A Fair Funding Formula: School Choice

Although it doesn’t fit the popular narrative of cash-starved school districts, spending on education is at an all-time high.

The Pennsylvania Department of Education budget reached $11.2 billion in FY 2013-14, more than one-third of the total $28.4 billion in General Fund appropriations. Basic education funding alone increased by $90 million, bringing that line item to nearly $5.5 billion.

While school district spending exceeds $14,000 per student, ranking 10th in the nation, performance has not improved with spending increases. The National Assessment of Educational Progress shows nearly three in five Pennsylvania’s 8th grade students aren’t making proficiency in reading and math. Meanwhile, Pennsylvania public schools reported 14,572 violent incidents in the 2012-2013 school year.

In contrast, schools of choice have become increasingly popular as they spend less per student and provide better and safer schools for families. School choice saves Pennsylvania taxpayers millions of dollars each year. Public charter schools and cyber charter schools educate children for a fraction of the $14,027 per pupil spent in public district schools. The average EITC scholarship, which allows a child to leave a district school for a school of his or her choice, was $1,100 in 2011-12, while non-public schools receive about $1,250 per pupil in taxpayer support. If each of the 391,657 students utilizing school choice returned to public district schools, schools would require an additional $3.8 billion in revenue to handle the enrollment.

Total Taxpayer Savings from Students Attending Schools of Choice

 2011-12 School Year

 

Savings Per Student*

Number of Students**

Total Savings

Private and Nonpublic

$12,777

265,724

$3,395,155,548

EITC Scholarship Students

$11,677

45,200

$527,800,400

Home School

$14,027

20,897

$293,122,219

Public Charter (Total)

$1,429

105,036

$150,096,444

Cyber Charter

$2,516

32,322

$81,322,152

Total

 

391,657

$3,838,374,211

* Includes All state funding for nonpublic schools plus tax credits for EITC scholarships as a cost.

** Homeschooling enrollment estimate based on 2007-08 PDE data.

Sources: PA Department of Education, Summaries of Annual Financial Report Data; Public School Enrollment Reports, http://www.portal.state.pa.us/portal/server.pt/community/data_and_statistics/7202

A report by the Friedman Foundation for Education Choice found that school choice “improves academic outcomes for participants and public schools, saves taxpayer money, [and] moves students into more integrated classrooms.” The report includes numerous empirical studies. It finds 11 out of 12 gold standard studies found school choice improved academic outcomes for participants, and all six empirical studies of school choice’s fiscal impact found that school choice saves taxpayer money. Not only is school choice a sound investment for the state, it places power back into the hands of parents.

Is it possible to better educate students at a lower cost to taxpayers? Absolutely, and school choice programs prove it.