Tag Archives: education

Federal Subsidies

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The Department of Education, in its First Year Progress press release concerning the Federal Race to the Top subsidy program, asserts

The 12 state-specific reports provide summaries of accomplishments made and setbacks experienced by states in pursuing reforms around Race to the Top’s four assurance areas—raising academic standards, building robust data systems to improve instruction, supporting great teachers and school leaders….

That’s a lot of bureaucracy, without a lot of actual performance.  To be sure, the rest of the claim from the DoE excerpt above includes “…and turning around persistently low-performing schools.”  Let’s look at DoE’s own individual reports to see how accurate that claim is, along with their introductory claim that

[t]hese twelve states have acted with courage and commitment in taking on ambitious education reform. Their year one work has helped lay the foundation for long-term, statewide improvements centered on doing what’s best for students.

DoE’s assessments of the first year belie those rosy words.  The Wall Street Journal reports that three of those 12 states have been explicitly called out for failure to perform in accordance with the promises they made in order to get this Federal subsidy.

U.S. Secretary of Education Arne Duncan warned New York state…to deliver its promise to overhaul teacher evaluations and develop a comprehensive student data-tracking system or risk losing hundreds of millions of dollars in federal grants.

and

…Hawaii…is now required to get federal approval before spending any of the $75 million it won.

and

Florida has also been criticized.

Florida was criticized for being seriously behind its promised time and budget schedule for getting on with its promised actions.  In fact, Florida has simply issued a string of excuses so weak that even Duncan couldn’t look past them.

I don’t expect perfection out of a government program, or any other human endeavor.  But I do expect far better performance from a government program, funded as it necessarily is, with our money—in this case, with $700 million of our money.  However, as Joy Pullman notes in The Weekly Standard, “the federal government isn’t good at a great many things—particularly education.”

Or at getting efficient results through subsidies generally.

Incompetence

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I’ve written before on Federal racism.  In the present case, though the racism may seem apparent, it looks a lot like plain and simple incompetence, instead.  Eric Falkenstein offers this hors d’oeuvre, quoting from a Wall Street Journal article:

Justice says that out of 4.4 million loans approved between 2004 and 2008, 525,000 went to African-American or Hispanic borrowers, of which some 210,000 paid higher fees or rates than the average paid by similarly situated “non-Hispanic White Borrowers.”

It goes without saying large numbers of white borrowers also paid higher than the average of all whites. It also goes without saying large numbers of minorities didn’t pay higher rates, though Justice isn’t interested in the average of what minorities paid, only that some minorities paid higher than the average of whites.

If this sounds like statistical malpractice, it’s apparently habitual. In a rare instance where defendants fought back, two Los Angeles car dealers recently won dismissal of a complaint accusing them of favoring Asian over Hispanic car buyers because 600 of 1,300 “non-Asian” buyers were charged higher loan terms than the average of Asian buyers. Notice that 600 is about half of 1,300. As the dealers noted, Justice’s claim amounts to an assertion “half of one group is above average, which means that the other half is below average.”

The WSJ article itself (also linked to in Falkenstein’s post) goes on:

…experiments…suggest salespeople make generalizations about which groups are likely to bargain hardest.  Even black salespeople have been found to lead off with a higher quote when meeting a black shopper.  Women are said to be less aggressive bargainers than men.  Other generalizations suggest themselves….

Who knows why these differences turn up in the data, but no law of nature says every cultural subgroup must be equal in its determination to cadge every nickel of advantage in every transaction.

What’s the outcome of these sorts of things?  Taking a just concluded DoJ beef against Bank of America’s Countrywide bank as an example,

Bank of America (without admitting fault) will hand over $335 million so Justice can distribute money to African-Americans and Hispanics (though not whites) who were charged more than the white average, with any surplus funds explicitly reserved for donations to…groups that typically align with the Democratic Party.

However, it’s not just DoJ idiocy.  This is the stuff on which affirmative action programs are built.  And it’s quite apart from the soft bigotry that says the victimsbeneficiaries of affirmative action programs are simply, of their nature, so incapable themselves that they must be given preferential treatment in order to keep up.

Is this actually evidence of deliberate nefariousness?  The cynic in me is conflicted.  On the one hand, it’s plainly racism by DoJ.  But on the other hand, DoJ seems entirely too incompetent to be this racist.

Government-Guaranteed Loans and Taxes

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This is a brief tale of taxes and loans as they apply to American education.

In a time when our governments think the answer to correcting our public education system’s decades-long failure to improve our children’s education, as demonstrated by poor and unimproving standard test scores, is to continue their decades-long practice of throwing our taxpayer money at the system (what was it that Albert Einstein said about doing the same thing repeatedly and expecting different results…?), some of our state governments, and the good citizens therein, are rejecting the idea and doing something different.

As  The Daily Caller reports, in the recent special election in Colorado, the voters overwhelmingly rejected a ballot proposal that would have raised, yet again, taxes earmarked for public schools, when no discernable improvements from those increases were expected (by those taxpayers).

Florida, on the other hand, has been doing something different since the turn of the century: it’s lowered taxes by giving tax credits to businesses that donate to a non-profit  K-12 scholarship program that are equal to those donations.  The scholarships then are awarded to low-income families to help pay their costs in sending their children to private schools selected by those parents.  (Notice that phrase, too: “help pay.”  The families have to commit significant funds of their own; by having their own skin in this game, they have incentive to ensure their children do well in the new school.)

The effect of this Florida program is four-fold: the public schools, now having to compete for students, are doing a better job of teaching the children they retain.  The low-income families get better choices in how to get their children educated.  The state saves money: despite losing $1 in education tax revenues, it actually saves nearly $1.50 because despite the stereotype, it’s cheaper to educate a child in a private school in Florida than it is in a public school.  The local communities come out ahead because a dollar taken in taxes is only about six bits actually spent back into the local community due to the internal friction of the various government agencies each taking their taste of that tax dollar, whereas that same dollar left in the taxpayer’s hands is entirely spent in one form or another.

Now let’s look at government-guaranteed student loans for college (those guarantees, don’t forget, are covered by tax dollars from all of us).  What are these loans used for, and what should they be used for?

This table from The Daily Caller is instructive.

Bachelor's Degrees AwardedLook at this table against the backdrop of the global economic competition in which the United States is engaged.  From business, to resource development, to production, to defense, and everything in between, the United States needs well-trained and -qualified scientists and engineers.  What are our students studying?  Visual and Performing Arts.  Education(!?).  Social Science (how are we doing in this field, by the way?).  What are international students, the students of our competitors, studying?  Engineering.  Physical and Life Sciences.

If we’re going to have a government student loan program (I think we should not, but that’s another story), might it not be a little bit beneficial to target those loans in some way?  How about, if we’re going to commit our tax dollars to covering student loans at all, we at least use the program to encourage our students to study—and to stay with through graduation—the engineering and science, technology, and/or mathematics that will actually do our nation and our society some good, instead of just spotting our unformed (and uninformed) high school graduates the bucks they want simply to follow their bliss?