2013 Yankee Institute Friedman Day Presentation

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    Education: Spending,

    Transparency and Choice

    Jason Bedrick, Cato Institute

    Milton Friedman Legacy Day, 2013

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    Question

    How much does it cost, onaverage, to educate a child inan American public school?

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    $0

    $2,000

    $4,000

    $6,000

    $8,000

    $10,000

    $12,000

    $14,000

    $16,000

    PEPG Median PEPG Average NCES Operating NCES Total

    National Per Pupil Expenditures

    Source: Education Next PEPG Survey

    2008; NCES Digest of Education Statistics 2011

    $2,000

    $4,250

    $11,000

    $14,000

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    Bonus Question

    How much does it cost,

    on average, to educate a

    child in a public schoolin Connecticut?

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    Source: NCES Digest of Education Statistics 2011;

    $11,000

    $14,000

    $17,500

    $0

    $2,000$4,000

    $6,000

    $8,000

    $10,000

    $12,000

    $14,000

    $16,000

    $18,000

    $20,000

    NCES Operating NCES Total CT Avg Total PPE

    National vs. CT Per Pupil Expenditures

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    $0

    $25,000

    $50,000

    $75,000

    $100,000

    $125,000

    $150,000

    $175,000

    Inflation-Adjusted Cost of a CompleteK-through-12 Public Education

    CatoInstituteCharts thewhole amountspent on the K-through-12education of astudentgraduating inthe given year.

    Data sourcesDigest ofEducationStatistics 2011,Table 191, U.S.DOE, CPI-adjusted to

    constant 2012$. Missingvalues linearlyinterpolated orextrapolated.

    1970: $56,903

    1990: $102,098

    2010: $164,426

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    Do you think government funding for public schools in yourdistrict should increase, decrease, or stay about the same?

    0%

    10%20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Uninformed Informed

    Decrease

    Stay Same

    Increase

    Source: Education Next PEPG Survey 2012, Complete Polling Results. Questions 7a & 7b.

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    Do you think government funding for public schools in yourdistrict should increase, decrease, or stay about the same?

    63%

    29%

    9%

    0%

    10%20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Uninformed Informed

    Decrease

    Stay Same

    Increase

    Source: Education Next PEPG Survey 2012, Complete Polling Results. Questions 7a & 7b.

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    63%

    43%

    29%

    44%

    9% 14%

    0%

    10%20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Uninformed Informed

    Decrease

    Stay Same

    Increase

    Source: Education Next PEPG Survey 2012, Complete Polling Results. Questions 7a & 7b.

    Do you think government funding for public schools in yourdistrict should increase, decrease, or stay about the same?

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    Election 2012: Colorado

    November 1, 2012: Colorados NBC-affiliate airs reporton public school funding:

    38 ballot

    initiatives to

    increase

    spending 31 districts

    $1.03 billion

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    Election 2012: Colorado

    Colorado Department

    of Education: state

    pays $6,474 per pupil.

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    Election 2012: Colorado

    No, the state

    pays

    about$10,000

    per pupil.

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    Election 2012: Colorado

    Oh, $10,000-a-year

    would be unimaginable

    for almost anybody in

    Colorado. It would be anice problem to have,

    but it's not one we

    currently have.

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    Election 2012: Colorado

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    Election 2012: Colorado

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    Election 2012: Colorado

    Like any good

    political debate,

    much of the issue

    will be addressed atthe polls.

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    Election 2012: Colorado

    Amount of

    state spendingis the wrong

    question

    Actual total per pupil

    expenditures: $12,181

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    Election 2012: Colorado

    Election Results:

    34 of 38 bond

    issues passed

    29 of 31 districts

    $1.01 of $1.03billion

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    63%

    43%

    29%

    44%

    9% 14%

    0%

    10%20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Uninformed Informed

    Decrease

    Stay Same

    Increase

    Source: Education Next PEPG Survey 2012, Complete Polling Results. Questions 7a & 7b.

    Do you think government funding for public schools in yourdistrict should increase, decrease, or stay about the same?

    20 ballotinitiatives

    passed with

    under 60% of

    the vote

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    49th Out of 50in Per Pupil Spending!

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    ConnecticutsPer Pupil Spending Rank

    U.S.Census

    #7

    NCESTotal

    #6

    NCESOperating

    #6

    NEA

    #7

    EducationWeek

    #10

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    Equal Inputs Dont Imply Equal Outputs

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    What Were Up Against

    State educationdepartments reportincomplete and

    misleading figures Activistsuse those

    figures to mislead

    The mediaare too

    lazy or incompetentto uncover andreport the truth

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    Cracking the Books

    Analyzed the financial transparency of all50 state education departments

    Assigned AF grades for: Completeness

    Timeliness

    Accessibility

    Working with state-based think tanks andwatchdog groups to promote nationwide

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    Cracking the Books

    Misleading data:

    24 states report only operating or currentper pupil expenditures

    Missing data: 8 states: missing capital expenditures

    10 states: missing average employee salaries

    41 states: missing average employee benefits

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    Connecticut

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    Connecticut

    Operating per pupil expenditures

    Most recent data: 2009-10

    No data provided for: capital expenditures

    total salaries

    pensions

    employee benefits

    Difficult website to navigate

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    Cracking the Books

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    Cracking the Books

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    Transparency & Choice

    Robert F. Kennedy Community School,Los Angeles, built in 2010

    Size: 452,000 square feet Amenities: Fine art murals, marble

    memorial, swimming pool, 19,000-square-foot public park

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    Transparency & Choice

    Robert F. Kennedy Community School,Los Angeles Cost: $578 million

    vs. $375 million for Staples Center Students: 4,200 Approx. $140,000 per student L.A. Unified School District: $640 million deficit

    Laid off 3,000 teachers in two years Among lowest graduation rates in nation Terrible test scores

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    Connecticut Private Schools

    465 private schools

    75,500+ students Compared to 550,000+ public school students

    statewide

    Average tuition nationwide: $8,550 (2007-08, NCES) Compared to $17,500 per pupil in CT

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    Connecticut Private Schools

    Tuition for all six non-special education privateschools in Hartford:

    $34,125 at Watkinson School $17,000 average financial aid grant (36% on grants)

    $3,600 (members $3,100) at Hartford AreaSeventh Day Adventist School

    $3,600 at Saints Cyril & Methodius School $1,800 average financial aid grant (90% on grants)

    Tuition-free at Covenant Preparatory (60students) Tuition not listed for St. Augustine School or

    Grace S. Webb School

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    School Choice in Connecticut

    A well-designedschool choice programcould:

    Save money Improve student

    performance

    Raise graduation

    rates and collegematriculation

    Improve civicknowledge

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    Education: Spending,

    Transparency and ChoiceJason Bedrick

    Visiting Policy Analyst

    Center for Educational FreedomCato Institute

    T itt @C t CEF @J B d i k

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    Twitter: @CatoCEF @JasonBedrick