Archives for category: Funding

Last year the Arizona legislature passed legislation to make vouchers available to all students in the state. Horrified parents and educators in Arizona—led by Save Our Schools Arizona—gathered over 100,000 signatures to put a referendum on the ballot. The Koch brothers sent in their legal team to try to block the referendum. They failed. The courts kept the referendum on the ballot. The referendum question is called Proposition 305. It asks voters whether they want universal vouchers.

To stop vouchers, vote NO.

To learn more about SOS Arizona, open this link.

ARIZONA: JUST SAY NO TO UNLIMITED SCHOOL VOUCHERS!

Arizona voters have the opportunity to show their state’s lawmakers – and the entire nation – that they support their public schools by voting NO on Proposition 305. Thanks to a successful and hard-fought grassroots campaign, the November ballot will include a question about expanding Arizona’s voucher program (currently targeted to special categories of children) to all 1.1 million students in the state.

A NO vote on the November referendum will keep public funds in the public schools, instead of diverting those resources to pay for vouchers for private and religious education. This is a particularly important vote in Arizona, where 95% of students attend public schools, while the state ranks 48th in the country in terms of public school funding level.

According to the “National Report Card: Is School Funding Fair?” published by the Rutgers University Graduate School of Education and Education Law Center, Arizona receives an “F” in the “Effort” category, meaning the state makes a lower than average effort to fund its public schools.

The grassroots group that spearheaded the voter referendum, Save Our Schools Arizona, is leading the campaign for the NO vote. The goal is to make sure there are no further cuts to public education, especially since a whopping $4.65 billion has already been cut since 2009. The organization notes that $160 million could be diverted from the state’s public schools – every year – if the expanded voucher program is implemented.

Arizona public school advocates know what many states, and even the federal government, have found to be true – voucher programs are highly unpopular and therefore extremely difficult to establish or expand. In November, Arizona voters will get the chance to save their schools and send a message that will be heard across the country: Just Say NO to Vouchers!

For more information about vouchers, visit Voucher Watch on the ELC website.

Education Law Center Press Contact:
Sharon Krengel
Policy and Outreach Director
skrengel@edlawcenter.org
973-624-1815, x 24

Jeremy Mohler of “In the Public Interest” writes about a new report showing that public schools are underfunded on purpose.

“Like many reports, the latest from the Alliance to Reclaim Our Schools (AROS) drops a number of disturbing facts.
Between 2005 and 2017, the federal government neglected to spend $580 billion it was supposed to on students from poor families and students with disabilities. Over that same time, the personal net worth of the nation’s 400 wealthiest people grew by $1.57 trillion.

“Seventeen states actually send more education dollars to wealthier districts than to high-poverty ones.
Over 1.5 million students attend a school that has a law enforcement officer, but no school counselor. The school policing industry was a $2.7 billion market as of 2015.

“But Confronting the Education Debt doesn’t just throw numbers against other numbers to see what sticks. It tells a tragic story: the rich are getting richer, and our public schools are broke on purpose. And it comes to an indisputable conclusion: black, brown, and low-income students and their schools are owed billions of dollars.
That’s because many public schools do in fact work, but only when they are fully resourced, which tends to be in white, middle class, and affluent communities.

“These findings drive home that adding market forces to public education — so-called “school choice” — is a superficial and, even, harmful attempt at solving a deep and enduring problem. After being hijacked as a political project by private investors and billionaires, charter schools have begun to threaten the existence of public education itself. As they grow in number, they siphon more and more funding from school districts, forcing cuts at traditional, neighborhood schools. Charter schools are costing San Diego Unified School District, for example, over $65 million annually — or about $620 per neighborhood school student.”

The answer is clear: fully fund our public schools and drop the fantasy that the market will fix the problems of underfunded schools.

Brad Miller is a lawyer in North Carolina who served in the State Legislature. This article appeared in “Verdicts,” a publication of legal analysis.

Miller writes:

The Trump administration’s “school choice” plan is destined for court, and maybe not with just the usual suspects as plaintiffs.

The administration’s budget proposes deep cuts to programs to help low-income and other disadvantaged students at traditional public schools, which Education Secretary Betsy DeVos and her allies call “government schools” and regard as sinister institutions somewhere on the socialism spectrum. But the budget proposes an additional $1.4 billion to expand charter schools and to provide vouchers for religious and other private schools. The proposal would allow, and perhaps require, “portability” of local and state funds. When a child enrolls in a charter or private school, funds would “follow the child.”

School choice is the New Coke of education policy. The supposed superiority of charters and private schools is based on dogma, not objective research. Students in public schools perform every bit as well when the circumstances of the students are taken into account.

Charters have become a separate school system in many districts, and separate is inherently unequal now just as it was in 1954, even if the basis for separation is more subtle. Charters recruit kids who do not have special needs, will not be discipline problems, and are likely to perform well in any school. Charters often expel other kids for pretextual disciplinary reasons, who then enroll in traditional public schools. Civil and disability rights organizations have already successfully challenged some of the discriminatory policies that make traditional public schools the high-risk pool in some districts. More such challenges are certain.

But there may also be an unexpected legal challenge.

Moody’s Investors Service published research in 2013 that found that charter schools were a growing credit risk for public schools. The risk was largely the result of “state policy frameworks that support charter school growth,” such as permissive rules for the authorization of new charters and increased enrollment in existing charters, as well as per-pupil or other funding formulas based upon enrollment. According to Moody’s, public schools that lost enrollment to charters “often cut academic and other programs, reducing service levels and thereby driving students to seek educational alternatives, including charter schools,” which “can exacerbate the loss of state and local revenues, as portions of both will follow those students to charter schools.”

Some analysts say the cycle that Moody’s described became a “death spiral” for some public school systems, such as Detroit’s. At the end of 2011, Michigan’s governor signed legislation to remove the statutory cap on university-approved charter schools. Charter schools in Detroit increased from 52 to 64 the next year, and the explosive growth continued. For the 2005-2006 school year there were 130,719 students enrolled in Detroit Public Schools and 25,802 enrolled in charters. For the 2013-2014 school year, there were 48,511 students enrolled in DPS and 58,612 enrolled in charters. State per-pupil funding for 2013-2014 was $7,246 for charter schools and DPS alike. Charters are not responsible for any part of DPS’s debt.

Moody’s reduced the Detroit Public Schools’ credit rating from B3 to Caa1, two notches above imminent default, on March 24, 2015. Moody’s specifically cited the “growing charter school presence” as a cause for the system’s financial difficulty.

Charter-Friendly Legislation May Violate the Contract Clause

Investors in public school bonds may have a claim that such charter-friendly state legislation impairs their contracts with public school districts in violation of the Contract Clause of the U.S. Constitution. The courts have been sympathetic to challenges to state legislation under the Contract Clause where the contract impaired is the state’s or a political subdivision’s own, especially where the contract is a debt instrument sold on financial markets, and most especially where the legislation is a change in taxes or spending, as opposed to new public health and safety protections.
Enrollment-based funding formulas in Michigan and elsewhere resulted in the loss to public schools of far more funds than the incremental cost of educating children enrolled in charters. Public schools lost funds for fixed costs, including debt service for bonds to pay for school construction, renovation, and equipment to serve the expected enrollment.

The powers of the purse are core legislative functions. State legislatures have discretion to set tax and spending priorities, the Supreme Court said in 1977 in United States Trust Co. v. New Jersey, but “complete policy deference to a legislative assessment of reasonableness and necessity is not appropriate where the State’s self-interest is at stake. A government entity can always find a use for extra money, especially when taxes do not have to be raised.” The Court cautioned that state legislatures may change spending priorities, but “the obligations of its own contracts” are not simply one priority for legislatures to consider “on a par with other policy alternatives….”

State legislation to encourage the growth of charters has detrimentally affected the financial framework of public schools. Investors relied on the existing framework when they decided to purchase schools bonds. And states that enacted legislation to encourage the growth of charter schools have generally provided no alternative revenue to pay public schools’ debt.

Most states that have created parallel systems of traditional public school and tax-funded charter schools have not paid for the additional costs with additional taxes. Instead, most states have paid for charters from traditional public schools’ funds and thus lowered the priority of the obligations of their own contracts with investors in public school debt. The Contract Clause forbids that policy alternative.

Any Remedy Would Be a VictoryW

It is unlikely that a successful Contract Clause challenge would result in the elimination of funding for existing charters. A court would more likely enjoin new charters or the expansion of existing charters, or perhaps limit the future diversion of funds to the incremental costs of educating children who enroll in charters to protect the contract rights of bondholders. Any remedy a court might fashion, however, would be an enormous victory for traditional public schools.

A legal challenge by bondholders would be more than defensible to the public. DeVos’s clueless testimony at her confirmation hearing was an embarrassment to billionaire dilettantes everywhere, but “alternatives” to public schools remain wildly popular with what Bernie Sanders calls “the billionaire class.” Most Americans are more skeptical. Americans don’t regard public schools as creeping socialism or public school teachers as union thugs, and don’t support looting public schools to pay for charters or private schools.

It is a fight that supporters of traditional public schools should welcome.

Steven Singer describes a new report that reached a startling conclusion: the federal government shortchanged the nation’s public schools by hundreds of billions, at the same time that the top earners raked in billions of dollars.

He writes, in part:

Fun Fact: Between 2005 and 2017, the federal government withheld $580 billion it had promised to spend on students from poor families and students with disabilities.

Fun Fact: Over that same period, the personal net worth of the nation’s 400 wealthiest people ballooned by $1.57 trillion.

So, rich people, consider this the bill.

A new report called “Confronting the Education Debt” commissioned by the Alliance to Reclaim Our Schools (AROS) details the shortfall in minute detail.

For instance:

$347 billion owed to educate low-income students most of whom are children of color.

$233 billion owed to provide services for students with disabilities.

And this is just the shortfall of the last dozen years! That’s just money due to children who recently graduated or are currently in the school system!

We’ve been cheating our children out of the money we owe them for more than half a century!

Sue Legg is a retired assessment and evaluation expert who worked for three decades at the Florida Department of Education; she is past president of the Alachua County (Florida) League of Women Voters.

She writes:

>Amendment 8 Behind the Scenes: Political ideology, religion, dark money, billionaires, and of course, the money trail

Florida’s 652 charters run the gamut from small ‘mom and pop’ charters to large chains organized by for-profit management companies. Some serve children and districts well. Many others tell different stories. They involve not only political ideology but also religion, dark money networks, billionaires, and of course, self-interest.

The Erika Donalds version of the charter story starts simply. A small group of members seceded from the Florida School Boards Association (FSBA) in 2015 to form the Florida Coalition of School Board Members (FCSBM). Erika Donalds, a member of the Collier County school board and wife of Florida Representative Byron Donalds, fronts this coalition, but the political network behind it is extensive. It goes all the way to our nation’s capital.

About 14 of the 50 alternative school board association members have been publicly identified, including:

Rebecca Negron, who has just been defeated for a seat on the Martin County school board even though her supporters raised over $250,000 to unsuccessfully attack her opponent. She is the wife of Senate President Joe Negron. Senator Negron wrote the initial legislation for the Florida Tax Credit Scholarship program to give corporate taxes to private schools.

Some FCSBM members also have strong dark money ties to national conservative political advocacy groups.

Erika Donalds openly displays the Americans for Prosperity logo on her Collier 912 Freedom Council website. This is a tea party group supported by the Koch brothers and others.

In the March 29, 2018, article in the Tampa Bay Times, Speaker of the Florida House Richard Corcoran’s wife Ann, who operates her own charter school, is identified.

Shawn Frost, who is Chair of the Indian River school board, is part of this coalition.

He announced in the Indian River Guardian that he expects to be appointed to the Florida State Board of Education. Frost reported campaign contributions from Betsy DeVos, the U.S. Secretary of the Department of Education. In 2014, Frost received $20,000 in campaign contributions from the American Federation of Children run by Betsy DeVos. Frost lives in Vero Beach, but maintains a room in his father’s house in Indian River to meet the residence requirements for being on the school board. He is also the head of MVP Strategy and Policy which specializes in consulting for school board races.

A Duval School Board member Scott Shine has reportedly joined the FCSBM. He withdrew from his 2018 reelection campaign due to ‘personal attacks’.

Sarasota school board members Erik Robinson, a former Republican Party Chairman and Bridgit Ziegler are listed members. Ziegler’s campaign reported $45,000 in donations from the out of state Phoenix Media LLC. According to the Herald Tribune, the money was funneled through a PAC run by fellow board member Erik Robinson, who is often called ‘The Prince of Dark Money’.

Some FCSBM members are collaborating to build a Florida chain of Classical Academy Charters. This isn’t just any group of charter schools. They are sponsored by the Hillsdale College Barney Charter School Initiative. The College, located in Michigan, has a long religious/conservative/libertarian agenda. The DeVos immediate family and close business associates have several Hillsdale graduates. \The Barney (SmithBarney) and Stanton Foundations fund the initiative. There are 17 of these charters nationwide. In Florida, there are four: Mason in Naples, Pineapple Cove in Palm Bay, St. Johns in Fleming Island, and the newly formed Pineapple Cove in West Melbourne. Donalds and her husband have been active with the Mason Classical Academy in Collier County. Donalds is currently seeking to add a Classical Academy in Martin County where Rebecca Negron was running for school board.

Erika Donalds has more than running a charter school on her mind. She was appointed by the governor to the Florida Constitutional Revision Commission (CRC) which is convened every twenty years to consider proposals to amend the constitution. Donalds is a strategist to divide the Florida public schools into two separate systems, one for ‘independent schools’ and one for public schools established by locally elected school boards. Essentially, it would allow one system for charters and private schools receiving tax credit scholarships and one for traditional public schools.

This year the CRC was plagued with ‘log rolling’. It is a technique to bundle dissimilar proposals into one law. There is a spate of these ‘logs’ projected to be on the November ballot. Multiple lawsuits have been filed against them, and the Florida Supreme Court ruled that the League of Women Voters was correct in its opposition to at least one. This proposed Amendment 8 to the Florida constitution must be withdrawn from the November ballot. How this amendment came to be is a story in itself.

Amendment 8 combines three separate proposals: school board term limits, civics literacy and a clause stating that school boards are only responsible for schools they create. This third proposal is the heart of the amendment. The title for the amendment, however, is: “School Board Term Limits and Duties; Public Schools”. Voters might be in favor of one part of the combined proposals but opposed to another. It was a ‘take it or leave it’ strategy. The wording, even the title was intended to confuse voters.

Term limits and civics education may seem innocuous, but they are not.

Erika Donalds is also the Florida sponsor for the US Term Limits organization. This group has a well-documented conservative political agenda that targets school boards to create more opportunities to influence policy. The Koch brothers founded the US Term Limits group. The civics course requirement proposed by CRC member Gaetz, the former President of the Florida Senate, made no sense. Civics was already required by the Florida Department of Education. Former Governor Bob Graham, long a champion of civics education, stated that not only is Amendment 8 a hodge podge, it is not even good for civics education. The CATO Institute has a major focus on civics education and provides free civics material to k12 schools. Its message is clear. According to the Huffington Post, the CATO group states: “The minimum wage hurts workers and slows economic growth. Low taxes and less regulation allow people to prosper. Government assistance harms the poor. Government, in short, is the enemy of liberty.”

The third component of Amendment 8 was to remove local school board control over the authorization of new charter schools. This too represented the national move to privatize our schools by creating charters and funding vouchers to private schools. In the proposed Amendment 8, however, the schools were called ‘independent’, not charter schools. Florida Commissioner of Education Pam Stewart stated that removing local school board control over the establishment of charter schools goes too far. CRC member Patricia Levesque, CEO of Jeb Bush’s education foundation however, supported the amendment as did Marva Johnson, the President of the State Board of Education.

Erika Donalds formed a Political Action Committee called ‘8 is Great’ to sway voters to support Amendment 8. According to the Vero Communique, Howard Rich, a wealthy New York real estate investor, invested $100,000 in the ‘8 is Great’ PAC. Rich serves on the Board of the CATO institute which was founded by the Koch brothers. David Koch ran for Vice President of the U.S. in 1980 on a platform opposing social security, the FBI, the CIA and pubic schools. The billionaire Koch brothers have a long and intensive interest in promoting school choice through their Americans for Prosperity organization. They are concentrating on Florida, Arizona, Colorado, Nevada, North Carolina, Ohio, Pennsylvania, Texas, Virginia and Wisconsin. Their presence takes many forms. Watch for everything from donations to school board races, charter and voucher expansion efforts and state election campaigns. John Kirtley, the founder of Step Up for Children was a major donor. Step Up is the agency that administers a billion dollars for the Florida Corporate Tax Credit Scholarships for private schools. Indian River School Board member Shawn Frost and Duval School Board member Scott Shine have joined the PAC according to the Tampa Bay Times.

Recognizing that term limits and civics education are popular among many voters, former Supreme Court Chief Justice Wells submitted a brief to the Florida League of Women Voters in which he stated: “This change from local county school board control…is hidden by packaging the change with what are thought to be attractive proposals for term limits and civics education.” These schools were planned to be charter schools but the word ‘independent’ was substituted for the word ‘charter’.

There is a watchdog coalition of about 20 public interest groups, headed by the League, to follow and evaluate CRC proposed amendments. Amendment 8 was identified early by the coalition as part of a package of amendments intended to seize local control from city and county governments. The League of Women Voters and the Southern Poverty Law Center joined forces to file a lawsuit against Amendment 8 asking that Amendment 8 be removed from the November ballot. The suit claimed that the amendment was deliberately vague and intended to confuse the public. The circuit court in Tallahassee agreed. The State filed an appeal.

The Appellate Court immediately referred the case to the Florida Supreme Court saying, “The case involves a question of great public importance and requires immediate resolution by the Supreme Court.” The vagueness of the amendment language and its misleading title: “School Board Term Limits and Duties; Public Schools” was the basis for the justices’ 4 to 3 ruling against Amendment 8. The decision puts a roadblock in the effort to create an alternative charter school system. Some legislators will no doubt continue to push proposals to remove any local school board control of charter schools. In reality, local public schools have very limited responsibility to oversee charters, but they and the local press can shine a spotlight on what is at stake.

After sixteen years of choice, it is clear that choice divides communities, segregates children, and dissipates funding without making any appreciable improvement in student achievement. The Supreme Court has another case before it now, ‘Citizens for Strong Schools vs. Florida State Board of Education’ that has been working its way through the courts since 2009. The plaintiffs contend that Florida’s choice policy has failed to adequately fund schools and does not provide the quality education for all children that the Florida constitution requires. Of particular interest is whether there should be justiciable standards to define a ‘quality education’. The hearing is set for November 8. The future of our public school system will depend upon the ruling from the bench. The future of our public school system will depend on the ruling from the bench.

In the lawsuit that Sue Legg refers to in the last paragraph, a group called “Citizens for Strong Schools” argues that the state “is funding two separate systems of public education through its use of privately-run yet publicly funded charter schools, and vouchers that allow kids to attend private schools for varying reasons. Opponents say such programs take money away from traditional public schools.” Florida courts have rejected that argument in the past.

I think we are beginning to understand the real purpose of Corporate Reform. The 1% and their minions repeat ad nauseum that school choice will fix all education problems, lift the poor out of poverty, and no new taxes are needed. Indeed, they have pushed for tax cuts and cheered on deep cuts to public education. We are watching a generation of defunding public schools, refusing to invest in teachers’ salaries, and a massive transfer of resources from the public sector to private institutions.

Jeff Bryant explains it here.

“Recent news stories about wealthy folks giving multi-million donations to education efforts have drawn both praise and criticism, but two new reports by public education advocacy groups this week are particularly revealing about the real impact rich people have on schools and how they’ve chosen to leverage their money to influence the system.

‘The Education Debt’

“The first report, “Confronting the Education Debt” from the Alliance to Reclaim Our Schools examines the nation’s “education debt” – the historic funding shortfall for school systems that educate black and brown children. The authors find that through a combination of multiple factors – including funding rollbacks, tax cuts, and diversions of public money to private entities – the schools educating the nation’s poorest children have been shorted billions in funding.

“One funding source alone, the federal dollars owed to states for educating low-income children and children with disabilities, shorted schools $580 billion, between 2005 and 2017, in what the government is lawfully required to fund schools through the provisions of Title I of the Elementary and Secondary Education Act and the Individuals with Disabilities Education Act.

“The impact of not fully funding Title I is startling, the report contends, calculating that at full funding, the nation’s highest-poverty schools could provide health and mental health services for every student including dental and vision services, and these schools would have the money to hire a full-time nurse, a full-time librarian, and either an additional full-time counselor or a full-time teaching assistant for every classroom.

“State and local governments contribute to underfunding too by keeping in place tax systems that chronically short schools, particularly those that educate low-income students, mostly of color. Two school districts in Illinois are highlighted – one where 80 percent of students are low-income and gets about $7,808 per pupil in total expenditures, while another, where 3 percent of students are low-income, spends $26,074 per student…

“In the meantime, while the nation’s education debt expands, the accumulated wealth of the richest Americans continues to grow. During that time period the federal government was shorting schools billions, the personal net worth of the nation’s 400 wealthiest individuals grew by $1.57 trillion, the report notes.

“There is a direct correlation between dwindling resources for public schools and the ongoing political proclivity for transferring public dollars to the nation’s wealthiest individuals and corporations,” the report declares. “The rich are getting richer. Our schools are broke on purpose.”

This is the context for Bryant’s discussion of the NPE Action Report, “Hijacked by Billionaires.” The 1% buy control of state and local races so they can advance their tax-cutting, budget-cutting ideas and promote school choice.

“What motivates these wealthy people from exerting their will in the electoral process varies. They are bipartisan politically. Some are directly connected to the charter school industry. Others have expressed disdain for democratically controlled schools and argue, instead, for school governance to transfer to unelected boards. Some are motivated by their hatred of teachers’ unions. While others believe strongly that public education needs to be opened up to market competition from charters.

“But what billionaire donors all have in common, the report authors write, is their devotion to blaming schools and educators for problems posed by educating low-income children. Instead of using their political donations to advocate for more direct aid to schools serving low-income kids, wealthy donors “distract us from policy changes that would really help children,” the report argues, “such as increasing the equity and adequacy of school funding, reducing class sizes, providing medical care and nutrition for students, and other specific efforts to meet the needs of children and families.”

Their one unifying idea is lower taxes.

His third example is a new book about how predatory elites subvert democracy.

“Rich people are playing a double game,” writes Anand Giridharadas in his new book ‘Winners Take All: The Elite Charade of Changing the World.’ “On one hand, there’s no question they’re giving away more money than has ever been given away in history … But I also argue that we have one of the more predatory elites in history, despite that philanthropy.”

Bill Phillis is a retired deputy State Superintendent of Schools in Ohio and a passionate advocate of public schools, equity and accountability.

He launched the Ohio Coalition for Equity and Adequacy of School Funding. You should subscribe to his email list.

ECOT (Electronic Classroom of Tomorrow) wasted $1 billion of taxpayers’ money, diverted funding from real public schools, and was endorsed by Ohio’s most prominent Republican elected officials. Betsy Dezvos wants more virtual charters, which have an abysmal track record.

He writes:


The ECOT scandal could have been stopped many times since its beginning

After ECOT ripped off a billion dollars from Ohio school districts and collected a couple hundred million from the federal government during a 17-year run, the corrupt operation was finally exposed. How did this business enterprise feed illegally at the public tax trough in plain sight without being held accountable? That critical question is being debated in the final days before the November 2018 election. Candidates are debating who is to blame.

One person said; don’t blame Bill Lager-he is a businessman trying to make a buck. Lager used millions of tax dollars gobbled up from the public trough to buy political favors. Public officials turned a blind eye to the corruption.

Who should have been watching ECOT and other bad actors in the charter industry?

State Board of Education
Ohio Department of Education
State Superintendents
State Auditors
State Attorney Generals
Governors
Legislators
Private watchdog groups

Over the years state officials have shut down small charter operations-the kind that had meager political campaign budgets. But ECOT wasn’t on their radar.

The ECOT scandal should prompt state officials of all political stripes to put the spotlight on the other big time charter operators such as K12 Inc., Imagine Schools, Gulen Islamic charters, Accel, etc.

“The whole people must take upon themselves the education of the whole people and be willing to bear the expenses of it. There should not be a district of one mile square, without a school in it, not founded by a charitable individual, but maintained at the public expense of the people themselves.”
– John Adams, September 10, 1785

William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540 | ohioeanda@sbcglobal.net| http://www.ohiocoalition.org

The Grand Canyon Institute of Arizona audits the use of tax dollars that are spent for public and private schools. Under Governor Douglas Ducey, the state has been very generous to private, religious, and charter schools, but not with public schools.

Here is its latest report:

FOR IMMEDIATE RELEASE
Contact:
Dave Wells, Research Director
dwells@azgci.org, (602) 595-1025 Ext. 2
Amy Pedotto, Communications Manager
apedotto@azgci.org, 602-595-1025, Ext. 3

State pays $10,700 subsidy for private school students;
75 percent more than their public school peers

Phoenix — According to a new policy paper, Arizona’s two private school subsidy programs cost the state $10,700* on average per regular education student who would not otherwise have enrolled in private school. This imposes an additional $62 million expense on the state’s General Fund.

Published by the non-partisan think tank the Grand Canyon Institute (GCI), the policy paper $10,700 Per Student: The Estimated Cost of Arizona’s Private School Subsidy Programs looks at how the state’s two private school subsidy programs — private school tuition tax credit scholarships and Empowerment Scholarship Account (ESA) vouchers — have impacted private school enrollment and then estimated a per student cost to taxpayers. The paper looks at regular education students; it does not include students with disabilities because of the significant cost differences in providing their education.

The study’s findings also include that:

The estimated cost per subsidized private school student has increased $700 in the two years since GCI first analyzed the cost of the subsidy programs in Arizona.

On average, taxpayer-funded private school subsidies cost an additional $4,700 or 75 percent more per student than the $6,000 the state pays to educate a regular education public school student when paid entirely from state funds.

In 2015-16, private school subsidies cost Arizona’s General Fund a total of $141 million, nearly a 50-fold increase from $3 million in 1999-2000.

In 2015-16, GCI estimates that 13,170 students who used the taxpayer-subsidized program would have attended public school if the scholarships and vouchers were not available.

Private school as a percentage of total student enrollment has declined from 5.9 percent to 4 percent since Arizona first introduced a private school subsidy in the late nineties. An increase in the percentage of private school enrollment would have occurred if the programs were more effective.

“GCI’s research of academic studies found that lower income families using similar subsidy programs in other states frequently had negative academic impacts compared to public school peers,” Wells says. “The study raises questions about the efficacy of private school subsidy programs as voters are asked to expand Arizona’s ESA voucher program with Prop. 305 this November.”

George Cunningham, GCI’s board chair and former state legislator, commented, “Arizona can’t afford fiscally irresponsible private school subsidies that siphon money away from its public education system. These subsidy programs are placing an increasing burden on the state’s General Fund meanwhile research shows they provide no academic benefit when comparing demographically similar students attending public and private schools.

“Given these facts, it is appropriate to ask why our state government would continue tuition tax credit scholarships and seek to expand ESA vouchers to the general education population. At a minimum, it is strongly recommended that the total amount in tuition tax credit scholarships a student can receive be limited to the amount paid by the state for regular education public school students similar to ESA vouchers.”

What are Arizona’s two private school subsidy programs?

Tuition tax credit scholarships were introduced two decades ago. They divert individual and corporate taxpayer dollars from the state’s General Fund, providing donors a dollar-for-dollar reduction in taxes owed while decreasing the state’s revenue. GCI’s research found that in many cases students are receiving more than one tax credit scholarship by applying for funding from multiple School Tuition Organizations (STOs), the private organizations that accept tuition tax credit donations and distribute them to students.

ESA vouchers were introduced in 2011. Distributed by the state’s Department of Education and financed from the General Fund, ESA vouchers allow certain categories of students to attend private schools such as those with disabilities, students from D and F rated public schools, foster children and children of veterans. GCI’s paper did not include vouchers used by students with disabilities in its analysis due to the significant cost differences in meeting their needs. In November 2018, Prop. 305 will give Arizona’s voters the opportunity to decide whether ESA vouchers should be made available to all students, a significant expansion to the program.

Click here to read the full report.

*Methodology:

First, GCI’s analysis estimated that 13,710 out of 46,252 regular education students attending private school in Arizona did so because of the state’s private school subsidies. The ratio of Arizona to US private school enrollment as a portion of all students (0.45) was the dependent variable used in the regression analysis to control for any factors outside of Arizona that impacts private school enrollment such as recessions or economic growth. All of these factors impact private schools generally and would not have a separate impact on Arizona’s private schools. The analysis’ independent variables were the state’s enrollment growth of charter schools and private school subsidies because in both cases Arizona far exceeds the national average.

Next, GCI determined the cost of private school subsidies to the state, for those regular education students that chose private school because of the subsidy programs. This amount was calculated based on the total value of subsidies allocated for regular education students ($140,874,776) divided by the number of students that opted for private school due to the subsidies (13,710). GCI determined that subsidies cost the state an average of $10,700 per regular education private school student for those that would have attended public school if the private school subsidy programs weren’t available.

Finally, Arizona’s private school subsidies cost $140,874,776 for regular education students who would not have otherwise attended a private school. For this analysis, GCI uses the cost of educating a charter school student ($6,000) for comparison because the state government uses this amount to determine the value of ESA vouchers for a regular education student. The cost of educating a charter school student is used in GCI’s analysis because they are completely state funded, whereas the cost of educating a public district school student varies per district based on a state and local funding. (This provides a more conservative comparison because the average cost of educating a regular education student in a district school is less than a charter school.) Arizona would have spent $82,260,000 to educate taxpayer-subsidized private school students if they had attended a charter school instead. Therefore, Arizona’s private school subsidies increased the cost of educating these regular education students by $4,700 each or $62 million in total.

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Raise Your Hand for Public Education-Illinois has some excellent ideas about what should happen next in Chicago.

As you may know, we have been critical of many of the mayor’s education policies over the years, as they haven’t often aligned with our vision of an education system that is based on high-quality, researched-backed policies, centers on children’s curiosity and creativity, emphasizes collaborative learning environments instead of competition, and provides crucial social-emotional and health supports alongside academics.

We’ve also been critical of how those policies have been decided and rolled out; rather than encouraging debate, engaging families, students, teachers, and communities in a robust process to provide input, and seeking consensus beforehand, the mayor’s office has frequently sought only a post-hoc rubber stamp from the Board for decisions about CPS.

So these are some of the things we’ll be looking out for:

Funding: Budgets are a set of priorities. What are the essentials that have been cut over the years, or were never funded, and how will the next mayor fund these things? Will a candidate end the damaging student-based budgeting (SBB) system? SBB contributes to an accelerated death cycle for schools with decreasing enrollment, distorts hiring practices to favor the least-experienced teachers, and forces schools to eliminate librarians, art, and music to cut costs. And how will the next mayor work to get increased revenue to the schools?

School ratings: Test scores and attendance are the primary factors used to rate elementary schools. These ratings drive a lot of bad practice inside schools. How will the next mayor change this?

Overemphasis on test scores: Linked to above issue. Skill-drill test prep must be replaced with authentic learning environments. This requires time for serious professional development and planning! PD and planning time have been cut dramatically under this mayor to make room for the longer unfunded day. When teachers can’t collaborate, schools can’t improve. Test prep is not a good practice to improve learning.

Privatization: Charter schools have proliferated in areas of declining enrollment, and the mayor accelerated outsourcing of critical positions in the school building. CPS has also engaged in a new partnership with Mark Zuckerberg where private student data will likely be handed over to the Chan Zuckerberg Initiative LLC. How will the negative impacts of this be addressed and outsourcing reversed? Is a candidate willing to fight the continuation of IL’s tax credit scholarship program when it is up for renewal in 5 years?

Community: Schools should be community anchors. A number of schools with lottery-based or test-score based admissions have been added to the CPS “portfolio” over the past eight years. How can schools function as community hubs when there are so many barriers to access? How will facilities decisions be made to decrease race and class segregation rather than further entrench it in our divided city?

Wrap-around supports: CPS ratio of clinicians to students is grossly inadequate. The recommended ratio for students to social workers is 1:250 in districts without high poverty. In CPS the ratio is 1:1250. Will increasing clinician positions be a priority for the next mayor?

Early childhood ed: Rahm announced a new plan recently, but we are hearing from parents that there is a lot of chaos in the current system. We plan to do some listening tours with parents this year to find out what’s going on. Candidates should explain how new preschool programs will be funded and whether expanding services for one age group will mean reduction in services for another.

Special ed: CPS’s deliberate diversion of resources away from special education resulted in the state taking over special ed. How will the next mayor instruct CPS to systemically correct this debacle and to work with the ISBE monitor?

Elected school board: We believe that checks and balances, transparency and accountability are crucial in moving the school system to a better place. We need a Board of Education that’s directly accountable to the public at the ballot box and one whose deliberation of issues doesn’t take place behind closed doors. Where do the candidates stand on a fully elected, representative school board for Chicago?

So there’s a lot of research for everyone to do, and obviously education is only one area to focus on when determining who to vote for. Stay informed, stay involved, go to candidate forums, do your homework!

And attend our annual fundraiser, Raise a Glass for RYH, on October 2 to talk with us about all the important education issues facing our schools!

Happy school year, all.

Best news of the day!

The charter-friendly State Board of Education turned down Rocketship expansion plan, after 25 speakers denounce it. Chair of board voted to support.

“In a 9-1 vote, the board agreed with the California Department of Education’s recommendation to deny the charter organization’s petition to establish a new school in San Pablo near Richmond, which the West Contra Costa Unified school board and Contra Costa County board of education had also denied. Citing concerns about the charter school’s financial and educational plans, some board members said Rocketship – which operates 10 schools in San Jose, one in Antioch, one in Concord and one in Redwood City where the company is headquartered – may be trying to expand beyond its capacity. Board President Michael Kirst voted against denying the appeal.

“Board members said they were especially concerned about problems associated with the Rocketship Futuro Academy charter school, which opened in Concord two years ago, with the State Board’s approval. The California Department of Education has sent six letters of concern to the school, which is located in the Mt. Diablo district, related to finances and other issues. Rocketship said they expected new philanthropic support which would improve the school’s finances.

“Chief Deputy Superintendent Glen Price, who was sitting in for State Superintendent of Public Instruction Tom Torlakson, said the California Department of Education was concerned about the lack of students with disabilities in Rocketship schools, lack of information about its English learner program, high suspension rates among some student groups, and its governance model, which includes charter school board meetings held in San Jose. Price, who lives in Contra Costa County, said meetings that far away were “counter to all of our objectives for parent and stakeholder engagement.””

Even with the billionaires’ support, charter schools are becoming toxic.

Resistance works.

Charter schools divert money from public schools.