Private schools that got voucher waivers were losing state funding

Four schools jumped to the front of the line when the Indiana legislature offered to waive accountability requirements for low-performing private schools that benefit from state-funded tuition vouchers.

And no wonder. Those four religious schools had seen their voucher funding drop by over $1.2 million in two years after being sanctioned for persistently low marks on the state’s A-to-F school grading system.

The law that legislators approved this spring says private schools can have the sanctions waived if a majority of their students demonstrated “academic improvement” in the preceding year. It doesn’t spell out what academic improvement means, leaving it to the State Board of Education to decide.

The board voted 6-2 last week to approve one-year waivers for the schools that requested them: Central Christian Academy, Trinity Lutheran and Turning Point School in Indianapolis and Lutheran South Unity School in Fort Wayne. As a result, the schools can resume adding voucher-funded students this fall.

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Hoosiers push back against DeVos

Education advocates in Indiana have a unique perspective on the radical school-choice policies that Betsy DeVos is promoting as U.S. secretary of education, said Teresa Meredith, president of the Indiana State Teachers Association.

Hoosiers have seen how a school voucher program that was sold as a way to help poor children escape “failing” schools can evolve into something quite different: an entitlement for middle-class parents to send their children to religious schools at public expense.

Teresa Meredith

Teresa Meredith

“In Indiana, the voucher program has really changed,” Meredith said in a phone interview. “There is now no cap on the number of vouchers. Families with a really decent income can qualify. And the data are telling us that most kids getting vouchers are already in private schools, or that was the family’s plan all along.”

DeVos came to Indianapolis Monday to speak at a policy summit of the American Federation of Children, the pro-voucher advocacy group that she formerly chaired. She was expected to unveil the Trump administration’s school-choice proposal but offered few details.

She did say it would be “the most ambitious expansion of school choice in our nation’s history.” She said states would be able to opt out of the expansion, but it would be “a terrible mistake” to do so. She derided voucher opponents as “flat-earthers” who are trying to keep education in “the Stone Age.”

Across the street from the hotel where DeVos spoke, public-school advocates organized by Indiana teachers’ unions rallied in opposition. (You can watch a video of the rally/news conference posted at 5:31 p.m. Monday on the ISTA Facebook page). They argued that vouchers divert money from public schools to private schools that aren’t accountable to the public and can refuse to enroll children they don’t want. Continue reading

Tax credit scheme ‘more like money laundering’

Secretary of Education Betsy DeVos will reportedly unveil a proposal for federal private-school scholarship tax credits Monday in Indianapolis. That makes a recent report on the topic especially timely.

The report, “Public Loss, Private Gain: How School Voucher Tax Shelters Undermine Public Education,” was released last week by AASA the School Superintendents Association and the Institute on Taxation and Economic Policy. It describes how 17 states, including Indiana, divert $1 billion to tax credits for contributions to private K-12 schools, including religious schools.

Remarkably, nine states provide a 100 percent tax credit for the scholarship donations. Taxpayers who make such donations get back every penny from the state, tax-free. Some can even make a profit on their contribution by claiming an additional deduction on their federal taxes.

Report co-author Carl Davis said that, in those states, donors may not even have a charitable interest in private schools or their students. It’s simply a risk-free scheme to make money while, in some cases, getting around prohibitions on public funding of religious schools.

“I don’t see how you can help but draw the parallel to money laundering,” Davis told Jennifer Berkshire and Jack Schneider in an episode of the “Have You Heard” podcast devoted to the tax credits. “It’s certainly more like money laundering than charitable giving. There’s no charity involved.”

Indiana’s scholarship tax credit is 50 percent; in other words, a taxpayer who donates $1,000 gets back $500, plus any savings from a federal deduction. There is no limit on the size of an individual’s state credit. There is an annual cap on the total tax credits the state will award, but the legislature voted last month to increase it: from $9.5 million this year to $12.5 million next year and $14 million the year after. Continue reading

Voucher program gets outsized share of K-12 funding increase

Students who receive tuition vouchers to attend private religious schools will get nearly 10 percent of the K-12 education funding increase that Indiana lawmakers included in the 2017-19 state budget.

That’s an outsized share given that voucher students make up only about 3.5 percent of the students who receive funding from the state.

Per-pupil funding is less for voucher students than for public school students – voucher students get either 90 percent or 50 percent of the money that would otherwise go to the public schools where they live, depending on family income. But total funding for vouchers will increase because the number of voucher students is expected to continue to grow while public school enrollment is flat.

Projections in school funding data provided by the House Republican caucus show the number of voucher students increasing by over 10 percent in the next two years.

Indiana’s voucher program started small in 2011 but has grown rapidly as new pathways were added. It is now possible for nearly any child from a low-to-middle-income family to qualify by first being awarded a tuition scholarship from a state-approved scholarship granting organization.

The state is spending $146 million on vouchers this school year. The cost is projected to increase to $156.6 million next year and $167.4 million the following year. Continue reading

Cost calculation missing from voucher report

The annual school voucher report released last week by the Indiana Department of Education includes lots of useful and important information. But something is missing.

Gone from the 122-page report is the “special distribution” calculation, which gave us an idea of how much the voucher program could be costing the state’s taxpayers. In its place is a new calculation that shows how much it might cost if all voucher students attended Indiana public schools.

Adam Baker, spokesman for the education department, said the old calculation was dropped because the result “can be misleading as it does not show a true depiction of what the cost/benefit situation is.”

That’s true, but neither does the new calculation. It’s obvious that many families receiving vouchers never had any intention of sending their children to public schools, so the cost of their education amounts to a new expense for the state, not a savings. The voucher program has become a state subsidy for religious education.

The special distribution calculation provided a sort of worst-case estimate of the net cost to the state of the voucher program. In 2015-16 the figure was $53.2 million.

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Vouchers a new entitlement to religious education

Indiana’s school voucher program keeps drifting further from what we were told it was supposed to be. That’s the inevitable conclusion from data in the 2016-17 voucher report released recently by the Indiana Department of Education.

When lawmakers created the program in 2011, then-Gov. Mitch Daniels said it was a way to help children from poor families find a better alternative to failing public schools. But the program has evolved into a new entitlement: state-funded religious education for middle and low-income families.

Some 54 percent of students receiving vouchers this year have no record of having attended an Indiana public school, the report says. Voucher advocates initially insisted the program would save the state money, because it would cost less to subsidize private school tuition than to send a student to a public school. But increasingly vouchers are going to families that never had any intention of sending their kids to public schools; that’s an entirely new cost for the state to take on.

Also, vouchers are more and more going to students who are white, suburban and non-poor. When the program started, more than half of participating students were black or Hispanic. Now over 60 percent are white, and only 12.4 percent are African-American. It’s reasonable to ask if, in some cases, vouchers are a state-funded mechanism for “white flight” from schools that are becoming more diverse.

Vouchers were sold on the idea that they would help low-income families that couldn’t afford private school tuition. But from the start, the program has also served middle-income families, providing a partial voucher — 50 percent of per-pupil state funding for the local public school — to families that could probably afford private school without help.

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Latest voucher gimmick: Education Savings Accounts

Give Indiana Republican legislators points for resourcefulness. They keep finding new ways to undermine public schools by expanding the state’s school voucher program. The latest, and arguably the most egregious, is the creation of Education Savings Accounts, state-funded accounts to pay for private schooling and other expenses.

Senate Bill 534, scheduled to be considered today by the Senate Education and Career Development Committee, would create ESAs for the families of special-needs students who choose not to attend public school and don’t receive a private-school voucher.

The state would fund the ESAs with money that would otherwise go to the public schools where the students would be eligible to enroll — typically about $6,000 per student but potentially quite a bit more for some special-needs students. Then the students’ families could decide where to spend the money: private school tuition, tutoring, online courses, and other services from providers approved by the State Board of Education.

SB 534 would cost the state between $144 million and $206 million a year, according to a fiscal impact statement from the nonpartisan Legislative Services Agency. This is at a time when legislators are arguing about whether Indiana can afford $10 million to expand a popular  pre-kindergarten program.

Unlike with Indiana’s existing voucher program, there’s no income requirement for qualifying for the proposed Education Savings Accounts. So if Joe Billionaire has a special-needs child and wants to send the child to a private school, we the taxpayers would providing funding.

As Vic Smith of the Indiana Coalition for Public Education writes, the legislation is right out of the late economist Milton Friedman’s plan “to take public schools out of our society and leave education to a marketplace of private schools, all funded by the taxpayers but without government oversight.”

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