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School choice and competition

In North Carolina, public education is a core function of state and local government. The state constitution, in the words of the N.C. Supreme Court, recognizes the right to a "sound, basic education" for every child in the state. But public education need not and should not be delivered by government monopolies, as a diverse array of magnet, charter, and private schools are demonstrating across the country and here in North Carolina. In the end, no system for delivering goods and services functions well without providing a means for consumers to make their desires known and express their level of satisfaction.

Key Facts

• Between 2000-01 and 2008-09, there has been a 104 percent increase in home schools and a 128 percent increase in the number of home school students. For the 2008-09 school year, 77,065 students were enrolled in 41,042 home schools.
• Between 2000-01 and 2008-09, there has been a 4 percent increase in private schools and a 10 percent increase in private school students. For the 2008-09 school year, 98,545 students were enrolled in 683 private schools.
• In 2008-09, there were 35,131 students enrolled in North Carolina charter schools, public schools of choice that are funded by taxpayer dollars and subject to many of the same accountability and regulatory requirements as district schools.
• In 2008-09, the average county market share of North Carolina's public and private schools of choice — charter, home, and private schools — was 11 percent. Martin County had the lowest percentage market share (3 percent), while Northampton County had the highest (28 percent). For the 2008-09 school year, 210,741 students were enrolled in charter, home, and private schools.
• On the 2008-09 North Carolina end-of-grade and end-of-course tests, the average charter school performance composite (percentage of "proficient" students across grades and tested subjects) was 73.0 percent, compared with 69.8 percent for district schools. Since the 1996-97 school year, the State Board of Education has approved 143 charters, closed 33 charter schools, and allowed 10 charter schools to relinquish their charter without opening.
• Neither the state constitution nor the federal constitution would prohibit a comprehensive school choice program in North Carolina.

Recommendations

1. Give parents an "Education Bill of Rights." An Education Bill of Rights should attach funding to the students and give parents the right to use that funding to send their children to any public, charter, or private school in the state.
2. Have North Carolina school districts make greater use of open enrollment and magnet schools. District leaders should employ choice and competition as tools to improve academic performance and allow diverse learning communities to form.
3. Lift the legislatively imposed statewide cap of 100 charter schools. The state of North Carolina should allow the number of charters to grow as long as parents, educators, and oversight agencies ensure accountability for results.
4. Allow North Carolina families to set up educational savings accounts. Families should be able to make an annual tax-deductible deposit of $5,000 per child, from which they can withdraw funds tax-free for educational expenses such as textbooks, educational materials, or tuition incurred at any time from preschool through college. Needy students in public schools where fewer than 60 percent test at grade level should get $4,500 scholarships to attend private schools, provided that no additional regulatory burdens are placed on private schools that accept those students.
5. Let low- and middle-income parents receive or access education tax credits. Family education tax credits would reduce the state income tax liability of families that incur out-of-pocket expenses for private school tuition and educational services and expenses. A philanthropy education tax credit would reduce the state income tax liability of individuals and business that donate to scholarship funding organizations. Research has shown that both types of tax credits are educationally and fiscally sound.