Report: Overregulation limits success of choice schools

A new report by the conservative group Wisconsin Institute for Law & Liberty (WILL) contends that burdensome regulations hinder the ability of choice schools to open and expand in Wisconsin, and it warns policymakers that over-regulating those institutions limits opportunities for families seeking alternatives to traditional public schools.

The WILL report, “The High Cost of Overregulation: How Excessive Government Control Threatens School Choice in Wisconsin,” was authored by WILL research director Will Flanders.

“While accountability in education is important, an increasing regulatory burden discourages private school participation in choice programs, ultimately limiting educational opportunities for families,” Flanders said. “Policymakers must tread carefully and focus on achieving a balance that safeguards the flexibility and innovation that has made school choice successful.”

In the report, Flanders observes that critics of school choice raise concerns about the lack of accountability in private schools and publicly funded voucher programs, while proponents argue that access to school choice increases accountability to families. 

“Over time, Wisconsin’s voucher programs (Milwaukee, Racine, and Wisconsin) have been subject to increasing state regulation, which has influenced the scope and nature of private school participation,” Flanders wrote.

While most private schools in Milwaukee and Racine participate in school choice programs, Flanders found that only about 37 percent of private schools across the rest of the state have opted to join the Wisconsin Parental Choice Program, and that the existing regulatory burden discourages private school participation. 

And that regulatory burden is increasing, Flanders found.

“Our analysis from 2009 to 2024 shows there has been a significant increase in the number of regulations affecting private school choice each session,” the report stated. “Many of these additional state mandates and regulations do not include an analysis as to why such mandates are necessary. Instead, mandates are often included on the choice programs because public schools have them.”

While Wisconsin’s school choice programs have been successful in providing diverse educational options, Flanders wrote, increasing regulation could limit their effectiveness and growth.

Roadblocks to participation

Flanders pointed to extensive research over the past decade showing a challenging regulatory environment for schools that participate in school choice programs. 

“A 2019 study by Corey DeAngelis examined participation of schools across seven choice programs,” the report stated. “He found that certain regulations have a significant impact on the decision of schools to enter the program. Most important among them were regulations that eliminate admission discretion, requirements to participate in the state exam, and requiring the voucher amount to be taken as the full cost of admission.”

There might be some logic in retaining some of those requirements, Flanders acknowledged, but he said it was important to note that choice schools in Wisconsin are subject to all of them.

Another DeAngelis study found that requirements like eliminating admission discretion or requiring compliance with state tests reduced participation in a hypothetical choice program by as much as 19 percent.

Indeed, Flanders found, Wisconsin’s school choice programs are subject to extensive regulation.

For example, Flanders wrote, schools can be denied entry into the program for failing to fill out forms, budgets, or completing training to DPI’s satisfaction.

“Schools must pay for an independent auditor to review both the school’s use of every choice dollar as well as compliance with the programs,” the report stated. “This includes a review of student files and choice applications, teacher and administrator compliance including background checks and educational background, among other requirements.”

For a new private school to join the program, Flanders wrote, the school must go through a “new schools” process with DPI to demonstrate that they can participate in the program by meeting fiscal requirements and training by staff.

School must also comply with the Wisconsin “Right to Read Act” and with the Wisconsin Civics Graduation Requirement that mandates high schoolers pass a 100 question civics test.

“Choice students must participate in the Forward Exam unless parents opt out,” Flanders continued. “[They] must maintain accreditation from a state-approved list of accreditors.”

On top of the state mandates, Flanders wrote that the DPI often goes further through administrative rules and guidance documents, which add additional requirements for schools. These include extensive requirements for private auditors when reviewing the choice school’s student enrollment audits, fiscal and internal control practices, and the financial audits, he wrote, as well as specific ways that families must prove residency and income when applying to the programs.

The regulatory burden is only growing, Flanders found.

“Since 2009, there has been a general increase in the number of choice-related regulations proposed,” he wrote. “The 2023-24 legislative session saw a record high number of regulatory proposals for school choice over our time frame. The 33 bills proposed last session beat the previous high of 25 in 2015-16 by eight.”

A wide variety of the school choice-related bills were proposed this past session, Flanders reported. 

“Some of these bills had the goal of ending school choice — like AB 533/SB 499 that would have capped enrollment in Wisconsin’s parental choice programs at their current numbers, as well as phased out another school choice program, the Special Needs Scholarship Program,” he wrote. “Others introduced new regulations that included private choice schools in new public school teaching requirements — like AB 937/SB 873 that would mandate the teaching of cursive writing in schools. And still others were supported by school choice advocates — like AB 305/SB 330 — passed and signed by the governor — that increased per pupil payments for choice students.”

Still, Flanders wrote, it was clear that additional requirements for school choice have been top-of-mind for legislators in recent terms, and this is potentially problematic for additional expansions of educational options in the state.

The bottom line is, Flanders concluded, while Wisconsin’s school choice programs have undeniably provided thousands of families with valuable educational options, the increasing regulatory burden threatens to stifle their growth and diversity.

“The existing regulations already ensure accountability and prevent fraud, yet the push for further regulation could discourage high-performing private schools from participating, limiting the range of choices available to families,” he wrote. “As highlighted by school leaders, the flexibility of these programs is a key strength, allowing schools to innovate and cater to the unique needs of their students. To maintain and expand school choice in Wisconsin, policymakers must strike a careful balance between ensuring accountability and preserving the flexibility that has made these programs successful.”

Andrew Neumann, the executive chairman and CEO of Sky Schools, told WILL that too many regulations reduce the diversity of educational options and limit flexibility. 

“Schools will be forced into a smaller box, reducing the variety of educational models available to parents,” Neumann said. “The resources needed for compliance take away from what’s best for kids, regressing the system toward a one-size-fits-all model.”

Richard Moore is the author of “Dark State” and may be reached at richardd3d.substack.com.