Legislature(2013 - 2014)SENATE FINANCE 532

02/13/2013 01:30 PM Senate JUDICIARY

Audio Topic
01:32:43 PM Start
01:33:33 PM Presentation: Education Reform & School Choice
03:00:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Education Reform & School Choice TELECONFERENCED
Kevin P. Chavous, National School Choice and
Education Reform Advocate
Richard Komer, Constitutional Scholar, Institute
for Justice
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
              SENATE EDUCATION STANDING COMMITTEE                                                                             
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                       February 13, 2013                                                                                        
                           1:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE EDUCATION STANDING COMMITTEE                                                                                              
                                                                                                                                
 Representative Lynn Gattis, Chair                                                                                              
 Representative Lora Reinbold, Vice Chair                                                                                       
 Representative Gabrielle LeDoux                                                                                                
 Representative Harriet Drummond                                                                                                
                                                                                                                                
SENATE EDUCATION STANDING COMMITTEE                                                                                             
                                                                                                                                
 Senator Mike Dunleavy, Vice Chair                                                                                              
 Senator Charlie Huggins                                                                                                        
 Senator Berta Gardner                                                                                                          
                                                                                                                                
HOUSE JUDICIARY                                                                                                                 
                                                                                                                                
 Representative Wes Keller, Chair                                                                                               
 Representative Bob Lynn, Vice Chair                                                                                            
 Representative Neal Foster                                                                                                     
 Representative Gabrielle LeDoux                                                                                                
                                                                                                                                
SENATE JUDICIARY                                                                                                                
                                                                                                                                
 Senator John Coghill, Chair                                                                                                    
 Senator Lesil McGuire, Vice Chair                                                                                              
 Senator Fred Dyson                                                                                                             
 Senator Donald Olson                                                                                                           
 Senator Bill Wielechowski                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
HOUSE EDUCATION STANDING COMMITTEE                                                                                              
                                                                                                                                
 Representative Dan Saddler                                                                                                     
 Representative Paul Seaton                                                                                                     
 Representative Peggy Wilson                                                                                                    
                                                                                                                                
SENATE EDUCATION STANDING COMMITTEE                                                                                             
                                                                                                                                
 Senator Gary Stevens, Chair                                                                                                    
 Senator Bert Stedman                                                                                                           
                                                                                                                                
HOUSE JUDICIARY                                                                                                                 
                                                                                                                                
 Representative Charisse Millett                                                                                                
 Representative Lance Pruitt                                                                                                    
 Representative Max Gruenberg                                                                                                   
                                                                                                                                
OTHER MEMBERS PRESENT                                                                                                         
                                                                                                                                
Representative Tammy Wilson                                                                                                     
Senator Pete Kelly                                                                                                              
Senator Click Bishop                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  EDUCATION REFORM & SCHOOL CHOICE                                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Richard "Dick" Komer, Senior Attorney                                                                                           
Institute for Justice (IJ)                                                                                                      
Arlington, Virginia                                                                                                             
POSITION STATEMENT:  Participated as a guest speaker at the                                                                   
presentation on education reform and school choice.                                                                             
                                                                                                                                
KEVIN CHAVOUS, Executive Counsel                                                                                                
American Federation for Children (AFC)                                                                                          
Washington, D.C.                                                                                                                
POSITION STATEMENT:  Participated as the special guest speaker                                                                
at the presentation on education reform and school choice.                                                                      
                                                                                                                                
DR. PATRICK WOLF, PhD, Professor of Education                                                                                   
University of Arkansas                                                                                                          
Fayetteville, Arkansas                                                                                                          
POSITION STATEMENT:  Participated as a guest speaker at the                                                                   
presentation on education reform and school choice.                                                                             
                                                                                                                                
ROBERT ENLOW, President and Chief Executive Officer                                                                             
Friedman Foundation for Educational Choice                                                                                      
Indianapolis, Indiana                                                                                                           
POSITION  STATEMENT:   Participated  as a  guest  speaker at  the                                                             
presentation on education reform and school choice.                                                                             
                                                                                                                                
DR. BENJAMIN SCAFIDI, PhD, Associate Professor                                                                                  
Georgia College & State University                                                                                              
Milledgeville, Georgia                                                                                                          
POSITION  STATEMENT:   Participated  as a  guest  speaker at  the                                                             
presentation on education reform and school choice.                                                                             
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:43 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHN COGHILL  called the  joint meeting  of the  House and                                                             
Senate  Education Standing  Committees and  the House  and Senate                                                               
Judiciary Standing Committees  to order at 1:32 p.m.   Present at                                                               
the call  to order  from the  House Education  Standing Committee                                                               
were  Representatives  LeDoux,  Reinbold, Drummond,  and  Gattis.                                                               
Present  from  the  Senate   Education  Standing  Committee  were                                                               
Senators Gardner,  and Dunleavy;  Senator Huggins arrived  as the                                                               
meeting  was  in progress.    Present  from the  House  Judiciary                                                               
Standing  Committee   were  Representatives  LeDoux,   Lynn,  and                                                               
Keller;  Representative  Foster arrived  as  the  meeting was  in                                                               
progress.   Present from the Senate  Judiciary Standing Committee                                                               
were Senators  Coghill, Wielechowski,  Olson, and  Dyson; Senator                                                               
McGuire arrived as the meeting was in progress.                                                                                 
                                                                                                                                
^Presentation:  Education Reform & School Choice                                                                                
        Presentation:  Education Reform & School Choice                                                                     
                                                                                                                                
1:33:33 PM                                                                                                                    
                                                                                                                                
CHAIR COGHILL announced that the  only order of business would be                                                               
a presentation on education reform and school choice.                                                                           
                                                                                                                                
1:37:08 PM                                                                                                                    
                                                                                                                                
RICHARD  "DICK" KOMER,  Senior  Attorney,  Institute for  Justice                                                               
(IJ),  said IJ  is  a  non-profit public  interest  law firm  and                                                               
considers  itself  to  be  "the  lawyers  to  the  school  choice                                                               
movement," and  that he  has been  working in  this arena  for 20                                                               
years assisting legislators interested  in creating school choice                                                               
programs.     Advice  is  based   on  state  law   precedents  as                                                               
interpreted  in  each state's  constitution.    Assuming a  state                                                               
program is  passed, IJ will  assist in  the defense of  any legal                                                               
challenges that  arise; typically lodged  by parents who  want to                                                               
make use of scholarships provided  by school choice programs.  He                                                               
reported that IJ  is currently defending five  programs that have                                                               
been  passed in  Arizona, Colorado,  Indiana, Louisiana,  and New                                                               
Hampshire.  Four of these  states have a constitutional provision                                                               
similar to the  Blaine Amendment that the  legislature is seeking                                                               
to modify in  the Alaska Constitution.  Four of  the named states                                                               
are citing a breach of the  Blaine Amendment, and seeking to have                                                               
the  action declared  unconstitutional.   Louisiana repealed  the                                                               
Blaine Amendment  that had been  part of their  constitution, and                                                               
he  noted that  the states  of Arkansas  and New  Jersey did  the                                                               
same.   Repealing the  Blaine Amendment  is not  an unprecedented                                                               
action, further, he said it  was originally enacted to rebuff the                                                               
efforts  of  Catholics  to  obtain  equal,  direct,  funding  for                                                               
schools of  the diocese.   The key term  is "direct" and  will be                                                               
addressed  further, he  pointed out.    At the  time, the  public                                                               
schools    were   non-denominational,    Protestant   facilities.                                                               
Hostility existed  between these  two factions  in the  1840s and                                                               
the  Blaine  Amendment  was  created out  of  this  strong  anti-                                                               
Catholic atmosphere.  It has  been said that the judiciary branch                                                               
is  the least  dangerous branch  of the  government; however,  it                                                               
does  have  the  final  word   on  interpreting  the  meaning  of                                                               
constitutional  and statutory  language.   When a  constitutional                                                               
provision  has been  challenged and  received a  judicial ruling,                                                               
the  only  recourse  that  the   people  have  is  to  amend  the                                                               
constitution in order  to change the language that  the court has                                                               
interpreted.    He  opined  that  the  language  in  the  Alaskan                                                               
Constitution  could  be argued  as  being  misinterpreted by  the                                                               
Alaska Supreme  Court, and suggested  that it was never  meant to                                                               
prohibit school choice  programs.  He said  this occurred through                                                               
the  arguments and  decisions  that occurred  in  two law  suits:                                                               
Matthews v. Quinton, (Alaska 1961)  (Matthews), finding a statute                                                           
authorizing transportation of non-public  school pupils on public                                                               
school   buses   violated   Alaska's   Constitutional   provision                                                               
prohibiting expenditure  of public  funds for the  direct benefit                                                               
of any  religious or other  private educational  institution; and                                                               
Sheldon Jackson  College v. State, (Alaska  1979)(Sheldon Jackson                                                           
College) which  concluded that a  state's tuition  grant program,                                                             
awarding  students  a difference  between  tuition  charged by  a                                                               
private  college  and  a  public   college,  violated  the  state                                                               
constitutional  prohibition  of  using public  funds  for  direct                                                               
benefit of religious or other private educational institutions.                                                                 
                                                                                                                                
MR. KOMER  continued and  said that the  problem arises  from the                                                               
Alaska  Supreme   Court's  interpretation  of  one   sentence  in                                                               
particular, which  reads:   "No money shall  be paid  from public                                                               
funds for  the direct benefit  of any religious or  other private                                                               
educational institution."  The term  "direct benefit of" has been                                                               
interpreted by  the Alaskan court to  include assistance provided                                                               
to students  and their  families if that  assistance can  be used                                                               
for private  educational institutions.   He said it  is necessary                                                               
to  interpret   "direct"  and   it  is   found  in   other  state                                                               
constitutions,  often in  conjunction  with "indirect."   In  the                                                               
course of  considering this provision, the  Alaska constitutional                                                               
convention considered  and rejected inclusion of  "and indirect;"                                                               
encompassing  some other  additional sorts  of aid  beyond direct                                                               
assistance.  Direct aid is  when the state makes grants available                                                               
to   private   institutions,   at  either   the   elementary   or                                                               
postsecondary level.   Indirect aid suggests that  the benefit is                                                               
provided on  behalf of  the parents to  the religious  or private                                                               
institution.   He suggested that  comparing these  two statements                                                               
clearly indicates  the contrast of  the two terms.   However, the                                                               
Supreme  Court has  interpreted  the  constitutional language  of                                                               
direct to also encompass indirect  assistance and that is why "it                                                               
must go,"  he opined.   If you want  school choice in  Alaska you                                                               
will  need to  change this  language, as  the legislature  cannot                                                               
overrule the Supreme Court's interpretation.                                                                                    
                                                                                                                                
MR.  KOMER  explained the  history  of  federal jurisprudence  in                                                               
conjunction   with  state   constitutions.     Reaching  parallel                                                               
conclusions has  proven difficult along with  finding clarity for                                                               
whether the  federal constitution allows school  choice programs.                                                               
However, the  U.S. Supreme Court  decision on Zelman  v. Simmons-                                                             
Harris,  536 US  639 (2002)  (Zelman) clarified  that scholarship                                                           
type  programs  are  allowed   under  the  Federal  Establishment                                                               
Clause; a  ruling which has  essentially opened the state  to not                                                               
be challenged  in federal court.   The federal  constitution does                                                               
not  allow  direct,  unrestricted grants  to  private,  religious                                                               
schools or  colleges. Because  of the Zelman  case it  does allow                                                             
student  scholarships  to  be  provided  to  families  where  the                                                               
parents make a  free and independent choice of school  as long as                                                               
the  program,   in  which  they   are  making  that   choice,  is                                                               
religiously neutral.  The Zelman  standard would be the effective                                                             
legal standard in Alaska, if  the Blaine Amendment is eliminated;                                                               
direct aid  is not allowed  to religious  schools but aid  can be                                                               
provided for families.  Finally,  he described and emphasized how                                                               
a Federal  Pell Grant  is issued directly  to an  institution and                                                               
underscored that it  is provided as satisfaction  for the benefit                                                               
of  a families'  contractual  obligation to  the  school, not  as                                                               
direct aid to the college.                                                                                                      
                                                                                                                                
1:58:40 PM                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  private schools  accepting public                                                               
money are subject to state  rules, such as the antidiscrimination                                                               
provisions; has there been a ruling.                                                                                            
                                                                                                                                
MR. KOMER  responded that there  exists a civil rights  law which                                                               
applies  to all  private  colleges  and institutions  prohibiting                                                               
discrimination based on  race, religion, or national  origin.  It                                                               
was  passed  after  the  civil war,  and  applies  regardless  of                                                               
whether state dollars  are accepted, Runyon v.  McCrary, 427 U.S.                                                             
160  (1976)(Runyon).    Nondiscrimination  requirements  are  not                                                             
based  entirely  on whether  federal  dollars  are received,  and                                                               
state  law can  attach civil  rights provisions.   He  noted that                                                               
there are reasons  why the public education  requirements are not                                                               
imposed  in  most  states,  which is  why  Wellesley  College  is                                                               
allowed to continue as a single sex institution.                                                                                
                                                                                                                                
2:03:38 PM                                                                                                                    
                                                                                                                                
KEVIN  CHAVOUS,   Executive  Counsel,  American   Federation  for                                                               
Children  (AFC),  spoke  in  support   of  repealing  the  Blaine                                                               
Amendment  and  said  it  stands  in  the  way  of  reaching  the                                                               
educational  goals  that  the  legislature  finds  important  for                                                               
Alaska.  Providing  a brief background, he relayed that  he was a                                                               
member of the  District of Columbia (D.C.) council  for 12 years,                                                               
1993-2005, and  served for  eight of those  years as  chairman of                                                               
the education  committee.  During  1996-97, he led the  effort to                                                               
establish charter  schools in D.C.   The district has one  of the                                                               
most prolific and substantial charter  school laws in the nation,                                                               
and,  as  a  result,  nearly  45 percent  of  the  public  school                                                               
students  are in  attendance.   In 2003,  he reported  working in                                                               
conjunction with the President,  U.S. Secretary of Education, and                                                               
the mayor  of D.C., to  form a  partnership, with a  three sector                                                               
strategy.  The  federal government agreed to  provide D.C. annual                                                               
funding of  $50 million, to  be divided equally and  disbursed in                                                               
thirds to the cities traditional  school system; charter schools,                                                               
particularly  for  facilities  funding;  and as  support  of  the                                                               
voucher/scholarship  program, providing  approximately $7,500  in                                                               
tuition assistance  to the city's acutely  impoverished children.                                                               
As a result  of the voucher program, today  nearly 2,000 children                                                               
are benefiting,  and, he opined,  that demographically  these are                                                               
children who may otherwise have  dropped out and not succeeded in                                                               
completing  school.   Current statistics  indicate  a 94  percent                                                               
graduation rate, which  is 40 points higher than  the D.C. public                                                               
school system, and  89 percent are tracked  as college attendees.                                                               
Through this experience,  he said, came the  understanding of the                                                               
value  for  educational  choice,  which  is  now  a  movement  he                                                               
passionately  pursues and  has become  totally immersed  in.   He                                                               
said children are  being done a vast dis-service  by not allowing                                                               
them to maximize their human potential.   He suggested that it is                                                               
important  to consider  the context  of the  proposal before  the                                                               
committee.   Thirty years after  the publication of "A  Nation at                                                               
Risk:   The Imperative for  Educational Reform," A Report  to the                                                               
Nation and  the Secretary of Education,  United States Department                                                               
of  Education,  by  The  National  Commission  on  Excellence  in                                                               
Education, 1983, America's education  system output has worsened.                                                               
Through  this  experience,  he  said,  three  truisms  have  been                                                               
proven.   First:  nearly half  of the children of  color drop out                                                               
of school; the national fourth  and eighth grade scores are down;                                                               
fewer advance placement (AP) courses  are being offered; and most                                                               
troubling  is that  the U.S.  is becoming  less competitive  on a                                                               
global  front with  other industrialized  nations.   He  reported                                                               
that  nearly 7,000  high school  students  drop out  each day  in                                                               
America, or 1.2 million per year.   Alaska spends more per capita                                                               
for education than  any other state, yet  achievement ratings are                                                               
among the worst in the nation.  He opined that there should be an                                                               
immense sense  of urgency for  action that is radical,  bold, and                                                               
meaningful  and  that this  is  not  a time  for  incrementalism.                                                               
Second:    A  school  bureaucracy will  not  reform  itself  from                                                               
within, he said, "they never have,  and they never will."  Reform                                                               
occurs only when external pressures  are brought to bear, and the                                                               
best means  to affect change is  through choice.  Third:   In the                                                               
cities  where  educational reform  has  taken  place, the  public                                                               
schools   have  also   improved;   debunking   the  notion   that                                                               
educational choice programs  negatively impact traditional public                                                               
schools.    He  said  that  Milwaukie  has  the  longest  running                                                               
scholarship program.   The public  schools are still  the primary                                                               
educational  institutions,  and  from 2003-09,  graduation  rates                                                               
have improved from 49 percent to  70 percent.  He opined that the                                                               
Milwaukie  public   schools  scholarship  program,  now   in  its                                                               
twentieth  year, provided  a jump  start for  educational reform.                                                               
Florida implemented  robust reform  measures that  allowed 50,000                                                               
children  to  attend  quality  schools.    From  1998-2007,  data                                                               
indicates a  marked improvement in  reading scores at  the fourth                                                               
grade level, up  from 53 to 71 percent.   Louisiana started a New                                                               
Orleans  scholarship   program  five  years  ago,   and  expanded                                                               
statewide  one year  ago.   The results  have brought  monumental                                                               
change with 10,000 parents making  application on behalf of their                                                               
children.    Indiana  has  a   statewide  program  and,  he  said                                                               
something  occurred there  that has  not happened  anywhere else.                                                               
Indianapolis has the worst performing  schools in the nation, and                                                               
when  Indiana  passed  the  reform   measures  to  allow  charter                                                               
schools, the  public schools paid  for advertisements  "to remind                                                               
parents that they could educate  their children, too."  Education                                                               
of  choice  provides  the  impetus  for  reforms  that  otherwise                                                               
wouldn't take  place, he  stressed.  The  sense of  urgency means                                                               
that it  is necessary to  figure out a way  to "fly the  plane at                                                               
the  same time  as we  fix it."   Finally,  he said,  the biggest                                                               
barrier  to change  is not  with the  institutions, but  with the                                                               
political partisanship that  has crept into the arena.   The yard                                                               
stick  for  measure, that  he  suggested  using,  is to  ask  the                                                               
question whether a proposal, democratic  or republican, will help                                                               
children.                                                                                                                       
                                                                                                                                
2:17:06 PM                                                                                                                    
                                                                                                                                
SENATOR  GARDNER   pointed  out  that  Alaska   currently  offers                                                               
educational  alternatives  in  the form  of  magnate,  specialty,                                                               
home,  correspondence, and  charter  schools.   She said  charter                                                               
schools require a grassroots,  community approach for leadership,                                                               
which  may come  from the  public  or teachers  working with  the                                                               
school  district.    The  terminology may  be  what  makes  these                                                               
schools different  from what the  speaker is describing,  and she                                                               
asked for clarification.                                                                                                        
                                                                                                                                
MR. CHAVOUS  acknowledged that Alaska  has a variety  of schools,                                                               
but  each  is  in  conjunction  with  the  public  schools.    He                                                               
suggested that  opportunities for children should  not be limited                                                               
to the scope  offered by public schools,  as private institutions                                                               
may be  available that  could meet  an individuals'  needs, which                                                               
otherwise  may  not have  been  possible.   Children  respond  to                                                               
different  learning  modalities,  he stressed,  and  institutions                                                               
should be  laboratories to discover  ways to meet  learning needs                                                               
and should not be limited or trumped by adult interests.                                                                        
                                                                                                                                
2:19:12 PM                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI   inquired  if   it  would  be   better  to                                                               
completely privatize the school  system, and whether AFC supports                                                               
providing parents  a check to  allow them to make  an educational                                                               
choice for their child.                                                                                                         
                                                                                                                                
MR.  CHAVOUS responded  no, an  organization  should not  dictate                                                               
parental  choice.   He  emphasized  the  need  for a  variety  of                                                               
choices  with   the  focus   on  cultivating   quality  education                                                               
services.  If  the best possibility is with a  public school, AFC                                                               
would support that option, he said.                                                                                             
                                                                                                                                
2:20:35 PM                                                                                                                    
                                                                                                                                
SENATOR  DUNLEAVY  queried  who  or what  groups  oppose  putting                                                               
children first.                                                                                                                 
                                                                                                                                
MR.   CHAVOUS  the   opposition  usually   arrives  through   the                                                               
traditional   education   establishment,  or   through   partisan                                                               
politics; he underscored the need  to elevate the importance of a                                                               
child's education above the political floor.                                                                                    
                                                                                                                                
2:22:38 PM                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI  asked  if  there  are  any  public  school                                                               
systems located  in low  income areas  that are  working; without                                                               
charter schools or a voucher system.   If so, what can be gleaned                                                               
from their example,  and if not are charter  schools and vouchers                                                               
the only solution.                                                                                                              
                                                                                                                                
MR. CHAVOUS cautioned  against using the term "only,"  and said a                                                               
host  of solutions  are  necessary in  order  to provide  choice;                                                               
however, there  are no  urban school  districts that  are working                                                               
for children;  none can report  success levels of  80-90 percent.                                                               
He suggested that  the view of success has been  dumbed down, and                                                               
superintendents now  get contract  renews based on  their ability                                                               
to show  a 5-7 percent increase.   If 65 percent  of the children                                                               
in a  district are proficient,  that does not  represent success,                                                               
he  opined.   He  defined  proficient to  mean  reading at  grade                                                               
level.                                                                                                                          
                                                                                                                                
2:24:42 PM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE said the school  movement has been referred to as                                                               
a  modern civil  rights movement.    She said  that children  are                                                               
attending private school  based on the ability of  parents to pay                                                               
tuition.     She  expressed  concern  for   providing  the  state                                                               
allocated funds  for educational  choice, and  questioned whether                                                               
the public school system would be degraded by such action.                                                                      
                                                                                                                                
MR. CHAVOUS  cited the history  of the  movement and said  it has                                                               
been shown that not only do  the children benefit, but the states                                                               
have saved  money.  The charter  movement began 20 years  ago and                                                               
has  continued to  expand.   Experience does  not indicate  a mad                                                               
rush to  alternative programs,  but it does  put pressure  on the                                                               
established system to perform.   Rather than the ruination of the                                                               
public schools, the movement appears to be the salvation.                                                                       
                                                                                                                                
2:30:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  agreed that  the public schools  would not                                                               
experience a  mass exodus, and  asked if vouchers might  become a                                                               
subsidy  program  for  parents   who  are  already  affording  an                                                               
education of choice.                                                                                                            
                                                                                                                                
MR.  CHAVOUS answered  that states  handle it  in different  ways                                                               
when creating  parameters for the  voucher system.   He suggested                                                               
that parent means be tested  to ensure that the neediest students                                                               
are prioritized.                                                                                                                
                                                                                                                                
REPRESENTATIVE LEDOUX surmised that what  AFC advocates is not an                                                               
all-encompassing choice but one limited  by means testing, or for                                                               
schools that are failing.                                                                                                       
                                                                                                                                
MR.  CHAVOUS  clarified that  the  failing  school model  doesn't                                                               
work, because  measures can be  taken to skew reality.   However,                                                               
means testing is a preferable method.                                                                                           
                                                                                                                                
2:34:29 PM                                                                                                                    
                                                                                                                                
DR.  PATRICK WOLF,  PhD, Professor  of  Education, University  of                                                               
Arkansas,  paraphrased from  a prepared  document, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     In  addition  to my  position  as  a professor  at  the                                                                    
     University of Arkansas,  I also am a  consultant to the                                                                    
     U.S. Department  of Education regarding the  design and                                                                    
     implementation  of  rigorous evaluations  of  education                                                                    
     programs.  I  want to make it clear that  I am speaking                                                                    
     to  you  today  in  my  capacity as  a  scholar.    The                                                                    
     opinions  that  I share  with  you  do not  necessarily                                                                    
     represent   any  official   positions   of  the   Obama                                                                    
     Administration,  the U.S.  Department of  Education, or                                                                    
     the University of Arkansas.                                                                                                
                                                                                                                                
     Today,  31 private  school choice  programs, funded  by                                                                    
     direct government appropriations  or tax-credits, serve                                                                    
     245,000 children nationally.  I  have spent the past 14                                                                    
     years  studying such  programs,  especially the  school                                                                    
     voucher  programs  in  Milwaukee and  the  District  of                                                                    
     Columbia.                                                                                                                  
                                                                                                                                
     Last year  my research team released  the final reports                                                                    
     from our longitudinal evaluation  of the nation's first                                                                    
     school voucher  program, the Milwaukee  Parental Choice                                                                    
     Program.    Established  in 1990,  the  Choice  program                                                                    
     enrolled  25,000 students  in  113  private schools  of                                                                    
     their parents' choosing in 2012.                                                                                           
                                                                                                                                
     Through careful  scientific analysis,  we were  able to                                                                    
     determine that  the students in the  Milwaukee Parental                                                                    
     Choice  Program  outgained   similar  Milwaukee  Public                                                                    
     School  students in  reading over  a four-year  period,                                                                    
     though  achievement  gains  for  the  two  groups  were                                                                    
     similar in math.                                                                                                           
                                                                                                                                
     Importantly,  we also  confirmed  that Choice  students                                                                    
     outperformed  public  school  students  in  educational                                                                    
     attainment.    Just  as educational  achievement  is  a                                                                    
     measure  of how  much you  know in  school, educational                                                                    
     attainment is  a measure of  how far you go  in school.                                                                    
     It is  commonly measured  by important  benchmarks such                                                                    
     as  high  school  graduation, college  enrollment,  and                                                                    
     persistence in college.                                                                                                    
                                                                                                                                
     The students  in the Milwaukee Parental  Choice Program                                                                    
     attained  all of  these important  benchmarks at  rates                                                                    
     that were 4-7 percentage  points higher than comparable                                                                    
     Milwaukee public  school students.   The  public school                                                                    
     students in our Milwaukee  study enrolled in college at                                                                    
     the rate  of 25  percent, so the  fact that  the Choice                                                                    
     students  attended college  at  the higher  rate of  30                                                                    
     percent  represents a  20 percent  increase in  college                                                                    
     enrollment rates for  low-income Milwaukee students due                                                                    
     to the Choice program.                                                                                                     
                                                                                                                                
     These  higher educational  attainment rates  for Choice                                                                    
     students  are important  because  young  people who  go                                                                    
     farther  in school  do better  in life.   Students  who                                                                    
     graduate from high school live  longer, earn more money                                                                    
     during their lifetime,  and are less likely  ever to be                                                                    
     divorced, unemployed or  incarcerated than students who                                                                    
     do not graduate.                                                                                                           
                                                                                                                                
     Through  the course  of our  study  we also  determined                                                                    
     that the Choice  program generated competitive pressure                                                                    
     on Milwaukee  Public Schools that  led to  increases in                                                                    
     student   achievement  even   for  the   public  school                                                                    
     students  who   never  participated  in   the  program.                                                                    
     School  choice in  Milwaukee  generated  a rising  tide                                                                    
     that lifted all boats.                                                                                                     
                                                                                                                                
     What  is  perhaps  most  amazing  about  the  Milwaukee                                                                    
     Parental  Choice Program  is  that it  produced all  of                                                                    
     these positive  outcomes --  higher reading  scores and                                                                    
     graduation  rates   for  Choice  students   and  higher                                                                    
     achievement scores for public  school students -- while                                                                    
     saving Wisconsin  taxpayers money.  The  maximum amount                                                                    
     of the Milwaukee voucher has  hovered around $6,500 for                                                                    
     the past five years, a  period during which the average                                                                    
     amount spent  on each  Milwaukee public  school student                                                                    
     surged from $12,000  to $15,000.  Because  the value of                                                                    
     the  private school  voucher in  Milwaukee  is so  much                                                                    
     less than per-pupil spending in  the public schools, my                                                                    
     research team was able to  determine that the operation                                                                    
     of the  Choice program  saves Wisconsin  taxpayers over                                                                    
     $52 million per year.                                                                                                      
                                                                                                                                
     So our  final verdict on the  Milwaukee Parental Choice                                                                    
     Program  is  that  it   produced  better  outcomes  for                                                                    
     students at lower cost to the state.                                                                                       
                                                                                                                                
     Such  encouraging results  are common  when researchers                                                                    
     use  scientific  methods  to  evaluate  school  voucher                                                                    
     programs.   The generally  positive effects  of private                                                                    
     school choice are  similar for both government-financed                                                                    
     voucher  programs and  tax-credit financed  scholarship                                                                    
     programs.  As reported in  Education Week last year, of                                                                    
     the  10   gold-standard  experimental   evaluations  of                                                                    
     voucher  and  voucher-type  programs, 9  have  reported                                                                    
     achievement gains  from the voucher program  for all or                                                                    
     some   subgroups  of   participating  students.     For                                                                    
     example,  in  an  evaluation   of  the  DC  Opportunity                                                                    
     Scholarship Program that I led  for the U.S. Department                                                                    
     of  Education   we  found  that,  after   three  years,                                                                    
     students  who  used  the  federally-sponsored  vouchers                                                                    
     gained an  additional 4.5  months of  learning compared                                                                    
     to students in the control group.                                                                                          
                                                                                                                                
     The DC choice students  also graduated from high school                                                                    
     at much higher rates than  control group students.  The                                                                    
     impact of  using a  DC school  voucher was  to increase                                                                    
     the  likelihood  of  a  student  graduating  from  high                                                                    
     school by 21  percentage points, from 70  percent to 91                                                                    
     percent.   That  represents a  30 percent  gain in  the                                                                    
     high school graduation rate  for a highly disadvantaged                                                                    
     group of students.                                                                                                         
                                                                                                                                
     David Figlio  of Northwestern University  is conducting                                                                    
     a  rigorous  longitudinal  evaluation  of  the  Florida                                                                    
     statewide  Tax-Credit Scholarship  Program which  helps                                                                    
     over  50,000  low-income  students  enroll  in  private                                                                    
     schools.  He  has found that the  school choice program                                                                    
     has  produced a  statistically significant  increase in                                                                    
     the  reading  achievement  of  participating  students.                                                                    
     Although  math achievement  also  is  higher among  the                                                                    
     students  exercising  school  choice in  Florida,  that                                                                    
     difference  is not  quite statistically  significant at                                                                    
     normal  confidence  levels.    In  Milwaukee,  DC,  and                                                                    
     Florida,  we see  very  similar  findings that  private                                                                    
     school  choice increases  student reading  scores.   No                                                                    
     rigorous study  of private  school choice  programs has                                                                    
     ever found that they harmed students academically.                                                                         
                                                                                                                                
     Moreover, study  after study, of both  voucher and tax-                                                                    
     credit  scholarship  programs,  has shown  that  public                                                                    
     schools  deliver better  educational results  for their                                                                    
     students  when  they   face  competition  from  private                                                                    
     school  choice.     Of  20  rigorous   studies  of  the                                                                    
     competitive effects of private  school choice on public                                                                    
     schools, 19 of them  documented that competition led to                                                                    
     an increase in student performance.                                                                                        
                                                                                                                                
     Another finding  that is absolutely undeniable  is that                                                                    
     private   school    choice   programs    serve   highly                                                                    
     disadvantaged  students, because  they are  designed to                                                                    
     do so.   Of the  31 voucher and  tax-credit scholarship                                                                    
     programs in the U.S., 18  are means-tested so that they                                                                    
     serve  lower-income families.   A  total of  6 programs                                                                    
     are  limited  to  students  in  underperforming  public                                                                    
     schools.   Two programs, in  New Orleans and  the state                                                                    
     of  Ohio,  are  doubly targeted  specifically  to  low-                                                                    
     income  students  in  poor-performing  public  schools.                                                                    
     Nine  voucher  programs   are  limited  exclusively  to                                                                    
     students  with  disabilities.     Those  special  needs                                                                    
     voucher programs  enroll over 14 percent  of all school                                                                    
     voucher users.                                                                                                             
                                                                                                                                
     Let's   take  a   quick  look   at  the   students  who                                                                    
     participated  in the  DC voucher  program beginning  in                                                                    
     2004.   Over 99 percent  of them were  African American                                                                    
     or  Hispanic American.    Their  average annual  family                                                                    
     income was  just over  $17,000 --  in Arkansas  we call                                                                    
     that "dirt  poor."   Only 6 percent  of the  mothers of                                                                    
     participating students  had college  degrees.   Over 17                                                                    
     percent of  the participating students had  a diagnosed                                                                    
     disability.    The  students  served  by  this  federal                                                                    
     school choice program were highly disadvantaged.                                                                           
                                                                                                                                
     At the  start of our  Milwaukee study, in 2006,  we had                                                                    
     to match  up the voucher  students in our panel  with a                                                                    
     lower-performing  segment  of  public  school  students                                                                    
     because  the   voucher  children  were  so   much  more                                                                    
     disadvantaged than  their public  school peers.   As my                                                                    
     colleague  John Witte  likes to  say, "The  evidence is                                                                    
     overwhelming  that voucher  programs do  not cream  the                                                                    
     best  and the  brightest  kids.   In  fact,  it is  the                                                                    
     opposite.   They  attract  more disadvantaged  students                                                                    
     out of the public schools."                                                                                                
                                                                                                                                
     Researchers  also have  examined the  effect of  school                                                                    
     vouchers or  private schooling on civic  values such as                                                                    
     racial    integration,    political   tolerance,    and                                                                    
     voluntarism.   The voucher programs that  have operated                                                                    
     in  major  cities  have   either  improved  the  racial                                                                    
     integration  of  schools  or  have  had  no  effect  on                                                                    
     integration,  positive  or  negative.    Such  programs                                                                    
     often  improve racial  integration  because they  allow                                                                    
     minority  students  to  leave  overwhelmingly  minority                                                                    
     public   schools  for   private   schools  with   fewer                                                                    
     minorities.                                                                                                                
                                                                                                                                
     Studies  of   the  effect   of  private   schooling  on                                                                    
     political  tolerance similarly  tend  to report  either                                                                    
     positive  effects  or  no net  effect.    Research  has                                                                    
     confirmed that  students and adults volunteer  in their                                                                    
     communities  at higher  rates  if  they have  exercised                                                                    
     private school choice.                                                                                                     
                                                                                                                                
     One of the strongest  positive impacts of school choice                                                                    
     programs  is  on   parent  satisfaction  with  schools.                                                                    
     Every study that has asked  the question has found that                                                                    
     parents are  much happier with their  child's school if                                                                    
     they played a  role in choosing it.  In  my DC study we                                                                    
     found that  80 percent of voucher  parents graded their                                                                    
     child's school  A or B  compared to just 50  percent of                                                                    
     the parents of control group students.                                                                                     
                                                                                                                                
     In    sum,     private    school     choice    programs                                                                    
     disproportionately serve disadvantaged  students.  They                                                                    
     deliver  a  variety  of educational  benefits  to  them                                                                    
     under most  circumstances.   They spur  affected public                                                                    
     schools to improve.   Parents love them!   They tend to                                                                    
     enhance  and  not  undermine  the  public  purposes  of                                                                    
     education and deliver education more efficiently.                                                                          
                                                                                                                                
     Mister  Chairman and  members of  the committee,  I can                                                                    
     throw impressive  school choice  statistics at  you all                                                                    
     afternoon, but  to get a  clear idea of what  a voucher                                                                    
     program  does for  families,  we  also conducted  focus                                                                    
     groups  with parents  and older  students participating                                                                    
     in the  school choice  programs we  evaluated.   I will                                                                    
     conclude with  a quote  from a parent  of a  student in                                                                    
     the DC  voucher program explaining why  the program was                                                                    
     important to her:                                                                                                          
                                                                                                                                
     "When my  son dressed in  that uniform with  that green                                                                    
     blazer,  the white  shirt, tie,  gray  trousers and  he                                                                    
     looked like  a gentleman and  a scholar and he  had his                                                                    
     hair cut and his glasses  and he was just grinning from                                                                    
     ear  to ear  that he  was going  to be  a part  of that                                                                    
     [private  school culture]  and he  went to  school that                                                                    
     day and he was excited about going to school."                                                                             
                                                                                                                                
2:45:34 PM                                                                                                                    
                                                                                                                                
SENATOR GARDNER  reported that for-profit charter  schools do not                                                               
report a history  of success, and asked  whether these facilities                                                               
have been studied.                                                                                                              
                                                                                                                                
DR.  WOLF indicated  that all  charter schools  are organized  as                                                               
not-for-profit,  but  not all  private  schools  take a  not-for-                                                               
profit stance.   He pointed out that some  public charter schools                                                               
have for-profit  management organizations, but  declined comment,                                                               
as  his familiarity  and  expertise is  with  the private  school                                                               
choice through voucher programs.                                                                                                
                                                                                                                                
2:47:28 PM                                                                                                                    
                                                                                                                                
ROBERT  ENLOW, President  and Chief  Executive Officer,  Friedman                                                               
Foundation for  Educational Choice, Education choice  referred to                                                               
the  committee  handout titled  "Some  Fiscal  Issues and  School                                                               
Choice," directed attention to page  3, and said the presentation                                                               
provides  a  financial roadmap  and  responds  to whether  school                                                               
choice  harms state/local  school  district budgets.   The  first                                                               
graph,  titled "Growth  in Students  and Public  School Personnel                                                               
United States, FY  1950 to FY 2009," indicates  that, during this                                                             
period, the  number of  students increased  by 96  percent, while                                                               
the total  school personnel  grew by  386 percent.   He  said the                                                               
personnel number  can be  broken down  further to  understand the                                                               
increase of  teachers, 252 percent, and  administrators and other                                                               
staff,  702 percent.    He  pointed out  that  the second  graph,                                                               
"Growth in  Students and Public  School Personnel  United States,                                                             
FY 1992 to FY 2009, indicates  a continuation of the trend with a                                                               
student increase of  17 percent, and a more  than double increase                                                               
in school personnel  of 39 percent.  He stressed  that since 1950                                                               
the   increase   in    personnel,   particularly   administrative                                                               
personnel,  has been  dramatic.   The students'  achievements did                                                               
not rise between 1970 and  2009, primarily remaining flat, and in                                                               
some instances  show as  worsened.   He pointed  out that  the No                                                               
Child  Left Behind  Act (NCLB)  did  not require  an increase  in                                                               
administrative  staff  to  this   extent,  and,  as  illustrated,                                                               
American  public schools  are more  top-heavy than  other wealthy                                                               
nations.  He  moved through the graphs to address  how Alaska can                                                               
be  compared, beginning  with  a  graph titled,  "Student-Teacher                                                               
Ratio," showing  that Alaska  has a teacher  to student  ratio of                                                               
1:16.5  versus the  U.S. statistic  of 1:15.3,  and the  ratio to                                                               
administrators and other non-teaching  staff for Alaska is 1:14.2                                                               
compared to  1:15.9 for the  remainder of  the U.S.   He directed                                                               
attention  to  the graph  titled  "Ratio  of Students  to  Public                                                               
School Employees," which  indicates a ratio of  1:7.6 for Alaska,                                                               
which  is  comparable to  the  U.S.  ratio  of 1:7.8.    However,                                                               
turning  to  the graph  titled  "Growth  in Students  and  Public                                                               
School  Personnel  Alaska,  FY  1992 to  FY  2009,"  the  student                                                               
increase  is 10  percent  with  a 23  percent  increase in  total                                                               
school personnel.  In terms  of teachers and administrators it is                                                               
11 and 34 percent, respectively.   The increase in teachers is on                                                               
par  with the  increase in  students, but  the administrator  and                                                               
other staff  increase is 300  percent.  He reported  that between                                                               
FY 1992 and  FY 2009, Alaska public  schools hired administrators                                                               
and  other non-teaching  staff at  almost 3.5  times the  rate of                                                               
increases in students  and teachers.  He  suggested the question:                                                               
"What  if Alaska  had increased  non-teaching staff  at the  same                                                               
rate as its increase in students?"   The answer, he offered would                                                               
be that  Alaska public schools  would have saved  $66,600,000 per                                                               
year  in annual  recurring savings.    The $66  million per  year                                                               
savings could  have provided more  than $12,700 per  classroom of                                                               
25 students, given every Alaska  teacher an $8,400 raise, reduced                                                               
state  or  local  taxes, and  offered  children  scholarships  to                                                               
private schools or  other options.  Alaska is among  21 top heavy                                                               
states.   He said this  is an  important factor to  consider when                                                               
pondering  the  effects  of  school choice  on  state  and  local                                                               
budgets.   It's  a  straightforward measure  to  design a  school                                                               
choice  program that  saves  the state  money.   Currently,  when                                                               
children transfer  from one  public school  to another  the money                                                               
follows the child, based on the  school funding formula.  A means                                                               
to ensure that money is  saved, when introducing private schools,                                                               
is to make sure that the  state funds which follow a transferring                                                               
child are  less than  the average  state per  student allocation.                                                               
By implementing  this strategy, there  is no way that  the fiscal                                                               
effects  of  school  choice  can be  anything  but  positive  and                                                               
beneficial  to the  state, the  taxpayers, and  the students,  he                                                               
opined.    Addressing  the  question   of  what  happens  to  the                                                               
remaining students,  when some students leave  traditional public                                                               
schools via  a choice program,  he said  they are not  harmed and                                                               
may benefit  academically.  A  myth exists around  this question,                                                               
he said, including  a concern for loss of resources  to those who                                                               
remain in the traditional school  system.  It is interesting that                                                               
the  argument exists,  as teachers  still need  to be  hired, the                                                               
lights need to be turned on,  and a janitor needs to be employed.                                                               
The  concept is  that every  cost in  the traditional  schools is                                                               
fixed;  however,  the  reality  does not  support  this  concern.                                                               
Costs are  either fixed or  variable, and the  federal government                                                               
categorizes  funding  into  specific areas,  which  are:  capital                                                               
expenditures,    interest,    general   administration,    school                                                               
administration,   operations  and   maintenance,  transportation,                                                               
other   support    services,   instruction,    student   support,                                                               
instructional  staff  support,  enterprise operations,  and  food                                                               
service.                                                                                                                        
                                                                                                                                
2:54:50 PM                                                                                                                    
                                                                                                                                
DR. BENJAMIN  SCAFIDI, PhD, Associate Professor,  Georgia College                                                               
&  State University,  President, Education  Choice continued  the                                                               
presentation  and  said that  fixed  versus  variable costs  were                                                               
determined  through  studies  based  on  data  from  four  school                                                               
districts in Georgia.  These  schools lost students for a variety                                                               
of  reasons, excluding  school choice.   Schools  which lost  six                                                               
percent of the student body,  cut costs more than commensurately,                                                               
in  the areas  of:   instruction, student  support, instructional                                                               
staff support, enterprise operations,  and food service.  Student                                                               
achievement did not falter, hence,  these costs can be considered                                                               
variable.   Funding  that follows  the  child that  is less  than                                                               
these variable costs, improves the  finances of a school district                                                               
even  in the  short-run.   He said  he completed  this study  for                                                               
every state, including  Alaska, and then directed  attention to a                                                               
graph titled "Spending Per Student  in Fall Enrollment," to point                                                               
out that  Alaska provides nearly  $18,000 per student.   Applying                                                               
the  same methodology,  he  estimated that  61.9  percent of  the                                                               
$18,000  represents short-run  variable  costs, or  $11,140.   He                                                               
said the remaining $6,856 per  student are short-run fixed costs,                                                               
which the state should consider  allowing a school to retain when                                                               
a student  exists for reasons of  school choice.  He  pointed out                                                               
that, in the long-run, all costs  are variable.  Thus, any school                                                               
choice  program  in Alaska  where  $11,140  per student  or  less                                                               
follows  a child  to the  school  of choice  improves the  fiscal                                                               
situation of  a public school  district on average,  and students                                                               
who remain  in public schools  would have more  resources devoted                                                               
to their education.                                                                                                             
                                                                                                                                
2:58:30 PM                                                                                                                    
                                                                                                                                
CHAIR  COGHILL said  a new  perspective has  been brought  to the                                                               
committee and further discussion will  ensue when the question of                                                               
a  constitutional amendment  has been  put before  the people  of                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:59:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX  referred   to  the   Alaska  Performance                                                               
Scholarship  (APS) and  student  loan program,  to  ask how  they                                                               
square with the constitutional prohibition.                                                                                     
                                                                                                                                
MR.  KOMER  answered  that  the   programs  may  operate  without                                                               
challenge, but,  he opined, both are  definitely constitutionally                                                               
suspect when held up to the Sheldon Jackson College decision.                                                                 
                                                                                                                                
CHAIR COGHILL thanked the participants and the gallery.                                                                         
                                                                                                                                
3:00:29 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business  before the committees, the joint                                                               
meeting  between   the  House   and  Senate   Education  Standing                                                               
Committees   and  the   House  and   Senate  Judiciary   Standing                                                               
Committees was adjourned at 3:00 p.m.                                                                                           

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