School voucher

What Are School Vouchers and How Do They Work?

School vouchers are certificates of government funding that allow students to attend schools chosen by themselves or their parents, whether public, private, or religious. This system can be used for tuition at private schools, home schooling expenses, or other approved customized learning services. The concept has been explored in various countries and the United States with mixed results.

Origins of School Vouchers

The oldest extant school voucher programs are in Vermont (1869) and Maine (1873), while a system was introduced in the Netherlands in 1917. Milton Friedman argued for vouchers in the 1950s, stating that competition would improve schools.

Different Types of School Vouchers

There are different types of school and voucher systems, including:

  • Charter schools (publicly funded)
  • Education savings accounts (ESAs) for private school tuition and fees
  • Education tax credits (personal use and donation)
  • Open enrollment (intradistrict or interdistrict)

The State of School Vouchers in 2023

As of 2023, 27 states have state policies permitting intradistrict open enrollment, while 43 states have state policies permitting interdistrict open enrollment. Private schools are funded privately through tuition or donations, while public schools are funded by taxes (except in the UK). School vouchers are subsidies given directly to parents for tuition at any school.

Why Do We Need School Vouchers?

Education is crucial for human capital accumulation and instilling common values. Governments intervene to improve public education due to positive externalities like reduced crime and economic development. Families face budget constraints when choosing between education and private consumption, leading governments to provide broad approaches or individually focused subsidies/loans.

The Positive Effects of School Vouchers

A 2021 meta-analysis found moderate evidence of positive achievement impacts of private school vouchers, with substantial effect heterogeneity across programs and outcome years. Let’s explore some examples:

  • Colombia’s PACES voucher program distributed school vouchers to students in low-income neighborhoods from 1991-1997.
  • In Chile, a universal school voucher system was implemented in 1981, resulting in over 1,000 private schools entering the market by 1998.

Implementations Around the World

Most European countries have fully subsidized education for primary and secondary schools. In France, parents can choose between public and private schools, with most private schools under contract with the government. Private schools pay teachers’ salaries through fees, while state-aided Catholic parish schools receive funding regardless of whether they charge fees.

In Ireland, most schools are state-aided Catholic parish schools established under diocesan patronage. However, there is a trend towards multi-denominational schools that parents can choose from, and if a school fails to attract students, it loses its fees and teaching posts. The 1995-97 ‘Rainbow Coalition’ government introduced free third-level education to primary degree level.

Sweden’s Voucher System

Sweden introduced a system of school vouchers in 1992, enabling free choice among publicly run schools and privately run independent schools. Over 10% of Swedish students were enrolled in independent schools by 2008.

The Indiana Choice Scholarships Program

The largest school voucher program in the United States is the Indiana Choice Scholarships program, which has seen significant growth over the years. A 2013 study found that vouchers increased the probability of a student graduating from high school and going to college.

Opposition to School Vouchers

Opponents argue that vouchers put public education in competition with private education, threatening to reduce and reallocate public school funding. Public school teachers and teacher unions have fought against school vouchers, citing concerns over erosion of educational standards, reduction of funding, and constitutional issues.

The Debate Continues

Proponents argue that vouchers promote free market competition among schools by allowing parents to choose between public and private schools. Studies have found that areas with greater residential school choice have consistently higher test scores at a lower per-pupil cost than areas with few options.

The school voucher question has been subject to judicial review, including challenges in Cleveland, Ohio, where nearly all families using vouchers attended Catholic schools. The U.S. Supreme Court ruled in Zelman v. Simmons-Harris (2002) that the Ohio program was constitutional and removed barriers to similar voucher plans in the future.

Political support for school vouchers is mixed in the United States, with conservatives generally supporting them. Some states have enacted voucher laws, including New Mexico, which had a program called the D.C. Opportunity Scholarship Program. The program was closed down by congressional Democrats in 2009.

The Future of School Vouchers

President Trump proposed a budget that included $250 million for voucher initiatives, which aimed to expand school choice and ensure equal opportunities for students. Betsy DeVos proposed cutting the Education Department’s budget by $3.6 billion and spending $1 billion on private school vouchers and other school choice plans.

Some private religious schools teaching creationism instead of evolution receive taxpayer money, with at least 300 documented cases. The debate over school vouchers continues to be a contentious issue in the United States, with supporters and opponents presenting compelling arguments for their positions.

Condensed Infos to School voucher