Education Policy Trends: School Choice and Private Finance Presentation to Canterbury Deputy and Ass

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Education Policy Trends School Choice and
Private FinancePresentation to Canterbury
Deputy and Assistant Principals Regional
ConferenceHanmer Springs, New Zealand5 August
2004

• Norman LaRocquenlarocque_at_nzbr.org.nz

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The Education Forum

• Independent public policy organisation based in
  Wellington education focused.
• 13 members ECE, schools, tertiary, business.
• Aim is to influence policy through various means
  independent view.
• Website, monthly newsletter, visits by
  educational experts, research on education policy
  issues, newspaper articles, books, reports,
  submissions to government, media releases, etc.
• Focus is on market-based solutions to education
  policy issues.
• Website
• OpEds
• Subtext newsletter
• Hot Topics
• Briefing Papers
• Books, reports
• Both Sides Now.

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Choice-based Policy Innovations

• Developing and developed countries are making use
  of a range of innovative policies at the school
  level.
• These policies include
• Demand-side financing policies such as vouchers
  and scholarships
• Charter schools
• Private management of public schools
• Home schooling
• Private Finance Initiatives.

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Demand Side Financing

• More than 30 countries using vouchers or other
  demand-side financing mechanisms to finance
  education - vary from small/targeted to
  full/national programmes
• Denmark, Ireland, Netherlands, Australia,
  Ontario, Sweden public funding of private
  schools
• Chile national voucher programme
• USA Milwaukee, Cleveland, Florida operate
  voucher schemes, many states have tuition tax
  credits
• Philippines and Cote dIvoire operate large
  voucher schemes.
• Voucher programmes in USA are controversial, but
  comparatively small in size (13,000 students in
  Milwaukee, 100,000 private scholarships, etc).
• No Child Left Behind students in schools
  identified as needing improvement for 2 years
  must be offered Supplemental Educational Services
  (SES) such as tutoring Federal programme, 2
  Billion budget, 1,000 providers offering SES.
• Some growth in USA Zelman decision in 2002,
  Washington DC, Colorado?
• Larger programmes in other countries far less
  controversial (eg Netherlands, Ireland).
• New Zealand examples TIE, Independent school
  subsidies, integrated school funding, early
  childhood education funding, tertiary education
  funding, health vouchers (new).
• Vouchers breaking up that old (Democratic) gang
  of mine - Black Alliance for Educational
  Options, Hispanic Council for Reform and
  Educational Options?

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Charter Schools

• Public schools that are freed from much of the
  regulation that applies to standard public
  schools (eg. zoning, curriculum, industrial
  relations), in exchange for accountability
  requirements.
• Most have specialist focus or mission at-risk
  kids, arts, science, etc.
• Publicly funded, but not for capital schools
  remain free to students.
• Fast growing area - first Charter school opened
  early 1990s. Now have 2,250 schools with some
  700,000 students.
• Bi-partisan political support.
• Management can be contracted out to
  for-profit/not-for-profit providers.
• Virtual Charter schools link to home schooling.
• Weak ones are being closed down.

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Government Assistance to Private Students and
Teachers in the Philippines

• GASTPE main financial assistance scheme high
  school and tertiary levels
• Educational Service Contracting Scheme govt
  contracts with private schools/voucher
• Tuition Fee Supplement (being wound down) -
  voucher
• PESFA (tertiary) student loans, college faculty
  development fund.
• High school assistance much more significant than
  tertiary
• ESC TFS 400,000 students assisted in 2002/03
• PESFA 15,000 in 2001/02.
• ESC recipients increasing, TFS recipients
  declining.
• ESC numbers increased by 50,000 in 2004/05 and
  per-student payment increased to PhP4,000 (from
  PhP2,500).
• Preschool Service Contracting Scheme targeted,
  small scale assistance to preschool sector
  25,000 children assisted.
• Iskolar scheme new free post-secondary
  education for one child from each poor family.

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Demand Side Financing in the Netherlands

• Nationwide school choice scheme - free choice of
  public or independent school.
• No zoning - students can attend any school.
• Liberal supply side. Non profits and parents can
  set up schools if minimum requirements are met.
• Diverse supply of schools.
• 70 of primary and secondary students attend
  independent schools receiving government funds.
• Topping up of fees not allowed.
• Schools with students from lower income areas
  receive more government money.

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Government Sponsorship of Students at Private
Institutions in Cote dIvoire

• Government sponsors students to attend private
  schools given lack of places at public secondary
  schools. Key elements of the scheme are
• private schools are paid on a per-student basis.
  Payment rises with student's education level
  (US200)
• students in lower/upper secondary, as well as
  technical and professional training are eligible.
  Applies to both religious and secular
  chartered schools
• placement of students is linked to school
  performance.
• In 1997, the Government paid out US10.3 million
  to subsidise/sponsor over 162,000 students in
  private schools.
• In 1995/96, 40 of students in private
  institutions were state sponsored. Private
  primary schools receive subsidies.

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Demand Side Financing in Denmark

• Nationwide programme of free choice of
  independent school. Parents who opt out of
  public system get 80-85 covered by the
  government.
• No free choice at public primary and secondary
  grammar schools - zoning prevails.
• Free choice for students attending upper
  secondary vocational schools.
• Liberal supply side - parents and non-profits can
  set up schools if they meet requirements.
• Poorer families can apply for a place at an
  independent school and have their fees paid.

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Private Management of Public Schools

• Contract schools involve school boards
  contracting directly with Education Management
  Organisations (EMOs) to operate public schools.
  Schools remain free to students.
• In USA, EMOs operate in poorest areas.
• Politically and financially challenged.
• Developed country examples include Edison Schools
  and others in the USA, Global Education
  Management Systems and Education Action Zones in
  the UK.
• Also, a number of examples of this approach in
  developing countries
• Fe y Alegria in South America
• Municipal Schools of Bogota
• Sabis Schools in Middle East, UK and USA
• Transformed Schools in China.
• In New Zealand, Alternative Education is an
  example of school contracting
• Introduced 1997
• Schools may contract with private providers to
  teach alienated students
• 3,000 teenagers
• 11,000/student
• 200 providers.

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Edison Schools in the USA

• Edison Schools formed in 1992.
• Largest for-profit operator of public schools in
  the USA.
• 130 schools, with 132,000 students.
• Edison Schools operate in low-income areas.
  Schools are managed under a contract with the
  local school board.
• Edison Schools remain free to the student (no
  tuition fee).

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Fe y Alegria Schools in South America

• Fé y Alegría (FyA) established in Venezuela in
  1955 by Jesuits. Schools in 13 countries,
  500,000 students, 22,000 staff. Offer formal
  education and technical training.
• Majority of students from poor families.
  Government provides funding to FyA schools - to
  meet either operating/set-up costs.
• In 1998, the Government of Venezuela announced
  that FyA would take over three failing public
  schools in two poor Caracas neighbourhoods. FyA
  will lease buildings for 50 years and the schools
  under an agreement with the government. Teachers
  to be paid by the state. The schools will offer
  a complete education system including higher
  education.

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Home Schooling

• Home-schooling in USA is significant growth area.
• Approximately 2 of school age children are being
  home schooled in the USA.
• 1.1 million home schooled children in USA in 2003
  up 29 since 1999.
• Home schooling now mainstream in USA.
• Up to 170,000 students being home schooled in the
  UK.

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Policy Innovations School Evaluation Services

• Private sector providing information to assist
  school districts and parents to make more
  informed schooling decisions (eg. Standard and
  Poors).
• Web based information and decision-making tool
  for parents, educators, policymakers and others.
• School evaluation services (SES) provide reports
  on schools districts strengths,
  challenges/concerns and other key factors.
• SES analyses academic, financial, and demographic
  indicators and trends.

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Private Finance Initiatives

• Governments in the UK, Australia and elsewhere
  making use of private sector to build and operate
  schools and related infrastructure (eg. hostels).
• Form of Public Private Partnership.
• The UKs Private Finance Initiative (PFI) is the
  most prominent of these programmes. Also used in
  Australia, Canada.
• PFIs are now the main source of funding from UK
  Department for Education and Skills for new or
  replacement schools.
• Between 1990 and 2003, 102 education PFIs in UK,
  worth 2 Billion.
• Operate on a concession basis private sector
  builds a school and leases it to the government
  for a set period (eg. 25 years), then turns the
  building over to the government at the end of
  that period.
• Also used at tertiary education level UK,
  Australia (University of Southern Queensland,
  Swinburne University of Technology).

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www.educationforum.org.nz
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Ratio of students to teaching staff, Primary
level, Selected countries, 2001
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Public spending on education/GDP, Selected
Countries, 2000
Primary, secondary and post-secondary
non-tertiary education
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(No Transcript)
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Responsibility for school policy and management,
New Zealand and OECD, 2000