Regulatory Compliance Costs and Private School Participation in Voucher Programs

ABSTRACT

Using data from the 2015–16 round of the Private School Universe Survey, I examine the types of private schools that decide to participate in school voucher programs in seven locations: Milwaukee, Wisconsin, Indiana, Ohio, Louisiana, D.C., and North Carolina. Regression analysis indicates that more specialized private schools tend to be less likely to participate in voucher programs than regular private schools. Specifically, the preferred model finds that private schools that identify as Montessori, special education, and alternative are less likely to participate in voucher programs than schools that identify as regular. In addition, schools that are non-coeducational and schools that focus on serving homeschool students are less likely to participate in voucher programs. I also find that random admissions mandates and state testing requirements are negatively associated with private school participation in voucher programs, while the prohibition of copayment is positively associated with program participation.

KEYWORDS:

• Private school
• school choice
• school vouchers
• schooling supply

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. The optimal level of private school participation in voucher programs might be less than 100 percent because greater participation means more private schools will be subject to various government regulations, which may be detrimental in the long run (see DeAngelis & Burke, 2017; Ford & Andersson, 2019).

2. There are other benefits and costs associated with program participation. For example, a voucher program may allow a private school to better achieve a mission of serving disadvantaged students. At the same time, a change in the composition of students might require private schools to adjust their operations. Another long-term benefit is that new voucher-funded students could expand a school’s informal network of parents, which could increase recruitment of future students and families into the school. Another cost is the threat of losing a subset of students to nearby nonparticipating private schools because of state testing requirements. There are also social and organizational costs associated with program participation such as adapting to new students while maintaining school identity (Austin, 2015; Austin, 2019).

3. Regulation-induced homogenization has also been observed in other sectors such as private homeowners associations (e.g. Makovi, 2018).

4. Wisconsin – Milwaukee Parental Choice Program. EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/wisconsin-milwaukee-parental-choice-program/.

5. EdChoice calculates the relative funding percentage by dividing the average voucher value by current expenditures per pupil. For example, the 67 percent is calculated by dividing the average voucher value ($7,708) by current public school expenditures per pupil in Wisconsin ($11,538). It should be noted that this methodology results in a higher percentage than if the denominator were total public school expenditures per pupil ($13,105). Current expenditures per pupil can be found in Table 4 in Revenues and Expenditures for Public Elementary and Secondary Education: School Year 2014–15 (Fiscal Year 2015). National Center for Education Statistics. Retrieved from https://nces.ed.gov/pubs2018/2018301.pdf .

6. Wisconsin – Parental Private School Choice Program (Racine). EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/wisconsin-parental-private-school-choice-program-racine/.

7. Wisconsin – Parental Choice Program (Statewide). EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/wisconsin-parental-choice-program-statewide/.

8. 75% of state voucher program applicants already attend private school. Milwaukee Journal Sentinel. Retrieved from http://archive.jsonline.com/news/education/75-of-state-voucher-program-applicants-already-attend-private-school-b99274333z1-259980701.html.

9. Indiana – Choice Scholarship Program. EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/indiana-choice-scholarship-program/.

10. Ohio – Educational Choice Scholarship Program. EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/ohio-educational-choice-scholarship-program/.

11. Louisiana Scholarship Program. EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/louisiana-scholarship-program/.

12. District of Columbia – Opportunity Scholarship Program. EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/district-of-columbia-opportunity-scholarship-program/.

13. North Carolina – Opportunity Scholarships. EdChoice. Retrieved from https://www.edchoice.org/school-choice/programs/north-carolina-opportunity-scholarships/.

14. Private School Universe Survey (PSS) Data and Documentation. Retrieved from https://nces.ed.gov/surveys/pss/pssdata.asp.

15. Schools indicating an Intent to Participate in the Milwaukee Parental Choice Program (MPCP) – 2015–16 School Year. Wisconsin Department of Public Instruction. Retrieved from https://dpi.wi.gov/sites/default/files/imce/sms/pdf/MPCP%202015-16%20School%20List.pdf.

16. Wisconsin Parental Choice Program (WPCP) 2015–16 School Year Student Headcount and FTE. Wisconsin Department of Public Instruction. Retrieved from https://dpi.wi.gov/sites/default/files/imce/sms/Choice/Data_and_Reports/2015-16/WPCP_Jan_Numbers_by_School_and_grade_level_2015-16.pdf.

17. Racine Parental Choice Program (RPCP) 2015–16 School Year Student Headcount and FTE. Wisconsin Department of Public Instruction. Retrieved from https://dpi.wi.gov/sites/default/files/imce/sms/Choice/Data_and_Reports/2015-16/RPCP_%20Jan_Numbers_by_School_2015-16.pdf.

18. Choice Scholarship Program Annual Report: Participation and Payment Data. Indiana Department of Education. Retrieved from https://www.doe.in.gov/sites/default/files/choice/2015-2016-choice-scholarship-program-report-final-july-update.pdf.

19. Scholarship Dashboard. Ohio Department of Education. Retrieved from https://scholarship.ode.state.oh.us/Provider.

20. Report on the Louisiana Scholarship Program According to Requirements Under R.S. 17: 4024. Louisiana Department of Education. Retrieved from https://www.louisianabelieves.com/docs/default-source/school-choice/2015-2016-louisiana-scholarship-program-annual-report.pdf?sfvrsn=6.

21. Participating School Directory. D.C. Opportunity Scholarship Program. Serving Our Children. Retrieved from https://servingourchildrendc.org/wp-content/uploads/2016/03/School_Directory_English.pdf.

22. Opportunity Scholarship Program Report 2015–16 Academic Year. North Carolina General Assembly. Retrieved from https://www.ncleg.net/documentsites/committees/JLEOC/Reports%20Received/2016%20Reports%20Received/Opportunity%20Scholarship%20Program%20Report%202016.pdf.

23. RS 17:4022. Louisiana State Legislature. Retrieved from https://www.legis.la.gov/Legis/Law.aspx?d=631057.

24. RS 17:4013. Louisiana State Legislature. Retrieved from https://www.legis.la.gov/Legis/Law.aspx?p=y&d=631048.