The rise of education savings accounts (ESAs) was not sudden or unexpected, according to a Texas Tech economics professor.
“Momentum was building for years. Then came a giant leap with the COVID-19 pandemic,” said Alexander William Salter, a professor of economics at Texas Tech University (TTU) and the comparative economics research fellow at TTU’s Free Market Institute.
“School closures, learning losses and partisan curricula made parents painfully aware the government monopoly school system doesn’t serve their interests,” Salter told Austin Journal. “ESAs offer flexibility and opportunity for families looking for other options.”
Texas Gov. Greg Abbott is a proponent of school choice.
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He thinks ESAs are “definitely good” for students and schools.
“Study after study shows the positive results of school choice: Participating student test scores rise, taxpayers save money, civic literacy increases,” Salter said. “Even traditional public schools benefit from school choice."
"Competition for students forces them to step up their game, helping students who remain," he added. "Also, there’s initial promising evidence competition for teachers boosts their salaries. School choice helps just about every major stakeholder.”
Salter noted that the battle for school choice in Texas is at a “pivotal stage,” with Senate Bill 8, which establishes ESAs, clearing the Committee on Education and awaiting a floor vote.
Salter said proponents of school choice argue that it helps students, taxpayers and even existing government schools, while opponents repeat a “handful of superficially appealing but flawed arguments.”
Gov. Greg Abbott has expended plenty of political capital on education-related issues this session, including supporting ESAs. Will he succeed?
“I hope so. He’s doing yeoman’s work, touring the state and rallying in support of ESAs,” Salter said. “The vote will be close in the House public ed committee, but I think the government school monopoly defenders are on the back foot. This is the best shot we’ve had in a long time.
“Historically, the holdup has been rural Republicans in the House," he added. "Those legislators’ hearts are in the right place but they’re misinformed about how school choice works. It won’t damage their districts. This time, however, is different. Educational freedom is polling incredibly well, even in rural districts. Advocates of educational freedom have momentum.”
Data from EdChoice shows 68% of adults in Texas and 76% of Texas' parents support school choice.
On April 11, the Texas House of Representative held a hearing to discuss the school choice debate, according to the Texas Scorecard. Multiple bills to create ESAs have been introduced in the House, and Senate Bill 8, which also suggests ESAs, has passed the Senate.
Proponents of ESAs testified at the hearing, including Ron Matus of Step up For Students, who argued the benefits of ESAs can be seen in Florida. He noted how Florida's academic performance has significantly improved over time with a state-approved scholarship funding program.
Jennifer Allmon of the Texas Catholic Conference testified in favor of ESAs, saying school choice is “not a zero-sum game where private schools win and public schools lose,” noting many students will not leave their district school.
Salter refuted three arguments made by anti-choice activists. Critics of school choice argue that education is a public good and must be provided by the government.
However, he said, education does not meet the technical definition of a public good. First, private schools demonstrate that markets can successfully provide education, Salter said. Second, education fails the “rivalry-excludability test,” he said.
“Notably, neither private nor public colleges have any trouble ensuring only enrolled students occupy seats in a lecture hall or participate in labs," Salter said. "Why would it be any harder for K-12?”
Despite these arguments, opponents of school choice continue to argue that private schools divert public funds away from public schools. However, many government programs, such as Pell Grants and the G.I. Bill, also provide public funds for use at private institutions as long as they serve a public purpose.
Salter argues that the concern school choice will destroy rural school districts is unfounded. Rural districts are usually of low population and the argument is that if even a few students withdraw, funding for rural schools could dry up.
However, the reality is that small rural districts won’t support a robust market of private educational options, because there aren't enough students to justify opening several private schools.
As the debate continues in the Texas Legislature and ESA opponents continue to argue education is a public good that must be provided by the government, that school choice unjustly diverts public funds to private institutions, and that it will destroy rural school districts, Salter has this response.
He says studies demonstrate school choice's efficacy and it gives Texans the freedom to pick the educational option that matches their needs and values.
“They have nothing to fear," he said. "School choice won’t harm rural districts."
Salter is also an associate editor of the Journal of Private Enterprise, a Sound Money Project senior fellow and a Young Voices senior contributor.
He has published one book, “Money and the Rule of Law: Generality and Predictability in Monetary Institutions.”