The Origin Story of Education Savings Accounts

August 19, 2019

(Guest Post by Matthew Ladner)

Over at Redefined I decided it would be a good idea to get the history of Education Savings Accounts written before any of us involved get hit by a bus. In the first post Dan Lips returns from walking the earth like Kung Fu (aka working on stuff other than K-12) to recount the school choice debates which helped inspire him to develop an account based choice proposal. In a sequel post I explain the circumstances by which we on the ground in Arizona put the ESA theory to practice.


Arizona ESA Momma Bear Mauls Arizona Republic in LTE

June 29, 2017

(Guest Post by Matthew Ladner)

#!!BOOOOOOOOM!!

I’ll give the Republic credit for running the letter, but totally agree with Mrs. Visser.

 


Governor Doug Ducey signs AZ Empowerment Scholarship Account expansion

April 7, 2017

(Guest Post by Matthew Ladner)

Arizona Governor Doug Ducey signed the expansion of the ESA program into law, becoming the first Governor to deliver on a sizable expansion of parental choice during the 2017 legislative sessions. The torch has been passed to a new generation of governors.

The other states are invited to hop on in-the water is fine!


Texas Special Education Disgrace-“It Was All a Numbers Game”

September 13, 2016

(Guest Post by Matthew Ladner)

The Houston Chronicle has delivered an expose on a covert and “successful” effort by the Texas Education Agency to create a defacto cap of 8.5% on the number of Texas public school students who would receive special education services. Successful gets air quotes btw if you define success as avoiding delivering special education services to hundreds of thousands of kids by keeping them cooped up a Section 504 no man’s land.

The process of identifying children for special education services is conducted by human beings and thus involves all sorts of error- children who do not actually have disabilities are often identified for services, students who do have disabilities do not receive services, students who do have disabilities don’t always receive the correct services. It’s a difficult process. The Texas Education Agency created an arbitrary target for special education enrollment in 2004 of 8.5% of a school population, effectively incentivizing districts to deny services to students. In theory the restraining of services could have come in the category most prone to over-identification: specific learning disability. If that had been the case maybe, maybe there would be a silver lining to this story. Instead the Chronicle found across the board reductions in all disability types. From the Chronicle:

Over a decade ago, the officials arbitrarily decided what percentage of students should get special education services — 8.5 percent — and since then they have forced school districts to comply by strictly auditing those serving too many kids.

Their efforts, which started in 2004 but have never been publicly announced or explained, have saved the Texas Education Agency billions of dollars but denied vital supports to children with autism, attention deficit hyperactivity disorder, dyslexia, epilepsy, mental illnesses, speech impediments, traumatic brain injuries, even blindness and deafness, a Houston Chronicle investigation has found.

More than a dozen teachers and administrators from across the state told the Chronicle they have delayed or denied special education to disabled students in order to stay below the 8.5 percent benchmark. They revealed a variety of methods, from putting kids into a cheaper alternative program known as “Section 504” to persuading parents to pull their children out of public school altogether.

“We were basically told in a staff meeting that we needed to lower the number of kids in special ed at all costs,” said Jamie Womack Williams, who taught in the Tyler Independent School District until 2010. “It was all a numbers game.”

Perhaps someone could attempt to justify this practice by claiming that Texas schools did a fantastic job educating the 8.5% of students they provided services. Well, not so much:

texas-vs-fl-sped

Having the state effectively punish districts going over an arbitrary cap on the percentage of special education students at a minimum violates the spirit of federal special education law. As flawed as the Individuals with Disabilities Education Act and the associated practices remain, the unmistakable intent of the law has been to provide special education services to all students who need it. IDEA, warts and all, stands as landmark civil rights legislation for children with disabilities and the practices adopted by unelected officials at the Texas Education Agency must be viewed as an attempt to subvert this legislation at the expense of some of the most vulnerable students.

The reader should note that while the Chronicle article places blame for the 8.5% policy squarely upon the Texas Education Agency, this practice could not have endured for so long without the active acquiescence of Texas school districts. If they had objected to this policy, as was their moral duty, we would not have learned of this a decade after formulation as a part of an investigative report. Texas school districts have long complained however of the costs associated with special education, and that state and federal funds fail to cover the full cost of providing services. Kudos to the school officials who spoke to the Chronicle’s investigators, but the number who quietly went along with this greatly outnumbered those who made any attempt to set things right.

The Florida approach of setting special needs students free to attend public and private schools with their state funding represents a profoundly more humane approach to special education. If the districts resent having to divert dollars from general education to special education, let special needs family seek out a solution with their “inadequate” state dollars. The Chronicle article represents another chapter in the long book of what happens when people are forced to rely upon the goodwill and sound thinking of soulless bureaucrats.

No one enjoys bragging on Texas more than me, but this is nothing short of disgraceful and needs to be made right.


Mississippi ESA Update: The Magnolias Are Blooming

July 21, 2016

magnolias-white

(Guest Post by Jason Bedrick)

Back in February, opponents of educational choice criticized Mississippi’s new ESA program for attracting fewer than half the number of students with special needs as there were slots available, claiming that this showed that the program was a “failure.”

Well, surely they will now issue a press release declaring the ESA program a success now that it is oversubscribed for next year. Empower Mississippi has the details:

Yesterday the Mississippi Department of Education (MDE) conducted a lottery to award the remaining 175 scholarships for the Special Needs Education Scholarship Account (ESA) program. This year a total of 425 scholarships will be awarded to students in Mississippi.

The lottery drawing, held at MDE’s temporary headquarters at the South Pointe Business Park in Clinton, utilized a random number generator to determine the 175 recipients. There were 304 approved applications in the lottery competing for the available slots. Those that did not receive a scholarship, along with those that continue to apply, will have their name put on a waiting list for future openings.

Last year, in the first year of the program, 251 of the 434 available scholarships had been awarded by the beginning of the school year. Because of the rolling application process, and the available slots, that number increased each quarter last year. This year the program will be at maximum capacity of 425 students at the beginning of the year.

Enrollment in the program has grown by 70 percent over a one-year period and the number of approved applications has increased by more than 120 percent during the same time period.

special-needs-esa-enrollment

Source: Empower Mississippi

Next step: raise the cap on participation!


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!

 

 


In addition to academic success, Max Ashton Throws a Wicked Breaking Ball

April 11, 2016

(Guest Post by Matthew Ladner)

Watch the break that Max Ashton, one of the first generation of ESA students, Brophy Prep graduate and now Loyola Marymount student gets on this first pitch at the Diamondbacks game! This video has gone viral over the last week.

For a video showing Max in action in the ESA program, our friends at Heritage have you covered:


Oklahoma Governor Mary Fallin calls for ESAs in OK State of the State

February 1, 2016

(Guest Post by Matthew Ladner)

Text here, ESA quote:

Finally, I’m 100 percent supportive of Education Savings Accounts. 100 percent.

All students learn differently and should have the opportunity to attend a school that has the best environment for each student to be successful. This can be accomplished through

Education Savings Accounts, while still protecting school finances.

Senator Clark Jolley and Representative Jason Nelson have legislation on this issue. Send it to me and let’s give students and parents a better chance for educational success than they have today.

I do recognize these are some of the hardest things I’ve ever asked for your help to accomplish as governor. But they’re also some of the most important. We were sent here to lead, and we need to lead now more than ever. We have smart, capable people in this room and throughout state government. We can do this.


The Three Bees release New Study on Tax Credit Funded ESAs

January 21, 2016

(Guest Post by Matthew Ladner)

Jason may have not yet developed the shameless self-promotion bug that afflict the rest of us here at JGPB, so I’ll mention for him that he has a new study out along with Jonathan Butcher and Justice Bolick (ah….I just love the sound of that…) on tax-credit ESAs.

The Three Bs make a strong case on the desirability of converting existing tax credit programs over to multiple uses, and also correctly note possible constitutional advantages under some state constitutions for a tax credit approach. The technology for allowing multiple uses for funds looks to be better and cheaper than one might expect (account management/oversight technology is fairly advanced) which may allow for oversight within the admin fees typically allowed by scholarship tax credit programs.

The Three Bs did not directly address the topic of scale. The mighty Florida tax credit program currently looks likely to reach the practical limits of its ability to scholarship children somewhere below 100,000 out of Florida’s 2,500,000 students. This might change if new taxes can be added to credit, but the mechanics of creating a credit against some taxes seems somewhere on the speculative to work-in-progress spectrum at present.

Thus I enthusiastically support conversion of existing tax credit programs to multiple uses, and under some state constitutions, it might be a very good idea to choose this option over a state funded model. Outside of those circumstances, I’d recommend taking your chances with a state funded model if aiming for more than a pilot project.


Coons and Sugarman called for ESAs-in 1978!!

September 9, 2015

(Guest Post by Matthew Ladner)

Okay so yes it took us 33 years to figure out how to create ESAs after someone first proposed them, and yes we had to stumble into it. Don’t blame me- I was battling my Luke Skywalker action figure against my Stretch Armstrong, and well, er, better late than never! Ron Matus with a great post on Berkeley law professors Jack Coons and Stephen Sugarman’s call for what we now call ESAs- in 1978. Here is a taste:

John E. “Jack” Coons and Stephen Sugarman didn’t use the term “education savings accounts” in their book, “Education by Choice.” But they described a sweeping plan for publicly funded scholarships in terms familiar to those keeping tabs on ESAs. They envisioned parents, including low-income parents, having the power to create “personally tailored education” for their children, using “divisible educational experiences.”

To us, a more attractive idea is matching up a child and a series of individual instructors who operate independently from one another. Studying reading in the morning at Ms. Kay’s house, spending two afternoons a week learning a foreign language in Mr. Buxbaum’s electronic laboratory, and going on nature walks and playing tennis the other afternoons under the direction of Mr. Phillips could be a rich package for a ten-year-old. Aside from the educational broker or clearing house which, for a small fee (payable out of the grant to the family), would link these teachers and children, Kay, Buxbaum, and Phillips need have no organizational ties with one another. Nor would all children studying with Kay need to spend time with Buxbaum and Phillips; instead some would do math with Mr. Feller or animal care with Mr. Vetter.

Coons and Sugarman were talking about education, not just schools, in a way that makes more sense every day. They wanted parents in the driver’s seat. They expected a less restricted market to spawn new models. In “Education by Choice,” they suggest “living-room schools,” “minischools” and “schools without buildings at all.” They describe “educational parks” where small providers could congregate and “have the advantage of some economies of scale without the disadvantages of organizational hierarchy.” They even float the idea of a “mobile school.” Their prescience is remarkable, given that these are among the models ESA supporters envision today.

Sounds very, very familiar eh?

 

 

 


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