The cost of choice

In the May issue of Milwaukee Magazine (not available on-line), editor Bruce Murphy has an article criticizing the Milwaukee choice program. It is not clear whether Murphy thinks the program is a bad idea that should be repealed or simply intends to point out some issues that need addressing. In support of the former theory, he throws in a kitchen sink of standard points made by choice opponents: questioning whether parents make good educational decisions, comparing MPS per student spending to that of Nicolet (a high school versus a K-8 system), and blaming MPS financial problems on the choice program (ignoring the devastating impact of health insurance costs).

The substantive issues Murphy raises are largely financial and can be grouped in three categories:

1. Milwaukee taxpayers pick up a disproportionate share of the cost of choice tuition.
2. The proportion of special education students rises in MPS as other students switch to choice.
3. The voucher payment is too low, depressing overall educational spending in Milwaukee.

Murphy's first point has received the most discussion. The best solution is straightforward: count choice students in the formula used to calculate the percentage of educational expenses picked up by the state. In fact, a measure to do this was introduced several years ago but died due to lack of support from any Democratic legislator on the Joint Finance Committee (including two from Milwaukee). My guess is that with the right political support, particularly if Mayor Barrett puts pressure on the Democrats, this problem can be solved as part of the next state budget.

There has been very little discussion so far of Murphy's second two points, particularly the unusual criticism that the voucher payment is too low. I am not aware of any proposals to address them. One possible approach that would address both points is a "weighted student formula." This idea was pioneered in Edmonton and, according to a recent article in Reason magazine, has spread to a number of American school districts. Using a weighted student formula, schools receive funds based on the number of students in various categories times a factor based on the estimated cost of educating students in those categories. Thus schools might receive a bit extra for English learners and more still for various levels of special education needs. (MPS funds schools based on enrollment but special needs are handled as a service rather than extra funding for the schools.)

Using this model, the overall education budget for Milwaukee would be the MPS per student spending times the total number of Milwaukee students, whether in MPS, charters, or voucher schools. But this total amount would be reallocated to the schools based on a weighted student formula. Thus, unlike now, a choice school with children needing special education would receive extra funding. If, however, most such students stayed in MPS, MPS would receive extra funding generated by the choice enrollment.