Editor's note: This is the second post in Fordham's 2016 Wonkathon. We've asked assorted education policy experts to answer this question: What are the "sleeper provisions" of ESSA that might encourage the further expansion of parental choice, at least if advocates seize the opportunity? The first entry can be found here.
The anti-school-choice crowd can’t stop kvetching about corporate reformers trying to make a killing by privatizing public education. It’s an emotionally powerful argument, but an economically illiterate one. The “billionaire boys club” and hedge fund plutocrats no doubt have many more profitable prospects than philanthropically funding nonprofit charter management organizations.
And that’s kind of a shame, really. The private sector can deploy more resources more flexibly and at greater scale than the bureaucratic public sector. But the incentives haven’t been aligned for private investors to do well for themselves by doing good for kids—until ESSA.
There’s a “sleeper provision” in ESSA that holds the potential to reshape secondary education by enabling “pay-for-success” (PFS) partnerships for dropout prevention.
Despite its potential, PFS is still largely unknown to even the most seasoned education wonks, and only a handful of pilot programs are operating at the moment. PFS is an innovative funding tool that...