If finances are the top concern of public school officials beset with low state test scores, they should be on board with scholarship proposals that enable students to attend private schools while reducing taxpayer costs — like the one just introduced in the Pennsylvania Senate.

Yet, despite recent studies that demonstrate how school choice initiatives boost academic performance while also alleviating the public cost of education, union operatives claim that providing parents with more autonomy over their own tax dollars will somehow “divert” vital resources from public schools. How do these arguments hold up?

By acknowledging the growing appetite for alternatives to conventional public schools on the part of parents and students, unions are unwittingly making the case for reform, according to education policy analysts.

Scholarships Aid Struggling Communities in Pennsylvania

Meanwhile, in Jonestown, Pennsylvania, Tom Smith, principal of the Bishop McCort Catholic High School, sees an opportunity to build on financial assistance programs that would have a transformative impact in his community.

In tandem with state budget negotiations, the prospects for “Lifeline Scholarships” have gained added momentum, offering Education Opportunity Accounts (EOAs) to any student attending a school that ranks among the lowest-performing schools in the state. Republican state Sen. Judy Ward this month introduced Senate Bill 795, aimed at providing parents and students with new avenues into private schools. Ward and her colleagues also have the opportunity to expand on existing tax-credit scholarships that enable low- to middle-income families to exercise school choice for the benefit of K–12 students. Private donations from businesses and individuals fund the scholarships. It’s also worth noting that Pennsylvania school districts maintain their public funding even for students who leave the district on a scholarship.

Out of the 370 students who attend Bishop McCort, Smith estimates that about 80 percent receive scholarships. By extending a “lifeline” to more students through EOAs, Smith sees an opportunity to put students, now saddled with failing schools, into a position where they can obtain a college degree. The scholarships would be more than enough to, in many cases, cover $7,000 a year in tuition for Bishop McCort. Commonwealth tax dollars would fund the accounts and restrict them to educational expenses associated with attending private schools. Any student residing in schools ranking in the bottom 15 percent of state schools would be eligible.

SB 795 calls for $2,500 for a student in half-day kindergarten, $5,000 for a student in full-day kindergarten through eighth grade, $10,000 for students in grades nine through 12, and $15,000 for special-needs students regardless of their grade.

“Here in Johnstown, we are in one of the poorest communities in Pennsylvania,” Smith said in an interview. “Many families living in the city do not have access to extra money to cover the cost of a private education. Therefore, they struggle to afford alternatives to failing public schools without assistance. That’s why the introduction of Lifeline Scholarships would be so critical right now. How does it make sense to continuously dump money into failing schools without trying something new?”

The most recent test scores released through the Pennsylvania Department of Education last year show that 77 percent of eighth-grade students are deficient in math, and 44 percent in language arts. These poor test scores are in play despite a significant jump in taxpayer spending on commonwealth schools. Government figures show statewide per-pupil funding increased to $21,263 in the 2021–22 school year, up almost 43 percent since 2013.

Nevertheless, state and national teachers unions continue to argue that K–12 schools remain “underfunded” and that proposals like Lifeline Scholarships drain vital resources from public schools.

Smith sees a much different dynamic at work with school choice, one that benefits taxpayers and students.

“With the Lifeline Scholarships, you can actually reduce the number of students they have in a public school classroom and save on taxpayer costs,” he explained. “If, for example, you have 30 students in a class and then five of them go to a private school, you’re giving those students more of an opportunity to have success, and more of an opportunity for the teachers to have success teaching with a reduction in class size. This can lead to a reduction in staffing which saves the district money as well.”

Recent studies measuring the impact of school choice initiatives bolster this argument. For instance, after examining the scholarship program already in place in Pennsylvania, EdChoice, a nonprofit that favors a variety of public and private options for education, found that a $100 million increase to the tax-credit scholarships available in Pennsylvania would save state and local taxpayers $265 million while benefitting students. The average tax-credit scholarship is $2,500, significantly less than the more than $21,000 it costs Pennsylvania taxpayers per student.

But there’s a national story here as well. In 2021, EdChoice surveyed 40 private school choice programs across 19 states (and D.C.) and found cumulative savings of $12.4 billion to $28.3 billion, or, on average, $1.80 to $2.85 for every dollar spent on the programs. Clearly, a growing body of evidence shows that taxpayers experience savings when students switch to school choice programs, which are much less expensive than the public education system. 

While it’s important for policymakers to consider the financial benefits of school choice, Smith also emphasizes the lifetime benefits for individual students.

“Bishop McCort is an excellent example of why Lifeline Scholarships are critical for Pennsylvania,” he said. “McCort sits blocks away from one of the lowest-performing school districts in the state. Each day, students walk past our building when if they had the financial assistance, they could take the steps necessary to improve their path in life.” 

Teachers Unions Seek to Undermine School Choice Movement

What happens next in the Pennsylvania General Assembly depends in part on how much power and influence the teachers unions can exert to the detriment of students who stand to benefit from the scholarships.

Analyzing the most recent Pennsylvania campaign finance data, the Commonwealth Foundation, a free-market think tank based in Harrisburg, found that government unions, including teachers unions, continue one-sided political spending, with 92.5 percent of their campaign contributions benefiting Democrats. So far this year, government unions donated $225,000 to the House Democrat Campaign Committee, which could help the party maintain its narrow majority in the House ahead of the 2024 elections. According to the report, “In the 2021–22 cycle, 99.6 percent of government union PAC contributions to candidates for statewide office went to Democrats.”

Harrisburg is in the final lap of budget talks, and the ace in the hole may be Gov. Josh Shapiro, a Democrat, who assumed office this past January. During his campaign, Shapiro told audiences he “favor[ed]” supporting Lifeline Scholarships in some form. And just last week, Shapiro said, “I’m open,” to school choice.

Friday, June 30, is the deadline for lawmakers to finalize the state budget, which means Shapiro has the opportunity make good on his campaign pledge and include a provision for the scholarships. Ward’s bill — and a companion bill in the House — serves as further indication that school choice has a heartbeat in a state that often sets national trends. 

Shapiro is not immune to well-funded special interests, as he received $5.5 million from government unions during his successful run for governor.

But Marc LeBlond, director of policy for EdChoice, sees signs that union opposition to education reform is losing its luster. He points to COVID-19 policies that “spread the pain” among parents now attuned to the oversized influence of well-funded special interests within the public school system.

“The idea of allowing parents to have some of their own tax dollars so they can send their kids to private school or pay for tutoring services has gained significant traction,” he said. “Parents now see that they don’t have to accept a standard grocery bag of education policy. Instead, they can unbundle and customize the growing number of options available. Once they get a taste of this, they are not going back.”

But what about the union pressure against Shapiro and other elected officials who have been on the receiving end of their donations? The Pennsylvania State Education Association, in concert with other government unions, recently sent a letter to Shapiro and statehouse lawmakers expressing its opposition to Lifeline Scholarships. That’s the usual drill when it comes to shaping policy.

LeBlond, however, sees ample opportunity to dismantle union talking points.

“This whole draining-resources-from-public-education argument is [a] strange one to make when you think it through,” he observed. “The unions are essentially indicting their own system. They are trying to preserve one particular model of education that calls for students to be stuck with schools in their own zip code. The unions and other public school officials are acknowledging that if you give people a choice, they will exercise that choice, so we can’t let them choose. That’s an indictment of the system they are supposedly defending.”

Kevin Mooney is the senior investigative journalist at the Commonwealth Foundation, Pennsylvania’s free-market think tank, and writes for several national publications. Follow him on Twitter @KevinMooneyDC.