Posted on 03/13/2015 10:18:03 AM PDT by Academiadotorg
The Platte Institute, a non-profit research think tank based in Nebraska, released a report on how to better cater to America’s education needs. Their idea? Use education savings accounts, known as ESAs, or private scholarships to help children of poverty-stricken families to obtain a better quality of education.
The report referred to the stark differences between college graduates and high school dropouts, where the unemployment rate is typically 11% for dropouts and 4% for college graduates. The report also pointed out how Nebraska is seeing rising poverty, where 1 out of every 3 Hispanic children under the age of 17 lives in poverty while the “unauthorized immigrant” population has risen since 2009. It also does not help that Nebraska is seeing a net migration out of the state at the same time.
What is the shining example of ESA success? Out of the 14 states that have ESA-type programs, the best example is the state of Arizona.
In Arizona, businesses and individuals make charitable donations to organizations known as school tuition organizations (or STOs as they’re called). The donors receive a dollar-for-dollar tax credit in Arizona, while in other states like Indiana, donors receive 50% of their donations as tax credit. These donations are specifically given out to poor students as private school scholarships. The Platte Institute estimated almost 40,000 students benefitted from these scholarships last year. And, the caveat of STOs and scholarships is that Arizona law dictates these scholarship be awarded to low-income families.
Other benefits of the STOs and scholarships are that “children from active-duty military families stationed in Arizona are also eligible for scholarships funded through corporate donations,” and last year, up to $43 million in tax credits were handed out as a result of donations to the STOs. Previous studies have concluded that the existence of a private school option either has a positive effect, or no net effect, on student development. The studies and the Platte Institute suggested that there is little risk and high reward for using a private school option.
Logistically, students can use more than one STO scholarship to fund their education, but you cannot combine both ESAs and STOs. The main difference is that a STO is a scholarship and an ESA is a savings account. ESAs are paid for by the state and are deposited in a debit account for parental use, where parents use a debit card to enroll students in education, like online classes, personal tutors, private school tuition, college classes or college in general.
Comparatively, Nebraska does not have alternative education options, like private schools, and there is no charter law on the books. The report detailed how the achievement gap between white and black students in Nebraska has not changed much since 1992 at 27 percentage points, and how Nebraska education testing is outpaced by at least 29 other European and Asian countries.
But, Arizona-type laws will also reduce costs for taxpayers in Nebraska. In Arizona, “average scholarship awards are less than $2,000 for mainstream students and under $4,000 for students with special needs. The average per student funding in Arizona is $8,907 for mainstream students and $18,700 for children with special needs.” An analysis done by a local newspaper concluded that scholarships “saved taxpayers $8.3 million from 1999-2007” and “Arizona’s tax credit scholarships are worth $7,000 to $15,000 less than taxpayers spend per student in traditional public schools.”
The REASON that ANY New Education “Reform” will NEVER happen in States like Iowa and Nebraska is that the Education “Establishment(s)” are almost co-located with the Capitol(In Nebraska the State Education Association Bldg is located RIGHT across the street form the Capitol Bldg. The Educrats keep a CLOSE eye on ANY “Reform” Action(s)!
Sounds like a very good idea.
The only concern I have is that as money piles up in large amounts in such accounts the federal government will not be able to resist the temptation to confiscate the money and replace it with T-bill and the like. Just look at the ideas they are kicking around now for the 401K plans and IRAs.
Why can’t the gov just get out of education? If people who couldn’t afford it and were qualified students were still being priced out of education, alternatives would emerge in the private sector.
Leftists by social engineering design wish to MINIMIZE parental input in education. You’ll see total loan forgiveness and Pell Grants on steroids before this ever sees the light of day.
As I read it these programs are not savings accounts. They are government tax & welfare shell games.
True. I am convinced that higher education has to be paid for by one’s family and/or earned on one’s own. We have seen the effects of AA on who gets selected to the best schools. AA and other so called poverty thresholds will determine who gets the money. Sad. This is not what the work ethic is about.
One of the reasons college grads make more than high school grads is far too many businesses want a four year degree for a job that doesn’t need a degree. These businesses equate education with knowledge and overlook experience. Certainly there is a need for degrees in science and engineering but not other areas like graphic design. Two years of solid experience and a good portfolio trumps a 4 year degree and no workforce experience. Unfortunately folks like this get their resumes kicked out when the initial computer search doesn’t see a BA.
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