Are voucher programs primarily for low-income students?

Most existing voucher programs are targeted towards low-income students, special education students, or children in low-performing public schools. Universal voucher programs, as envisioned by Milton Friedman, are not currently in place.

What are the main differences between Milwaukee and Indiana's voucher programs?

Milwaukee's program emphasizes equity and transparency with stricter rules on admissions and tuition. Indiana's program has higher income eligibility, allows schools to select students, and has fewer regulations, moving closer to a universal model.

What do parents prioritize when choosing schools via vouchers?

Parents using vouchers often prioritize safety, proximity, discipline, moral values, and religion over purely academic achievement. One survey found only 19% listed academic achievement as their top reason.

How do voucher systems impact public schools?

Contrary to common criticism, voucher systems can positively impact public schools. Competition from vouchers often spurs public schools to improve academic performance and responsiveness.

What is the future outlook for school voucher programs?

Voucher programs are likely to increase modestly, but public schools will likely remain dominant and well-protected due to strong public attachment. A key danger is ideology overriding constituent preferences, leading to potentially inequitable, free-market-driven programs.

Chapter 3: Vouchers and Education Reform | LFHSPBC

Q: Do students who use vouchers learn more than public school students?

Research findings on student achievement are mixed. While some studies show positive impacts, particularly for minority students and in urban programs, others indicate null or even negative impacts, especially in statewide programs.

Hoover Institution

Education5 min read25 min video

Mar 28, 2023|43,965 views|17|2

Hoover Institution Hoover Institute Hoover Terry Moe Education School Vouchers School choice School reform Politics Milton Friedman Unions

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Key Moments

TL;DR

School voucher programs are small, inequitable, and have limited impact, despite 40 years of advocacy.

Key Insights

Currently, only 1% of US students use school vouchers, with most programs being small and underfunded compared to public schools.

Existing voucher programs primarily serve low-income students, special education students, or those in failing public schools, not universal programs.

Voucher parents prioritize safety, discipline, and values over purely academic achievement when choosing schools.

Research on academic achievement shows mixed results, with some programs showing negative impacts, especially statewide ones.

Voucher programs, when designed with proper regulations (like Milwaukee's), can promote equity and transparency.

The expansion of voucher programs may be driven by ideological shifts within the Republican party, potentially overriding constituent preferences.

While voucher systems can spur improvements in public schools through competition, their overall impact remains debated.

Future voucher expansion risks creating inequitable, market-driven systems if ideology prioritizes free markets over disadvantaged students.

THE LIMITED SCOPE AND SCALE OF VOUCHER PROGRAMS

Despite decades of advocacy, school voucher programs in the United States remain remarkably small in scale, with only one-half of one percent of American students utilizing them. This limited reach is attributed to strong opposition and a lack of robust commitment from proponents. Out of roughly 29 existing programs, the majority are quite small, with the largest five programs accounting for 75% of all voucher students. Florida notably stands out as an outlier, hosting a significant portion of these students.

FINANCIAL CONSTRAINTS AND EQUITY CONCERNS

A significant issue with current voucher programs is their average voucher amount, which is considerably less than per-pupil spending in public schools. The average voucher is around $6,300, while public schools spend $13,000-$14,000 per pupil. This disparity often necessitates additional out-of-pocket expenses for parents, creating inequities. If vouchers are insufficient to cover tuition, low-income families may struggle to afford private school options, leading to exclusion.

TARGETING AND DESIGN OF EXISTING PROGRAMS

The vast majority of existing voucher programs are not universal, as envisioned by free-market advocates like Milton Friedman. Instead, they are targeted towards specific groups: low-income students, students with special education needs, or children attending low-performing public schools. Town tuitioning programs, dating back to the late 1800s in states like Maine and Vermont, exist to serve small towns lacking local high schools; however, most students in these programs attend other public schools.

REGULATORY DIFFERENCES AND THEIR IMPLICATIONS

Comparing programs in Milwaukee and Indiana highlights significant differences in their design and regulatory strictness. Milwaukee's program, initiated as a low-income program, has relatively strict rules promoting equity, including income eligibility, acceptance of vouchers as full payment, mandatory admission, lotteries for oversubscription, opt-out options for religious instruction, and annual independent audits. Indiana's program, while starting as low-income, has expanded its eligibility significantly, approaching universal status with fewer regulations, allowing schools to select students and requiring less oversight.

PARENTAL MOTIVATIONS AND SCHOOL CHOICE DRIVERS

Contrary to the assumption that parents choose schools solely based on academic achievement, research indicates that other factors are often more critical. A 2021 survey revealed that while 19% of parents listed academic achievement as their top reason, a substantial 65% did not even list it among their top three priorities. Instead, parents frequently prioritize safety, proximity, discipline, moral values, and religious considerations when selecting private schools for their children.

ACADEMIC IMPACT AND RESEARCH FINDINGS

The academic impact of vouchers on student achievement yields mixed results, with findings varying significantly by program design, grade level, and student subgroup. While some studies show positive impacts, particularly for minority students and in urban settings like Milwaukee and Cleveland, others, especially for statewide programs in Ohio, Louisiana, and Indiana, report negative effects on learning. This inconsistency underscores the critical importance of program design in determining outcomes.

EFFECTS ON PUBLIC SCHOOLS AND LONGER-TERM OUTCOMES

Evidence suggests that voucher programs can positively impact public schools by introducing competition, which spurs innovation and improvement in academic performance. Pioneer research by Caroline Hoxby and others indicates that public schools often respond to the competitive pressure by increasing their own achievements. Furthermore, literature consistently shows positive effects of vouchers on high school graduation rates and college attendance, although these findings are not the primary focus of most research.

THE ROLE OF IDEOLOGY IN VOUCHER EXPANSION

The recent trend toward larger, statewide voucher programs with higher income limits and fewer regulations may reflect a shift in Republican ideology, with a greater emphasis on ideological purity since the rise of the Tea Party Movement. This ideological drive might sometimes overlook constituent preferences, as many Americans continue to value and protect the public school system. The push for market-based solutions, even if they lead to inequitable outcomes, appears to be gaining traction.

FUTURE PROSPECTS AND POTENTIAL PITFALLS

Looking ahead, voucher programs are likely to see some increase in participation, but the public school system is expected to remain dominant and well-protected due to strong public support. A significant danger lies in ideology trumping constituency interests, potentially leading to broad, inequitable voucher programs driven by free-market principles. Such a scenario might allow private schools wide latitude in curriculum, admissions, and operations, potentially leaving disadvantaged students behind if they cannot afford additional costs.

DIVERSITY IN VALUES AND PROGRAM DESIGN

Ultimately, the effectiveness and design of voucher programs can vary significantly based on the unique values and priorities of different communities and states. A voucher program in a more conservative state might look very different from one in a more liberal state. Recognizing this diversity in values is crucial for understanding the multifaceted nature of voucher systems and their potential impacts across the country, suggesting that a one-size-fits-all approach is not appropriate.

Mentioned in This Episode

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●People Referenced

Understanding Voucher Systems: Key Considerations

Practical takeaways from this episode

Do This

Recognize voucher systems are governmental programs designed for social advantage, not just free markets.

Consider the specific rules and design of a voucher system, as they significantly shape outcomes.

Acknowledge that parent satisfaction is often driven by factors beyond academic achievement, such as safety, discipline, and values.

Support research into program design to understand the causes of varying outcomes.

Understand the positive impact vouchers can have on graduation rates and public school competition.

Prioritize equity and transparency in voucher program design.

Avoid This

Do not overestimate the current scale of voucher programs; only a small percentage of students use them.

Avoid relying solely on advocacy group data; consult peer-reviewed research for objective analysis.

Do not assume competition alone guarantees improved school quality; parental preferences play a major role.

Be wary of universal voucher programs with minimal rules, as they can lead to inequities.

Do not ignore the importance of constituency preferences when designing or advocating for policy changes.

Avoid design choices that allow schools to select students, potentially disadvantaging low-income or at-risk children.

Comparison of Milwaukee and Indiana Voucher Program Rules

Data extracted from this episode

Feature	Milwaukee	Indiana
Income Eligibility	Up to 300% of poverty level (~$83k for family of 4)	Up to 300% of free/reduced lunch level (~$154k for family of 4, ~80% of families qualify)
Tuition Requirement	Voucher accepted as full payment	Add-ons may be required
Admissions	Must admit voucher students; lottery if oversubscribed	Schools can select their own students
Religion	Students can opt out of religious programs	No such rule
Testing	Required	Required
Audits	Annual audit by CPA required	No such requirement

Common Questions

Currently, only about one-half of one percent of American school kids use vouchers. Despite decades of effort, this number remains very small, indicating limited reach.