Should public funding be limited to public institutions? Careful what you wish for

With the commencement of the legislative session in the Iowa Statehouse, the debate over one of its focal issues, education reform, is now in full swing. With an expanded majority in the House and a new supermajority in the Senate, this may be the year that state Republicans successfully enact Education Savings Accounts, which would allow state per-pupil education dollars to follow a student to their school of choice.

One of the most commonly used slogans in the school choice debate is the phrase “public funds for public schools.” It encapsulates the position of those opposed to it: Education dollars shouldn’t go to students, they should go directly to their assigned public schools. If your child’s needs extend beyond what the public system can provide, by all means, seek private schooling or home learning, but pay for it yourself — how dare your kid get an equal slice of the education pie.

Clearly, I see some fallacy in the notion that education funding should be limited to public institutions. The question is: Should it? Should public funding be limited to public institutions? To properly explore that question, Iowans (all Americans, really,) should consider how many of the current public funding streams — pertaining to education and more — already make their way to private institutions.

The Pell Grant is federal taxpayer-funded financial aid for college students which can be used at public or private colleges that generally does not need to be repaid. According to the National Center for Education Statistics, more than one-third of undergraduates at private schools financed their education in part with a Pell Grant during the 2015-2016 school year. If a Pell Grant recipient receives more than they need for their tuition, the school disburses that money to the student, who may spend it on education-related expenses such as a computer without claiming it as taxable income.

Student loans, which are expected to be repaid, are also not considered taxable income in the state of Iowa. But when those repayment obligations are forgiven, either fully or in part, student loans essentially become the same type of public funding as Pell Grants. Taxpayers become the permanent payer, many of their public dollars having gone to private institutions.

Student loan forgiveness, when compared with school choice, highlights a baffling contradiction in positions taken by activists and lawmakers who support one but oppose the other. Claire Celsi, a Democrat State Senator from Des Moines, is one of the most vocal opponents of school choice in the Iowa Senate. Yet Celsi sings the praises of President Joe Biden and his administration for measures announced for forgiveness of up to $20,000 in student loans, regardless of whether those loans funded a public or private education.

Financed by taxpayers or not, a college education is voluntary, and not sought by every person. K-12 education is the opposite. It defies logic that those who have no problem financing private college would also balk at equality-focused funding for compulsory education.

It’s difficult to meet the objectives of a compulsory education if the child is not developmentally ready for school. Head Start is a federal program created in 1965 for low-income children ages 3-5 years to help ensure school readiness. Its sister program, Early Head Start, serves children from birth until age 3, along with expectant mothers. Funding for the program is publicly sourced, but the many of the institutions providing the services are not. In addition to private nonprofits, for-profit agencies are eligible to receive funding and act as Head Start facilities, provided they meet the other requirements set forth by Health and Human Services.

Federal law also states that “faith-based organizations” may be designated as Head Start agencies. Locally, the Olivet Neighborhood Mission in Cedar Rapids has a Head Start center for half and full-day programming. The organization started as a ministry out of the basement of the Olivet Presbyterian Church. In Des Moines, a Head Start center is operated at Highland Park Christian Church. To promote early childhood wellness, your public dollars are going to private institutions — sometimes, even to churches.

Education is not the only aspect by which we assess the American quality of life. Health care is a strong indicator, and where there are shortcomings, so too are there often public funds to provide aid. For the health of senior citizens and individuals with disabilities, Medicare is financed in part by federal payroll tax revenues. For those near or under the poverty level, Medicaid is funded by state taxpayer dollars, the spending of which is partially matched by the feds. We don’t limit the use of those publicly-funded services to publicly-run institutions. If we did, fewer than half of Iowa’s hospitals would be able to accept patients with publicly-funded health coverage.

Housing and nutrition follow the same trend of public dollars received by private institutions for public good. We don’t limit Housing Choice Vouchers (also called Section 8) to publicly-owned rental properties, so public dollars can and do enrich private landlords’ bottom lines. The Supplemental Nutrition Assistance Program (SNAP) provides monthly dollar amounts for low-income families to spend on groceries, all of which is spent at privately-owned stores. Tanner Krause, CEO of Kum & Go in West Des Moines, described school choice last week as “another government program that benefits rich families.” Meanwhile, his chain of 430 convenience stores, which offer relatively few healthy food options, earns millions in revenue each year from snack food sales, paid for in part with taxpayer-funded SNAP benefits that his business accepts as payment.

When all is said and done, it’s actually more often than not that public dollars end up being spent at private institutions. Is that really a bad thing? It’s worth it to ask ourselves what our quality of life would look like if public dollars could only be used by public entities. What would health care look for Medicare recipients in Cedar Rapids if the nearest hospital they could visit was in Iowa City? Where would Head Start be if it weren’t allowed to blossom through churches and community action programs?

Perhaps the problem with education reform isn’t that it would divert public money to private institutions. Perhaps the real problem is that we limited the use of those dollars in the first place. If Iowans intend to cling to the notion that public funds should be limited to public institutions, they should be careful what they wish for — and what it’s already gotten us.

Comments: 319-398-8266; althea.cole@thegazette.com

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