Educational Choice

Don Closson surveys the state of educational choice in America. Even though educational spending is the largest category in every state’s budget, money is not our primary concern. It is the well being of our children.

What does the idea of educational choice have to do with a Christian worldview? Quite a lot, actually. As Christians we are called to be concerned about justice, about the poor, about the weakest individuals in our society. We also have an interest in having a population educated well enough to read and understand the Bible. It is about “loving our neighbors as ourselves” and “doing unto the least of these” in the society around us.

download-podcast I must admit that during my twelve years of teaching and administrating in public schools educational choice wasn’t a burning issue. I admit that personal interest convinced me to become a supporter. Vouchers made sense as I experienced the difficulty of paying taxes for local public schools even though my children were being home-schooled or were attending private schools. Back then, supporters of vouchers were either fans of free-market economist Milton Freeman or were philosophically opposed to the “one-best-system” approach of government-provided schooling. They were a small but vocal minority.

Times have changed. Today, supporters of educational choice are often people who are shocked by the failure of our inner city schools to educate children in any meaningful sense of the word. A rising number of urban leaders have concluded that the current model of schooling just hasn’t worked for many of our children.

What is meant by the term “educational choice”? One definition says, “…it means letting every parent send their child to the school of their choice regardless of where they live or income. Parents choose schools based on their child’s needs, not their address.”{1} The desire for educational choice over the last couple of decades has found expression in the creation of voucher plans, charter schools, private scholarship programs, and personal tax credits or deductions. Since each state is responsible for establishing its own educational policies, there have been multiple variations on each of these categories along with endless court battles to affirm or deny the constitutionality of each plan.

Those who support educational choice begin with the assumption that increased competition is almost always a good thing. Its proponents argue that when schools must compete for students, they generally work harder at providing a better service. They believe in bottom-up reform, letting parents choose what educational methods and content is best for their children rather than a top-down approach that is guided by a centralized government or teachers’ union.

In this article we survey the state of educational choice in America. Even though educational spending is the largest category in every state’s budget, money is not our primary concern. It is the well being of our children.

Publicly Funded Vouchers

In 1955 economist Milton Friedman argued that America’s public school system was not achieving the goals that it was created for. As a government operated monopoly it was failing in its mandate to educate all of our children equally regardless of race or class. In fact, it was a highly segregated system that was failing our most needy students in our inner city schools. His solution was to open up education to market forces by issuing vouchers to parents who could then choose where to spend their education dollars. He wrote, “In the end, the goal of education is to ensure learning and guarantee a free society and stable democracy. These goals are better met when all parents are free to choose the school that works best for their child.”

For decades, Friedman was a lone voice, but in the early 1990’s Milwaukee Wisconsin began a voucher program with 337 students who could use their publicly funded vouchers to attend religious or non-religious private schools in the city. This program is now in its 17th year and is approaching its legislatively set cap of 15% of the districts students. In the 2007-08 school year over 18,000 students participated, attending 122 different private schools.{2} Voucher programs have been established in Cleveland Ohio, Colorado, Florida and Washington D.C., only to be met with an onslaught of legal challenges.

In 2002 the Supreme Court ruled that voucher programs are not a violation of the religious establishment clause of the First Amendment. Although that issue has been settled, state courts have whittled away or restricted these programs at every turn. Teachers’ unions have also spent millions of dollars to fight voucher program legislation and to campaign against them in statewide referendums.

It appears that limited voucher programs aimed at poor inner-city students who are trapped in dysfunctional schools now have the best chance of succeeding. While middle-class evangelicals seemed supportive of vouchers early on, they now perceive them to be a threat to the independence of the many private religious schools that have sprung up in the last 20 years. Most middle class suburbanites already have the power of school choice because of their financial ability to move into districts with better schools.

Tax supported vouchers are still popular among the many free market conservatives who argue that competition in the educational marketplace would be good for children and for the public schools. They have also garnered grass root support from the African-American and Hispanic communities in the last decade. There are other ways to inject choice into our educational system, but it is clear to many that choice is needed now, especially for our most needy students.

Why Educational Choice?

Giving inner city parents a choice in where they send their children to school is critical if we hope to solve the crises in our cities’ schools. Secretary of Education Margaret Spellings puts it this way:

“Despite our best efforts, there are still vast inequities within our education system. In too many of our cities, the reality faced by minority and low-income kids is shocking. As you’ve heard, 15% of our high schools produce more than half of our dropouts. Of these dropout factories a majority of the students trapped in them are minorities, and their high school experience looks vastly different from what most kids encounter. They go to schools where trash litters the floors, where graffiti decorates the walls. . . where most freshmen enter unable to read or do math at an eighth grade-level, and where graduation is a 50/50 shot, or worse.”{3}

Why do many reformers believe that educational choice has the greatest potential to solve our nation’s education problems? Referring to legislation passed in 2004 that provided the first federally funded choice scholarships for low income students in Washington D.C., Secretary of Education Rod Paige explained that:

“Educational choice is important for two reasons. First, it extends civil rights and social justice. Second, it enhances school effectiveness. The introduction of opportunity scholarships in the District comes fifty years after the Brown v. Board of Education decision. It comes 40 years after Dr. Martin Luther King, Jr. demanded a full measure of the American promise. Opportunity scholarships help remove the chains of bureaucracy. They free low-income students to obtain a better education in a school of their choosing.”{4}

Studies have shown how dramatic changes can occur in cities that allow its parents choice. Writing about the longest voucher program in the nation, the Wall Street Journal declares:

“There’s no question the program has been a boon to the city’s underprivileged. A 2004 study of high school graduation rates by Jay Greene of the Manhattan Institute found that students using vouchers to attend Milwaukee’s private schools had a graduation rate of 64%, versus 36% for their public school counterparts. Harvard’s Caroline Hoxby has shown that Milwaukee public schools have raised their standards in the wake of voucher competition.”{5}

Educational choice works because it puts power into the hands of the people who care most about our nation’s children, their parents. It works because it increases the autonomy of school administrators so that they can provide the kind of education that the public wants. It works because it encourages learning communities of like-minded adults to work together to provide the best learning environment possible.

Private Vouchers and Tax Credits

Although the press has focused on the legal battles surrounding the use of tax-supported educational vouchers to pay tuition at private religious schools, there is another type of voucher program that is helping thousands of children and continues to grow without legal controversy. There are now more than two dozen private voucher programs in cities across the United States. Millions of dollars are being raised by private citizens in order to offer vouchers to less fortunate children so that they can attend better schools.

In that late 1990’s, John Walton of Wal-Mart fame, and Theodore Forstmann of Forstmann Little & Company decided to offer 1,000 scholarships to low income students in Washington D.C. With very little publicity they received over 8,000 applications. Sensing a real need, in 1998 they together donated $100 million towards a national program that would fund 40,000 scholarships inaugurating the Children’s Scholarship Fund.{6} That got people’s attention. Former U.N. Ambassador Andrew Young, Martin Luther King III, General Colin Powell, and numerous C.E.O.’s from some of America’s best known corporations have served on the organization’s board.

By September of 1998 the fund grew to $170 million. Eventually, the Children’s Scholarship Fund received applications from 1.25 million children from 22,000 cities and towns in all fifty states.

Mr. Forstmann concluded that:

The parents of 1.25 million children put an end to the debate over whether low-income families want choice in education: They passionately, desperately, unequivocally do. Now it is up to the defenders of the status quo to tell them, and the millions they represent, why they cannot have it.{7}

In 2007, the Children’s Scholarship Fund gave vouchers to 29,000 students. The families receiving these scholarships earned an average of around $27,000 a year, and supplemented the scholarship with an additional $2,000 per student. These low income families have a strong desire to remove their children from their current schools and are willing to make a significant sacrifice to acquire a good education for their children.

State-sponsored tax credits are another alternative to tax-funded vouchers. They are popular because of they are simple to administrate; they have a relatively long history and a settled legal status. They have limited scope because not all states have an income tax and often it is the families who need help the most who do not benefit from tax credits because of their low tax liability.

Advocates of educational choice agree that it will take many different tactics to provide the freedom parents need to get the best education possible for their children.

Educational Freedom

In 2001, the Manhattan Institute released an interesting study concerning the idea of educational freedom. The study suggested a strong relationship between the amount of freedom a state gives parents in directing their children to a school of their choice and the level of academic achievement accomplished by those children.

Since education is primarily governed at the state level, it makes sense to measure educational freedom by state. In the study, a state’s ranking is determined by how much freedom parents are given by its laws regulating vouchers, charter schools, home-schooling, choice within existing public schools, and tax credits allowed for education expenses.

According to the study, the most educationally free state is Arizona. It gets the top spot because of its wide selection of charter schools and its tax credits for private school expenses. The least educationally free state is Hawaii. Hawaii scores lowest on the index because it has one large school district for the entire state, no charter schools, and it highly regulates home-schoolers. Utah is second to last because gives no assistance to those sending their children to private schools, has few charter schools, and has large centralized school districts.

The study concludes that “For many years education reformers have advocated strengthening accountability systems and expanding educational freedom. Our statistical models suggest that such reforms, where implemented, have yielded the academic improvements that reformers predicted.”{8} For instance, a one-point increase in a state’s freedom index would predict a 4% increase in that state’s math test results indicated by the National Assessment of Educational Progress.

Educational freedom received another boost in a study released in October 2007 by the Milton & Rose Friedman Foundation. The research concludes that “A large body of top-quality studies consistently shows that school choice produces higher academic achievement for the students who have the opportunity to use it. On this issue, the evidence supporting school choice is as strong as the evidence on any social policy question whatsoever.”{9}

Freedom makes a difference in education. Jay Greene of the Manhattan Institute writes, “Simply providing families with additional options in the education of their children has a larger independent effect on student achievement than increasing education spending or reducing class size… the magnitude of the benefit of education freedom for student learning is comparable to the benefit of significantly increasing median household income.”{10}

Christians are called upon to love their neighbors, and their neighbors’ children, as themselves. If we are serious about helping our underprivileged neighbors, especially in our inner-cities schools, educational freedom through greater choice is a policy we can and should endorse.

Notes

1. www.friedmanfoundation.org/friedman/schoolchoice/. Accessed on 12/13/2007.
2. www.schoolchoiceinfo.org/facts/index.cfm?fl_id=1. Accessed on 12/17/2007.
3. www.ed.gov/news/pressreleases/2007/05/05092007.html. Accessed on 12/14/2007.
4. www.ed.gov/news/speeches/2004/01/01282004.html. Accessed on 12/14/2007.
5. This editorial appeared in the January 23, 2006 Wall Street Journal.
6. www.scholarshipfund.org/index.asp. Accessed on 12/17/2007.
7. Theodore J. Forstmann, “A Competitive Vision for American Education” Imprimis, September 1999, Vol. 28, #9, p. 2.
8. www.manhattan-institute.org/html/cr_24.htm. Accessed on 12/20/2007.
9. www.friedmanfoundation.org/friedman/downloadFile.do?id=255. Accessed on 12/20/2007.
10. www.manhattan-institute.org/html/cr_14.htm. Accessed on 12/20/2007.

© 2008 Probe Ministries


Educational Opportunity

What Produces Effective Education?

Parents want a good education for their children. Some may have greater resources or a more precise picture of how to accomplish their goal, but most parents in our society are aware that a good education is fundamental to financial, professional, and personal success. If we can assume that this is true, why is it that so many of our students are doing so poorly? Many feel that poverty, crime, and the breakdown of the family are an important part of the answer. In fact, research consistently reveals that parental income and educational success are the best indicators for predicting the educational achievement of a child. Unfortunately, this is not something that schools can impact easily.

Recent research has discovered that after the socio-economic well-being of the parents, the next most important variable predicting student success is the way in which a school is organized. Research has also discovered that effective schools have similar traits. Such schools have strong educational leaders who possess a clear vision of what it means to be an educated person and who have the authority to assemble a staff of like-minded teachers. These schools set high academic standards and encourage the belief that, with few exceptions, children are capable of achieving at high levels. They encourage collegial and professional staff relationships, and establish a disciplined, and drug-free, educational environment.

An example of an effective school, in one of the most difficult of circumstances, is the Westside Preparatory School in Chicago. Marva Collins has proven that when these criteria are met students from low income, single-parent families can achieve. In describing
her inner city program she states that, “The expectations are as high here as in the most nurtured suburban area.”(1) Her motto for
the children is that, “we are known by our deeds, not our needs.”

If we know what makes a school effective, how do we go about converting the vast number of ineffective schools, many of which are in our nations cities? The expensive reforms of the last few decades have yielded marginal results. Between 1960 and 1990 a great deal of money and effort went into school reforms. Total expenditures went from 63 billion to 207 billion in constant dollars.

During the period of steepest decline in student performance, the decade of the 70s, per-pupil expenditures increased by 44% in real terms. Much of the money went towards two areas often noted as fundamental to better schools: teachers salaries, which increased
faster than any other occupation in the last two decades, and towards reducing class size. Most indicators, including SAT scores,
reflect little increase in student achievement as a result of these types of reforms. These efforts failed to produce effective
schools.

In their recent book Politics, Markets, and America’s Schools, John Chubb and Terry Moe argue that the greatest hindrance to having effective schools is bureaucracy. Conversely, the most important ingredient for creating effective schools is autonomy. Few public schools have autonomy, many private schools do. The key then to educational reform is to find a mechanism for creating school autonomy while maintaining some form of accountability.

The One Best System?

Since most Americans understand the need for a good education and more money than ever is being devoted to that end, why are we not more successful in educating our children, especially in urban areas?

Chubb and Moe argue further that government financed schools are by nature bureaucratic and ineffective. The current democratic system of governing our schools exposes them to special interest groups at the local, state, and federal levels. Everything from AIDS education to bi-lingual programs have their lobbyists advocating program expansion and higher spending. Local school boards, state legislators, and the federal government respond by enacting regulations that local schools are required to observe. Instead of being an educational leader, the local principal often becomes a middle manager, much more concerned about following regulations than enacting a personal vision of educational excellence.

One recommended reform aimed at increasing autonomy and accountability in schools is a voucher plan. According to Chubb and Moe, a voucher plan promises much better results because it inverts the way schools are controlled. Decision-making authority would be
decentralized, returning local principals to the role of educational leader. The influence of outside interest groups like unions and state legislatures would be diminished. Schools would be held accountable by the market system; if they fail to attract students they will go out of business.

The concept of a voucher plan is relatively simple. The government would determine how much money it is willing to spend per student in the state or district. Parents would then receive a voucher for that amount for each of their children. Once a school is selected by the parents the school redeems the voucher for state funds.

A key attribute of vouchers is that they give parents in our worst school districts a choice of where to send their children. If local public schools are dangerous and fail to educate, a choice or voucher plan gives parents the ability to go elsewhere. Milwaukee,
Wisconsin, is an example of an urban center which has adopted a choice mechanism for school reform. Thousands of economically
disadvantaged students are receiving vouchers of up to $1000 per year of public money to attend private schools. Over 1000 students
are on a waiting list for future spots, mainly because the program has exempted religious schools from participating, an issue that is
now in court.

Although attempts to enact statewide voucher plans in Colorado and California have failed by more than a two to one margin, many are optimistic that some form of choice will be implemented by a state soon. The next attempt will probably be a more limited program aimed at disadvantaged students. The goal of reformers is not to replace public schools, but to make them better. Competition will cause schools to become more responsive to the parents they are serving rather than to outside interest groups.

Myths About Choice

Schools become more effective when they are autonomous from bureaucratic regulations. Educational choice via vouchers has been suggested by reformers on both sides of the political fence as the best way to produce autonomous schools and thus more effective schools.

What then is blocking the school choice reform movement? The greatest opposition to vouchers has come from the teacher’s unions: the National Education Association and the American Federation of Teachers. Keith Geiger, NEA president has said, “Free market economics works well for breakfast cereals, but not for schools in a democratic society. Market-driven school choice would create an inequitable, elitist educational system.”(2) The NEA has worked hard and spent large sums of money to defeat choice legislation in Colorado and California. Let’s consider some of the specific reasons given by those opposing vouchers.

One argument often heard is that vouchers will undermine the unity of America which was created and has been maintained by tax- supported common schools. The original ideal espoused by Horace Mann and others was that students of all socio-economic classes would be schooled together and that this would create mutual respect. Unfortunately, sociologist James Coleman and others have pointed out that this has not become a reality. Public schools are extremely segregated, by race and economics. The wealthy are able to purchase homes in elite suburban school districts, others are trapped in schools that are ineffective and often dangerous. Choice would actually help to re-create the common school notion. Parents could decide where to place their children in school regardless of geography and, as a result, the schools would become more accountable to local control.

Another criticism against choice might be called the Incompetent Parent Argument. Critics feel that parents of minority or lower-
income students will not know the difference between good schools and poor ones, thus they will get stuck in second-rate schools. They argue that the best students will be siphoned off and the difficult students will remain creating a two-tiered education system. Others are afraid that poor parents are not used to making important decisions or will make a schooling choice based on athletics rather than academics.

In response, it must be noted that today’s public schools are about as unequal as they can get. Jonathan Kozal’s book Savage
Inequalities
has documented this fact dramatically. Experience indicates that choice reduces this inequality. Magnet schools have
been touted for their ability to attract diverse students bodies and have been achieving better results in over 100 cities nationwide. Choice carries this concept one step further.

Actually, political scientist Lawrence Mead has found that the poor respond well and choose wisely when given the power to make
important decisions concerning their children’s education. Those who don’t participate will be assigned a school, as they are today.

More Myths About Choice

Senator Edward Kennedy has stated that educational choice will be “a death sentence for public schools struggling to serve disadvantaged students, draining all good students out of poor schools.”(3) This Selectivity Argument is one of the most used criticisms against private schools and choice.

It is true that many private schools have high standards for admissions. But many also have been serving the disadvantaged for years. Catholic schools have been open to the needs of urban city children for decades, and recently, private schools have opened for students who have failed, or been failed by the public schools–in other words, the hard cases. The Varnett School in Houston is an example, as is the work of Marva Collins in Chicago. Sociologist James Coleman argues that Catholic schools have succeeded in raising the academic achievement of students that do poorly in public schools, including Blacks, Hispanics, and a variety of children from poor socio-economic backgrounds.

Another concern many have about vouchers might be called the Radical Schools Scare. Past California school superintendent Bill
Honig writes that choice, “opens the door to cult schools.”(4) He also argues that by placing the desires of parents over the needs
of children we encourage societal tribalism and schools that will teach astrology or creationism instead of science.

Will there be a market for schools that are somehow bizarre or extremist? Private colleges in America are schools of choice,
receive government funds, and are considered world class. Having to compete for existence quickly weeds out schools that fail to
educate. Of course, any choice plan would allow the government to protect parents against educational fraud and against schools that
fail to do what they advertise they will do. Although one wonders why this standard doesn’t apply to many of our public schools
today.

In many minds, the idea that tax money might end up in the hands of a Christian school is enough to cancel any choice plan. To them,
this represents a clear violation of church-state separation. In fact, the church-state argument is not a very strong one. According
to Michael McConnell, a law professor at the University of Chicago, the federal government does not maintain a very high wall of
separation when it comes to education. “The federal government already provides Pell grants to students at private, religious
affiliated colleges” and “the GI Bill even covers tuition at seminaries.”(5) Lawrence Tribe, a liberal constitutional law professor at Harvard’s Law School, states that a “reasonably well-designed” choice plan would not necessarily violate the separation of church and state.

Many Christians feel that government intervention will follow public vouchers. But even if Christian schools refuse to participate, many other children will benefit from new, more effective schools, which will be competing for their tuition vouchers–schools that Christians may begin as a ministry to those suffering in our troubled cities.

Other Mechanisms For Creating Effective Schools

The threat of vouchers has resulted in the passing of charter school legislation in a number of states. In 1993, Colorado passed the Charter Schools Act which allows the creation of publicly funded schools operated by parents, teachers, and/or community members under a charter or contract with a local school district. A charter school is defined by the legislature as a “semi-autonomous public school of choice within a school district.” Legislators have recognized that for schools to be effective they must be autonomous. As a result, charter schools can request waivers from district and state regulations that interfere with their vision.

California and Minnesota have also passed charter legislation. Minnesota’s program is a good example of why charter laws are more a political response to the voucher threat than a real attempt to free schools from excessive bureaucracy. Their charter schools must
be started by licensed teachers who must comprise a majority of the board. They must also meet state education standards called
outcomes. Charter schools may establish their own budget and establish curricula, but the goals of individual schools will be
dictated by the state. The state-wide teacher union would be a powerful force within these teacher-controlled schools.

Another plan for creating more effective schools is centered around private vouchers. In 1991 J. Patrick Rooney, Chairman of the
Board of the Golden Rule Insurance Company convinced his organization to pledge $1.2 million for the next three years to fund half the private school tuition for approximately 500 Indianapolis students. To qualify, the students must be eligible for free or reduced-priced lunches according to federal guidelines. By 1993 the program had placed over 1000 students in eighty schools.

Inspired by Mr. Rooney’s concept, Dr. James R. Leininger of San Antonio created the Children’s Educational Opportunity Foundation which has gathered $1.5 million in pledges from various Texas businesses. Off-shoot groups are starting in Austin, Albany, Denver, Phoenix, and Dallas. The Center for the study of Education Reform at the University of North Texas has conducted a analysis on the effects of these private voucher initiatives and found that parents are extremely satisfied with the program even though they only fund one half the cost of their children’s private education.

Although charter schools and private choice programs both attempt to create more effective schools by encouraging autonomy, both ideas have limitations. Charter school’s survival depends on the very bureaucracy that creates ineffective schools, and private vouchers are limited to the good will of corporations willing to invest in them. This leaves publicly funded choice through vouchers as the best hope for real change in schooling for most children.

Our interest in this debate over educational reform should not be driven by our own family’s educational needs alone. God told His
people, while captive in Babylon, to “seek the welfare of the city where I have sent you into exile, and pray to the Lord on its behalf; for in its welfare you will have welfare” (Jer. 29:7). Thus, the welfare of all children in our nation should be our concern.

Notes

1. Cohen, Deborah I. “Streets of Despair,” Education Week, 1 December 1993, p. 28.
2. Jeanne Allen, Nine Lies About School Choice: Answering the Critics, The Center for Educational Reform, Washington, D.C.
3. Ibid.
4. Ibid.
5. Ibid.

© 1994 Probe Ministries International


Education Myths

Don Closson offers 5 myths about education commonly held by the American public, from a Christian perspective.  These myths include neutrality, more money is the solution, teachers are underpaid and school choice harms public education.

The Myth of Neutrality

Most of us assume that those involved with our public schools have at least one thing in common: the belief that the kids come first. This assumption allows us to believe that a kind of neutrality exists among the various participating parties. Since they all have the best interests of our children in mind, we can trust their motives and their actions. It also leads some to believe that there is no place for politics in schools; again, thanks to the myth of neutrality.

The problem with this kind of thinking is that no such neutrality exists. Our schools are highly political and are a battle ground for the various groups hoping to cash in on the huge amount of money Americans spend on public schools every year. Politics is all about deciding how our tax monies will be distributed, who gets what resources, when, and how. In the 2003-04 school year, America spent over $500 billion on public schools with about 60 percent of that amount going to actual classroom expenses. But even though we spend more on public education than any other industrialized nation, our schools continue to fail to adequately educate those who are most in need of a good education: our inner city students.

Despite being in an almost constant state of reform, the school districts in our largest cities perform poorly. In New York schools, only 18 percent of children receive a Regents Diploma after four years of high school. Those numbers fall to 10 percent for black and Hispanic students. Yet year after year, regardless of their performance teachers, principals, and central office staff cash their paychecks. Teachers unions, textbook publishers, and even colleges and universities that earn millions training and retraining teachers, thrive on their connection to the annual education budgets of our nation’s cities. As New York Post columnist Bob McManus once put it: “This is the New York City public school system, after all, where power comes first and kids come last—but where money matters most of all.”{1}

The entrenched bureaucracy that has grown up around the education industry knows how to protect itself and its link to the billions of dollars being spent. The lobbying efforts of teachers unions, national organizations representing school board members and superintendents, as well as the textbook companies all fight for influence in Washington and state capitols.

It must be said that there are many teachers, principals, school board members and countless others involved with our schools who are diligently and conscientiously working to educate our nation’s children. However, the way that our school systems are organized virtually guarantees that politics will reign supreme when important decisions are made on behalf of our most needy students.

In this article, we take a look at five myths about public education held by the American public.

The “If Only We Had More Money” Myth

Rarely do representatives of our nation’s teachers unions, the National Education Association, and the American Federation of Teachers write about deficiencies in our public schools without blaming them on a lack of adequate funding. The “we need more money” mantra has been heard so often that it is ingrained in the minds of most Americans and goes unquestioned by most. But is this always the best explanation for the failure of our schools to educate well? In fact, inadequate funding is only one of many possible reasons for poor performance.

The U.S. has been increasing per pupil spending consistently for the last fifty years. From 1945 to 2001, inflation adjusted spending has grown from $1,214 per student to $8,745. Measuring increases in performance over that period is more difficult. We do have good data from the early 1970s when the National Assessment of Educational Progress began. Unfortunately, scores for twelfth grade students have remained essentially flat in reading, math, and science over that time period, and graduation rates have changed little. Many studies have concluded that although we have increased our educational spending significantly there has been little or no significant improvement in our schools.

Various explanations have been given for why more money hasn’t resulted in improved student performance. One of the most popular is that much of the increase in funding has gone to services for disabled students and special education programs. The special ed complaint is answered by the fact that we don’t have a higher percentage of disabled students; rather, we are choosing to label students disabled who in the past would have been called slow or under-average learners. The percentage of students with severe disabilities has actually remained level between 1976 and 2001, and the number of students classified as mentally retarded has actually declined.{2} Regardless of what label we give these students, increased dollars spent should result in improved performance, but it hasn’t.

Some argue that a smaller fraction of every budget dollar actually goes to classroom instruction, but whose fault is that? Others complain that students are harder to teach today due to the effects of poverty, greater healthcare needs, and the fact that they are more likely to speak a foreign language than in the past. However, childhood poverty rates have held fairly steady since the late 70s and has been declining since 1992.{3} One of the best indicators of health care for children, the child mortality rate, has improved 66 percent in the last thirty years, so it is hard to argue that today’s children have poorer health care. The only argument that holds up is that more students have a native language other than English. But this factor alone does not explain why the huge increases in spending have not resulted in better performance.

Teachers Are Badly Underpaid

Another myth is that students perform poorly because teachers are severely underpaid.

Every few years we are warned about a looming shortage of teachers or that teachers cannot afford to live in the cities in which they teach, resulting in either inferior teachers or large classes. For instance, during the internet boom of the 90s, it was feared that teachers could not afford to live in Silicon Valley due to the high cost of real estate. But a number of years later, the San Jose Mercury analyzed housing data from that period and discovered that there was no crisis. In fact, 95 percent of the teachers who taught there lived there, and about two thirds owned their own homes.{4} In fact, teachers fared better than software engineers, network administrators, and accountants when it came to home ownership.{5}

Others argue that the best and the brightest stay away from teaching because salary rates compare poorly to similar professions. But most researchers compare teachers’ annual salary with the annual salary of other professions without taking into account the one hundred eighty day work year for the typical teacher. Adjusting the average teacher’s annual salary of $44,600 to a full-time equivalent brings it to $65,440. This amount represents a respectable middle class salary by anyone’s calculation.

Another way to look at the issue is on an hourly basis. In 2002, high school teachers made an average of $31.01 per hour. This compares to $30 per hour for chemists, $29.76 per hour for mechanical engineers, $28.07 per hour for biologists, and $24.57 per hour for nurses.{6} Doctors, lawyers, dentists, and others do make more per hour than teachers, but their education is far more rigorous, and they often require long internships or residency obligations.

Even when one compares benefits other than income teachers fare well. One researcher discovered that half of all teachers pay nothing for single-person health care coverage, while the same is true for less than one-quarter of private-sector professionals and technical employees.{7} Another type of employment benefit that teachers enjoy is job security. It becomes remarkably difficult to fire a teacher who has been employed by a school district for three or more years. Tenure protection for public school teachers give them almost unparalleled job security compared to professionals in the private sector.

The reason that teaching does not attract the best and the brightest is more likely tied to the way that individual teachers salaries are determined than the average amount paid. A recent study found that the inability of teachers to make more money by performing better than their peers is the main cause for the declining academic abilities of those entering the field.{8} Talented people want to know that they can earn more if they work harder than others around them.

School Choice Harms Public Education

Another controversy that has generated myths of its own is the debate over educational choice or voucher programs. There are two popular misconceptions: first, that research has been inconclusive regarding the benefits of voucher programs, and second, that educational choice damages public education.

Whenever the topic of school vouchers comes up in major media outlets the consistent message is that research on their benefit to students is mixed at best. The New York Times, the Washington Post, and Time magazine have all sounded the same warning. Time wrote, “Do vouchers help boost the test scores of children who use them? Researchers are trying to find out, but the evidence so far is inconclusive.”{9} Why would publications and even researchers equivocate on the benefits of vouchers? There are a number of possible reasons. Ideology can play a role. If one has come out against vouchers it’s difficult to affirm them regardless what the research says. Financial interests might also play a role if supporting vouchers might result in the loss of funding or readership.

The most accurate way to research the impact of voucher programs is to perform random-assignment studies.{10} There have been eight such studies, and all of them found a positive effect or advantage in academic progress for students who received a voucher to attend a private school. Seven of the eight findings were statistically significant. The question left to researchers is to determine the magnitude and scope of the positive effect and to establish the conditions that result in the greatest amount of progress.

The second myth; that voucher programs damage nearby public schools, is also contrary to the evidence. Although not all voucher programs are large enough to impact the public schools nearby, those programs that have the potential to do so have been studied. The consistent finding is that the competition caused by vouchers always results in an increase in public school performance. For instance, as a result of Florida’s A-Plus voucher program, “public schools whose students were offered vouchers produced significantly greater year-to-year test score gains than other Florida public schools.”{11} Schools that faced competition experienced a 5.9 percentile point advantage on the Stanford-9 math test over schools not facing competition.{12} Other studies showed that even the threat of future competition produced public school improvement.

Harvard economist Caroline Hoxby studied the impact that the oldest voucher program in the country has had on student performance in Milwaukee’s public schools. Again, she discovered that “schools exposed to greater voucher competition made significantly larger test score gains than schools less exposed to voucher competition.”{13}

Studies in other states have supported the benefit of competition as well. Vouchers offered in Maine, Vermont’s “tuitioning” programs, and charter schools in Arizona and Michigan have all prompted better performance in nearby public schools.

Public Education Doesn’t Matter

Our final American education myth is often held by conservative Christians. It is the belief that public education doesn’t matter. The argument goes something like this: the public educational establishment has adopted a completely naturalistic worldview. And. as a result, it is hostile towards anything Christian, rendering it morally bankrupt.

While it is true that our public education system is primarily built upon the assumptions of naturalism, and that it is often hostile to both individual Christians and Christian thought. It does not follow that Christians, even those who chose to home school or place their children in a private Christian school, should be indifferent to the fate of children in our public schools.

Perhaps we can compare our situation to that of the Israelites while in captivity in Babylon. Although the culture was alien and often hostile, as ours can be today, and it would have been tempting to undermine its institutions and seek its destruction, God communicated via the prophet Jeremiah that the Jews were to “seek the peace and prosperity of the city to which I have carried you into exile. Pray to the LORD for it, because if it prospers, you too will prosper.”{14}

Out of love for our neighbors and their children, we should desire to see them receive the best education possible. One of the earliest justifications for public education was that children needed to become literate in order to understand the Bible and apply it to their lives. In 1647, Massachusetts passed the Old Deluder Act which argued that public education was necessary because Satan attempted to keep men in ignorance of the Scriptures by keeping them from the true sense and meaning of the text. If they could read it for themselves they would be less susceptible to deception. The same need is present today. A literate society is not necessarily more open to the Bible and its message, but illiteracy places a large gulf between an interested individual and God’s revelation.

Another reason to not lose interest in the funding and functioning of our public schools is because we continue to pay for them. If we are to be good stewards of the monies granted us by God, we cannot ignore perhaps the largest single government expense. The amount of money spent on public education in America is massive by any standard, and the potential for abuse and misuse is equally large.

Into the near future, most American children, Christian and otherwise, will be educated in our public schools. Misinformation or political spin should not be allowed to shape our opinions or our decisions about education in the voting booth. The parties involved are not neutral. Although many have the best interests of the children at heart, power and money also play a major role in educational policy making.

Notes

1. Joe Williams, Cheating Our Kids (Palgrave Macmillan, 2005), 7.
2. Jay P. Green, Education Myths (Rowman & Littlefield, 2005), 24.
3. Ibid., 26.
4. Ibid., 72.
5. Ibid.
6. Ibid., 79.
7. Ibid., 82.
8. Ibid., 83.
9. Ibid., 147.
10. See chapter 13 of Education Myths for an explanation.
11. Education Myths, 170.
12. Ibid., 172.
13. Ibid., 173.
14. Jeremiah 29:7

© 2006 Probe Ministries


Economic Issues

Minimum Wage

Although the minimum wage law is more than 50 years old, it is still a very controversial measure. In fact, a battle over the minimum wage occurs every time Congress tries to increase it. Minimum wage seems like one of those political issues that compassionate people should support. But the opposite is true. The minimum wage leads to maximum unemployment for people with few job skills trying to enter the work force.

My own experience is illustrative. I started job hunting as a teenager during a rather depressed economy. The minimum wage requirement nearly kept me from getting a job because, as an unskilled laborer entering the job market for the first time, I had nothing more to offer than a strong back and conscientious work habits. Whether I was worth the minimum wage in my first job is questionable. But after working in a machine shop and as a ditch digger, I developed skills that made me more valuable to my employer.

Back in 1938, establishing a minimum wage of 35 cents an hour seemed admirable. But today it effectively shuts less-skilled people out of the work force. In essence, the minimum wage law requires employers to discriminate against young people with few job skills. A teenager whose services are worth, say, only $3 an hour is not going to be hired at $4.25 an hour (plus benefits like Social Security, which raise the cost to the employer to over $5 an hour). The choice is not between working for $3 an hour and working for $4.25 an hour. The real choice is between working for $3 an hour and not working at all.

The effect of minimum wage on young people is devastating. When the lowest rung on the ladder is higher than your head, that necessary first step into a job will never be taken. The high rate of unemployment among teenagers is due in large part to the minimum wage laws that place the rungs on the ladder too high. Eliminating the minimum wage would allow more young people to get on-the-job training.

Minimum wage’s effect on the poor is also troubling. Research indicates that for every 10 percent rise in the minimum wage, there is a 3 percent drop in employment among workers covered by the Fair Labor and Standards Act. In other words, if seven workers get their wages increased, three workers either get fired or can’t find work. Notice how the minimum wage law has changed the nature of employment in America. More and more restaurants are switching from waiter service to self-service. Gas stations have followed suit. It explains why you see fewer ushers at movie theaters and fewer “bag boys” at supermarkets. In the past, these jobs allowed young people to develop job skills. Today, many don’t exist, and young people are the losers.

Raising the minimum wage may seem compassionate. But in the end, those with limited job skills in need of work experience are the ones hurt by good intentions.

Comparable Worth

Although the idea of comparable worth has been roundly criticized, it is still gaining proponents. Like the minimum wage, it seems at first glance like an issue we should back. But it has not exactly generated a groundswell of support.

Clarence Pendleton (former chairman of the U.S. Commission on Civil Rights) called comparable worth “the looniest idea since Looney Tunes came on the screen.” But even so, its proponents are resolved to make it the law of the land.

The seeds of comparable worth first found fertile ground in the judicial system. A number of years ago, Federal Judge Jack Tanner, citing a consulting firm’s comparable-worth study, ruled that the state of Washington was guilty of sex discrimination. His judgment of nearly $1 billion against the state provided impetus for a similar suit in California.

Proponents of comparable worth argue that the Equal Pay Act of 1963 and the Civil Rights Act of 1964 are not enough and urge the adoption of comparable worth legislation. But underlying this movement are some questionable assumptions.

First is the dubious assumption that differences between male and female wages are due to discrimination. But sexism has less to do with the wage differences than with the way women participate in the economy. Many work part-time, and most leave the job market to raise children. Economist Walter Williams estimates that women on the average spend about one-third of their potential working years in the labor market and therefore have less job-related experience than men. When relevant criteria such as education, experience, and seniority are factored in, many wage disparities vanish.

A study released by the Rand Corporation demonstrates that the gap between male and female wages is decreasing steadily, and the rate of decrease has begun to accelerate in the last few years. Economists James Smith and Michael Ward show that this rise in wages is commensurate with improvements in women’s education and job experience, “rather than legislation, government commissions, or political movements.”

Second, the approach assumes that personnel studies can adequately compare different kinds of jobs. Yet there is no such thing as an objective scale of economic values. Economists from Marx to Ricardo have tried to devise non-market criteria for the value of labor, and there is still no consensus after 100 years of work on the project.

What will happen when the studies disagree, as they inevitably will? The potential for disputes is endless. Should nurses earn as much as doctors or paramedics? How about a secretary who can drive a car? Should she make more than a truck driver who cannot type? There simply are not enough courts to handle the many kinds of questions that will surely follow.

Third, comparable worth assumes that governmental bureaucrats should decide pay levels. Even in situations of obvious discrimination, we should question whether a bureaucracy is the best way to rectify the problem. In fact, in light of the last 25 years of research into the nature of governmental bureaucracies, one might wonder whether bureaucracies are the best way to deal with any social problem.

Wage inequity deserves attention, but the solution is not to force employers to pay wages established by bureaucrats rather than by the free market. We need better implementation of existing laws and prosecution when discrimination occurs.

Comparable worth plays a game of “worthier than thou” by trying to compare vastly dissimilar occupations without utilizing the market system and depending solely upon subjective judgments. We would do better without it.

Budget Deficits

A theme in recent campaigns has been the budget deficit. And for good reason. We are drowning in tides of red ink, and something must be done. Some candidates suggest that the way to balance the budget is to increase taxes. But that won’t solve the problem and most likely will make it worse.

The problem is not that we are undertaxed but that we are overspent. Consider these budget statistics. First, taxes have continued to increase throughout this century. That’s not so surprising since the cost of living has increased as well. But tax receipts as a percentage of the GNP have also steadily increased over time.

A second way to look at the problem is to plot the increase of the federal government’s budget. In 1938 the budget was $7 billion. Today the budget exceeds $1 trillion. That’s an increase of over 14,000 percent. In comparison, in 1938 a Hershey bar cost 5 cents, a first-class stamp 3 cents, a new Ford $600, a good suit $40, and gold $35 per ounce. However, if these costs increased by the same proportion as the cost of government, the prices would be astro- nomical. A Hershey bar would be $7, a first-class stamp would be $4.20, a car would sell for $84,000, a suit for $5,600, and an ounce of gold would be $4,900.

Moreover, a tax increase is not a solution; it is part of the problem. Economist Walter Williams has shown that the facts simply do not square with the oft-repeated assumption that more taxes will reduce the deficit.

Williams has studied the federal budget figures for the last 25 years and found the following. The budget has been in the red 24 of the last 25 years. And in 19 of those years there have been tax increases. His studies show that for each $1 in tax increase during that period, there was a $1.58 spending increase. In other words, when taxes rose, deficits skyrocketed.

In 1982, when Congress passed the largest peacetime tax increase in U.S. history, the new revenues were not used to decrease the deficit. Instead, they were used to increase spending in a number of budget categories.

The solution is to cut the federal budget. Bloated bureaucracies drain America’s economic competitiveness and often dole out grants to things ranging from obscure scientific projects to obscene art. Certainly it is time to begin cutting the federal budget in significant ways.

A major budget category is federal pensions. There is nothing wrong with providing pensions to civil service employees and military retirees. But some of these pensions have grown much more lucrative than anything found in the private sector.

For example, retired Senator Al Gore was making more than his son, Al Gore, Jr., until the younger man was given a Congressional pay increase in the mid-1980s. When Gore senior retired from Congress in 1970, his salary was $42,000. But, thanks to federal cost-of- living increases, his pension was over $78,000, while his son’s salary was only $77,000. When a current member of Congress makes less than a retired one, something is wrong with pensions. The Grace Commission found that if federal pensions were trimmed to resemble the “best” private sector pension programs, $58 billion in taxes could be saved over a three-year period.

The federal budget is a problem, but many are looking in the wrong places for solutions. Americans are not undertaxed. The American government is overspent. We need to cut expenses, not raise taxes.

Housing

In recent years, Congress has made significant changes in the way it funds public housing. As the next budget considerations loom in the future, we can learn a great deal from the successes of the past.

One of the most important successes was the adoption of the housing voucher concept. The argument for housing vouchers is simple. Many current federal housing policies focus on bricks and mortar. These programs provide incentives to private developers and thus place an emphasis on buildings. Direct rent assistance in the form of housing vouchers is used to replace construction subsidy programs, which often benefit contractors more than the poor. These voucher programs, therefore, direct government resources at people, not projects.

Housing vouchers given to renters utilize the free market system to bring about desired changes. When rent subsidies are allocated for construction of housing projects, we create a seller’s market. When we give housing vouchers to renters, we create a buyer’s market.A housing voucher system encourages landlords to improve run-down apartments.

Government housing policies make families dependent upon governmental subsidies and lock them into inadequate housing situations. In our effort to win the war on poverty, we have lost the war on independence.

To be poor is to be caught in a culture of poverty, frustrated and without choices. The voucher system provides not only a roof and walls, but choice and dignity. Although government pays only the amount of rent that exceeds 30 percent of a family’s income, the family can choose to pay more than that and is free to move to a different housing situation.

A second program success has been the privatization of public housing. A few years ago a bill encouraging privatization was sponsored by conservative Jack Kemp and liberal Walter Fauntroy. Kemp, invoking memories of the Homestead Act of 1862, referred to this legislation as the “urban homesteading bill.”

The bill offered tenants of the nation’s 1.25 million public housing units the chance to buy their own homes and apartments at 75 percent below market value with no money down and at greatly reduced interest rates. Only units that were “modernized” were offered for sale.

The bill also empowered public housing tenants to run their own projects. Legislators recognized that tenant management would provide better management of public housing.

Inspiration for resident management came from the example of the Kenilworth-Parkside project in Washington, D.C. In 1982, Mayor Marion Barry granted self-management to the residents. An analysis by an international accounting firm indicated that the tenants cut operating costs significantly, boosted rent collections by 77 percent, reduced the vacancy rate by two-thirds, and halved the rate of welfare dependency, thanks to jobs in the project created by the management team. These savings and new revenues, say the accountants, added close to $10 million to Washington’s tax collections.

These have been constructive changes in public housing policy. Housing vouchers provide choices and dignity and arm the poor with a mechanism to improve housing. Resident control of public housing provides for initiative and independence. We need more housing programs like this in the future.

Churches and Taxes

One of the oft-cited criticisms of Christians is that they attend churches that should be forced to pay their fair share of taxes. But once you understand the history of this issue, it is easy to see why critics of tax-exempt institutions miss the point.

When the United States was founded, the framers of the constitution wanted to protect churches from governmental influence. The first amendment to the Constitution specifically states that “Congress shall make no law respecting an establishment of religion nor prohibiting the free exercise thereof.” This protected the churches from the intrusive hand of the state.

But when Congress began to tax its citizens, a question arose. Could it tax churches? The answer then was very simple.

The first two modern income-tax statutes were the Revenue Act of 1894 and the Revenue Act of 1913. In both the laws, only “net income” was to be taxed. Churches and all other non-profit organizations had no “net income,” so they were not taxed. The author of the 1913 Act, Cordell Hull, even resisted the call for establishing explicit categories of exemptions. He argued that the law was designed to impose explicit categories of taxation, therefore, all organizations not listed would be exempt.

But that was not sufficient for many in the bureaucracy, and so, over time, the Internal Revenue Service began to define what a tax- exempt organization might be. In the IRS code, it is defined as a 501(c)(3) organization.

From the IRS’s point of view, it made sense to define a church, because they began to see the rise of bogus churches with names like the “Church of the Marijuana” or the “Hot Tub Church.” But from the Christian point of view it seems most unwise to have IRS agents define in legal language what the Bible provides in explicit detail. Sometimes there was a significant confrontation.

Fortunately, Congress has passed a bill which more clearly specifies the role the IRS can have in securing church records and determining whether a church qualifies under the IRS code.

Many critics of churches argue that they can unfairly compete in the marketplace because of their tax exemption. But most of that objection was answered years ago.

The Tax Reform Act of 1969 ended churches’ tax exemption for income from profit-making enterprises. Before 1969, churches exempt under theIRS code did not have to pay corporate income tax on unrelated business income, but Congress closed that loophole.

Critics also argue that exemptions are given as a legislative grace in return for specified public services which government would have to provide. But the U.S. Supreme Court held in a 1970 case that traditional property-tax exemptions for churches are constitutional and rejected the notion that exemption is a legislative grace. The argument may have its merits in reference to colleges, hospitals, libraries, or parks. But it is not applicable to churches, since government could not constitutionally set up or operate a church to provide the religious services churches provide. Despite allegations to the contrary, churches are not “getting away with something.” They do not pay taxes because they do not have net income. When they do make a profit in a business enterprise, they pay taxes on it. The rest of the time, they should be tax exempt.

©1991 Probe Ministries