added to the list.
For Discussion
1. What is your perception of the equity and
excellence of education children receive in the elementary and
secondary schools of your school district? Think of another school
district in your state that is quite different (either much better
or much worse). What are the factors that make your school
district better or worse?
2. Citizens prize local control and financing
of their schools; yet, the system creates great disparities among
school districts. How do you evaluate the system in your own
school district and state? How does the relative status of your
own district influence your views?
3. Identify an elementary or secondary school
within your state that has a reputation for excellence. What makes
that school excellent? Under what conditions could every school in
your district be equally excellent?
4. Which of the six options for improving
access to better schools are most realistic and most promising?
Why?
More Equity in Access?
One group of advocates for educational choice supports this policy
because they see it as probably the only way for many children who
are poor to have access to good education. Other ways, they claim,
are blocked. Their public schools do not educate, and the
prospects for significant improvement are dim. Parents cannot
afford to send children to religious or private schools. According
to these advocates, a policy where government funding follows the
child would open up greater educational opportunity for these
children than would any other politically feasible alternative.
These advocates insist that a fair educational choice policy
must grant more funds to poorer children than to middle income or
wealthy children. Furthermore, some say, let us do some
experiments. Select some poor communities and begin a full-scale,
long-term project, and then test the results. Then everyone will
have data to evaluate educational choice.
Opponents argue that educational choice would not promote
equity but inequity, especially in cities. Parents who have some
resources would transfer their children out of the public schools,
leaving behind the poorest of the poor or those whose parents do
not have the means or initiative to seek non-public school
education for their children.
In addition, opponents foresee that many children would need
transportation to a non-public school outside their district. They
insist that implementing educational choice would require
extensive busing and thereby significantly increase costs to
taxpayers or take money away from educational programs.
Opponents warn that if educational choice were to begin among
the poor, the political pressure to extend it to all students
would be irresistible. When this happens, they claim, the real
beneficiaries of the policy will be parents who can already afford
to send their children to independent schools. Consequently,
educational choice will drain scarce tax revenues from poorer
children who should have prior claim on this money and give it to
middle class and wealthy families. Educational choice would
diminish fair access to quality education.
Supporters of educational choice envision a different scenario.
They assume that no tax support for parents would equal the actual
cost of public school education. Thus, whenever a student would
transfer to a non-public school, the state would save money. They
point to the hundreds of millions of dollars that are now saved by
children attending independent schools. If some tax support
permitted more children to attend, the savings to the state would
be even greater.
In states where educational choice legislation has been
introduced, tax experts have devised computer- generated models to
show the financial consequences for the state. Supporters claim
that virtually all the models show an increased draw on state
treasuries in the early years of the program. Over a longer period
of time, however, they show the state budget accruing significant
savings if there is a sufficiently increased number of students
who transfer from the public schools to other schools. These
funds, then, could be used for the most needy public schools.
For Discussion
1. Join in the discussion. Do you think
educational choice would offer more equity in access to good
education or not? Who do you think would benefit most from this
policy?
2. Would experiments in educational choice
help citizens evaluate whether the policy is a good one or not?
3. Consider inviting to your group a person
(or persons) knowledgeable in public financing of education. You
may want to invite your state representative, an ELCA advocate in
your state, an administrator of a Lutheran school, and/or a
teacher or professor of economics.
Competition: Blessing or Bane?
Some observers view the present public school system in economic
terms. They think the system should be understood as a virtual
monopoly. In a given school district, they point out, public
schools provide the only schooling that all students are required
to have by law and that is affordable to most. As long as there
are a sufficient number of students in their district, public
schools will have students, no matter how poorly they educate.
One line of argument for educational choice builds on this
economic analysis. The reason why public education is mediocre or
worse is due to the near monopoly status of public schools. In
order to have excellence in education, this monopoly must be
broken and competition among schools established. Choice gives
"consumers" of education more influence over what goes on in
schools. By empowering parents and students to decide what school
to attend, educational choice introduces competition that will
lead to excellence.
Educational excellence, continues the argument, is especially
crucial today when individuals and the country as a whole must
find their way in a global economy. The impact of the new
technology of the information age on education is only beginning
to be felt. The limitless access to information represented by the
computer and the Internet will dramatically change the way
students learn, the role of teachers and the nature of the
classroom. A monopolistic school system lacks the flexibility to
respond creatively to this new situation. Educational choice would
invigorate citizens to support a diversity of schools ready to
experiment on how best to prepare children for a new day.
Critics of this argument disagree with the very terms of the
discussion. In the current context, they say, words like
"monopoly" and "competition" are loaded terms. "Monopolies" are
perceived as bad and "competition" as good. These concepts from
the market, however, are not helpful in understanding the role of
public schools in society. Public schools are institutions of the
whole society established for the common good. When people speak
of public schools with words like "monopoly" and "competition,"
they are really denying their own accountability for this public
institution. When public schools do not serve the needs of all,
citizens and government have the responsibility to improve them.
Critics also point to other governmental "monopolies" that
citizens accept as necessary public institutions, such as the
military, police forces, sewage and highway systems. A strong
public school system is the best assurance for individual and
national success in the global economy.
Some critics see the key to providing excellence in education
as cooperation and partnership, not competition. "It takes a whole
village to educate a child," they say, "so let's discover new
structures for cooperation among all those who educate." They
envision new coalitions of parents, public and private schools,
community leaders, businesses, governments, churches and
synagogues working together to bring about excellence in education
for all children.
Proponents of educational competition respond: "Our higher
educational system is competitive. Competition among public and
private universities and colleges has produced the best system in
the world. Competition also exists among school districts.
Communities compete to attract corporate and individual tax
payers. To do so successfully, a community must have good schools
with a good reputation. People with children, looking to buy or
rent, inevitably ask, 'Well, how are the schools?' Competition in
education is not evil; it simply exists wherever people have
choice among various goods. Today most parents have limited or no
school choice."
Another voice coming from independent schools speaks to the
issue: "We are already in a competitive environment. We need to
maintain or gain the confidence of our constituency every year.
The moment our parents are dissatisfied, they exercise their
option to enroll their children somewhere else. Our school must be
excellent, or we lose our students. If educational tax dollars
followed the student, we'd all be on a more level playing field,
and there would be more excellence in both public and non-public
schools."
A dissenting voice replies: "Tax-supported competition will
damage public schools. There will be no level playing field as
long as public and independent schools do not have the same
requirements for admission and expulsion. Educational choice will
make public schools a dumping ground for all the students other
schools will not accept."
For Discussion
1. "Monopoly" and "competition" are often
"lightning-rod" words when people discuss educational choice. Why
do you think this is the case? What other arguments would you add
to those the text offers?
2. Proponents differ on what is most basic and
compelling about educational choice. Some make "competition for
excellence" the center of their argument; others make "parental
responsibility" and "values" the center. (See session 3) Which of
the two do you think offers the most fundamental reason in favor
of educational choice?
3. The financing of education should strive to
promote equity, excellence and effectiveness; that is, the best
results for all students at the lowest possible cost. How do you
think educational choice would measure up to these goals? |