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Wall Street Journal.
REVIEW & OUTLOOK

February 7, 2009

Milwaukee gets money for unneeded schools

To understand the problem with the stimulus bill, it helps to focus on specific parts. Take the $142 billion for schools, which is nearly double the total outlays of the Department of Education in 2007. Now consider that much of this cash would go to public-school systems that don't even need the money for its earmarked purposes.

The Milwaukee Public School system, for example, would receive $88.6 million over two years for new construction projects under the House version of the stimulus -- even though the district currently has 15 vacant school buildings and declining enrollment. Between 1990 and 2008, inflation-adjusted MPS spending rose by 35%, per-pupil spending increased by 36% and state aid grew by 58%. Over the same period, enrollment fell by a percentage point and is projected to continue falling, leaving the system with enough excess capacity for some 22,000 students.

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"In general, MPS facilities have been described by school officials as being in good to better-than-good condition," reports the Milwaukee Journal Sentinel. "The kind of situations that create urgent needs for renovation or new construction in some cities have not been on the priority list for MPS officials in recent years."

The Milwaukee situation is instructive for another reason. The city is home to the country's oldest and largest school voucher program, which provides public funds for children to attend private schools. Families who participate in the means-tested voucher program receive $6,700 per pupil, while the city spends more than $13,000 per student. In addition to saving the taxpayers money, voucher students graduate at higher rates and outscore their counterparts on reading and math exams, which is one reason waiting lists for the program are common.

Yet language in the stimulus bill expressly prohibits any dollars from going toward financial assistance to students attending private schools. In other words, Milwaukee can use the money to build schools it doesn't need, but not to expand education programs that are producing better outcomes for disadvantaged kids. The Senate version excludes provisions in the House bill for teacher merit pay and charter schools now serving more than a million students, two more education reforms that are gaining popularity nationwide despite opposition from teachers unions and local school boards.

President Obama says education spending belongs in the stimulus because it will help the economy in the long-term. Fair enough. But if the goal is to increase productivity, lawmakers need to be use the money as a lever for better results. Simply doubling or tripling the amounts for states to spend on the same failing schools isn't going to produce different outcomes. A growing body of education research suggests that kids perform better in schools where teacher pay is based on effectiveness, not seniority and credentials. Studies also show that charter schools help the children who attend them and put competitive pressure on nearby traditional public schools.

That $142 billion is little more than a huge stimulus to the teachers unions and lousy school districts to keep doing exactly what they've been doing.