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Privatization:
A Solution for School Inequities?
by John E. Chubb
Economically disadvantaged students suffer a
number of financial inequities in public education.
The school districts in which poor children live
often have fewer tax dollars to spend on education
than do districts in which middle-class children
live. Poorer districts also tend to pay lower
teacher salaries than richer districts and have
difficulty attracting and retaining teachers. These
inequities have recently been challenged in the
courts, and states are finding ways to mitigate
some of these imbalances.
But other inequities continue. One is the
tendency for disadvantaged students to be served by
the largest and most bureaucratic school systems.
School systems serving more than 100,000 students
have disproportionate numbers of poor and minority
students. These same systems are plagued by the
inefficiencies of public bureaucracy, meaning not
only that disadvantaged students have less spend on
their education than their more advantaged
neighbors but that the money tends to be spent less
efficiently.
Another inequity occurs within school
systems. The least experienced teachers tend to
teach in the schools with the highest
concentrations of disadvantaged students. Most
public school systems honor seniority when deciding
which teachers to hire. Teachers prefer to teach in
schools where student behavior is good, student
turnover is low, and parental involvement is high.
Thus, problem schools tend to have the most
teaching vacancies, which are filled by
inexperienced teachers. Because new teachers are
paid less than veteran teachers, inequities in
staffing bring inequities in funding: schools with
disadvantaged students receive less of every
district dollar than schools with advantaged
students because teachers in schools serving poor
kids cost less.
Privatization could go a long way toward
correcting these inequities. First, if private
school management firms contract with the largest
and most bureaucratized school systems,
disadvantaged students will benefit
disproportionately from more efficient uses of
their education dollars. Second, if private
management firms work in the poorest areas and are
paid for their services with the district
spends per pupil, privatization will increase
the funding available to disadvantaged
students.
Evidence suggests that private firms are working
as equalizers. Most of the private management firms
now operating public schools have focused on
charter schools, which in general serve
disproportionately poor and minority populations in
urban areas and by law receive per pupil funding
equal to local district averages.
As for traditional public schools, only Edison
Schools, among private firms, is doing substantial
contracting with school districts. But this is
changing. Fourteen firms submitted proposals to New
York City in August 2000 to manage the lowest
performing schools in the school system. Several
companies have responded to requests for proposals
from Kansas City, Missouri, to the state of
Maryland for school management of large school
systems and highly disadvantaged schools and
students. Edison's 110 schools, for example,
include contracts with Dallas, San Francisco,
Minneapolis, Miami, and Wichita. The students in
Edison schools are disproportionately needy: 65
percent are eligible for reduced price lunches; 55
percent are African American, and 17 percent are
Hispanic or Latino. If Edison's experience is an
indicator, privatization could be an important
equalizer in public education.
John E. Chubb is chief education officer for
Edison Schools, a distinguished visiting fellow at
the Hoover Institution, and a member of Hoover's
Koret Task Force on K-12 Education.
Courtesy: Hoover
Institution
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