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CRS85985EPWpage07
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CRS85985EPWpage07
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CRS-4 Among general voucher proposals, a plan in which participating schools would be required to meet certain standards is often referred to asaa "regulated" ‘voucher‘plan. Standards typically proposed include non-discrimination against A pupils on the basis of race, sex, or religion, or'inclusion in the curriculum of certain core subjects, or education about basic values of the American political system. Voucher plans providing additional funds for "high-cost" pupils with "special educational needs are often called "compensatory" plans. Other sorts of voucher proposals, such as Friedman's, would provide equal value for each pupil; no restriction on private schools charging tuition in excess of the voucher amount or on affluent parents’ providing extra resources to the schools their children attend, and would include profit-making schools as eligible to participate. Past,"Voucher-Like"~Programs One serious limitation to the discussion and debate over education voucher proposals is that no such plan has actually existed in the United States. Nor has there been a foreign model of a "pure" voucher plan, although at least one nation's-education system (the Netherlands) approaches such a voucher scheme more closely than anything yet tried in the U.S. In this discussion, a "pure" voucher plan is assumed to include at least the following basic characteristics: --provision of public funds to schools via parents of pupils; —-inclusion of a wide range of private as well as a variety of public school options; --availability of vouchers to all students; and . —-the education involved is at the elementary or secondary level.
CRS85985EPWpage17
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CRS85985EPWpage17
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3 ,> CR3-14: a general voucher concept are not relevant to the specific concept of chapter 1 vouchers (e.g., whether to give vouchers of different value to disadvantaged chil- dren compared to others) and will not be discussed below. 1. Types of Educational Services Most Likely to Meet the Needs of Educa- tionally Disadvantaged Children Inherent in the chapter 1 voucher proposals
CRS85985EPWpage34
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CRS85985EPWpage34
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.e., if the taxpayer owed less in Federal income taxes than the value of the credit, the credit amount would be paid to the taxpayer), is an alternative means of accomplishing the intended purposes of a chapter 1 voucher plan. Although existing tuition tax credit proposals extend eligibility to a wide range of family income levels and generally could be used only to pay nonpublic school costs, a tax credit plan
CRS85985EPWpage03
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CRS85985EPWpage03
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CONTENTS C C O O O C C C. C C C O C C O C C O C O C C O C O O C C C O C C O O O C O The General Concept 0 0 0 0 0 0 0 0 0 0 0 0 Past "Voucher-Like" Programs . . . . . . . THE SPECIFIC CONCEPT OE CHAPTER 1 VOUCHERS . . . EARLIER ADMINISTRATION PROPOSAL . . g . . . . . PRO AND CON ARGUMENTS - - o‘. o - - - - - - - - POSSIBLE ALTERNATIVES TO BOTH CHAPTER 1 VOUCHERS AND THE CURRENT PROGRAM
CRS85985EPWpage10
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CRS85985EPWpage10
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unsuccessful drive for a State ballot initiative in favor of vouchers in 1980) reached a wide audience. A fourth example is that of certain school districts in Vermont that for many years have offered parents of secondary school students the option of g] Education Vouchers, A Report on Financing Elementary Education by Grants to Parents, Center for the Study of Public Policy, December 1970.
CRS87283EPWpage11
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CRS87283EPWpage11
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CRS-5 competition. The Higher Education Amendments of 1986 first authorized the program. Part B funds can be used for acquisition of scientific or laboratory equipment; construction, maintenance, renovation, and improvement of instruc- tional facilities; faculty exchanges and faculty fellowships for attainment of advanced degrees; academic instruction in disciplines in which blacks
Federal aid for the education of disadvantaged children
Title
Federal aid for the education of disadvantaged children: Analysis of proposals to provide aid in the form of vouchers
Date
1985
Summary
Proposals to authorize Federal aid for the education of disadvantaged children in the form of vouchers have been made in the past by the Reagan Administration and others, and Secretary of Education William Bennett has recently been attracting new attention to the concept. This paper provides background on the voucher concept, an analysis of existing proposals, and pro/con arguments regarding vouchers for the education of the disadvantaged.
CRS85577EPWpage28
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CRS85577EPWpage28
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CRS-20 + vounawumm omm. nmm. aoquaosum Ha=ofiuauo> can .>uwv:oomm .»ucu:mau~m couuuoavm uuzwax. uvu< aouuaosam fiflHOGOU UGQ nuunouwm + ¢mm_ ewa_ z<w> _mm_ ;<omHu mum. mum, Nmm_ 82 52; _nomE 1 32 how.» _3..:,... uozvoum 320302 mmouu mo aamoumm n no coin ozvm you mxofizo Hm oufimrm mwm~ mam. Q_Q)LLJQ)C4~
CRS85577EPWpage19
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CRS85577EPWpage19
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CR8-13 Total outlays for the education cluster would decrease $2.7 bil1ion or 18 percent between 1984 and 1990 under the budget plan. ing for the elementary and secondary group would account for 13 percent of this decrease, higher education 78 percent, and research and general education aids 9 percent. Spend- The following are some of the principal factors contributing to these trends
CRS85577EPWpage18
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CRS85577EPWpage18
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cns-12 ' Examining some of these trends: I 1965 to nearly 49 percent in 1984- under the budget plan whereby in 1990 elementary, secondary and Spending for the education cluster increased 57 percent betweenl 1966 and 1968, had increased nearly 137 percent by 1981, has idecreased since then, and would decrease 18 percent under'the budget plan. --the elementary and secondary education
CRS85577EPWpage07
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CRS85577EPWpage07
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for education programs in the context of a 26-year span: the past 20 years of actual exper- ience (l965-l984), and the spending plan for the next 6 years proposed in the President's 1986 budget plan (1985-1990) as it was released February 4, 1984. The table supporting each figure is presented on the facing page. Since no single measure of activity is wholly adequate, eight dif- ferent ways are provided
CRS85577EPWpage09
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CRS85577EPWpage09
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CR8-3 figures for actual outlays (1965-1984) represent change from 1965, and the cu- ll mulative change figures for estimated outlays (1935-1990) represent change from 1984. The data used for the tables and figures come from two historical budget series produced by the Office of Management and Budget (OMB): Federal Govern- ment Finances (February 1985), and Payments for Individuals (February 1985
CRS85577EPWpage30
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CRS85577EPWpage30
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CRS85577EPWpage32
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CRS85577EPWpage32
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CRS-24 + uuuaafiumm omm_ xmm_ aouucosvm ~n:ofiuaoo> wan .>uwv:ouom .»»au=mao_m aouuaosvm uo;m«=A Au mv«< aofiuausem uuumaou van nuunomum + z<m> 4<omHm mum. ¢mm_ _mm. mum. mmm_ «ma_ 82 yam.» _8§ 1 $2 22.,» _nom_.._ maniso mvoufiomvm 83:52 _5ou. we aaouuum u an aoiausvm gem 933:0 Hm wuzmrm m©m_ mmwm_. O_Q>L<JQJC+»
CRS85577EPWpage02
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CRS85577EPWpage02
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CRS85577EPWpage04
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CRS85577EPWpage04
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CRS87233Epage17
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CRS87233Epage17
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info:fedora/mu:52951
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Illinois 2.50 1.25 1.80 -3.19 -4.59 Indiana 3.00 1.50 2.16 -2.94. -4.23 Iowa 13.00 I 6.50 9.36 2.06. 2.97 Kansas 9.00 4.50 6.48 0.06 0.09 Kentucky 6.00 73.00 4.32 -1.44 -2.07 Louisiana 6.00 3.007 4.321 -1.44 -2.07 Maine 10.00 5.00 7.20 0.56 0.81 Maryland 5.00 2.50 3.60- -1.94 -2.79 Massachusetts 10.38 5.19 7.47 0.75 1.08 Michigan 4.60 2.30 3.31 -2.14 -3.08 iMinnesota 14.00 7.00 .10.08 2.56 3
CRS87233Epage19
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CRS87233Epage19
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CRS-15 5, New York's rate differential would appear to increase only by 0.91 points (column 5 minus colum 4). In the short run, these increased effective rate differentials would tend to increase tax-motivated locational decisions. One would expect State and local governments to react by altering their tax structures to maintain the original tax rate differentialsg. TSSTATE AND LOCAL USE
CRS87233Epage21
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CRS87233Epage21
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CRS-17 airports and multifamily housing will be subjected to additional targeting and regulation. The only activity added to the list of special exceptions is hazardous waste treatment facilities. Prior to the Tax Reform Act, exemption was allowed for the interest on small-issue IDBS (proceeds not exceeding $1 million, or $10 million if certain capital expenditures are taken into account). Small
CRS87233Epage25
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CRS87233Epage25
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CRS-21 Implications for Tax-exempt Bond Volume What does all this mean for State and local use of taxrexempt bonds‘? In one sense, the substantial reduction in the volume cap indicated by these data understates the potential reduction in privateractivity bond volume. The 1984 cap did not apply to many of the private-activity bonds which are included in the 1986 and 1988 volume caps. In 1984, only

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