As the Fordham Institute’s education savings account (ESA) Wonkathon comes to a close, I thought it would be useful to summarize the views of the participants to identify areas of consensus and contention. As readers may recall, Fordham’s central question was:
As Nevada implements its groundbreaking education savings account program, what must it get right in order to provide positive outcomes for kids and taxpayers? Should state authorities stay out of the way? Or are there certain areas that demand oversight and regulation?
Inevitably, such summaries will lack the depth and nuance of the complete essays, but I will endeavor to faithfully record what I take to be the main recommendations from each wonk. The following summaries appear in the order that Fordham posted the originals:
Michael Goldstein (Match Education): Nevada needs an “individual, organization, or coalition of champions who take it upon themselves to ensure that their [state] provides excellent school options to all children and families.” This “harbormaster” would recruit high-quality providers to the state and provide parents with good information.
Seth Rau (Nevada Succeeds): Nevada should ensure that all ESA students take NNR tests and track student outcomes. The state treasurer must ensure the application process is user-friendly, distribute restricted-use debit cards, and conduct annual audits. Otherwise, providers should be free to innovate, and parents should be free to choose among them.
Matthew Ladner (Foundation for Excellence in Education): The state should ensure financial accountability through restricted-use debit cards and the whitelisting of vendors (and eventually of individual products). The market can foster quality through platforms where users rate providers (as happened informally in Arizona). The state should aggregate NNR test scores and hire an academic researcher to report on the data, but otherwise avoid trying to regulate quality.
Jonathan Butcher (Goldwater Institute): The state should ensure that ESA funds are being used for eligible educational purposes by reviewing receipts before issuing each quarterly installment. Students should take NNR tests, and the state should commission an academic researcher to report on the results. Otherwise, policymakers should rely on the market to ensure quality.
Tracey Weinstein (StudentsFirst): The state should “set a high bar for the quality of services offered by providers” and “eliminate providers who consistently fail to meet the mark.” The state should also provide ESA families with information about providers.
Andy Smarick (Fordham Institute): The state should “prioritize transparency, continuous and small-scale course corrections, and research” and “collect and publish information on providers, participation rates, student outcomes, and more.” In the long term, researchers should “study how the public’s interests are and are not being met by these increasingly private choices.”
Neerav Kingsland (New Schools for New Orleans): Nevada should increase public funding to $7,000 per student, with more for low-income students, ELL students, and special needs students. Educational institutions should be prohibited from charging ESA families additional tuition beyond the amount the state deposits in ESAs.
Lindsey Burke (Heritage Foundation): State regulators should stay out of the way of the market. The state should primarily concern itself with ensuring that taxpayer dollars are used only for eligible expenses and making the application process transparent and user-friendly. Responsibility for academic outcomes should lie primarily with parents, though the state’s NNR testing requirement is appropriate.
Jason Bedrick (Cato Institute): Policymakers should resist the urge to overregulate. Quality is best achieved through the market process: provider experimentation, parental evaluation, and organic evolution. A robust market ensures quality by channeling expert knowledge (e.g., private certification and expert reviews) and user experience (e.g., platforms for user ratings). The state should limit its role to ensuring that ESA funds are spent only on eligible expenses and serving as a repository for information.
Adam Peshek (Foundation for Excellence in Education): The state should primarily concern itself with providing financial accountability (restricted-use debit cards, auditing), but responsibility for academic outcomes should rest with parents. We must “remain vigilant against death by a thousand regulatory cuts.”
Robin Lake (Center on Reinventing Public Education): Nevada must recruit a “new breed” of bureaucrat who will “learn how to regulate choice without squashing innovation,” “develop creative and better approaches to fiscal and performance accountability,” “coordinate with non-governmental agencies to develop a strong supply of high-quality providers,” and “build a dashboard of indicators of a healthy market and government regulatory structure” (among other objectives).
Travis Pillow (redefinED): Regulators should give providers the freedom to experiment (even though some experiments will fail). However, the state should ensure the health and safety of students and prevent financial fraud. The results of NNR tests should be reported to parents and the public. The state should provide an online forum for parents that would help catch administrative problems and could serve as a Yelp-like provider rating system. The state should give more money to low- and middle-income families and students with special needs.
Robert Tagorda (SoCal education reformer): To operate at scale from the outset, the state treasurer’s office and state department of education must collaborate effectively. The state must broker information to ensure the marketplace functions properly, but it can’t do that alone. The state must devise organic solutions and exchanges of information, such as platforms for user reviews.
Rabbi A.D. Motzen (Agudath Israel): “Almost universal” eligibility isn’t good enough. The state should expand eligibility to all students, not just those who attended a district school for more than one hundred days in the previous year.
There appears to be some consensus around financial accountability. The state must ensure that ESA families are only using taxpayer funds for their intended educational purposes. To that end, most of the wonks who addressed the matter called for utilizing restricted-use debit cards and/or auditing.
The primary area of contention is the role of the state in guaranteeing educational quality. Some want the state to set standards, measure performance, and perhaps even “eliminate” providers who don’t meet those standards. Others (myself included) are concerned that such efforts would stifle the very diversity and innovation that the ESA is intended to foster.
It’s an important debate. I commend both the Fordham Institute for hosting it and the participants for offering their insightful analyses. Differences aside, we all share the same end: creating an education system in which all children have access to high-quality providers that meet their individual needs.
Editor's note: This post first appeared at Jay P. Greene’s blog and Education Next.