School voucher

A school voucher, also called an education voucher, is a certificate by which parents are given the ability to pay for the education of their children at a school of their choice, rather than the public school (UK state school) to which they were assigned.

History

The concept of school vouchers dates back to the 1950s, when economist Milton Friedman suggested the idea stating that it would promote competition and improve schools. Vouchers have since been introduced in countries all over the world but continue to be controversial as they reflect political and ideological splits as well as the role of unions in education.

Controversy

Proponents

Proponents assert that implementing a voucher system would promote "free market" competition among schools of all types, which would provide schools incentive to improve. Successful schools would attract students, while bad schools would be forced to reform or close. The goal of this system is to localize accountability as opposed to relying on government standards.

Proponents also note that school vouchers would allow for greater economic diversity by offering lower income students opportunities to attend previously unaffordable private schools. School voucher proponent and Nobel Prize winning economist Milton Friedman observed that the poor have an incentive to support school choice, as their children attend substandard schools, and would thus benefit most from alternative schools. Friedrich von Hayek explains:

"As has been shown by Professor Milton Friedman (M. Friedman, The role of government in education, 1955), it would now be entirely practicable to defray the costs of general education out of the public purse without maintaining government schools, by giving the parents vouchers covering the cost of education of each child which they could hand over to schools of their choice. It may still be desirable that government directly provide schools in a few isolated communities where the number of children is too small (and the average cost of education therefore too high) for privately run schools. But with respect to the great majority of the population, it would undoubtedly be possible to leave the organization and management of education entirely to private efforts, with the government providing merely the basic finance and ensuring a minimum standard for all schools where the vouchers could be spent." (F. A. Hayek, The Constitution of Liberty, section 24.3)

Influential supporters (other than Milton Friedman) include Illinois business man and politician Jim Oberweis [4], South Carolina's current governor Mark Sanford [5], billionaire and American philanthropist John T. Walton [6], Former Mayor of Baltimore Kurt L. Schmoke [7], Presidential Candidate John Cox [8], Presidential Candidate Mitt Romney [9] as well as Presidential candidate John McCain who claims that, "School choice stimulates improvement and creates expanded opportunities for our children to get a quality education." [10]

Opponents

Critics of the voucher system note that it is possible to have a choice between different schools within the public school system without vouchers. A key reason given for being allowed to choose private schools is the belief that private schools offer better education -- a belief disputed in a 2006 Dept. of Education study. This report concludes that average test scores for reading and mathematics, when adjusted for student and school characteristics, tend to be very similar among public schools and private schools although private schools doing slightly better in both.

One argument against vouchers is that, given the limited budget for schools, a voucher system weakens public schools while at the same time not necessarily providing enough money for people to attend private schools. The opponents assert a tendency of the costs of tuition to rise along with its demand, which would compound the problem. Opponents also claim that the vouchers are tantamount to providing taxpayer-subsidized "white flight" from urban public schools, whose student bodies are predominantly non-white in most large cities..

In the U.S., some critics believe school vouchers are a violation of the United States Constitution's establishment clause, which says, "Congress shall make no law respecting an establishment of religion," since they believe vouchers would provide government funding for church-run schools and would constitute state sponsorship of religion. However, the Supreme Court in Zelman v. Simmons-Harris (2002) rejected this argument.

Some support school vouchers only when coupled with standard tests. They reason that if there are no standard tests, the schools in the school voucher system will give more students passing grades or "lower their bars" in order to attract students.

Some economist critics point to the problem of "cream skimming," a variety of adverse selection in the educational market. With a greater pool of applicants, the private schools could be more selective over which students to admit, excluding those who do not belong to a preferred group (for instance, religion or ethnicity), those with disabilities such as autism or multiple sclerosis, and those with disciplinary problems. On the other hand, by law the public schools must accept any student, so that they would presumably end up with all students whom the private schools turn away for such reasons. This would likely further undermine the reputation and competitiveness of the public schools, leading to a vicious circle that tends toward the total abolition of the public schools and perhaps the end of universal education. Although since the school would essentially become a business, just like any other business; discrimination by race, social class or religion would be illegal thus preventing such abuses. Just as medical doctor cannot reject a patient based on such discrimination nor could a school reject a prospective student.

In the U.S., teacher lobbying organizations such as the American Federation of Teachers (AFT) and the National Education Association (NEA) have spoken critically of the School voucher concept.

Other opponents in the U.S. object on different grounds. They believe that granting government money, even indirectly, to private and religious schools will inevitably lead to increased governmental control over non-government education. Individuals who oppose vouchers on these grounds are often libertarian; most also call for the abolition of all state sponsorship of education, which they believe to be wrong in principle. (Their position has not succeeded legally.) The Alliance for the Separation of School & State opposes education vouchers on the grounds that "if vouchers become commonplace, private and religious schools will become more and more like public schools." Moreover, they suggest that if it is wrong in principle for the government to tax in order to fund public education, then one should not accept any portion of the ill-gotten money to fund private education.

Economics

Education is a rivalrous good. That means that only one person can enjoy each education spot. If there are twenty places for students in a class and the quality of teaching isn't compromised, students can only be aggregated if only a limited number are taken. It is also an excludable good, because someone could, theoretically, easily be prevented from attending classes offered. With such characteristics, education can be classified as a private good, which are, according to economic theory, usually better provided by the market than by the government. But education is a service that contains several positive externalities, which is why the government chooses to fund it.

However, the importance of government funding for education does not imply that the government should run its own schools. In general, to subsidize a good, there are two broad choices: subsidize producers or subsidize consumers.

For example, a producer food subsidy might have a government run store that distributes potatoes to every qualifying poor person. If the individual doesn't like potatoes, too bad. On the other hand, an example of a consumer food subsidy would be the federal food stamps program. Qualifying poor people get to choose what food they want and the government (i.e., the taxpayer) pays for it. With a consumer subsidy (food stamps), a poor person can buy more food and more of the food they want. Back in the arena of education, the government run school system is a producer subsidy while a school voucher would be a consumer subsidy. Because education is not perfectly rivalrous nor excludable (depending on school policies), this theory is debatable.

The rationality of the consumer is also arguable, as highest utility for the consumer may not be socially optimal. In theory, a consumer subsidy gives individuals power to choose what they want, which does not necessarily entail better education, but possibly grade inflation and shortcutting. Consumers may choose schools that inflate grades, which would provide higher utility to the individual consumer, though the consumer is underqualified in education for the degree they earned. When such students are applied to the workforce, their performance will be theoretically worse, causing lower efficiency in the long run. However, this argument rests on the assumption that purchasers of education are seeking a degree rather than knowledge. Moreover, even if degree-seeking is the primary motive of education, a degree from a rigorous and reputable school or program often holds more value than one from an institution known to be lax or lacking, and this provides motivation to not simply choose the easiest curriculum available.

Many concerns or criticisms regarding school vouchers are not leveled strictly at their implementation, but, rather, are in favor of a significant degree of government regulation concerning how the subsidies/vouchers are spent.

Implementations

Chile

In Chile, there is an extensive voucher system in which the State pays private and municipal schools directly based on recruitment. While studying the private school system, however, Dr. Martin Carnoy of Stanford, Patrick J. McEwan and others have found that when controls for the student's background (parental income and education) are introduced, the difference in performance between public and private subsectors is not significant. Alejandra Mizala and Pilar Romaguera (University of Chile) have found that there is greater variation within each subsector than between the two.

Europe

In some European countries, education is free, mostly including undergraduate education to primary degree level. In some countries, parents are free to choose which school their child attends. Schools are often funded on a grant system based on the number of students on their rolls.

Sweden

In Sweden, the Conservative government that held office in 1991-1994 introduced a voucher system at primary and secondary school level, enabling free choice among public and private schools (friskolor) in the community. The system gained such immediate popularity that the succeeding Social Democratic government found it impossible to revert the reform although they have always held strongly negative views on "private" schools. The only major change the new Social Democratic government were able to institute after 1994 was to prohibit extra fees beyond the value of the voucher - this measure was claimed to counteract social segregation in the private schools. Overall, public support has remained strong - segregation has not increased, and various educational models have been able to establish themselves on a broader basis (most notably, the private Montessori schools have also influenced the educational model of the public schools).

In 2006, 7% of Swedish primary school students and 13% of secondary school students attended private schools.

Britain

In Britain, The Conservative Party proposed a policy similar to Chile's during the 2005 general election. It was blamed by many for their subsequent defeat after being the subject of a negative election broadcast (similar to an "attack ad") by the winning Labour Party.

However, it has been pointed-out in the Economist (Jun 30th 2005 - Toddlers and taboos: What counts as heresy in schools is normal in nurseries) that a voucher system has already been unproblematically introduced in Britain for funding pre-school education: they argue it has been lower in costs, greater in efficiency and generative of less bureaucracy than state provision. In principle, this system might be extended to school age educational provision.

Ireland

In Ireland, the state funds all public schools, but also pays the salaries of teachers in registered private schools. Students are free to choose their own school. The system is highly successful. It does not, however, approximate the Swedish model, in that individual student's private school tuition fees are not paid by the government. The 1995-7 Rainbow Coalition (which Contained parties of the centre and the left) introduced free third-level education to primary degree level. Critics of the latter development charge that it has not increased the number of students from economically deprived backgrounds attending university.

The Netherlands

In the Netherlands, the government funds "bijzondere" ("special") schools, which are run by independent non-profit boards, on the condition that they charge no more tuition than public schools do and otherwise abide by practically the same rules as public schools. Parents are free to choose any public or special school for their children, although in some urban areas, such as Amsterdam, admissions procedures do exist. Many, but not all, special schools are religious in nature. The system arose in the early 1900s after a prolonged battle (the "school feud") between religious and secular political parties, and is considered a political third rail even today. The emergence of Islamic schools is putting the issue back into the spotlight, though. Any voucher proposals in The Netherlands, and countries with similar systems such as Belgium, are complicated by the historical school feud reality.

United States

In the 1980s, the Reagan administration pushed for vouchers, as did the current Bush administration in the initial education-reform proposals leading up to the No Child Left Behind Act. So far, voucher programs have persisted only in about half a dozen states and districts; most are offered to students in low-income families, low-performing schools, or special-education programs.

Milwaukee led the way in 1990 and now has nearly 15,000 students using vouchers. The 2006-2007 school year will mark the first time in Milwaukee that more than $100 million will be paid in vouchers. Twenty-six percent of Milwaukee students will receive public funding to attend schools outside the traditional Milwaukee Public School system. In fact, if the voucher program alone were considered a school district, it would mark the sixth-largest district in Wisconsin. St. Anthony Catholic School, located on Milwaukee's south side, boasts 966 voucher students, meaning that it very likely receives more public money for general school support of a parochial elementary or high school than any before it in American history. Under the current state formula for paying school vouchers, however, Milwaukee residents pay more in property taxes for voucher students than for students attending public schools. This imbalance has received considerable criticism, and is the subject of 2007 legislative proposals designed to alter the formula.

The school voucher question in the United States has also received a considerable amount of judicial review in the early 2000s.

A program launched in the city of Cleveland in 1995 and authorized by the state of Ohio was challenged in court on the grounds that it violated both the federal constitutional principle of separation of church and state and the guarantee of religious liberty in the Ohio Constitution. These claims were rejected by the Ohio Supreme Court, but the federal claims were upheld by the local federal district court and by the Sixth Circuit appeals court. The fact that nearly all of the families using vouchers attended Catholic schools in the Cleveland area was cited in the decisions. In a 2002 ruling in the case Zelman v. Simmons-Harris, the Supreme Court of the United States ruled in a 5-4 vote that the Ohio program was constitutional. The justices cited the private choice made by the parents and affirmed that the ultimate purpose (improving elementary education) was secular.

In 2006, the Florida Supreme Court struck down legislation known as the Opportunity Scholarship Program (OSP), which would have implemented a system of school vouchers in Florida. The court ruled that the OSP violated article IX, section 1(a) of the Florida Constitution: "Adequate provision shall be made by law for a uniform, efficient, safe, secure, and high quality system of free public schools."

Political support for school vouchers in the United States is mixed. On the left/right spectrum, conservatives are more likely to support vouchers. Some state legislatures have enacted voucher laws. As of 2006, the federal government operates the largest voucher program, for evacuees from the region affected by Hurricane Katrina.

Some public opinion surveys show that support for vouchers has increased in the last few years, although just how much is debatable. Majorities seem to favor improving existing schools over providing vouchers, yet as many as 40% of those surveyed admit that they don't know enough to form an opinion or don't understand the system of school vouchers.

In November of 2000, a voucher system proposed by Tim Draper was placed on the California ballot as Proposition 38. It was unusual among school voucher proposals in that it required neither accreditation on the part of schools accepting vouchers, nor proof of need on the part of families applying for them; neither did it have any requirement that schools accept vouchers as payment-in-full, nor any other provision to guarantee a reduction in the real cost of private school tuition. The measure was defeated by a final percentage tally of 70.6 to 29.4.

A state-wide universal school voucher system was passed in Utah, though some voters and others are pursuing a referendum to remove it.

Hong Kong

A voucher system for 3 to 6 years olds attending non-profit making kindergarten will be implemented in Hong Kong starting 2007. Each child will get HK$13000 pa. The $13000 subsidy will be separated into two parts. $10000 is used to subsidize the school fee and the remaining $3000 is used for kindergarten teachers to pursue further education and obtain a certificate in Education. Also, there are some restrictions on the voucher system. Parents can only choose those non-profit making with yearly fee less than $24000. It is hoped by the government that by the year of 2011-2012, all kindergarten teachers can obtain a certificate in Education and the government will adjust the subsidy amount to $16000 for each students and all of the money is for the school fee subsidy.

Milton Friedman criticised the system, saying "I do not believe that [CE] Mr. Tsang's proposal is properly structured". He said that the whole point of a voucher system is to provide a competitive market place, therefore, it shouldn't be limited to non-profit kindergartens.

After protests by parents with children enrolled in for profit kindergartens, the scheme was extended to children in for profit kindergartens, but only for children enrolled in or before September 2007. The government will also provide up to HK$30000 subsidy to for profit kindergartens wanting to convert to non profit.

References

Bibliography

• "Voters Repeatedly Reject Vouchers, National Education Association". Retrieved 2006-04-21.
• "What about tax-funded vouchers, tax credits and charter schools? Alliance for the Separation of School & State". Retrieved 2006-04-21.
• Stiglitz, Joseph E. Economics of the Public Sector (3rd ed.). Stanford University. ISBN 0-393-96651-8.
• "West, Edwin G. "Education Vouchers in Principle and Practice: A Survey" The World Bank Research Observer, February 1997" (PDF).

External links

• Society for Quality Education Canadian source of information for various school choice mechanisms.
• National Education Association, School Vouchers (NEA's position)
• School Vouchers: The Wrong Choice for Public Education (The Anti-Defamation League's position)
• Voucher Strategy Center The National School Boards Association provides information including the legal and educational arguments against vouchers, as well as state-by-state data on the status of voucher legislation.
• Peabody, Michael. "The Lure of School Vouchers," Liberty Magazine, July/August 2000. Argues that acceptance of vouchers would introduce governmental regulation of parochial school curriculum.
• "On Thin Ice: How Advocates and Opponents Could Misread the Public's Views on Vouchers and Charter Schools," Public Agenda, 1999 Public opinion study that concluded most Americans did not understand the voucher concept, even in communities that already had such programs.
• The Milton and Rose D. Friedman Foundation has substantial information on school choice.
• Milton Friedman, "Public Schools: Make Them Private," 1995
• [11] 20/20 Report on the American public school system
• [12] The Great School Voucher Hoax - article on the "discount coupon" effect of school vouchers.