A Bold Experiment to Fix City Schools

A proposal for school vouchers on which Milton Friedman, Lamar Alexander, and Kweisi Mfume, the president of the NAACP, all agree

IN 1962 John E. "Jack" Coons, an idealistic thirty-two-year-old law professor at Northwestern University, was asked by the U.S. Civil Rights Commission to study whether Chicago schools were complying with desegregation orders. Coons soon found that what really interested him was a different question: Why were suburban schools so much better than those downtown? Over the next few years Coons, eventually joined by two law students, Stephen Sugarman and William Clune, found one answer in what would become a source of enduring outrage: America's property-tax-based system of public-school finance created dramatic disparities in the resources available to educate children.

This financial aspect of education's vaunted tradition of "local control" is rarely the subject of national controversy. In part that is because it gives the nation's most powerful citizens both lower taxes and better schools. Imagine two towns, Slumville and Suburbia. Slumville has $100,000 in taxable property per pupil; Suburbia has $300,000. If Slumville votes to tax its property at four percent, it raises $4,000 per pupil. But Suburbia can tax itself at two percent and raise $6,000 per pupil. Suburbia's tax rate is half as high, but its public schools enjoy 50 percent more resources per student.


In the 1960s affluent districts routinely spent twice what nearby poorer ones did, and sometimes four or five times as much. To Coons and his colleagues, such inequity in a public service was indefensible. Beginning with Private Wealth and Public Education, a book that he, Sugarman, and Clune published in 1970, Coons has denounced the system eloquently. It's worth sampling his arguments, because the left's case for choice is usually drowned out by the right's cheerleading for markets, or by urban blacks' cry for help. In a 1992 essay, "School Choice as Simple Justice," Coons wrote,

This socialism for the rich we blithely call "public," though no other public service entails such financial exclusivity. Whether the library, the swimming pool, the highway or the hospital -- if it is "public," it is accessible. But admission to the government school comes only with the price of the house. If the school is in Beverly Hills or Scarsdale, the poor need not apply.

Coons's point was simple: the quality of public education should not depend on local wealth -- unless it is the wealth of a state as a whole. "Everyone ought to be put in a roughly equivalent position with regard to what the state will do," Coons, now an emeritus law professor at Berkeley, says.

Coons and Sugarman made a successful case for the unconstitutionality of the school-finance system in California's famous Serrano case in 1971, beginning a national movement to litigate for school equity. Although it was little noticed then, they cited vouchers as a potential remedy. The idea was to give courts a way to instruct legislatures to fix things without having to mess with local control. Asking legislatures to centralize school funding at the state level was a political nonstarter. But through various formulas, Coons and Sugarman argued, the state could give families in poorer districts enough cash in the form of vouchers to bring education spending in those districts up to that of better-off districts. And what could be more "local," they reasoned, than giving families direct control over the cash to use at schools as they chose?

COONS and Sugarman, focusing on school equity, thus arrived at a policy that Milton Friedman had been urging through a principled commitment to liberty and to its embodiment, the market. Friedman's 1955 essay "The Role of Government in Education" is viewed as the fountainhead of the voucher movement. In an ideal world, the future Nobel laureate reasoned, the government might have no role in schooling at all; yet a minimum required level of education and its financing by the state could be justified.

A stable and democratic society is impossible without widespread acceptance of some common set of values and without a minimum degree of literacy and knowledge on the part of most citizens ... the gain from the education of a child accrues not only to the child or to his parents but to other members of the society.... Yet it is not feasible to identify the particular individuals (or families) benefitted or the money value of the benefit and so to charge for the services rendered.

However, Friedman said, if this "neighborhood effect" meant that the government was warranted in paying for K-12 education, another question remained: Should the government run the schools as well? Friedman's view was that schools could be just as "public" if the government financed but didn't administer them. That notion remains virtually unintelligible to leaders in public education, perhaps because it is so threatening.

Friedman's analogy (adopted by every voucher proponent since) was to the G.I. Bill, which gave veterans a maximum sum per year to spend at the institution of their choice, provided that it met certain minimum standards. Likewise, for elementary and secondary schooling Friedman envisioned a universal voucher scheme that would give parents a fixed sum per child, redeemable at an "approved" school of their choice. Such a school might be nonprofit or for profit, religious or secular. Parents could add to the sum if they wished. The role of government would be limited to assuring that "approved" schools included some common content in their programs, "much as it now inspects restaurants to assure that they maintain minimum sanitary standards." In Friedman's view, market-style competition for students would spur the development of schools that were better tailored to families' needs and cost less than those run by notoriously inefficient public bureaucracies.

Friedman's and Coons's different angles of vision represent the ancient tug between liberty and equality within the pro-voucher camp -- a debate the two have waged since Friedman was an occasional guest on Coons's Chicago radio show, Problems of the City, in the 1960s. Friedman today isn't bothered by issues of school-finance equity. "What's your view of inequity in clothing and food?" he snapped when asked recently, saying that such concerns reflect Coons's "socialistic approach." And even if public schools were making every child an Einstein, Friedman says, he would still want vouchers. "Private enterprise as opposed to collectivism," he says, "would always be better."

Coons is less ideological. In his view, choice would improve the public schools, which he believes would always be chosen by the majority, even with a full-blown voucher system. The prospect of losing students (and thus funding) would force improvements faster than today's seemingly endless rounds of ineffectual education fads. If poor children got a decent education under the current system, he adds, he probably wouldn't have devoted his life to these issues.

The fate of disadvantaged children under a voucher regime is where the Coons-Friedman clash is sharpest. Coons would be glad to offer vouchers to all low-income students and to no one else if such a step were necessary for consensus. He fears that under a universal voucher system they could get left behind, as schools competed to recruit better-off, smarter, healthier (nondisabled) students. The incentives are plain: such children would be easier to teach, and schools could charge wealthy families far more than the voucher amount to maximize profit. Coons and the voucher left therefore insist that any universal scheme should include protections for low-income and disabled children. Examples would be increasing the voucher amount for those children to make them more attractive to schools, and letting schools redeem their vouchers only if, say, 15 percent of new places were reserved for such children, for whom the voucher would cover tuition. To Friedman, these are unacceptable intrusions on schools' freedom to operate as they like, turning vouchers into "a welfare program, not an education program."


is a syndicated columnist and a contributing writer for The New Republic. He is a co-host of Left, Right, and Center, on KCRW-FM in Los Angeles, and a senior fellow at the Annenberg Public Policy Center of the University of Pennsylvania.


Illustrations by J. C. Suarés.

The Atlantic Monthly; July 1999; A Bold Experiment - 99.07 (Part Two); Volume 284, No. 1; page 15-31.



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