Taxpayer Savings Grants

On this page you will find news articles, research/reports, comments, and status of pending legislation and/or regulations relating to education savings accounts.

Great explanation of the so-called “taxpayer savings grants” being proposed by Sen. Dan Patrick.  Austin American-Statesman, by Billy Hamilton

Savings From Vouchers Debated in Texas School Finance Trial

By Katie Ash, Education Week, on January 23, 2013 6:22 PM | 1 Comment

A lawsuit is underway in Texas, in which 600 school districts are suing the state, claiming that $5.4 billion in cuts to education by the state legislature in 2011 have created an inadequate, inequitable, and unconstitutional school-funding system. The focus of the ongoing trial has shifted recently from claims that the schools are underfunded to arguments about how to use school funding efficiently, according to this article from the Associated Press. And that shift has given school choice advocates a platform to argue that vouchers could help save the state money.

The trial began in October and is being overseen by state Judge John Dietz. The court is now hearing testimony from a conservative group called Texans for Real Efficiency and Equality in Education, who are calling for more charter schools and voucher programs, arguing that those policies will spur competition and efficiency in public education. Currently, Texas has 490 charter schools operating in the state, according to The Center for Education Reform. The state does not have a voucher program.

As part of the group’s testimony, John Bast, the president of the conservative, Chicago-based think tank the Heartland Institute, pointed to a report that he wrote with John Merrifield, a professor of economics at the University of Texas at San Antonio, which argued that a taxpayer savings grant proposal that would give families public money to send their children to private schools could save the state up to $2 billion annually. The report estimates that six percent of Texas public school students would transition to private schools if vouchers were available, saving the state—through the report’s estimation—$7,750 per student.

However, during cross examination, Bast acknowledged that no Texas government entity agreed with the report’s findings and in fact, according to a fiscal note prepared by the nonpartisan Legislative Budget Board in Texas, the voucher program would likely cost the state almost $200 million during its first two years of operation. Bast also conceded that the Heartland Institute’s report has not been peer-reviewed, the process through which academic scholars vet each others’ work.

Texas is no stranger to school funding lawsuits, this being its sixth since 1984, according to the Washington Post. Texas is among 10 states that are currently embroiled in school-finance court battles, the article said.

The cost of private school voucher programs, like many aspects of private school choice, is a source of controversy. For instance, backers of vouchers have claimed that one variation of those programs, known as tax-credit scholarships, drive down state costs as students leave public schools for private ones—even as the state loses money by awarding tax credits. Others say those calculations are based on faulty assumptions, as we explained in a recent story.

Patrick/Dewhurst/Perry Think We’ll Buy This So-called “Report”

We are posting this self-interest (of Patrick/Dewhurst/Perry) “report” from the Heartland Institute because it is being used by the proponents of vouchers to justify their rape of the public school system of even more critically needed revenue to educate its 5,000,000 students, 60% of whom are economically disadvantaged.  We need to know what they are saying and what they are up to.   It isn’t the schools that are failing, Governor. It is your leadership!  You can say that the membership of Texas Schools Can’t Wait are outraged!

Cost Estimates for Voucher Program by Legislative Budget Board

The following report of the Legislative Budget Board is a more reliable source of information than the Heartland Institute, which is invested in private schools.

Taxpayer Savings Grant Program–proposed

We are reading and hearing a great deal about the so-called Taxpayer Savings Grant Program that the legislature will potentially adopt this session–unless we can be effective in our opposition to this blatant attempt to privatize our public schools.  Below are links to several documents that will help inform you.  First is an article published by the Hoover Institute, an extremely conservative “think tank” at Stanford University:

The second document is from the Texas Public Policy Foundation, which has ties to the Friedman Foundation and to ALEC.  They advocate for this program to privatize our schools.  See .

There is also the recent testimony by Joseph Bast from the Heartland Institute at a Texas Senate Education Committee hearing on Aug. 24, 2012:

And, you need to look at the webpage for “Taxpayer Savings Grants.”  Click on “FAQs” for their talking points.  See .   Also listed on this page are their coalition members.  Take a look at that list!

Stay tuned.  We will post more information as it becomes available.

NEPC’s Review of Friedman Foundation’s Advocacy for Education Savings Accounts:

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