What happens when you spend a billion taxpayer dollars with no oversight and no accountability? We’re about to find out.
For about eight years, a Houston private school has followed a unique pattern when appointing members to its governing board: It has selected only married couples.
Over 200 miles away, two private schools in Dallas have awarded more than $7 million in combined contracts to their board members.
And at least seven private schools across Texas have issued personal loans, often reaching $100,000 or more, to their school leaders under terms that are often hidden from public view.
Such practices would typically violate laws governing public and charter schools. But private schools operate largely outside those rules because they haven’t historically received direct taxpayer dollars. Now, as the state moves to spend at least $1 billion over the next two years on private education, lawmakers have imposed almost none of the accountability measures required of the public school system.
If held to the same standards, 27 private schools identified by ProPublica and The Texas Tribune through tax filings likely would have violated state law. The news organizations found, and three education law experts confirmed, more than 60 business transactions, board appointments and hiring decisions by those schools that would have run afoul of the state rules meant to prevent self-dealing and conflicts of interest if they were public.
“It’s frankly astonishing to me that anyone would propose the massive sort of spending that we’re talking about in these school voucher programs with, at best, minimal accountability,” said Mark Weber, a public school finance lecturer at New Jersey’s Rutgers University who opposes vouchers. “If I were a taxpayer in Texas, I’d be asking, who’s going to be looking out for me?”
Texas has long stood as a holdout in the national push for voucher programs, even as other conservative states embraced them. Gov. Greg Abbott gave school voucher proponents a major win this year, signing into law one of the largest and costliest programs in the country. In doing so, Abbott’s office has argued that the state has “strict financial requirements,” saying that “Texas taxpayers expect their money to be spent efficiently and effectively on their behalf, both in private and traditional public schools.”
The law, however, imposes no restrictions to prevent the kinds of entanglements that the newsrooms found.
The contrast is sharp. Public or charter school officials who violate these rules could be subject to removal from office, fines or even state jail felony charges.
Private schools face none of those consequences.
Supporters of the voucher program argue that oversight of private schools should come not from the state, but from their boards and the marketplace.
“If you transform the private schools into public schools by applying the same rules and regulations and procedural requirements on them, then you take the private out of the private school,” said Patrick Wolf, an education policy professor at the University of Arkansas. Wolf, who supports vouchers, said that if parents are unhappy with the schools, they will hold them accountable by leaving and taking their tuition dollars with them.
Typically, neither parents nor the state’s taxpayers have access to information that shows precisely how private schools spend money. Only those that are organized as nonprofits are required to file public tax forms that offer limited information. Of the state’s more than 1,000 accredited private schools, many are exempt from submitting such filings because they are religious or for-profit institutions, leaving their business conduct opaque. It is unclear if private schools that participate in Texas’ voucher-like program will have to detail publicly how they use taxpayer dollars.
“The public system is not always perfect, but when it’s not perfect, we see it,” said Joy Baskin, associate executive director for policy and legal services at the Texas Association of School Boards, which represents public districts across the state. “That kind of transparency doesn’t exist in private schools.”
There’s a particular blind spot that free market zealots inevitably have and which Patrick Wolf demonstrates here. One of the basic tenets of capitalism, as I was taught in econ classes lo those many years ago, was that buyers and sellers all needed to have full access to information about products and prices and whatever else in order for the market to work as God and Adam Smith intended. If you don’t know about a lower price here or a superior product there or some shady practices that you would disapprove of if you did know about it somewhere else, you can’t “hold them accountable” for those actions. The ability of many businesses to hide key information from their customers is one of the biggest flaws of our economic system today. The solution to that has always been robust regulation and enforcement, and it’s hardly a coincidence that those things have been under sustained attack for decades. The applicability of this tenet to vouchers and the complete lack of public scrutiny that private schools face is left as an exercise for the reader.
What little economic mobility we have left is powered by education. No surprise that the party that “loves the poorly educated” is pushing this private school racket.