Education Savings Accounts – A Good Idea

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There is buzz under the gold dome about the potential for a bill proposing Education Savings Accounts (ESAs) for Georgia’s students and parents. ESAs have earned the praise of many as the “next generation of school choice.”

Here is a run down of how they work and their potential advantages: Parents who choose not to enroll their children into public schools full time can receive 100% of what the state would have spent on their children at a public school – a change that is revenue neutral for the State and gives freedom to parents. The Department of Education deposits funds directly into a privately managed bank account, which parents or guardians can access through a restricted-use debit card. Child-specific factors – such as disabilities – may determine the amount of money distributed into a family’s ESA. Parents or guardians can then spend the money on private school tuition, online learning curriculum, special education services and therapies, textbooks, and a number of other qualifying education-related services and providers. Furthermore, parents can save unused funds from year to year and roll the funds into a college savings account.

Parents and students can use ESAs to tailor education to their unique learning needs and interests.

This unbundling of educational services can allow for greater innovation and diversity, since it encourages a supply-side response that puts pressure on all facets of the traditional education system to be far more responsive to student needs, which amounts to a true student-centered education agenda.  ESAs promote a more market-based education system, creating incentives for producers and providers to try different ways of meeting the needs of students and parents.

Though Education Savings Accounts are still taxpayer funded, the way they are structured makes for a dynamic closer to the one involved in spending your own money on your own children: Parents still insist on the best quality education but have more incentive to find a bargain. ESAs constitute an improvement on traditional school choice programs for several reasons. Perhaps most importantly, parents have a strong incentive to maximize the educational value that their children receive in an ESA, because they are not required to spend it all at one place and in one lump sum.

The best way to enhance accountability and performance is to empower parents to choose the education that works best for their kids.

Two states have already adopted ESA laws – Arizona and Florida – and more are likely to follow in the coming years. These laws hold great potential to expand educational opportunity and improve the entire education system in ways that better and more efficiently meet the needs of children.

 


Why School Choice Matters

Imagine being told that your daughter won’t graduate from high school. Now imagine that your daughter is only 5 years old when you receive the news. This happened to someone I know.

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Katherine is the mother of now 17-year-old Grace. Twelve years ago, at about the time that Grace was to enter kindergarten, Katherine and her husband noticed signs that Grace might be facing learning challenges. They took Grace to be assessed by local public school personnel and determined their concerns were well founded. Grace did indeed have a learning disability.

The staff at the school was great. They were sensitive, methodical and thorough. They assured Katherine that the school had a program that was well suited to meet Grace’s needs. They mapped out the program all the way through the 12th grade.

But as the meeting was winding down, everything changed. For the worse.

“You need to understand,” said the teacher as she wrapped up the assessment, “when Grace finishes the 12th grade she won’t have a diploma, she will have a certificate of completion.”

Katherine was dumbfounded.

“You mean she won’t graduate?” she asked.

“That’s right,” the teacher said. “She’ll have a certificate that indicates that she completed high school, but not that she graduated.”

It surprised and dismayed Katherine and her husband that the school was determining the long-term future of their five-year-old daughter. It was particularly troubling to them because they knew what studies say about the prospects for kids who do not graduate from high school – that they’re less likely to find steady employment or form a healthy marriage and family life.

Where is Grace today?

Although she didn’t start reading until she was ten years old, she is now on schedule to graduate in May of 2017 – with a diploma.

How did she make such progress? Well, when Katherine and her husband heard the school’s prognosis, they set out to find other ways to educate Grace. They determined they needed maximum flexibility. Fortunately, Katherine’s husband made enough money to give her the flexibility to stay at home and enroll Grace in the various academic and therapeutic programs that have driven her success.

It’s been a challenging and uneven journey at times, but Grace’s parents have found a way to make it work. But they’ve often wondered, “What about those people who are told the very same thing we were but don’t have the resources or ability to make adjustments and exercise choices?”

How many of these students will be finishing high school this coming May with a “certificate of completion”? And how would their lives be different if they had more options available?

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There are thousands of other parents who are struggling due to a lack of choices for their child’s education. You may be one. You may know one.

This is why at the Georgia Center for Opportunity (GCO) we’re focused on passing broad school choice reform. We know that if a child can get an education that fits his needs, it can drastically change the trajectory of his life.

I’ve been with the GCO for 18 years, and we’ve consistently advocated for policies that ensure children can receive the best education possible. During this time, GCO’s work and the generous donors who support it have contributed to the passage of Georgia’s Special Needs Scholarship and Tuition Tax Credit programs.

These programs have helped some 17,000 students get the education that best fits their needs. But there are more than 1.6 million students in Georgia’s public school system. This means there are still many children who are locked in to a school that’s not meeting their needs, simply because they can’t afford a private education or to move to a district with better public schools.

This is why more must be done.

In the current legislative session, GCO is advocating for an Educations Saving Account plan which would provide the most flexibility and maximize a family’s ability to pay for a private education and other educational needs, like tutoring, while having the ability to save for college. There’s also an opportunity to expand the Tuition Tax Credit program, by either creating a new corporate program or expanding the existing one.

If we’re going to pass broad school choice reform, now is the time.

That’s why our team at GCO is working harder than ever to mobilize grassroots advocates, engage business leaders, and meet with legislators and the governor to bring them together on the issue. But we need your continued support to make the dream of school choice for every child in the state a reality.

I hope you’ll consider joining us in this important work by making a tax-deductible gift today. If you would like to learn more about the work GCO is doing in education, I also encourage you to read through our school choice initiative page.

Mom and Apple Pie, Meet School Choice

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With Congress returning to work this week and the Georgia General Assembly doing so on Monday, many voters are watching to see what issues are tackled (or not) in the coming months.

A new poll released this week suggests Georgia lawmakers ought to carefully consider advancing school choice.

Georgia voters rank K-12 education as the most likely issue to motivate them to vote in 2016:  more than jobs, more than taxes, more than pre-K, more than any other single issue.

It makes sense.  People believe students deserve an excellent, effective, education.   If a child graduates from high school, he/she is much more likely to have success in life, family, career and society.  If a child doesn’t graduate, or graduates without the knowledge and skills necessary to pursue college or a career, that child is much more likely to struggle.  It doesn’t mean they are doomed.  It just means they’ve got a tougher road ahead, one more likely to lead to detours involving public assistance, incarceration, family instability and so on.

The instinct of voters (and humans, generally) is that every child deserves a shot at a great education that prepares them for success in life.  The problem, if we are willing to be honest, is that far too many of Georgia’s students are in schools that aren’t meeting their needs.  Maybe it’s a chronically poor-performing school.  Maybe it’s a generally good school that just isn’t the right fit for that child.

Perhaps this is why more than two in three Georgia voters favor school choice (66%/29%).   What’s more interesting is that support for school choice generally, and certain programs specifically, transcends traditional partisan political and demographic boundaries.

For instance, sixty-three percent (63%) favor the creation of the Georgia Opportunity Scholarship Program, which would “allow parents to use the money the state has set aside for their child’s education to send them to the public, private or church-run school of their choice”—even when told this is sometimes referred to as a “voucher,” traditionally a highly polarizing term (support is higher without including the “v-word” disclaimer).

Dig a little deeper in the poll’s crosstabs and the story gets more interesting.   Seventy-one (71%) of GOP primary voters favor creating this type of scholarship program.  That may not be a surprise.  But it turns out almost two-in-three Black voters – regardless of partisan affiliation – support the program, even more than White voters (64%/61%).  Support among female voters – again, regardless of partisan affiliation – is stronger than that of men (67%/59%).

Eight-five percent (85%) of Georgia voters support Georgia’s current Special Needs Scholarship, currently the state’s only K-12 voucher program, including a whopping 92% of Black voters and 81% of GOP primary voters.

If I were an elected official (mercifully, for everyone, I have no desire to ever hold public office), an issue that garners 60% or more support from every key demographic:  men/women, White/Black, younger/older, would be a dream.   Passing a law giving more students access to an effective education also happens to be a political winner.

Mom and apple pie, meet school choice.

As the pollster concludes in his official memo:  “BOTTOM LINE: Georgians are showing a strong propensity to favor increasing school choice programs. Even in a highly polarized political environment, these policies garner support across many key voter groups. As the new legislative session approaches, lawmakers should be mindful of voters’ desires to increase educational options for students and parents and make scholarship programs more inclusive.”

Sajan George Schools Local Leaders on Education Turnarounds

Over the past year, Georgia Center for Opportunity has hosted a series of luncheons aimed at encouraging local educators and business leaders to think outside of the traditional education reform box. Past keynote speakers have shared ways educators can work within their schools to become “cage-busting” leaders, and how business professionals can form coalitions to support quality education.

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In this same vein, GCO recently had the pleasure to host Sajan George, the founder and CEO of Matchbook Learning. Sajan not only introduced the unique Matchbook blended-learning model, but he also shared ways his “turnaround” methodology can be applied to even the most underperforming schools in Georgia.

What is different about Matchbook Learning?

For students at a Matchbook school, grades are virtually irrelevant. Instead, the emphasis is placed on instructional levels of learning. Rather than go through curriculums associated with the grade they are in (i.e., 3rd grade), students begin lessons based on their skill level, which may be higher or lower than the actual grade they are in (e.g., they may be at a 1st or 4th grade level). Students advance from their individual starting points based on their ability to master a skill at a pace that is independent of other students’ progress in the classroom. This concept is commonly referred to as competency-based education.

By using online learning platforms, Matchbook Learning has created a revolutionary learning system that does not just treat the symptoms of failing schools, but addresses the root cause of failure. Far too often schools focus on one-size-fits all instruction and traditional seat-time to improve student outcomes. However, what is truly needed is the ability to customize learning paths to meet students where they are. This system has already proven its ability to propel struggling students to new heights academically by not overwhelming them with instruction far beyond their ability and by allowing them to progress at their own pace.

What is special about Matchbook Learning is that is does not just give struggling students the autonomy to work independently, it also frees up teachers to work with students on a more engaged level.  Through the online platform, teachers always know where their students are in their learning and can arrange their classes with ease to provide more help to students who need it.

Matchbook has already scaled turnaround success in classrooms, schools, and school systems in places like Detroit, MI and Newark, NJ.

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Can the Matchbook model turnaround Georgia?

To apply these turnaround methods in Georgia, Sajan noted that a more innovative vision of education is needed across the state. One possible starting point, however, could be Gov. Deal’s proposed recovery schools districts. Looking to the Matchbook Learning system as a best practice for these would-be state charter schools could provide the much needed guidance to transform low-performing schools into student-centered learning environments.

Through collaboration with innovators such as Sajan George, Georgia Center for Opportunity continues to remove barriers to quality education by promoting solutions that have been proven to work. Considering models like that of Matchbook Learning are a much needed step in the right direction for giving Georgia a real chance to prosper.

School May Be Out, But The Grades Are Coming In

courtesy photos-public-domain.com

courtesy photos-public-domain.com

This week, the Center for Education Reform released its Education Tax Credit Rankings and Scorecard, which evaluates the fourteen tax credit funded scholarship programs across the country.

Georgia’s program, which was created in 2008, received a “B”.

The Georgia program scores well in many of the categories like program design and eligibility requirements.  However, we fall out of the top of the rankings because the total program is capped at $58 million annually–which might sound like a lot of money but actually only represents 0.14% of the overall state budget.  The program is so popular, the $58 million cap was reached this year in just three weeks.  Nearly all of the Student Scholarship Organizations who distribute the scholarships to students have waiting lists.

By contrast, the Florida program, which received an “A”, allocates $286 million in tax credits to fund scholarships that allow almost 60,000 students to attend a school that better meets their individual needs.

Arizona, the other state receiving an “A” grade, does not limit the total dollar value of individual donations and caps corporate donations at $36 million annually.  There are more than 42,000 students on tax credit scholarships in Arizona.

Georgia’s program serves about 13,000 students who have moved from a traditional public school to a private school using scholarships funded by individuals and corporations who receive a tax credit for their donations. That represents a mere .007% of Georgia’s 1.7 million public school students.

Because every child is different, we need a variety of options at our disposal when it comes to education.  Tax credit scholarships are just one of many ways we can ensure that all Georgia children have access to a quality school.  And given our grade in the report card, perhaps we still have more to learn from other states that continue to give even more families the flexibility to meet the educational needs of their children.

To learn more about Georgia’s Tax Credit Scholarship Program and other school choice options in the state, see our 2014 School Choice Handbook.