Vouching for Indiana

A quiet change in Indiana law could mean a bigger voucher program — and a wild ride for families

PHOTO: Google Street View

When Milwaukee started letting families use public dollars to pay for private, religious schools, the city’s private school sector responded by growing — fast and chaotically.

One-hundred and twenty-one new private schools opened between 1991 and 2015 in the city. But nearly 70 percent of those schools later closed, often displacing students from poor families.

That hasn’t happened in Indiana, even as the state’s voucher program has grown to be one of the most expansive in the country.

Fewer than 20 voucher-funded schools opened statewide after Indiana started offering vouchers five years ago, and almost all of them are still in operation. Many factors likely influenced Indiana’s experience, but one of the most significant is a one-year waiting period for new schools to receive vouchers — a waiting period that lawmakers are on the cusp of eliminating.

A bill that quietly crossed a crucial legislative hurdle last week would allow private schools to begin receiving state funding from their first day of operation.

As it stands, private schools must operate for a year before they are accredited by the state education department, a mark of approval that’s required to accept vouchers. That means new schools have to pay for their first year by fundraising or persuading families to pay tuition. They can’t rely on voucher funding from the start.

That delay creates “a massive barrier” for new schools, said Michael Ford, a professor at University of Wisconsin Oshkosh who has studied the private school landscape in Milwaukee extensively. “It’s a heck of a lot easier” for schools to persuade parents to spend public dollars on tuition rather than their own money, he said.

“If you had fewer barriers to entry,” he said, “I think you would see an explosion of startup schools in urban areas.”

Many of the private schools that have opened already had a toehold in Indiana and were able to get state money immediately. When the Oaks Academy, for example, opened a new campus in Indianapolis in 2015, it had access to voucher funding without waiting because all of the network’s schools have the same board and management team, said CEO Andrew Hart.

PHOTO: Dylan Peers McCoy
The Oaks Academy Middle School started accepting vouchers immediately because it was part of an accredited network.

There are enticing reasons to make it easier for private schools to open, including the prospect of attracting successful schools from other cities. Voucher advocates point to Fugee Academy, a private school in Georgia that educates refugees, as an example of a school interested in expanding to Indiana.

Fugee, which opened a decade ago, is tuition-free and depends on donations. When school leaders decided to open a second campus, they knew it would have to be in a city with vouchers, said CEO Luma Mufleh.

“The work we do is hard enough,” she said, “so if we can take away a little bit of the fundraising, it just makes it easier.”

Fugee quickly narrowed its search to Indiana and Ohio, Mufleh said. But the wait for voucher dollars in Indiana was a deal breaker. When it came to deciding on a location, “it wasn’t about flipping a coin,” Mufleh said. “Ohio has a better option for us right now.”

Making access to vouchers easier for new schools, however, could have broad implications, and Milwaukee offers a cautionary tale: Low barriers to entry for private schools created an unstable market where schools routinely closed.

For many years, private schools in that city just had to file a form with the state, find a building and attract students in order to get voucher funds, Ford said. That helped create an environment where schools opened at a rapid clip — as many as 16 in one year — but the vast majority eventually shut down. As a result, students experienced upheaval in their schooling, something research says can contribute to behavior problems, disengagement and lower test scores.

“You had this kind of perfect storm where it’s really easy to open, really difficult to establish yourself,” Ford said. “There (were) just incredible amounts of organizational churn.”

That churn is an inherent part of the competitive market envisioned by economist Milton Friedman, who sparked the voucher movement with an essay published in 1955. When parents can choose from a panoply of schools and schools must attract students to survive, schools inevitably close. In fact, although Wisconsin imposes lots of regulations on schools that distort his vision, Friedman cited Milwaukee’s vigorous private school marketplace as a model 15 years ago.

If the government offered vouchers that equaled public school spending, he wrote, “the quality of schooling — in both public and private schools — would soar as competition worked its magic.”

But while Friedman and many voucher advocates believe that allowing more private schools to open will improve school quality through competition, others are wary of the prospect, citing concerns about instability for families and added potential for low-quality schools.

Schools cannot be run like restaurants or other businesses because students are hurt when they close, said Teresa Meredith, president of the Indiana State Teachers Association.

“When you’re talking about human beings, it’s a whole different ball game,” she said. “Kids get harmed in the process.”

Currently, Indiana’s department of education tracks private schools for a year before approving their accreditation applications, said Maggie Paino, the state director of school accountability. The bill that has passed the House and Senate would allow — but not require — the state board to accredit schools immediately, giving them access to voucher funding. It will head back to lawmakers for final approval before it lands on Gov. Eric Holcomb’s desk.

Not everyone is convinced that the rule change would dramatically increase the number of new private schools. Betsy Wiley of the Institute for Quality Education, which advocates for vouchers in Indiana, said her group hears from a few schools each year, like Fugee, that are stymied by the state’s limits on vouchers in the first year.

“I don’t see this as a floodgate,” she said. “I see this as a couple to maybe a handful of schools that this will help.”

PHOTO: Dustin Chamber, courtesy of Fugee Academy.
Fugee Academy is planning to expand to the midwest. Founder Luma Mufleh said the school chose Ohio because vouchers are not available to Indiana schools during the first year.

Robert Enlow, who leads EdChoice, an Indianapolis-based group that advocates for vouchers across the country, said Indianapolis won’t have the kind of explosive growth seen in Milwaukee unless the state increases the dollar amount of its vouchers, which is currently far less than traditional public or charter schools receive per student, and schools have access to startup funds. (Disclosure: EdChoice supports Chalkbeat. For more about our funding, click here.)

But removing the waiting period would allow leaders with new ideas to find footing more easily.

“What’s missing is new models and new innovations coming for parents to choose from,” Enlow said.

Whether Hoosier parents want a system more like Milwaukee’s, where schools face additional competition for students and families may bear the costs of schools closing, is an open question. But if lawmakers lift barriers for new voucher funded schools, Indiana is likely to get a closer look from more prospective private school operators.

“Barriers to entry are going to prevent the good and the bad, but you take them away, you are going to get the good and the bad,” Ford said. “Policy is a blunt instrument.”

UPDATE: Nov. 21, 2017: This story has been updated to reflect the fact that fewer than 20 new voucher-funded private schools opened after the Indiana program began.

Vouching for Indiana

The International School joins Indiana’s voucher program, an unusual move for a secular school

PHOTO: Alan Petersime

A highly regarded Indianapolis private school will join Indiana’s growing voucher program this fall.

The International School will be a rare example of a secular school accepting state money to help families pay high school tuition.

As Chalkbeat reported, just seven of the 313 schools that participated in the program last year were secular. And few elite schools accepted vouchers, which don’t go very far toward paying tuition bills that can be close to $20,000 per year.

The International School offers the International Baccalaureate program and language immersion in Spanish, French and Mandarin. Founded in 1994, the school is popular among affluent foreign parents who come to Indianapolis for work, and it has students and staff representing more than 40 nationalities.

The school joined the voucher program this year in part to signal the school’s support for economic diversity, said upper school admissions director Natalie Wolfe.

“We value diversity, and diversity isn’t always the color of our skin,” she said. “This is just one other avenue … to help us open the doors to some students who may have not had us on their radar before.”

The school is going slowly, however. Although it serves students from preschool through 12th grade, in this first year, just the high school will participate. Elementary and middle school students won’t be able to use state scholarships.

Because only the high school is accepting vouchers, the administration is largely sidestepping one of the most contentious pieces of the voucher program: The requirement that students take state tests. High schoolers will take a state exam, but elementary and middle students won’t have to take the state ISTEP test.

Some advocates worry that forcing private schools to administer state tests discourages them from joining the program, but Wolfe said that wasn’t a factor for the International School.

“We’re not concerned about ISTEP,” she said. “But we just want to test the waters.”

Even with the help of vouchers, the school may still be out of reach for families. Because tuition at the high school is $19,550 per year, state vouchers, which average about $4,258, will only pay a fraction of the cost. The school offers financial aid, but Wolfe said that scholarships are limited because it has a relatively small endowment.

It’s unclear how many families at the school will qualify for the state program. In order to be eligible for any state aid, a family of four must have an income below $89,910. The most common proxy for whether schools serve low-income children is the number of students who are poor enough qualify for subsidized meals. But the International School does not have records because it does not participate in the federal program.

But Wolfe hopes that joining the voucher program will help attract families by showing them there is financial help.

“We don’t want to seem we have any barriers,” she said. “We don’t want for a financial barrier to keep people from looking at this as an option.”

Vouching for Indiana

Almost all the private schools getting vouchers in Indiana are religious. Here’s how one school ended up bucking the trend

PHOTO: Dylan Peers McCoy
Myra made a doll dress during a sewing class at the School for Community Learning, one of just 7 secular schools receiving vouchers from the state in 2017.

Seven-year-old Fallon breathed a sigh of frustration.

Her classmate, 11-year-old Myra, looked across the small round table where they were working. Fallon, sewing a pin cushion, was bent over her needle, struggling to slip thread through its eye.

“Here’s a tip,” said Myra. “You see how this is frayed at the end? … You’ve got to ever-so-carefully snip that frayed edge.”

Fallon and Myra are students at the School for Community Learning, a progressive private school on the north side of Indianapolis, where kids not only take math and reading but also study less conventional topics like sewing, birding and Hogwarts — classes that bring together children from kindergarten through middle school.

The School for Community Learning is unusual among Indiana private schools for not having a religious focus: More than 90 percent of the state’s private schools are religious, compared to 68 percent on average in the U.S.

But even within that small group, it’s notable as one of just seven non-religious private schools participating in Indiana’s expansive school voucher program this year.

Voucher advocates, including current U.S. Education Secretary Betsy DeVos, say they want families to be able to choose from a diverse marketplace of schools. But Indiana’s complicated school choice system offers little incentive for secular schools to take vouchers — leaving largely religious Christian schools benefiting from the state funds.

It works like this: Schools that want to serve poor students but don’t have a religious mission can open as charter schools — and bring in thousands of dollars more per student from the state.

Private schools that are not focused on serving poor students often charge upwards of $20,000 a year, more than four times the average voucher amount, and usually have their own scholarships to hand out.

And private schools with highly unusual approaches might not want to accept the stringent testing requirements that Indiana places on voucher schools.

The result: Of the 313 schools across Indiana that received vouchers this year, 306 are either part of a religious network, such as a Catholic diocese; have overtly religious names; or proclaim their faith on their websites, according to a Chalkbeat analysis. (Indiana doesn’t collect data on whether schools in the voucher program are religious.)

Of the seven voucher-funded schools that appear to be secular, three educate children who’ve struggled in other schools or have specific needs, such as dyslexia. That leaves just four secular private schools that serve typical students.

One of them is the School for Community Learning, whose unusual history offers insights into why there aren’t more schools like it taking vouchers in Indiana.

The school was born from the ashes of a charter school, the Project School, that the Indianapolis mayor’s office closed abruptly five years ago because of financial issues and low test scores. It was July, just weeks before the school year started, and teachers and parents had no idea where to turn.

A handful of teachers and about 25 families decided to start again without the backing of a charter authorizer, opening a private school with a focus on project-based learning. They had no campus, and no idea where they would get money. Parents paid whatever tuition they could afford and teachers barely earned anything, said Megan Howey Hughes, the director of the school.

“Parents also came in and they were the janitors,” she said. “If they couldn’t pay tuition, they did other work.”

After that first, cash-strapped, unsustainable year, everything changed: The school became eligible for the state’s vast new voucher program, and state funds started flowing. (Because of a quirk in Indiana policy, schools were required to operate for a year before receiving vouchers. That changed in recent weeks, when Gov. Eric Holcomb signed a bill that allows new schools to receive vouchers immediately.)

Most people starting non-religious schools don’t grapple with these intricacies. Instead, they’ve gone first to starting a charter school, which brings more state funds, and faster. Thirty-six new charter schools serving traditional-age students have opened in the last five years, according to state data.

In addition to getting more money per student from the state, being a charter school means there’s no perception that tuition could be a barrier. That’s a boon for schools trying to attract low-income parents.

“It would be great to be open to all children for free. That would be terrific,” said Patricia Wildhack, the school leader at School for Community Learning.

But the founders of the school passed up that extra money because they had such a bad experience with their prior charter school. They didn’t want to be under the control of an authorizer.

As a private school, “We get to make decisions from the board level down to the classroom level in a way that allows us even more flexibility,” Hughes said. “We are just us.”

This year, nearly 86 percent of the 70 students at the School for Community Learning are receiving state aid to help their families pay tuition, one of the highest rates in Indiana.

“We didn’t want to give up our belief that our school should be accessible to all students regardless of family income,” Hughes said. “We’re working really hard … to be a private school that’s financially accessible.”


PHOTO: Dylan Peers McCoy
Students at the School for Community Learning take elective classes with children of any age.

Some private schools are able to make themselves accessible to at least some poor families in other ways — usually by providing scholarships on their own, as the elite Park Tudor School in Indianapolis does. Vouchers would alleviate some of the cost, but at an average of $4,258 per student, would leave a lot to be covered at schools that cost close to $20,000 a year — and come with strings that the schools don’t want.

Plus, some schools are reluctant to welcome low-income students who might not be academically prepared, said Mike Petrilli of the Fordham Institute.

“If you’ve got people spending a lot of money to send their kids to this school, and then all of a sudden you open the doors to kids who are paying nothing,” Petrilli said. “That could be challenging, depending on the school community.”

Voucher advocates say it’s not ideal when thriving private schools with strong academic records steer clear of voucher programs. Jay Greene of the Department of Education Reform at the University of Arkansas said regulations that discourage the schools from joining in could result in students going to lower-quality schools.

“The more you drive quality private schools out of the program,” he said, “the worse the results are going to be.”

Among the rules that could dissuade schools from participating, according to Greene: testing requirements. Indiana’s voucher program has some of the strictest testing rules in the country, requiring schools to administer the state exam not only to students using vouchers but to all students. Low scores could cost the schools the right to state funds.

At the School for Community Learning, preparing kids for the state test can be a burden, said Wildhack. Teachers have to make sure their curricula follow the order outlined in the state standards, and it makes it harder to find time for projects.

If someone suddenly gave the school a few million dollars, they might choose to leave the voucher program. But for now, vouchers are “totally worth it,” Wildhack said.

PHOTO: Official White House Photo by Shealah Craighead
President Donald Trump and U.S. Secretary of Education Betsy DeVos participate in a tour of Saint Andrews Catholic in Orlando, Florida.

For some religious schools with a history of serving low and middle-income students, vouchers also help fill crucial budget gaps — and seats — as they face stiff competition from charter, magnet and public schools that don’t cost parents. As in Louisiana, Ohio, and Wisconsin, vouchers in Indiana have helped prop up struggling urban Catholic schools.

One reason vouchers are such a contentious political issue is their entwined relationship with religion. DeVos, a longtime school choice advocate, has called attention to this relationship by visiting several Christian schools that benefit from public money since becoming education secretary.

But the U.S. Supreme Court ruled in 2002 that vouchers don’t violate the constitutional principle of separation of church and state because parents may choose where to use the tuition dollars they receive.

The executive director of Indiana’s private school association said the dearth of secular private schools in the state’s voucher program should not be seen as alarming.

After all, said John Elcesser of the Indiana Non-Public Education Association, from neighborhood public schools, to magnet and charter schools, families have lots of secular options.

“You have to kind of look at the big picture when you look at what are the options available to families,” Elcesser said.

The School for Community Learning is in many ways very different from the religious schools that have benefitted most often from vouchers, prioritizing project-based learning rather than prayer. But there are characteristics that make it similar: It was built on around shared values, from a commitment to social and environmental justice to dedication to the community.

It’s been sustained because, like a lot of religious schools, parents and staff are willing to make sacrifices to support those values, Hughes said.

“It’s different enough for them that they are willing to make the drive or pay the money or kind of do what it takes to have their child in this safe space of learning.”