(Guest Post by Matthew Ladner)
The Texas Public Policy Foundation, the Texas Business Leadership Council and Excel in Ed teamed up to publish a new white paper by yours truly called
The Yellow Rose The Achilles Heel of Texas: Improving College Eligibility Rates through K-12 Savings Accounts. Bottom line: only a minority of Texas public school students get prepared for even a moderately selective college or university, and the percentage moves to catastrophically low levels when looking at the ethnic minority student groups which now constitute a large majority of Texas students. Meanwhile an annual 90k+ of new students per year has been driving resources out of the classroom and into debt, with no end in sight and an aging population that will slow revenue growth and create new costly problems in health care and pensions.
Judging from the number of applications received in the first year of NVESA, enrollment growth in Texas could be substantially slowed by a universal ESA program, which would give the public system a chance to focus resources away from the debt spiral of constantly building new facilities and then surrounding them with portable buildings. We could expect such a system to have the well-established positive effects for both participating and non-participating students, but also represents an opportunity for low-income students especially to save and build assets for future higher education expenses.