In many respects, Pennsylvania is a pioneer of school choice. With 173 charter schools—14 of which are cyber charters—and two scholarship tax credit programs, the commonwealth is the envy of choice advocates across the country. But as we recognize and celebrate National School Choice Week, more can be done to ensure that each Pennsylvania child has the opportunity to reach her full potential.
As Philadelphia's School Reform Commission (SRC) weighs the application of 40 charter schools—many of which have an impressive track record of serving city students—House speaker Mike Turzai is optimistic that multiple new charters will be granted permission to open in Philadelphia:
We are very hopeful that when the final decisions get made that a significant number of the charter applicants are approved.
During the most recent school year, the average Philadelphia charter school outperformed traditional public schools on the Pennsylvania State Performance Profile. What makes this even more impressive is that charter schools spend and receive fewer dollars per student than their district counterparts. Given the academic success of the charter sector, as well as the sizeable demand for schools of choice, the SRC should approve the highest-performing applicants and allow more Philadelphia families to reap the benefits of choice.
In Pennsylvania, school districts are tasked with authorizing new charter applications. This arrangement makes it difficult for even the highest quality charter schools to open new buildings. School districts are fully aware that by approving a new charter school they are essentially approving a new competitor. In order to realign incentives to promote great schools, lawmakers should pursue statewide or university authorizers for charters.
The commonwealth is the first state in the country to enact an education scholarship tax credit aimed at corporations. Thanks to the passage of the Educational Improvement Tax Credit (EITC) program in 2001, more than 430,000 scholarships have been awarded to students from low- and middle-income families seeking better, safer schools.
Scholarship tax credit programs exist in a dozen states, and Pennsylvania is one of only three states to have multiple programs. In 2012, Pennsylvania enacted its second tax credit program—the Opportunity Scholarship Tax Credit (OSTC). This program is reserved for low-income students residing in the geographic boundaries of the lowest-achieving public schools in Pennsylvania.
In 2013-14, the OSTC provided more than 7,000 scholarships. Legislation passed late last fall streamlined and simplified the application process for both tax credit programs, which should lead to even greater participation in coming years.
The EITC is capped at $100 million—with $60 million reserved specifically for K-12 scholarships—while the OSTC is capped at $50 million. Lawmakers should look to increase these caps and provide more scholarships—at a savings for taxpayers—to students in need.
Education savings accounts (ESA) are another innovative policy for Pennsylvania lawmakers to consider as a complement to the tax credit programs. ESAs, which have been implemented in Arizona and Florida, could allow parents to deposit their tax credit scholarship funds into a savings account that can be spent with more flexibility.
Instead of reserving the funds strictly for scholarships, ESAs allow parents to purchase textbooks, tutoring services, online courses, curriculum materials, standardized tests, educational therapies, and other approved items. Unspent ESA funds roll over from one year to the next and can be eventually used to pay for college tuition. Lawmakers supportive of the EITC and OSTC should look at ESAs as the logical next step for school choice in Pennsylvania.
Of the 40 applications for new charter schools in Philadelphia, surely a few should not be approved by the School Reform Commission (SRC). Each individual applicant has its own strengths, weaknesses, and visions for expanding educational opportunity. It seems reasonable that some schools receive a green-light while others are turned away.
According to a report from Public Citizens for Children and Youth (PCCY), however, all 40 charter applicants should be flatly rejected. Why? Because they will be too popular and attract too many students.
The charter slots requested could grow total charter enrollment to 104,642 students or approximately 51 percent of the District’s total enrollment. Nationally, Philadelphia ranks 3rd highest for percentage of students who are enrolled in charter schools, trailing only New Orleans and Detroit.
Clearly there is a reason why so many students are fleeing the traditional schooling model in Philadelphia. Yet defenders of the education status-quo want to force these families to remain trapped in an unsatisfactory system.
PCCY also bemoans that only 40 percent of the schools currently operated by applicants for new charters exceeded a score 70 on the 2013 Department of Education State Performance Profile (SPP). The report fails to mention that the 2013 average district SPP score was 57.5. This means that roughly 70 percent of the schools currently operated by new charter applicants exceed the district’s average SPP score.
The SRC is tasked with selecting the best applicants in a city desperate for more choice and better options. Rather than following PCCY's lead and stubbornly lumping all charter schools into the same group, each applicant should be evaluated on its own merit.
Policymakers made significant strides over the past legislative session to increase school choice, save taxpayers from waste and abuse in unemployment compensation, and protect students. While critical reforms remain, it's worth celebrating these policy victories from the past legislative session.
Six Policy Victories in the 2013-2014 Legislative Session
1. Banned the practice of "passing the trash." Act 168 of 2014 prevents teachers accused of abuse from quietly resigning and relocating to a new school without having to inform that new school of their alleged misconduct. The law also strengthens the background check process and prohibits school districts from entering into "confidentiality agreements" that suppress abuse allegations. Commonwealth Foundation supported ending this disturbing practice while government unions took a neutral position.
2. Reduced the state debt ceiling. In 2013, lawmakers reduced the total amount of debt allowed under RACP (Redevelopment Assistance Capital Program) by $600 million. Act 77 of 2013 also provides greater accountability, oversight and transparency regarding how RACP grants are awarded.
RACP uses borrowed money—paid back by taxpayers with interest—for "economic development" projects, or corporate welfare. We’ve regularly exposed the most controversial uses of RACP funds, such as the Arlen Specter Library, Tastykake's corporate headquarters, numerous sports stadiums, and a $3 million grant to the Second Mile, the charity founded by convicted child molester Jerry Sandusky. An effort to further reduce the RACP debt limit to $2.95 billion passed the state House in 2014, but stalled in the Senate.
3. Strengthened school choice for children and their parents. Lawmakers consolidated the Education Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) into one statute, while simplifying and streamlining the application process. This also allows unused credits to be shifted from one scholarship program to another. Thanks to Act 194 of 2014, more credits will be utilized and thousands more scholarships can serve as a lifeline to students trapped in failing schools. Commonwealth Foundation has consistently pushed for greater school choice options, including the creation of the OSTC.
4. Reformed taxes for small businesses and more. Lawmakers enacted some tax reform last session with Act 52 of 2013. Lawmakers increased the Net Operating Loss (NOL) Cap, created a new deduction for small start-up businesses, and exempted family-owned businesses from the inheritance tax. While Commonwealth Foundation has advocated for broad-based tax reform, these measures are a step in the right direction towards lessening the tax burden on job creators.
5. Protected jobs for Pennsylvanians in the energy field. New EPA regulations require expensive, unproven technologies that would kill jobs and bankrupt companies. Commonwealth Foundation has documented how destructive these new regulations are to existing PA jobs. Act 175 of 2014 preserves state control of the energy industry by allowing the state legislature to publicly reject a state carbon emissions plan.
6. Ended "triple-dipping" for government employees. Act 75 of 2013 stops former state employees from receiving both retirement and unemployment benefits. The law ends "triple-dipping," where an individual retires and collects a public pension or private retirement benefit and then temporarily returns to work, only to collect unemployment compensation when leaving the job. This one change will reap an estimated million dollars in savings this fiscal year.
Milestones of Note
Liquor Privatization Progress. Three Pennsylvania governors have attempted to privatize the liquor store system. In 2013, for the first time in state history, the PA House passed a bill that would end the government liquor store monopoly. Commonwealth Foundation has pushed for full liquor privatization by exposing the contradictory mission and gross carelessness of the PLCB. Lawmakers can build upon this historic accomplishment in the new session.
Awareness and Advocacy for Paycheck Protection. In 2014, thanks to lawmakers and teachers speaking out through CF's Free to Teach project, a version of paycheck protection passed committees in both the House and Senate. In the new session, lawmakers have a golden opportunity to finish what they started and pass paycheck protection, now known as Mary’s law.
Pension Reform Progress. Legislation to put new state employees and school teachers into a defined-contribution retirement plan (like a 401k) passed committees in both the state House and Senate. Government union leaders, defending the status quo, prevented these bills from coming up for a vote. For years the Commonwealth Foundation touted the merits of defined contribution retirement plans and warned about the impending crisis in public pensions—that crisis is now reality.
York City School District—financially distressed and second-to-last in the state in student achievement—may be in for some much-needed change in the coming weeks. After two years of obstruction from the local school board and teachers’ union on more modest measures, the state has finally petitioned for receivership of the troubled district.
Tomorrow, there will be a hearing in York to help inform a judge’s decision to grant the state’s receivership petition. If granted, all of York's district schools will be converted into to charters—one of only a few districts in the country to take such a step.
Today, CF's James Paul joined The Gary Sutton Show on WSBA 910 to provide background on how we got here, who has been blocking other attempts at reform, and what this all could mean for York city students and families.
The Gary Sutton Show airs daily on WSBA 910AM in the York area.
Follow Commonwealth Foundation’s SoundCloud stream for more of our audio content.
Tens of thousands of Philadelphia students languishing on charter waiting lists have reason to hope. For the first time in seven years, the School District of Philadelphia will consider applications from new charter schools.
This week the district is receiving presentations from 40 applicants who will make the case for additional educational options. A second set of hearings are scheduled in January where applicants will be reviewed and questioned by district officials. Ten of the 40 proposed schools have an explicit focus on the science, technology, engineering and math (STEM) fields.
What prompted Philadelphia to break its seven-year charter lock-out? Tucked away in the recent cigarette tax legislation was a provision requiring the district to accept annual applications from new charter schools.
Seemingly endless wait lists—combined with the 62,500 students currently enrolled in brick and mortar charter schools—are evidence of the sector’s popularity in Philadelphia. Enrollment in district-run schools has sharply declined over the last decade as more families opt for schools of choice.
On the whole, Philadelphia charter schools are performing well. The average city charter school outperformed the average city district school in 2012-13. What’s more, an analysis by Philadelphia School Partnership reveals that the charter sector is succeeding in serving low-income students: Of the 17 city schools with passing State Performance Profile scores and enrollment of least 80 percent economically disadvantaged students, 12 are run by charter operators.
Given their immense popularity, long waitlists, and encouraging performance, it’s a shame that new charter schools have been locked out of the application process for so long—but it's no surprise. Granting school districts the power to authorize a new charter school is like asking McDonalds to green-light the construction of a new Wendy’s next door. Establishing a high quality statewide authorizer in the commonwealth would be a marked improvement over the current policy.
It remains to be seen whether any new charters will be approved, but at least there's a chance for more children to find better, safer schools.
The Daily News editorial on charter schools ("Frankencharters") includes scary Halloween analogies but does a disservice to genuine efforts to improve education in Philadelphia. Referring to charter schools as "fiscal monsters" flatly ignores that charters spend and receive fewer dollars per student than district schools.
Despite significantly less funding, Philadelphia charters outperformed district schools on the 2012-13 State Performance Profile. Charters actually operate with maximum accountability, since poor academic performance or financial mismanagement will result in closure - a fate that rarely, if ever, befalls district schools. Will the Daily News similarly refer to failing district-run schools as "monsters" that need to be "reined in" when the next cheating scandal occurs?
It should come as no surprise that charters receive their funding from school districts, since charters are public schools, too. That so many families have opted for charters reflect their success - it illustrates the overwhelming demand for expanding school choice.
Continued oversight and transparency is an appropriate policy goal for charter and district-run schools alike - especially in light of the closure of Walter Palmer, which is indeed devastating to the students and families involved. But the unique circumstances surrounding Walter Palmer do not justify demonizing largely successful charters citywide.
The 34,000 students currently languishing on charter waiting lists illustrate the urgent nature of school reform. Denying them more educational options - just to prop up the failing status quo - does not serve the best interests of Philadelphia.
Geronda Montalvo did not want to send her daughter Zayda to the low-achieving schools in her neighborhood. Thanks to an Educational Improvement Tax Credit (EITC) scholarship, Zayda is thriving at Holy Child Academy. And thanks to the passage of HB 91, more mothers like Geronda will have educational options.
HB 91 consolidates the EITC and Opportunity Scholarship Tax Credit (OSTC) into one statute, which will simplify and streamline the application process. Businesses are now able to apply for an alternate credit if its preferred credit is unavailable, and the Department of Community and Economic Development now has the authority to transfer unused credits between programs.
In 2001, Pennsylvania became the first state in the country to enact an education tax credit program. Since that time, the EITC has provided more than 430,000 scholarships to students and families seeking schooling options.
Here’s how the EITC program works. First, businesses make donations to registered, vetted charities that award scholarships. The business receives a tax credit worth 75 percent of the donation, while the charity organization uses the donated funds to award scholarships for students to attend schools of choice. The OSTC was added in 2012—a program designed specifically for students who reside in the lowest performing school districts in the commonwealth.
Ultimately, HB 91 allows more credits to be utilized, more scholarships to be offered, and more lifelines for students trapped in failing schools.
In an important step for safety in the classroom, the Pennsylvania legislature passed a bill that will put an end to the abhorrent practice of “passing the trash.” Gov. Corbett recently signed HB 1816, which prevents teachers accused of abuse from quietly resigning and relocating to a new school without having to inform that new school of their alleged misconduct. The law strengthens the background check process and prohibits school districts from entering into “confidentiality agreements” that suppress abuse allegations.
Government unions had previously taken a neutral position on this commonsense legislation.
Of course, the vast majority of teachers are committed to the well-being of their students. But state lawmakers should be commended for addressing the rising claims of inappropriate relationships, abuse, and staff misconduct in the commonwealth. A most tragic victim of "passing the trash" was Jeremy Edward Bell, a twelve year old student who did not surivive educator abuse. HB 1816 will help ensure that such an atrocity never happens again.
Having approved this important safety measure, attention should now turn to improving the quality of education in the commonwealth, both through expanded school choice and commonsense reforms to reward excellent teachers.
By standing in the way of tens of millions of new dollars for Philadelphia classrooms, the Philadelphia Federation of Teachers (PFT) has revealed its true identity—a self-interested, self-serving interest group that fails teachers, fails students, and fails the poor.
Today, the Commonwealth Foundation launched PFTfails.com to inform the city of Philadelphia—as well as all Pennsylvanians across the state—about the failed track record of PFT leadership. Instead of working to improve the broken status quo, PFT executives use children and teachers as pawns to protect their political influence.
And make no mistake: the status quo has demonstrably failed in Philadelphia public schools. More than 80 percent of students did not achieve proficiency in both reading and math in 2013, according to the Nation’s Report Card. Violence remains a major problem in city schools, with 2,485 violent incidents reported during 2013-14. Despite the abysmal performance and violent conditions, PFT leaders oppose charter schools and tax credit scholarship programs for low-income families seeking better, safer education opportunities.
Construct a broken system, defend a broken system, and trap low-income families in the broken system. That’s the PFT playbook.
But it’s not just students and low-income families who are failed by union executives. PFT fails hard-working, high-performing Philadelphia teachers by clinging to rigid seniority mandates that can result in the best teachers being fired. What’s more, PFT refuses to embrace merit pay.
Why does PFT leadership stand in the way of higher salaries for excellent educators? Instead of encouraging and developing their best talent, PFT leaders oppose common sense reforms that would reward the most effective teachers and keep them in the classroom.
To make matters worse, the same teachers hurt by the PFT are forced to subsidize the PFT’s political agenda—whether the teachers agree with it or not. Philadelphia teachers are required to pay union dues or fair share fees—with an average annual cost exceeding $800—to various union affiliates just to keep their jobs.
Union executives take full advantage of their unique political privilege by spending dues at the astounding rate of $70,000 per minute on political television advertisements. The American Federation of Teachers (AFT)—the Washington D.C. based mothership of PFT—is primed to spend more on elections than ever before. This includes a recent gift of $500,000 financed by teachers' dues, and used for political attack ads via a ‘SuperPAC.’
All told, the PFT fails the entire city of Philadelphia by refusing to agree to health care concessions that would distribute an additional $54 million for classroom instruction in the current school year. Former Governor Rendell, Philadelphia Mayor Nutter, and the Philadelphia Inquirer editorial board all agree that this money belongs in the classrooms.
But the PFT refuses to compromise. Add it to the list of PFT failures. They fail us all when they put personal political scores ahead of what’s best for teachers, students, and the poor.
The York City school board is considering an intriguing proposal to turn over some of its schools to a charter operator to compete with the remaining city schools (if the district can come to a new collective bargaining agreement). Why is this transformation needed?
York City schools are among the worst performing schools in Pennsylvania. On the state's "School Performance Profile," the district ranked 499th out of 500 districts. And preliminary results show that most schools in the district declined in 2013-14.
Interstingly, commenters on a Fox 43 story about our analysis claim the district can't be expected to do better—that its performance is driven by bad parents and poor students. Certainly, poverty does play a role in academic performance, but high performing schools across Pennsylvania and the nation succeed even with low-income students.
We can, and must, do a better job to help our poorest students. And it is clear that despite the challenges, York can do better.
Not only do York schools score worse than the state average, but they perform worse than the average among all low-income students in Pennsylvania. That is, the dreadful test scores aren't driven by poverty alone. Nor is the problem in underfunding. York City schools saw a 33 percent increase—adjusted for inflation—in spending per student over the past decade. The $15,256 the district spends per student exceeds the statewide average.
Consider this: New Hope Academy Charter School was shut down after 2013 for a poor performance record—yet it performed better than most of the schools in the district.
The status quo simply isn't good enough. To send a lifeline to York children, major change is needed. Choice and competition, along with accountability measures via a performance contract, would better serve students and families.
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