Inside - The Friedman Foundation For Educational Choice

June 2011
Inside
Road to Reform
Runs Through Indiana
Indiana Adopts Historic Voucher
A Parent’s
Perspective
Parents Prompt
Policy Progress
in Alaska
Two-Minute Talk
Education Researcher
Terry M. Moe on teachers’
union influence

President’s Comments
Good Job, But Keep It Going
Robert Enlow
President & CEO
After every victory for school choice, Milton and
Rose Friedman used to tell me, “Good job, but the
progress toward universal choice is still too slow.”
Well, this year the progress was not slow. Seven
existing school choice programs have been
expanded and five new voucher and tax credit
programs have been enacted. And we are not done
yet. As of this writing, other states have a chance
to enact new programs or expand existing ones –
Pennsylvania, Wisconsin, Ohio, New Jersey, North
Carolina, Minnesota, and Iowa. Heck, even Texas may finally join the
school choice family.
The most exciting news is that school choice is going more universal.
Instead of programs targeting only low-income families, school choice is
breaking in to the middle-income class.
That’s progress. But, as Milton and Rose would remind me, we still have a
long way to go.
In particular, we face two major hurdles. First, we face a challenge from
those who believe that school vouchers should be only for the poor. Dr.
Friedman used to say that a program for the poor was a poor program. He
argued that it was the very poor who would benefit most from a universal
voucher program. We must help those less fortunate, but the best way to
reach this goal is by giving everyone a choice. Take cell phones. At the
start, only the rich could afford a cell phone. Now everyone has one, even
the poorest among us. If we approached the cell phone industry in the same
way some approach school choice, I have no doubt that we would have fewer
cell phones for the poor and far less innovation in telecommunications.
Second, we face the challenge of stimulating innovation in the private
school marketplace. It could be argued that private schools are being
discriminated against in terms of access to public funds. Public schools
get 100 percent. Charter schools get around 80 percent or less, and
voucher schools get 70 percent or less. It is difficult to create an effective
marketplace when private schools get less and the incentive for private
capital is to support charter schools.
So, if Milton were alive I have no doubt that he would be pleased with the
progress we made this year. However, I am sure that he would tell me,
“keep it going.”
Dr. Milton Friedman
Nobel Laureate and Founder
Dr. Rose D. Friedman
Noted Economist and Founder
BOARD OF DIRECTORS
Dr. Patrick Byrne, Chairman
Chairman of the Board and President, Overstock.com
Gordon St. Angelo, President Emeritus
Former Democratic State Chairman and
Senior Program Officer at Lilly Endowment
Janet F. Martel, Vice Chairperson
Attorney
Lawrence A. O’Connor, Jr., Treasurer
Executive Director, Butler Business Accelerator
Charles H. Brunie
Brunie Associates
Robert C. Enlow
President & CEO
J. Scott Enright
Secretary
Dr. David D. Friedman
Professor, Santa Clara University
William J. Hume
Chairman of the Board, Basic American, Inc.
Sandra Jordan
Owner, Sandra Jordan Collection
Howard S. Rich
Rich & Rich
Fred Reams
Reams Asset Management
Dr. Michael Walker
President, The Fraser Institute Foundation
STAFF
Dale Buwalda
State Programs & Government Relations Director
Paul DiPerna
Research Director
Carey E. Folco
Vice President of Operations
Leslie D. Hiner
Vice President of Programs & State Relations
Keri Hunter
National Projects Coordinator
Mandy Kett
Office Coordinator
Shepherd Pittman
State Marketing & Public Relations Director
Jeff W. Reed
State Programs & Government Relations Director
Patrick Russell
Development Coordinator
Cindy Sparks
Vice President of External Relations
Andrew St. Angelo
Communications Coordinator/Webmaster
Michelle Stephens
Controller
Drew Vessely
Creative Coordinator
The School Choice Advocate is published bimonthly
by the Foundation for Educational Choice, a
nonprofit, tax-exempt corporation classified
under section 501(c)(3) of the IRS code. Copies or
subscriptions are free upon request.
Shepherd Pittman
Editor
Drew Vessely
Designer
©
In this Issue
Cover Feature
Road to Reform Runs Through Indiana
Historic Voucher Adopted in Indiana
In Every Issue
President’s Comments
A Parent’s Perspective
Foundation News
In the States
Two-Minute Talk
School Choice is a Win-Win
Proposition
www.edchoice.org

A Parent’s Perspective
Parents Prompt Policy Progress
in Alaska
The Last Frontier State is working to become
the first in the nation to provide universal
school vouchers, and the testimony of families
who have benefited from choice is playing a
crucial role.
A proposal supported by a coalition of
Alaskans, spearheaded by former Anchorage
Mayor Tom Fink, would allow all parents to
choose the best educational setting for their
children. That legislation allows:
• Parents to choose any K-12 education for
their children.
• All state and local funding to follow
students to their schools of choice.
• Any person, business group, church,
or government entity to establish schools,
meeting only health and safety standards.
This is true universal choice for all Alaskan
children.
The House Education Committee heard
supportive testimony from 46 Alaskans.
Parents dissatisfied with the public education
system were joined by three school board
members in voicing support for school choice.
Alaskan families also submitted stories to a
website, Alaskans for Choice in Education. In
one case, parents removing their child from
traditional public school and enrolling her
in a parent-centered correspondence school
helped that child pursue her musical interests.
Today, she is a studio musician in Los Angeles,
having worked on the “Spider-Man” movie.
Another student’s needs were unmet in public
school. She enrolled in the Family Partnership
Charter School, where she graduated as the
valedictorian. Today she is in her second year
of medical school. These stories, and others,
are driving progress in Alaska.
Because of Alaska’s Blaine Amendment,
the state constitution must be amended to
enact vouchers. A resolution permitting an
amendment passed the House Judiciary
Committee on a 5-2 vote. Next January the
legislature will continue hearings on both bills.
By providing school vouchers to all parents,
reform advocates in Alaska aim to show “the
lower 49” why their state is considered “North
to the Future.”
Alaska families attend a school choice townhall discussion.
Foundation News
The Year of Growth So Far
Many expected 2011 to be a tremendous year
of growth for school choice. So far the year has
more than lived up to that expectation. This
year, five new school choice programs have
been enacted – a new record.
• Douglas County, Colorado has launched a
voucher program that will allow 500 students
to attend private schools with public funds.
• Arizona created education savings accounts
for children with special needs.
• In Indiana, the nation’s most expansive
voucher law will reach middle-income
families (see our feature story on this
program). The state also created a new tax
deduction for families with children
attending private schools.
• Oklahoma now will provide tax credits
to individuals and businesses that donate
to nonprofits that distribute private-school
scholarships to eligible families.
In addition, we have seen seven expansions or
improvements of existing programs.
• Washington, D.C.’s Opportunity Scholarships
program was reauthorized.
• Florida’s McKay Scholarships for children
with special needs was expanded to include
all children with essentially any identified
special need.
• Indiana’s tax-credit scholarship program
increased the total cap on available donations
to $5 million.
• Georgia’s tax-credit scholarships were
expanded.
It is an exciting time for supporters of school
choice. The Foundation is grateful for your
support, encouragement, and hard work as
you partner with us to continue advocating for
families’ freedom to choose the best education
for their children.
www.edchoice.org

Cover Feature
Road to Reform Runs
Historic Voucher Adopted in Indiana
by Foundation Staff
ndiana is known as the “Crossroads of
I America.” A vast network of highways runs
through the state carrying people and goods
literally from “sea to shining sea.” In one
sense, it could be said that if you really want to
go anywhere you have to go through Indiana.
The same now can be said of the highways
of education reform. Thanks to Gov. Mitch
Daniels and many courageous legislators, all
education reform roads now come through “the
Crossroads” of Indiana.
In 2011, Indiana passed the most comprehensive
set of systemic education reforms ever seen
nationwide. Collective bargaining was limited
to wages and benefits only. The practice of
laying off teachers with the least seniority first
regardless of their competence was ended.
A teacher and principal evaluation system
was created that will pay teachers based on
quality, not length of service. Charter and
virtual schools were dramatically expanded
and the school funding formula was changed
to ensure money follows kids.
In addition to all this, Indiana passed
what will likely become the nation’s
largest school voucher
program.
New Voucher Program Created
On May 5, Gov. Daniels signed into law HB
1003, the School Scholarship Act. After signing
the bill, which will have the broadest eligibility
of any voucher program in the nation, he sealed
it with a kiss.
Here’s what makes it unique: Eligibility for
the new voucher program is set at 150 percent
of the federal Free and Reduced Price Lunch
program. Stretching well into the middle class,
the program allows a family of four earning
up to $62,000 per year to receive a voucher
to attend the private school of their choice.
Uniquely, the program is not limited to students
with special needs, students attending failing
schools, or those residing within a particular
municipality. Any family in the state whose
child has previously attended public schools
and falls within the broad income requirements
is eligible—period. For the first time in modern
history, the public will have the opportunity to
observe real market forces at work and see the
effects that a broad school choice program can
have on the landscape of American education.
This victory was possible in large part because
of Gov. Daniels, who is an outspoken supporter
of school choice. In his 2011 State of the State
address, Gov. Daniels declared, “We must begin
to honor the parents of Indiana. We must trust
them, and respect them enough, to decide when,
where, and how their children can receive the
best education, and therefore the best chance
in life…. For families who cannot find the right
traditional public school, or the right charter
public school for their child, and are not wealthy
enough to move near one, justice requires that
we help. We should let these families apply
dollars that the state spends on their child to the
non-government school of their choice.”
www.edchoice.org

Through Indiana
Thus, the voucher legislation became a
cornerstone of Gov. Daniels’ education reform
agenda. Strong support and leadership from
Superintendent of Public Instruction Tony
Bennett, Senate President David Long, and
Speaker of the House Brian Bosma, enabled
the passage of the School Scholarship Act,
dramatically expanding educational options in
Indiana.
Importantly, this historic legislation goes further
than just creating a new voucher program. The
bill also expands Indiana’s existing tax-credit
scholarship program and creates a new personal
tax deduction for educational expenses for
families with children in private school.
Tax-Credit Scholarship
Program Expanded
Indiana lawmakers also doubled the preexisting
cap on the state’s tax-credit scholarship program
to $10 million from $5 million in available
scholarships. Moreover, onerous restrictions
that slowed the growth and implementation of
the tax-credit program were removed, clearing
the way for more robust growth in the program.
The increased cap, coupled with common sense
reforms to the rules governing the program, will
result in even more families being able to choose
the school that best meets their children’s needs.
Role of the Foundation
Throughout the last five years, the Foundation
has played a critical role in Indiana. We have
provided literally over 1,000 unique program
services to educate the public and policymakers.
As State Rep. Cindy Noe stated following the
choice measure’s passage, the Foundation has
been “...the cavalry through all of this from
the beginning. They were the germinators of
ideas and then they put the thought, people
and resources behind it to see these ideas come
to fruition…. They have put the focus on the
children and what is best for them.”
In 1998, Nobel Laureate Milton Friedman
wrote, “We have so far only seen the early fruits
from the introduction of vouchers, from giving
parents a choice. The best is yet to come.”
Today, Milton Friedman’s vision for school
choice is becoming a reality across the country.
Thanks to the leadership of Gov. Daniels and
so many others, Indiana has paved the road to
additional bold reforms throughout the nation.
New Personal Tax Deduction Created
The legislation also created a $1,000 tax
deduction for private and home school families.
The new deduction has universal eligibility and
applies to any approved expenditure, including
tuition. With the addition of the tax deduction,
there is truly something for everyone in the
Hoosier state when it comes to educational
options, public or private.
From left: Indiana parent Randy Duke, Russ Simnick, president of the
Indiana Public Charter Schools Association, and Robert Enlow, president
of the Foundation for Educational Choice, join Gov. Mitch Daniels and
Lt. Gov. Becky Skillman for Indiana’s historic bill signing on May 5, 2011.
www.edchoice.org

In the States
School Choice is a
Win-Win Proposition
by Greg Forster
In early 2011 I wrote an article headlined
“School Choice Is Back!” Now, just a few
months later, even that feels like too little.
School choice is explosive this year. It’s a top
issue in at least half a dozen states, and we’re
seeing legislative breakthroughs that surpass
anything the movement has seen before.
Naturally, with this policy revolution underway,
people want to know whether school choice
provides a better education, and how it affects
public schools. Fortunately, there’s a large body
of evidence on this question, and it consistently
favors vouchers.
To make sure the public hears about this
evidence and not just the unfounded claims of
the teachers’ unions, this March the Foundation
released A Win-Win Solution: The Empirical
Evidence on School Vouchers. In this report, I
provide a comprehensive overview of scientific
research on the effects of vouchers. It’s a revised
and expanded edition of the report, adding new
topics and more recent studies.
Currently, there are 26 school choice programs
in 16 states and Washington, D.C. Through these
programs, more than 190,000 students attend
private schools using public funds. Researchers
at Harvard, Princeton, Stanford, Cornell,
the Federal Reserve Bank, the University of
Florida, the University of Arkansas and other
institutions have studied these programs using
high-quality empirical methods.
The data consistently show that school choice
provides a better education to those who use it.
Ten studies have examined this question using
“random assignment,” the gold standard of
social science research. These studies compare
students who got vouchers to students who
applied for vouchers but weren’t offered them
because of a random lottery – providing for
the perfect treatment and control groups. The
studies consistently show positive impacts from
vouchers. No empirical study has ever found a
negative effect.
The data also show that choice improves public
schools. You can’t do random assignment
studies on public schools, but there are
plenty of studies on this question using other
methods. Of the 19 studies conducted, 18 find
a positive effect on public schools. One study
finds no effect – and that’s in the D.C. voucher
program, which insulates public schools from
the effects of competition. As with the effects
on participants, no study has ever found that
school choice had a negative impact on public
schools.
These results aren’t hard to explain. Putting
parents in charge of the system creates the
healthy incentives that schools need to sustain
improvements in performance.
In fact, the evidence for vouchers is so
overwhelming that when voucher opponent
Jay Mathews covered my Win-Win report
for the Washington Post, he freely admitted
that vouchers deliver a better education and
improve public schools to boot. The only excuse
he could come up with to oppose vouchers was
that they supposedly aren’t politically viable.
Well, the legislative record since then speaks
for itself. After Jay’s article ran, I offered to bet
him a fancy dinner based on how well voucher
bills do this year. We settled on a threshold of
seven new or expanded programs this year as
the goal school choice has to meet. As of this
writing, it looks like vouchers will pass that
mark in a walk.
And the programs that are passing aren’t just
any programs. Indiana has enacted what will
be the nation’s largest program ever. Arizona
has enacted the first ever “education savings
accounts” – a new form of school choice that
holds tremendous promise for creating even
more direct parental control over tuition
dollars. And in Wisconsin, Gov. Scott Walker
is pushing to make the Milwaukee voucher the
nation’s first truly universal choice program.
When I win, Mathews has to buy me dinner in
Milwaukee. I wonder if any of the restaurants
there serve crow.
Greg Forster is a senior fellow at the
Foundation for Educational Choice.
To read the 2011 Win-Win study, visit
www.EdChoice.org/WinWin2011.
To request a free copy, email
info@edchoice.org or call (317) 681-0745.
www.edchoice.org

Two Minute
TALK
Terry M. Moe
Education Researcher
TALK
If you had to sum up the impact of teachers’
unions on American K-12 education, what
would you say?
The teachers’ unions are the most powerful groups
in American education, and they use their power
to promote the job interests of their members
rather than what is best for kids and schools.
In collective bargaining, they impose restrictive
work rules that lead to bizarre, ineffective forms
of organization. In the political process, they block
school choice and other reforms that they find
threatening, regardless of how beneficial those
reforms might be. All of this has been going
on for a quarter century, and helps explain why
this nation has largely failed to bring significant
improvement to the public schools.
How did unions come to such a position
of influence?
Prior to 1960, very few teachers belonged to
unions and collective bargaining was virtually
nonexistent in American education. But during
the 1960s and ’70s, many states adopted laws
to promote collective bargaining for public sector
workers, and this ignited an explosion of union
organizing among teachers. When the dust finally
settled in the early 1980s, virtually all districts
of any size (outside the South) were organized,
collective bargaining was the norm, and the
teachers’ unions—with millions of members,
tons of money, and thus formidable resources
for political action—reigned supreme as the most
powerful force in American education.
Is there light at the end of the tunnel?
In the near term, the unions will remain powerful—
because they can normally use their power to
block reformist efforts to take their power away.
Two emerging developments, however, will
drastically reduce their power over the long term.
One is that the political tides are shifting against
them, even among Democrats. The second
is that information technology is destined to
revolutionize public education—greatly reducing
the number of teachers (and union members) per
student, proliferating virtual options to the regular
(unionized) schools, and more. The combination
of politics and technology will eventually prove
crippling to union power.
Resources for Reform
Looking to dig deeper into education reform?
Two new books, both by contributors to this
issue of The School Choice Advocate, shed light
on the path to educational choice – and the
roadblocks standing in the way. Both books are
available at Amazon.com.
Special Interest
by Terry M. Moe
Why, after a quarter century
of costly reform, have
America’s schools proved so
difficult to improve? In this
landmark book, Terry M.
Moe demonstrates that the answer has a great
deal to do with the teachers’ unions—which, as
the most powerful forces in American education,
relentlessly advance and protect their job-related
interests at the expense of children and schools.
Despite their importance, the teachers’ unions
have barely been studied. Special Interest fills
that gap with an analysis of their historical rise
to power, the organizational foundations of
that power, the ways it is exercised in collective
bargaining and politics, and its vast consequences
for American education. The bottom line is
simple but devastating: As long as the teachers’
unions remain powerful, the nation’s schools
will never be organized to provide kids with the
most effective education possible.
Anyone who hopes to understand American
education, its reform—and its serious problems—
needs to read this book. It is an eye-opener.
Freedom and School
Choice in American
Education
Edited by Greg Forster
and C. Bradley Thompson
In Freedom and School
Choice in American
Education, leading school reform intellectuals
outline their visions for the future of the
movement to improve schools through
competition and choice. Each author outlines
a distinct perspective on the goal of choiceoriented
reform and the best means for achieving
it. Because the authors agree on the value of
parental choice, they are able to avoid repeating
all the old familiar debates that everyone has
already encountered. Instead, this volume takes
the reader inside the movement to empower
parents with choice, airing the more interesting
debates that the reformers have with one another
over the direction and strategy of their movement.
The authors are prominent figures and represent
most of the key national institutions in the
movement, so these debates are central to the
school choice movement’s future.
www.edchoice.org

One American Square • Suite 2420
Indianapolis, IN 46282
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“We have so far only seen the early fruits from
the introduction of vouchers, from giving parents
a choice. The best is yet to come as competition
and the market work their wonders.”
Milton Friedman, from The School Choice Advocate in 1998.