Creating a Dayton Scholarship Program
The Cleveland Scholarship and Tutoring Program (CSTP) has been in existence for several years. Over that period, legal concerns limited program enrollment and prevented its expansion to other Ohio urban school districts. With the U.S. Supreme Court having affirmed the CSTP in Zelman v. Simmons-Harris it is the appropriate time to expand the scholarship program to the residents of other Ohio cities such as Dayton.
The Buckeye Institute study Education Empowerment Zones: Revitalizing Ohio’s cities through School Choice, details the benefits of extending a state scholarship program to Dayton. Community schools and an expanded voucher available to the middle-class could lead city revitalizing efforts by enticing middle-income families with children back into the city.
Increasing the availability of high-quality education opportunities to all residents increases the attractiveness of living in Dayton to working and middle-class parents. An increased population of working and middle-class families leads to stabilized neighborhoods, increased economic integration and rising home values. School choice is vital not only to the educational prospects of the children of Dayton, but to the health and vitality of the city as a whole.
Financial Concerns
The main concern that many Ohio policymakers have with expanding vouchers into cities like Dayton is the cost. That is a legitimate concern given the state’s recent budget situation.
An easy way to address this concern is to utilize the community school funding mechanism to fund a proposed Dayton Scholarship Program (DSP). Community school funding is based on the following principle: every state aid dollar tied to a student’s enrollment in a public school follows that student to a community school. This means that every student is guaranteed at least the base cost funding amount, although it could be more depending upon a particular student’s situation. This amount generally, though not always, covers the full cost of educating the student in question.
The main goal of the DSP is to revitalize Dayton by using scholarship availability to encourage families to move back into the city. As such, funding scholarships for current Dayton private school students merely increases funding without a concomitant increase in population. A “look back period” should therefore be instituted that requires all first-year DSP recipients to have attended public school the previous year. This change ensures that the state pays only for students currently in the state system.
How It Would Work in Dayton
Since the DSP depends upon parents making choices on which school is best for their children, it would be impossible to predict with any accuracy the exact impact of the DSP creation. What we can see, however, is how funding the DSP in this way would ensure revenue-neutrality, adequate scholarship levels, and more money per pupil for the Dayton City School District.
During the 2003-2004 school year base cost funding is set at $5,058. The Dayton City School District is estimated to receive an average of $7,687 per pupil in state aid. A student from a Dayton public school applying to the DSP would be guaranteed at least a $5,058 scholarship. The over $2,500 difference per student will remain with the Dayton City School District, except in cases where a student receives special education services.
In either case, the Dayton City School District will retain all locally generated revenue, estimated to be $4,619 per student during the 2003-2004 school year. These funds remaining in the now smaller district will raise total revenue per pupil and offset the fixed costs that will continue to be incurred by the district.
If large numbers of students move into Dayton from the suburbs, the state very well may spend more dollars per pupil. Should this occur, however, the DSP will clearly be achieving the goal of getting families to move back into the city.
Conclusion
Structuring the Dayton Scholarship Program this way has four main benefits. The first one is that it ensures the revenue-neutrality of state education spending, regardless of whether one or 10,000 students enroll. Second, it would place the newly created DSP on similar footing with Ohio’s community schools. Third, DSP scholarships would automatically increase whenever basic state aid to schools increased. Fourth, it ensures that all local revenue remains with the local school district.
If Ohio policymakers are serious about revitalizing Ohio cities like Dayton, they must recognize the importance parents place on good schools and their willingness to move to get them. Surveys of families above the poverty level in the Cleveland Scholarship Program emphatically state that they would not be staying in the City of Cleveland if they did not have the voucher available to them.
These working and middle-class families that Dayton has been losing to the suburbs are the backbone of a healthy, vibrant city. By extending scholarships to all Dayton residents, policymakers will have taken an important step towards revitalizing the city.
Joshua C. Hall is the director of the Buckeye Institute Center for Education Excellence and a lecturer in economics at Capital University.
