7/29/2019 School Transfers: The Answer Is More Choice, Not Less

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TESTIMONY

ADVANCING LIBERTY WITH RESPONSIBILITY

BY PROMOTING MARKET SOLUTIONS

FOR MISSOURI PUBLIC POLICY

SCHOOL TRANSFERS:THE ANSWER IS MORE

CHOICE, NOT LESS

By James V. Shuls

Testimony Before The Missouri Interim Committee on Educatio

September 23, 2013

Te solution I propose

will help alleviate

both of these concerns.

Moreover, it will helpthose individuals that

the state should be

concerned about the

most the students

in the failing school

districts.

To the Honorable Members

of This Committee:

Ladies and gentlemen, thank you orthe opportunity to testiy today. Myname is James V. Shuls and I am theeducation policy analyst at the Show-Me Institute, a nonprot, nonpartisanMissouri-based think tank that

supports ree-market solutions or statepolicy issues. My testimony is intendedto highlight a possible solution to issuessurrounding the transer o studentsrom unaccredited school districts. Teideas presented here are my own.

Te purpose behind the schooltranser law is clear: students shouldnot be trapped in ailing schools. Teimplementation o the law, however,

has created much consternation andconcern about the ramications thelaw will have. Many are worriedtuition and transportation costs willbankrupt the unaccredited Normandyand Riverview Gardens SchoolDistricts. Others are worried that

the transer o many low-perormingstudents to surrounding schoolswill lead to overcrowding or have anegative impact on those schools.

Te solution I propose will helpalleviate both o these concerns.Moreover, it will help thoseindividuals that the state should be

concerned about the most thestudents in the ailing school districts.

Scholarship Tax Credits

Te solution I am reerring to is ascholarship tax credit program. o date,14 scholarship tax credit programs existin 11 states. Individual and corporatedonations to a scholarship grantingorganization und these programs. Inexchange, donors receive a credit towardtheir income tax liabilities. For example,i the credit amount is 75 percent, adonation o $1,000 garners a credit o$750. Te design o a scholarship taxcredit program makes it quite dierentrom a traditional voucher program.

James V. Shuls, Ph.D.,

is the education policy

analyst at the Show-

Me Institute, which

promotes market

solutions for Missouri

public policy.

7/29/2019 School Transfers: The Answer Is More Choice, Not Less

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SHOW-ME INSTITUTE I TESTIMONY

Students use these scholarships to attendprivate schools or participating publicschools. Tis type o program would bebenecial in several ways.

Currently, Normandy and Riverview

Gardens are obligated to pay tuitioncosts that, in some instances, surpasswhat they spend to educate the studentsin their districts. A scholarship programo this sort would reduce the nancialburden on unaccredited school districts.In a scholarship tax credit program, theunaccredited school districts would notbe responsible or tuition payments. Teywould not receive state and ederal dollarsor the departing students, but they would

retain all o their local dollars. Te endresult would be an increase in per-pupilexpenditures in the district.

Second, a scholarship tax credit programwould reduce the burden on theaccredited school districts. Many areadistricts expressed space concerns whenaced with an infux o transerringstudents. By opening private schools asanother option, ewer students would

attend the accredited school districts inthe area. Essentially, students would bemore dispersed among area schools.

Tird, a scholarship tax credit programwould greatly benet the students.Numerous rigorous studies havedemonstrated that private school

choice programs improve the academicachievement o students. Tere is alsoample evidence that these programs increasehigh school graduation rates. An evaluationo the Washington, D.C., OpportunityScholarship Program, a voucher program,

concluded the use o a voucher increasedthe graduation rate by 21 percentage pointsrom 70 percent to 91 percent.

Finally, a tax credit scholarship programcould save the state money. Studies inArizona, Pennsylvania, and even Floridahave shown scholarship tax credits togenerate savings that ar outstrip the lostrevenue o the credit. Tis is particularlyinteresting in Florida, where the credit is

a dollar-or-dollar match.

Conclusion

Te education o Missouris childrenshould be among the highest prioritieso the Missouri Legislature. However,the legislature must also be concernedabout school districts and taxpayers. omy knowledge, there is no other programor solution that would improve the

circumstances o each o these groupslike a scholarship tax credit. It wouldmaximize choice, improve academicoutcomes, reduce nancial strain, easeovercrowding, and save taxpayers money.

Tank you or your time and I am happyto answer any questions you may have.

Numerous rigorous

studies have

demonstrated thatprivate school choice

programs improve the

academic achievement

of students. Tere is

also ample evidence

that these programs

increase high school

graduation rates.

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