Research & Commentary: NAEP Scores Show It’s Time to Significantly Expand Rhode Island’s Tax-Credit Scholarship Program
Roughly Six In Ten Rhode Island Students Below Grade Level In Math And Reading
Results from the latest version of the National Assessment of Educational Progress (NAEP) test—also known as the Nation’s Report Card—have been released, and Rhode Island’s scores are not good.
Only 35 percent of fourth graders tested “proficient” in reading, while just 40 percent tested proficient in mathematics in 2019. These math scores were a decline from 2017. For eighth graders, just 35 percent were proficient in reading, and only 29 percent were proficient in math. Both of these results were also a decline from 2017, with reading scores being significantly down. When accounting for demographic differences across students throughout the state and control for race, ethnicity, special education status, income level, etc., Rhode Island’s scores are even worse.
In Providence Public Schools, the state’s largest school district, the record of failure is so long and habitual that an eye-opening Johns Hopkins University report declares parents in the city are “marginalized and demoralized,” and that “school culture is broken, and safety is a daily concern for students and teachers.” Indeed, Providence Public Schools is so dysfunctional, and has been for so long, that Gov. Gina Raimondo’s office recently decided to take it over.
Clearly, something drastic needs to be done to change the epic failure of Rhode Island’s public schools. Fortunately, state legislators have a potential solution already on the books in the form of the Tax Credits for Contributions to Scholarship Organizations (TCCSO) program, a tax-credit scholarship (TCS) program for low-income students.
Under TCCSO, nonprofit organizations, after receiving approval from the state, are eligible to grant scholarships to Rhode Island students. Businesses then donate to these nonprofits and receive a 75 percent tax credit for their donation. This tax credit increases to 90 percent if the business donates to the program for two consecutive years and the donation for the second year is at least 80 percent of the first year’s donation. Students are eligible for the program if their family income is below 250 percent of the federal poverty level for a family of four.
However, because of a miniscule $1.5 million budget cap, TCCSO only had 397 participating students in 2018, and just 38 percent of Rhode Island families are eligible for the program. To help reverse the effects of decades of mediocrity in the state’s public-school system, legislators should vastly expand this beneficial program.
With 23 different programs in 18 states and more than 1.2 million scholarships granted, TCS programs are the most popular form of private school choice in the nation. TCS programs provide several education benefits to participating students while doing so at a lower cost than public schools.
A study released in October 2016 by EdChoice “estimates the fiscal effects” of 10 of the nation’s 23 TCS programs (comprising 93 percent of all awarded TCS scholarships). The study found TCS programs h saved “state governments, state and local taxpayers, and school districts” $1.7 billion to $3.4 billion through 2014. In other words, TCS programs saved anywhere from $1,750 to $3,000 per student. The savings in the 2013–14 school year alone (the last year available for study) ranged from $320 million to $580 million. TCCSO specifically has saved Rhode Island taxpayers $8 million to $21 million since its enactment in 2006, or roughly $3,400 to $7,400 per student.
A 2019 study from the Urban Institute, expanding on previous research of Florida’s Tax Credit Scholarship Program—the country’s largest TCS program—found participating students are 99 percent more likely to enroll in a four-year college and 56 percent more likely to graduate college than their public school peers.
Copious other empirical research on TCS programs and other school choice initiatives shows these programs offer families improved access to high-quality schools that meet their children’s unique needs and circumstances. Moreover, these programs improve access to schools that deliver quality education inexpensively. Furthermore, TCS programs benefit public school students and taxpayers by increasing competition, decreasing segregation, and improving civic values and practices.
By significantly expanding TCCSO, more Ocean State families would have a greater opportunity to meet the unique education needs of their children. When parents are given the opportunity to choose, every school must compete and improve, which gives more children the opportunity to attend a quality school.
The following documents provide more information about tax-credit scholarships and education choice.
School Choice Fallacies: Disproving Detractors’ Allegations Against Tax-Credit Scholarship Programs
This report from Martin Lueken and Michael Shaw at EdChoice examine tax codes to address claims alleged by school choice detractors, such as: Tax-credit scholarship programs lead to “profit,” “double-dipping,” “get-rich schemes,” and “tax shelters” for donors.
The Tax Credit Scholarship Audit: Do Publicly Funded Private School Choice Programs Save Money?
In this audit, EdChoice Director of Fiscal Policy and Analysis Martin Lueken updates previous work examining the fiscal effects of private school choice programs on state governments, state and local taxpayers, and school districts. Lueken’s report analyzes savings from tax credit scholarship programs, which allow individuals and businesses to reduce their state tax liability by making a private donation to a nonprofit organization that provides scholarships for children to attend private schools of their choice. This audit looks at 10 tax credit scholarship programs operating in seven states between 1997 and 2014. These 10 programs serve 93 percent of all students participating in tax credit scholarship programs nationwide.
The Effects of the Florida Tax Credit Scholarship Program on College Enrollment and Graduation: An Update
In this update to a 2017 Urban Institute study, authors Matthew Chingos, Tomas Monarrez, and Daniel Kuehn find students participating in the Florida Tax Credit Scholarship Program are 99 percent more likely to enroll in a four-year college, and 56 percent more likely to graduate, than their public school peers.
The Effects of Statewide Private School Choice on College Enrollment and Graduation: Evidence from the Florida Tax Credit Scholarship Program
This study from Urban Institute scholars Matthew Chingos and Daniel Kuehn shows Florida’s Tax Credit Scholarship Program boosted college enrollment for participating students by 15 percent, with students enrolled in the program for four or more years seeing a 46 percent hike.
Protecting Students with Child Safety Accounts
In this Heartland Policy Brief, Vicki Alger, senior fellow at the Independent Women’s Forum and research fellow at the Independent Institute and Heartland Policy Analyst Tim Benson detail the prevalence of bullying, harassment, and assault taking place in America’s public schools and the difficulties for parents in moving their child from an unsafe school. Alger and Benson propose a Child Safety Account program, which would allow parents to immediately move their child to a safe school— private, parochial, or public— as soon as parents feel the school their child is currently attending is too dangerous for their child’s physical or emotional health.
The 123s of School Choice
This report from EdChoice is an in-depth review of the available research on private school choice programs in America. Areas of study include: private school choice program participant test scores, program participant attainment, parent satisfaction, public school students’ test scores, civic values and practices, racial/ethnic integration and fiscal effects.
A Win-Win Solution: The Empirical Evidence on School Choice (Fourth Edition)
This paper by EdChoice details how a vast body of research shows educational choice programs improve academic outcomes for students and schools, saves taxpayers money, reduces segregation in schools, and improves students’ civic values. This edition brings together a total of 100 empirical studies examining these essential questions in one comprehensive report.
The Public Benefit of Private Schooling: Test Scores Rise When There Is More of It
This Policy Analysis from the Cato Institute examines the effect increased access to private schooling has had on international student test scores in 52 countries. The Cato researchers found that a 1 percentage point increase in the share of private school enrollment would lead to moderate increases in students’ math, reading, and science achievement.
2018 Schooling in America Survey: Public Opinion on K–12 Education, Parent and Teacher Experiences, Accountability, and School Choice
This annual survey from EdChoice, conducted in partnership with Braun Research, Inc., measures public opinion and awareness on a range of K–12 education topics, including parents’ schooling preferences, educational choice policies, and the federal government’s role in education. The survey also records response levels, differences, and intensities for citizens located across the country and in a variety of demographic groups.
The Effects of School Choice on Mental Health
This study from Corey DeAngelis at the Cato Institute and Angela K. Dills of Western Carolina University empirically examines the relationship between school choice and mental health. It finds that states adopting broad-based voucher programs and charter schools witness declines in adolescent suicides and suggests that private schooling reduces the number of times individuals are seen for mental health issues.
Competition: For the Children
This study from the Texas Public Policy Foundation claims universal school choice results in higher test scores for students remaining in traditional public schools and improved high school graduation rates.
Nothing in this Research & Commentary is intended to influence the passage of legislation, and it does not necessarily represent the views of The Heartland Institute. For further information on this subject, visit School Reform News, The Heartland Institute’s website, and PolicyBot, Heartland’s free online research database.
The Heartland Institute can send an expert to your state to testify or brief your caucus; host an event in your state; or send you further information on a topic. Please don’t hesitate to contact us if we can be of assistance! If you have any questions or comments, contact Heartland’s government relations department, at firstname.lastname@example.org or 312/377-4000.