The Way of the Future: Self-Reliance (with equity?)

August 1, 2018

(Guest Post by Matthew Ladner)

In a previous post I basically made the case that a majority of American states failed to show much academic progress between 2003 and 2017 and that the nation’s fiscal problems are closing in fast. While state constitutions guarantee K-12 funding, making it about as close to a permanent institution as you get in American life, the looming crunch in state budgets between K-12 and Medicaid/Pension shortfalls does not look to be pretty. For instance, consider these projections from the Texas Comptroller’s Office:

I won’t bother to dig up the likely increased size of the Texas K-12 population that they will be attempting to educate with a smaller percentage of the budget, but you get the point: austerity is a safe assumption, and there aren’t any other states that would sit as the world’s third largest oil producer if ranked as an independent country. Things may be generally bigger in Texas, but the problems may be even bigger elsewhere, making austerity a safe bet. Austerity isn’t necessarily bad for student outcomes but the same can’t be said for politics:

Nevertheless, state funding austerity seems very likely. So where does this leave the future? Jay used the phrase “hybrid homeschooling” years ago to describe practices by upper-income families to supplement the educate of their children. These parents enroll their children in schools, but then pay out of pocket for a variety of tutors, Mathnasium, Kumon, club sports and various other educational/cultural enrichment activities. The United States certainly does not have the after-school-school culture of East Asia, but the well to do have been using a multi-provider approach to education for a long time, and in fact it is ubiquitous to the point of seeming unremarkable.

Then let’s revisit the 2015 article from Wired documenting the rise of home-schooling in Silicon Valley Money quote:

“There is a way of thinking within the tech and startup community where you look at the world and go, ‘Is the way we do things now really the best way to do it?’” de Pedro says. “If you look at schools with this mentality, really the only possible conclusion is ‘Heck, I could do this better myself out of my garage!’”

Check out Cottageclass.com. Cottage class will help you find anything from a summer camp to a nanny-share to a private tutor or a micro-school. It’s well worth some of your time to click on various options. I’ve heard it described as Airbnb for education, and it is fascinating. Crucially, it includes user reviews to help parents navigate what is a growing universe of options. If all of this sounds reminiscent of ESAs, it is only because it is. For instance, Adam Peshek wrote in a Fordham Wonkathon:

An ESA doesn’t require committee hearings to decide where funds should be sent. It doesn’t require a school board meeting to vote on whether or not to cut the music program. Feel like your child isn’t exposed to enough music education? Pay for it. Little Stevie is falling behind in math? Get a tutor. If you’re in high school, use an ESA to pay for Advanced Placement courses to get a leg up in college, or use it to earn an industry certification so that you can graduate high school with an employable skill. An education savings account allows personalized learning to move from catch-word to reality.

That’s why we cannot implement these programs with the mindset of standardization. The ESA program needs to be seen as an innovative way to bring new options to K–12 parents—one designed to allow parents to maximize each child’s unique learning abilities by offering the educational path that suits them best.

Increasing numbers of families seem to be taking the a la carte approach, and like the Silicon Valley feature, they are doing it with their own money.

North Carolina for instance is an interesting place to keep an eye on. North Carolina has adopted both large charter and private choice programs, but thus far they can’t keep up. North Carolina keeps statistics on homeschooling, and it is interesting that other choice options can’t keep up with it. In 2007 there were 71,566 home-schooling students. In 2017-18, the figure was 135,749. This increase came despite the state taking a cap off of charter schools in 2010, and a doubling of charter enrollment. North Carolina lawmakers also created a statewide voucher program and (very recently) an ESA program for special needs students in the intervening years, but homeschooling is more prevalent than either charter or private school attendance in the state. Charters and private choice programs are growing, but they alone are not scratching the itch. District enrollment meanwhile has been flat for years despite rapid population growth.

The most interesting space these days lies within the space between a home-school co-op and a micro-school private school. The rumblings about the demand for micro-schools grow increasingly audible. Justin Cohen quoted Andy Calkins of the Next Generation Learning Challenges:

“It wouldn’t surprise me if, 5 to 10 years from now, everyone looks at this and thinks, ‘That grew a whole lot faster than I thought it could,’” he said. “There is a slice of the market that is not being served by public education. They’re saying, ‘The public schools don’t work, [and] I can’t get into the charter schools.’”

Predictions are tough, especially when they are about the future. The last decade and a half has broadly disappointed in improving public school outcomes, and the next decade and a half looks tougher rather than easier. A broad trend towards self-reliance and multiple service providers rather than one stop shopping in K-12 is already underway. Parents are not waiting on policy innovation, but policy innovation will be necessary to address equity concerns. Micro-schools often cost less than traditional private schools, and offer more options, but they do cost money.

States like North Carolina, with a statewide voucher program for low-income students and two different private choice programs to help students with disabilities, are ahead of the curve on the equity front. Florida likewise has a tax-credit program for low-income children and two programs for children with disabilities. States with these policy mixes create the possibility of economically integrated private schools options. States without them, not so much.

Let’s see what happens next.

 

 

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AEI on ESAs

May 13, 2016

AEI

(Guest Post by Matthew Ladner)

We had a wonkapolooza on ESAs at the American Enterprise Institute earlier this week! What- you had a friend in from out of town and couldn’t make it? Ah well not to worry the video is here:

On the first panel, our discussant MI’s Max Eden advised tapping on the expectations brakes, noting a number of practical difficulties. The biggest of these difficulties was summarized by Adam Peshek’s slide:

ESA expenses

So, yeah, this slide basically shows 70,000 ish Florida tax credit students using approximately 1,500 vendors (private schools). Meanwhile the Gardnier Scholarships programs had south of 1,600 students, but those 1,600 students made **ahem** almost 11,500 purchases.  A new set of practices and techniques will be necessary to administer such a system.

Fortunately we have practices from other policy areas to draw upon and companies highly adept at account management and oversight from Health Savings Accounts and others. It’s going to take time. In the paper and presentation I referenced the Greek myth regarding the birth of Athena- who sprung from the skull of Zeus not only fully grown, beautiful and powerful but also clothed and even armed for battle!

Alas outside the realm of myth we have little choice but to engage teams of people to grind on problems over time, as ESAs did not emerge fully formed from the mind of some mighty being as a finished product. Evolutionary improvement and innovation may not make for as good of a story as the goddess of wisdom springing forth, but for us mere mortals it will have to do. I’m anxious to see what happens next.

Anyway- great event and thanks especially to our friends at AEI for hosting it. Also make sure to see Anna Egalite’s guest blogging on RHSU on ESAs and also Jonathan Butcher’s new report on mobile payment systems and ESAs for the Goldwater Institute. Also Heritage President Jim DeMint tells a Texas suffering from parental choice dehydration to jump on in, the school choice water is fine!

 

 


Attack of the Wonks!

June 23, 2015

(Guest Post by Jason Bedrick)

As the Fordham Institute’s ESA Wonk-a-thon is coming to a close, I thought it would be useful to summarize the views of the participants to identify areas of consensus and contention. As JayBlog readers may recall, Fordham’s central question was:

As Nevada implements its groundbreaking education savings account program, what must it get right in order to provide positive outcomes for kids and taxpayers? Should state authorities stay out of the way? Or are there certain areas that demand oversight and regulation?

Inevitably, such summaries will lack the depth and nuance of the complete essays, but I will endeavor to faithfully record what I take to be the main recommendations from each wonk. (If an author thinks I missed or misconstrued something, please yell at me in the comments section.) The following summaries appear in the order that Fordham posted the originals:

Michael Goldstein (Match Education): Nevada needs an “individual, organization, or coalition of champions who take it upon themselves to ensure that their [state] provides excellent school options to all children and families.” This “harbormaster” would recruit high-quality providers to the state and provide parents with good information.

Seth Rau (Nevada Succeeds): Nevada should ensure all ESA students take NNR tests and track student outcomes. The state treasurer must ensure the application process is user friendly, distribute restricted-use debit cards, and conduct annual audits. Otherwise, providers should be free to innovate and parents should be free to choose among them.

Matthew Ladner (Foundation for Excellence in Education): The state should ensure financial accountability through restricted-use debit cards and the whitelisting of vendors and eventually of individual products. The market can foster quality through platforms where users rate providers (as happened informally in Arizona). The state should aggregate NNR test scores and hire an academic researcher to report on the data, but otherwise avoid trying to regulate quality.

Jonathan Butcher (Goldwater Institute): The state should ensure the ESA funds are being used for eligible educational purposes by reviewing receipts before issuing the next quarterly installment. Students should take NNR tests and the state should commission an academic researcher to report on the results. Otherwise, policymakers should rely on the market to ensure quality.

Tracey Weinstein (StudentsFirst): The state should “set a high bar for the quality of services offered by providers” and “eliminate providers who consistently fail to meet the mark.” The state should also provide ESA families with information about providers.

Andy Smarick (Fordham Institute): The state should “prioritize transparency, continuous and small-scale course corrections, and research” and “collect and publish information on providers, participation rates, student outcomes, and more.” In the long term, researchers should “study how the public’s interests are and are not being met by these increasingly private choices.”

Neerav Kingsland (New Schools for New Orleans): Nevada should increase public funding to $7,000 per student with more for low-income, ELL students, and special needs students, and that educational institutions should be prohibited from charging ESA families additional tuition beyond the amount the state deposits in the ESA. 

Lindsey Burke (Heritage Foundation): State regulators should stay out of the way of the market. The state should primarily concern itself with ensuring taxpayer dollars are used only for eligible expenses and making the application process transparent and user friendly. Responsibility for academic outcomes should lie primarily with parents, though the state’s NNR testing requirement is appropriate.

Jason Bedrick (Cato Institute): Policymakers should resist the urge to overregulate. Quality is best fostered through the market process: provider experimentation, parental evaluation, and organic evolution. A robust market ensures quality by channeling expert knowledge (e.g. – private certification and expert reviews) and user experience (e.g. – platforms for user ratings). The state should limit its role to ensuring that ESA funds are spent only on eligible expenses and serving as a repository for information. 

Adam Peshek (Foundation for Excellence in Education): The state should primarily concern itself with providing financial accountability (restricted-use debit cards, auditing), but responsibility for academic outcomes should rest with parents. We must “remain vigilant against death by a thousand regulatory cuts.”

Robin Lake (Center on Reinventing Public Education): Nevada must recruit a “new breed” of bureaucrat that will “learn how to regulate choice without squashing innovation,” “develop creative and better approaches to fiscal and performance accountability,” “coordinate with non-governmental agencies to develop a strong supply of high-quality providers,” ensure transparency, and “build a dashboard of indicators of a healthy market and government regulatory structure” (among other objectives).

Travis Pillow (redefinED): Regulators should give providers the freedom to experiment (even though some experiments will fail). However, the state should ensure the health and safety of students and prevent financial fraud. The results of NNR tests should be reported to parents and the public. The state should provide an online forum for parents that would help catch administrative problems and could serve as a Yelp-like provider rating system. The state should give more money to low- and middle-income families and students with special needs. 

Robert Tagorda (SoCal education reformer): To operate at scale from the outset, the state treasurer’s office and state department of education must collaborate effectively. The state must broker information to ensure the marketplace functions properly, but it can’t do it alone. The state must foster organic solutions and exchanges of information such as platforms for user reviews.

Rabbi A.D. Motzen (Agudath Israel): “Almost universal” eligibility isn’t good enough. The state should expand eligibility to all students, not just those who attended a district school for 100+ days in the previous year.

There appears to be some consensus around financial accountability. The state must ensure that ESA families are only using taxpayer funds for their intended educational purposes. To that end, most of the wonks who addressed the matter called for utilizing restricted-use debit cards and/or auditing.

The primary area of contention is the role of the state in guaranteeing educational quality. Some want the state to set standards, measure performance, and perhaps even “eliminate” providers who don’t meet those standards. Others (myself included) respond: “Get your regulatory paws off me, you dirty technocrats!” are concerned that such efforts would stifle the very diversity and innovation that the ESA is intended to foster.

It’s an important debate. I commend both the Fordham Institute for hosting it and the participants for offering their insightful analysis. Differences in means aside, we all share the same end: fostering an education system in which all children have access to high-quality providers that meet their individual needs.


Peshek on ESA legislation around the nation

March 11, 2015

(Guest Post by Matthew Ladner)

My colleague Adam Peshek has a post up about the progress of ESA legislation around the country, including the above map. I would like to again thank my friends in the Arizona school district industrial lobbying complex. Without their having made the grave mistake of filing suit against two tiny voucher programs for children with special needs and foster care students, we would not be having this conversation today!

Most of the bills are in fact conversation starters, but one of those (in Virginia) passed one house and failed on a tie vote in the other.

Which state will be the next to turn red on Adam’s map? As an old football coach once told me “it depends on who is the bestus and wants it the mostus.”

Stay tuned to this channel…

UPDATE : The Mississippi House passed a special needs pilot program today 65-51, now heads to the Senate to be reconciled. Oklahoma effort pushed to next year’s session.

UPDATE Part Deux: Rhode Island has an ESA effort underway.