Washington D.C’s federally funded school vouchers produced $2.62 in benefits for every dollar spent, concludes a study in Education Finance and Policy by Patrick Wolf and Michael Q. McShane.
More than 60 private schools in D.C. accept students with Opportunity Scholarships, which are awarded by lottery to low-income students. Students who won a scholarship were 12 percent more likely to graduate from high school compared to the control group of lottery losers, a U.S. Education Department study found. That increased graduation rate will generate large returns, Wolf and McShane write.
After the program’s five-year pilot run ended in 2009, Congress and President Obama cut funding and closed it to new students. President Obama agreed to reauthorize the scholarships as part of the 2011 budget compromise.
If Congress had “redirected money from the bloated and ineffectual DCPS for the Opportunity Scholarship Program, then the cost of the program would have been nothing, and the benefits substantial,” writes Matthew Ladner on Jay Greene’s Blog.