POLICY HIGHLIGHTER

Volume 14, Number 27
November 19, 2004
Updated January 28, 2005

Time for performance review of state's K-12 education system

Some people seem to believe that education spending must arbitrarily increase each year regardless of whether or not current expenditures are resulting in necessary student achievement or efficient operations. This precept runs counter to a Priorities of Government (POG) review. If the results of the 2004 election are any indication, voters seem to agree.

When asked to raise their taxes by more than a billion dollars per year to support increased education spending, sixty percent of Washington voters said "no" by rejecting Initiative 884 (I-884). Some claim I-884 failed not because it was an unnecessary tax increase, but because it was the wrong kind of tax increase. Now that voters have rejected a sales tax increase, these education tax advocates are talking about the need for an income tax.

This tax approach assumes that the current $9.2 billion (all funds) spent each year on K-12 education in Washington (more than $9,400 per student) is insufficient. It is difficult to support this belief, however, since no one knows with any certainty if current education expenditures are efficient and economic.

Before seeking increased education spending, state officials should focus their efforts on determining how the state is spending existing taxpayer dollars.

Former Governor Gary Locke's POG budget consultant, Peter Hutchinson, recently said the following when asked if POG was a good fit for local school districts: "We do a lot of good things in our schools. If we can't afford them all, we need to be sure that we keep the ones that make the most difference—add the most to ensuring that all children learn at least a year's worth every year. Finding the answers requires that we be disciplined—base our decisions on what works, not on what we hope will work."

Virginia's Democrat Governor, Mark Warner, recently came to the conclusion that his state needed to find out what did and didn't work concerning its education spending; he announced his desire to conduct a statewide performance review of Virginia's K-12 schools to "give parents, policymakers, and all taxpayers a clear picture of how their schools are performing."

Governor Warner justified his intention, saying: "At a time when we are sending historic levels of new state support to our public schools, it is vitally important to demonstrate that local schools are doing their part to achieve maximum efficiency. We are not making any statement about how our schools are run now. Instead, these efficiency reviews recognize what any good business executive already knows: even the best-run enterprise can undergo continuous improvement and operate in a more cost-effective way."

Virginia has since completed performance reviews of four school districts resulting in identified savings of $4.3 million—more than $1 million in savings for each district reviewed. These reviews are now being expanded to other districts in the state. Virginia's performance reviews are modeled after the nearly 100 successful performance audits of schools conducted in Texas since 1991, which have resulted in identified savings of $750 million.

Article 9, Section 1 of Washington's Constitution states: "It is the paramount duty of the state to make ample provision for the education of all children residing within its borders, without distinction or preference on account of race, color, caste, or sex." Washington's Constitution does not say it is the paramount duty of the state to arbitrarily increase education spending each year. If Washingtonians do not know how effectively and efficiently money is currently being spent, how can we make a judgement as to whether or not ample provision has been made?

Before trying to find an "acceptable tax" to increase or implement in order to spend even more money on K-12 education, state officials should learn from the experiences of Virginia and Texas and embrace performance reviews of Washington's schools. Such reviews will further enable legislators and local school boards to accurately review and rank the state's K-12 priorities when crafting future budgets. Once Washington's school districts undergo these needed performance reviews, then, and only then, will taxpayers know if and where more resources are needed.

Prepared by: Jason Mercier | Budget Researsh Analyst | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org