N AT I O N A L C E N T E R F O R P O L I C Y A N A LY S I S A Comparison of School Choice in Texas School Districts Backgrounder No. 170 by Lloyd Bentsen IV and Gabriel Odom December 2013 The state of Texas divides up its nearly five million public school students among separate, geographically defined regions called independent school districts (ISDs). The more than 1,000 independent school districts in Texas have the authority to establish and manage diverse educational opportunities within their set geographical boundaries. Each district can determine the number, size and type of schools for its students. This important decision-making process determines the “menu” of educational establishments for public school students. Students have a choice of schools in their district. They can attend the school they are geographically assigned to, transfer to another regular public school, or attend a magnet or charter school. Texas boasts more than 500 charter schools, with a total of 180,000 students, and 286 magnet schools/programs with more than 250,000 students. While some larger districts offer a variety of options, smaller districts also offer a limited number of regular public schools, magnet schools or charter schools. Increased school choice benefits everyone and increases school efficiency and teacher pay through competition.1 Public School Choice Dallas Headquarters: 12770 Coit Road, Suite 800 Dallas, TX 75251 972.386.6272 www.ncpa.org Washington Office: 601 Pennsylvania Avenue NW, Suite 900, South Building Washington, DC 20004 202.220.3082 The Friedman Foundation defines school choice as “a common sense idea that gives all parents the power and freedom to choose their child’s education, while encouraging healthy competition among schools and other institutions to better serve students’ needs and priorities.”2 School choice can be limited to public schools or expanded to include private schools. Public school choice is the menu of public school options available to students. Private school choice provides more options for public school students, and sometimes private school students, to attend private schools. Currently however, Texas has only public school choice, which includes both charter schools and magnet schools. Allowing parents to choose the school that best fits their children’s needs not only benefits the family, it provides advantages to teachers, the local economy and taxpayers, as well as other students. Everyone benefits from the increased competition stemming from expanded school choice. Charter Schools. Texas charter schools operate as K-12 public schools, under state supervision, separate from the independent school districts. Their independence gives them greater autonomy and makes them more accountable than regular public schools to parents and students, financially and academically. While there are 215 state-approved charter schools in Texas, 571 charter schools are actually in operation due to loopholes in the law that allow multi-campus charter schools to operate under a single A Comparison of School Choice in Texas School Districts charter.3 Currently, there are 179,000 charter school students in Texas. As of 2012, more than 101,000 students filled waiting lists for seats in charter schools.4 Magnet Schools. Texas K-12 public schools that have converted or were established as schools that specialize in a particular field of study, profession, industry, or a combination, are called magnet schools. This level of specialization fits the educational needs of a student interested in focusing on specific areas of study, as science and technology, leadership, arts and engineering. Magnet schools offer a greater degree of school choice to Texas public school students. In June of 2013, 269,388 students filled the rosters of 286 magnet schools.5 And many more Texas students fill waiting lists for magnet schools every year, but that data has not been made public. Regular Public Schools. The standard, default school in Texas is a regular public school. These schools are one-size-fits-all, government-run, geographically limited educational establishments to which all 4.9 million Texas public school students are assigned. Regular public schools may achieve a rating of exemplary, recognized, acceptable or unacceptable, based on their standardized test scores. There are 7,718 regular public schools in Texas. The population of public high schools in Texas has become a growing concern: 39 schools have more than 3,000 students and six schools have over 4,000. Population growth is forcing public middle and elementary schools to grow as well, with some middle schools having more than 1,500 students and some elementary schools with over 1,000. These schools would perform far better academically if 2 school districts split them apart, creating two schools closer to the ideal number of students. Studies have shown that public high school populations should be limited because “in large high schools, especially those enrolling over 2,100 students, they learn considerably less.”6 A Carnegie Council on Adolescent Development report states that with respect to the ideal size of middle schools: “The first recommendation of a more recent Carnegie report on high school reform is that ‘schools must break into units of no more than 600 students so that teachers and students can get to know each other.’”7 Valerie E. Lee of the University of Michigan also believes the size of high schools is important: “…Achievement gains in mathematics and reading in high school were largest in schools with 600-900 students.”8 Of course, with smaller schools, there would be more of them in a district, providing more choices to the students.9 Ranking the School Districts Students have a very limited choice of public schools (regular, magnet or charter) in most independent school districts in Texas. Most school districts have adopted either intra-district choice — allowing for transfers within the district — and/ or inter-district choice, allowing transfers from a school in one district to schools in other districts. Some school districts give parents a choice of public schools for their children. Each transfer decision is based on the circumstances of the student’s request for a transfer to another class, school or district. Students who are victims of crimes, live with another student with disabilities or have multiple siblings can request a classroom or school transfer. Students attending “low-performing schools or dangerous schools are eligible to transfer to another school or district under Public Education Grant and No Child Left Behind conditions.”10 Transfers to charter or magnet schools work the same as transfers between regular public schools, except charters may target specific students (such as special needs children) and may have long waiting lists. Both charters and magnet schools have limited space. And some magnet schools put their applicants through a rigorous testing and application process. This study analyzes four important assumptions: First Assumption: Waiting Lists Reflect Demand. Parents place different values on the various types of schools, based on the quality of education they assume their child will receive in that institution. The existence of waiting lists for charter schools and magnet schools gives credence to this assumption: If parents believe a school is better, there will be competition for seats at that school. In economic terms, if the supply of seats in a school is fixed in the short run (for instance, over one academic year), and the demand for those same seats increases, then (all else held equal) a market shortage occurs. In most cases, market pressure is alleviated by rationing seats and creating waiting lists. Therefore, a good measure for school demand is the proportion of students on the waiting list to students enrolled at the school.11 In order to evaluate the extent of public school choice in Texas, this analysis weighted the number of students on charter and magnet school waiting lists as a proportion of district enrollment. [For methodology, see Appendix I.] Second Assumption: Public Schools Compete. Schools compete for students in a variety of ways: quality of the athletic programs, music department, magnet programs, teacher credentials, after-school events, special needs programs and many others. If more than one school exists within a reasonable driving distance (for instance, 10 square miles), the different schools will work hard to draw in new students, as well as work to keep the students they already have. The schools may specialize; one school may focus on band and academics, whereas another may focus on athletics and special needs. The schools may compete for teachers; perhaps not in salaries, but in benefits or workplace atmosphere. The competition may drive an increase in school spirit, as the students may see each other as rivals — either athletically or academically. These kinds of differences allow parents to choose which school they believe is right for their children. On the other hand, if there is only one school for miles around, parents must, by law, enroll their children in that one school — or choose either homeschooling or a highly inconvenient commute to another district. This lack of school choice disproportionately affects lower-income families, who are unable to pay for private school or homeschooling, and may not have the time and transportation to commute to another district.12 Third Assumption: Public Schools Can Specialize. In the face of stiff competition, schools can specialize. Some students cannot thrive in massive high schools, so their parents move them across the street to the charter school with a more intimate learning environment. Thus, the mega-high school teachers have fewer dissatisfied students and parents to deal with, so their quality of teaching can go up — all due to competition. Fourth Assumption: Charter and Magnet Schools Increase Demand. Adding a charter or magnet school — which are inherently specialized — increases school choice within a district more than simply adding an additional public school. The existence of long waiting lists for magnet and charter schools provides the evidence for this. If they were no more valuable to parents than traditional public schools, a disproportionate number of students would not be seeking entry to these specialized programs. Additionally, traditional public schools have had, on average, no waiting list. In fact, most traditional public schools have empty seats. Therefore, charter and magnet schools must have a higher demand and carry a heavier weight (in the minds of parents) than traditional public schools. Results of the Comparison Based upon the data gathered, assumptions listed and author calculations, the level of school choice for 1,025 ISDs in the state of Texas was ranked based upon parents’ ability to choose the best school for their children from the options available. [See Appendix II.] ■■ On average, urban and suburban districts enjoy a higher level of school choice than rural districts. Thus, almost all of the districts in the more-than-average school choice category were urban and suburban districts. ■■ Most of the rural districts have less-than-average school choice. ■■ A large number of the districts with more-than-average school choice are in the Dallas-Fort Worth metropolitan area. Due to the number of schools available within the district and proximity of other districts, the Edgewood Independent School District in San Antonio also has a high level of school choice, even though their successful private school choice program has been closed to new entrants. Of the ISDs with more-thanaverage school choice: ■■ All districts are urban and suburban, and only one is rural. ■■ Most districts have a good mixture of charter schools and magnet schools/programs. ■■ However, many ISDs have only one charter school or magnet program. Though there is a high level of public school choice, the Harlandale, Laredo, Highland Park, Spring Branch, Edgewood and Valley View ISDs have no charter or magnet schools/programs. Conclusion The state of Texas has only limited public school choice, which includes magnet schools and charter schools. State law limits the growth in charter school authorization to 10 per year. All private school choice legislation introduced to the Texas legislature has failed to become law. With no private school choice programs and limited public school choice, Texas offers a very limited selection of school options for students. Unrestricted charter law and private school choice would increase competition and therefore improve school efficiency, teacher quality and student achievement. Lloyd Bentsen IV is a senior research fellow and Gabriel Odom is a research associate at the National Center for Policy Analysis. 3 A Comparison of School Choice in Texas School Districts Appendix I Student Waiting List Weighted Calculations The school weight is: Public schools don’t have waiting lists, so the weight for public schools is just 1. According to the TCSA, there were 154,278 charter school students and over 101,000 students on waiting lists in Texas. This means that the weight for charter schools is . The magnet multiplier: . The new calculation of schools in the district based on these numbers. For instance, Wichita Falls ISD has 24 regular schools, 6 magnet schools, and 1 charter school. Using the weights calculated previously, this ISD has “schools”, even though the district only has 31. Based upon this minor assumption, the school choice in a district as follows: 4 Appendix II District Rankings Districts with More-than-Average School Choice Abilene Academy Alamo Heights Aldine Aledo Alief Allen Alvarado Alvin Amarillo Anna Anthony Aransas Pass Argyle Arlington Aubrey Austin Axtell Azle Beaumont Bells Belton Birdville Bland Bloomburg Blue Ridge Boles Borger Bosqueville Boyd Brazosport Bridge City Brownsville Brownwood Bruceville-Eddy Bryan Bullard Burleson Caddo Mills Calallen Campbell Canutillo Carroll Carrollton-Farmers Branch Castleberry Cedar Hill Celeste Celina Center Point Central Central Heights Channelview Chapel Hill (Smith) Chapel Hill (Titus) China Spring City View Clear Creek Cleburne Cleveland College Station Collinsville Comal Commerce Community Connally Conroe Coppell Copperas Cove Corpus Christi Crandall Crosby Crowley Cypress-Fairbanks Dallas Danbury Deer Park Del Valle Denison Denton Desoto Diboll Dickinson Donna Driscoll Duncanville Eagle Mt-Saginaw Eanes Early East Central Ector Ector County Edcouch-Elsa Edgewood (Bexar) Edgewood (Van Zandt) Edinburg El Paso Eustace Evadale Everman Fabens Farmersville Ferris Flour Bluff Forney Fort Bend Fort Worth Frenship 5 A Comparison of School Choice in Texas School Districts Friendswood Frisco Fruitvale Ft Sam Houston Gainesville Galena Park Galveston Garland Georgetown Gholson Gladewater Godley Goodrich Goose Creek Granbury Grand Prairie Grand Saline Grapevine-Colleyville Greenville Gregory-Portland Gunter Harlandale Harlingen Hays Hidalgo Highland Park (Dallas) Hitchcock Hooks Houston Howe Hubbard (Bowie) Hubbard (Hill) Hudson Huffman Hull-Daisetta Humble Hurst-Euless-Bedford Hutto Ingleside Irving Jarrell 6 Joshua Judson Katy Kaufman Keene Keller Kennedale Kerrville Kilgore Killeen Kingsville Klein Krum La Feria La Joya La Marque La Porte La Vega La Vernia La Villa Lackland Lago Vista Lake Dallas Lake Travis Lake Worth Lamar Lancaster Laredo Leander Leary Leonard Leveretts Chapel Lewisville Liberty Hill Liberty-Eylau Lindsay Little Cypress-Mauriceville Little Elm London Lone Oak Longview Lorena Lovejoy Lubbock Lubbock-Cooper Lufkin Lumberton Lytle Mabank Magnolia Malakoff Malta Manor Mansfield Marion Martins Mill McAllen McKinney McLeod Melissa Mercedes Mesquite Midland Midlothian Midway (McLennan) Mineola Mineral Wells Mission Monte Alto Mount Calm Mumford Murchison Nacogdoches Natalia Navarro Nederland New Braunfels New Caney New Diana New Waverly North East North Forest Northside (Bexar) Northwest Olfen Orangefield Ore City Overton Palmer Paradise Paris Pasadena Pearland Peaster Pflugerville Pharr-San Juan-Alamo Pine Tree Plano Pleasant Grove Ponder Poolville Port Arthur Port Neches-Groves Pottsboro Princeton Progreso Prosper Randolph Field Red Lick Red Oak Redwater Rice Richardson Rio Hondo Robinson Robstown Rockwall Round Rock Royse City Sabine San Angelo San Antonio San Benito San Elizario San Marcos Sanford-Fritch Sanger Santa Fe Santa Maria Santa Rosa Savoy Schertz-Cibolo-Universal City Scurry-Rosser Shallowater Sharyland Sheldon Sherman Slaton Socorro Somerset South San Antonio Southside Southwest Splendora Spring Spring Branch Spring Hill Springtown Stafford Sundown Sunnyvale Taylor Temple Terrell Texarkana Texas City Tom Bean Tomball Tornillo Trenton Trinidad Tuloso-Midway Tyler Union Grove Valley View (Hidalgo) Van Alstyne Venus Veribest Victoria Vidor Vysehrad Waco Walnut Bend Waskom Waxahachie Weatherford Weslaco West West Orange-Cove West Oso West Rusk County Westphalia Westwood White Oak White Settlement Whitehouse Whitewright Wichita Falls Willis Wimberley Wylie (Collin) Ysleta Zephyr 7 A Comparison of School Choice in Texas School Districts Districts with Average School Choice Abbott Abernathy Agua Dulce Alba-Golden Alice Alto Alvord Amherst Angleton Anton Apple Springs Aquilla Arp Athens Atlanta Avalon Avery Avinger Bangs Banquete Barbers Hill Bastrop Bay City Beckville Beeville Bellville Ben Bolt-Palito Blanco Big Sandy (Upshur) Big Spring Bishop Blanket Blooming Grove Bloomington Bluff Dale Blum Boerne Boling Bonham Bovina 8 Bowie Brazos Bremond Brenham Bridgeport Brock Brookeland Brownfield Brownsboro Buckholts Buffalo Buna Burkburnett Callisburg Canton Canyon Carlisle Carthage Center Centerville (Trinity) Chico Chireno Chisum Christoval Cisco Clifton Clint Columbia-Brazoria Como-Pickton Coolidge Corrigan-Camden Corsicana Coupland Covington Crawford Crockett Cross Roads Cuero Cumby Cushing Daingerfield-Lone Star Damon Dayton Decatur Denver City Detroit Devers Devine Dew Dodd City Dripping Springs Dublin Eagle Pass East Bernard East Chambers Eastland Eden Electra Elgin Elkhart Elysian Fields Ennis Etoile Eula Excelsior Falls City Fannindel Farwell Florence Floresville Frankston Frost Ganado Garner Garrison Gary Gause Giddings Gilmer Glen Rose Goldthwaite Gorman Grandview Grape Creek Grapeland Greenwood Hale Center Hallsburg Hallsville Hamshire-Fannett Hardin Hardin-Jefferson Harleton Harmony Harts Bluff Hawkins Hawley Hearne Hempstead Henderson Hermleigh Hico High Island Highland Park (Potter) Hillsboro Holland Honey Grove Hughes Springs Huntington Huntsville Idalou Industrial Iola Iowa Park Ira Italy Itasca Jacksonville Joaquin Jourdanton Karnack Kemp Kenedy Knox City-O’Brien Kopperl Kountze La Gloria Lamesa Lapoynor Lasara Latexo Leggett Levelland Liberty Lindale Lipan Littlefield Livingston Lockhart Los Fresnos Louise Luling Malone Marble Falls Marlin Marshall Mart Martinsville Mathis Maud Maypearl McDade McGregor Medina Valley Meridian Merkel Mexia Meyersville Milano Mildred Miles Milford Miller Grove Millsap Montague Montgomery Moody Morgan Morgan Mill Morton Moulton Mount Enterprise Mount Pleasant Mount Vernon Navasota Neches Needville New Boston New Deal New Summerfield Nocona Nordheim Normangee North Hopkins North Lamar Novice Nursery Odem-Edroy Oglesby Onalaska Orange Grove Paint Rock Palestine Pampa Penelope Pewitt Pilot Point Pittsburg Plainview Pleasanton Port Aransas Poteet Poth 9 A Comparison of School Choice in Texas School Districts Prairie Lea Prairie Valley Prairiland Queen City Quinlan Quitman Rains Ralls Ranger Raymondville Ricardo Rice Consolidated Richards Riesel Rio Grande City Rio Vista Rising Star River Road Rockdale Rogers Roma Roosevelt Roscoe Collegiate Rosebud-Lott Round Top-Carmine Royal Runge Rusk S and S Salado Saltillo Sam Rayburn San Felipe-Del Rio San Perlita Schulenburg Seagraves Sealy Seguin Shepherd Shiner Silsbee Simms Sinton 10 Sivells Bend Smithville Smyer Snook Somerville Spurger Stamford Stephenville Stockdale Sulphur Springs Sweeny Sweet Home Sweetwater Taft Tarkington Tatum Teague Tenaha Thorndale Thrall Tidehaven Timpson Tioga Tolar Trinity Troup Troy Union Hill United Valley Mills Valley View (Cooke) Van Wall Waller Warren Water Valley Weimar Wells West Hardin County West Sabine Westhoff Wharton Whitesboro Whitney Wills Point Windthorst Winfield Winnsboro Winona Woden Wolfe City Wortham Wylie (Taylor) Yantis Yoakum Yorktown Zavalla Districts with Less-than-Average School Choice Adrian Albany Alpine Anahuac Anderson-Shiro Andrews Anson Aransas County Archer City Aspermont Austwell-Tivoli Baird Ballinger Balmorhea Bandera Bartlett Bellevue Benavides Benjamin Big sandy (Polk) Blackwell Blanco Booker Borden County Brackett Brady Breckenridge Broaddus Bronte Brookesmith Brooks County Bryson Buena Vista Burkeville Burnet Burton Bushland Bynum Caldwell Calhoun County Calvert Cameron Canadian Carrizo Springs Cayuga Centerville (Leon) Channing Charlotte Cherokee Chester Childress Chillicothe Chilton Clarendon Clarksville Claude Clyde Coahoma Coldspring-Oakhurst Coleman Colmesneil Colorado Columbus Comanche Comfort Comstock Cooper Cotton Center Cotulla Crane Cranfills Gap Crockett County Crosbyton Cross Plains Crowell Crystal City Culberson County-Allamoore Dalhart Darrouzett Dawson (Dawson) Dawson (Navarro) De Kalb De Leon Dell City Deweyville D’Hanis Dilley Dime Box Dimmitt Divide Doss Douglass Dumas Edna El Campo Era Evant Ezzell Fairfield Fayetteville Flatonia Floydada Follett Forestburg Forsan Fort Elliott Fort Stockton Franklin Fredericksburg Freer Friona Ft Davis Ft Hancock Gatesville George West Glasscock County Gold Burg 11 A Comparison of School Choice in Texas School Districts Goliad Gonzales Gordon Grady Graford Graham Grandfalls-Royalty Grandview-Hopkins Granger Groesbeck Groom Groveton Gruver Gustine Guthrie Hallettsville Hamilton Hamlin Happy Harper Harrold Hart Hartley Haskell Hedley Hemphill Henrietta Hereford Higgins Highland Holliday Hondo Huckabay Hunt Ingram Iraan-Sheffield Iredell Irion County Jacksboro Jasper Jayton-Girard 12 Jefferson Jim Hogg County Jim Ned Johnson City Jonesboro Junction Karnes City Kelton Kenedy County Wide Kennard Kerens Kermit Kirbyville Klondike Knippa Kress La Grange La Pryor Lampasas Laneville Lazbuddie Leakey Lefors Leon Lexington Linden-Kildare Lingleville Llano Lockney Lohn Lometa Loop Loraine Lorenzo Lovelady Lueders-Avoca Lyford Madisonville Marathon Marfa Mason Matagorda May McCamey McLean McMullen county Meadow Medina Memphis Menard Miami Midway (Clay) Monahans-Wickett-Pyote Moran Motley County Muenster Muleshoe Mullin Munday Nazareth New Home Newcastle Newton Nixon-Smiley North Zulch Northside (Wilbarger) Nueces Canyon Oakwood O’Donnell Olney Olton Paducah Paint Creek Palacios Palo Pinto Panhandle Panther Creek Patton Springs Pawnee Pearsall Pecos-Barstow-Toyah Perrin-Whitt Perryton Petersburg Petrolia Pettus Plains Plemons-Stinnett-Phillips Point Isabel Post Premont Presidio Priddy Pringle-Morse Quanah Ramirez Rankin Reagan County Refugio Richland Springs Rivercrest Riviera Robert Lee Roby Rochelle Rocksprings Ropes Rotan Roxton Rule Sabinal Sabine Pass Saint Jo San Augustine San Diego San Isidro San Saba San Vicente Sands Santa Anna Santa Gertrudis Santo Schleicher Seminole Seymour Shamrock Shelbyville Sidney Sierra Blanca Silverton Skidmore-Tynan Slidell Slocum Snyder Sonora Southland Spearman Spring Creek Springlake-Earth Spur Stanton Star Sterling City Stratford Strawn Sudan Sulphur Bluff Sunray Tahoka Terlingua Terrell County Texhoma Texline Three Rivers Three Way Throckmorton Trent Tulia Turkey-Quitaque Utopia Uvalde Valentine Van Vleck Vega Vernon Waelder Walcott Walnut Springs Webb Wellington Wellman-Union Westbrook Wheeler White Deer Whiteface Whitharral Wildorado Wilson Wink-Loving Winters Woodsboro Woodson Woodville 13 A Comparison of School Choice in Texas School Districts Endnotes John Merrifield, Lewis Warne, Lloyd Bentsen IV, Courtney O’Sullivan and Joe Barnett, “Private School Choice: Options for Texas Children,” National Center for Policy Analysis, January 2013. Available at http:// www.ncpa.org/pdfs/st345.pdf. TEA.AskTED.Web/Forms/DownloadFile. aspx. 1. “Public School Choice.” Texas Association of School Boards. 2012. Available at http://www.txpta.org/public/upload/files/ Legislative/2012/Issue%20Brief%20on%20 School%20Choice%20in%20Texas.pdf. 11. Texas Charter School Association. Available at http://www.txcharterschools.org/index.php. The Texas Education Agency supplied data on all public and charter schools in the state of Texas, including contact information, district information and school enrollment. The list of magnet schools was compiled by the Texas Parents’ Union. Data on magnet school waiting lists were obtained directly from each Independent School District (ISD) containing a magnet school. Charter school information was obtained from the Texas Charter School Association. 5. 12. 2. “What is school choice?” Friedman Foundation. Available at http://www.edchoice. org/School-Choice/What-is-School-Choice. aspx. 3. “AskTED,” Texas Education Agency. Available at http://mansfield.tea.state.tx.us/ TEA.AskTED.Web/Forms/DownloadFile. aspx. 4. Matt Prewett, “List of School Districts in Texas with Magnet Schools/Programs,” Texas Parents Union. Available at http:// txparentsunion.org/resources/tx-districts-withmagnet-schools/. 6. “Medium Is Best School, Study Says Researchers Say Kids Learn Less In Both Environments Too Large And Too Small,” The Spokesman-Review, April 11, 1996. Available at http://www.spokesman.com/ stories/1996/apr/11/medium-is-best-schoolsize-study-says-researchers/. 7. Douglas Ready, Valerie Lee & Kevin G. Welner, “Educational Equity and School Structure: School Size, Overcrowding, and Schools-Within-Schools,” TCRecord, 2004. Available at http://nepc.colorado.edu/ files/1882.pdf. 8. Valerie E. Lee and Susanna Loeb, “School Size in Chicago Elementary Schools: Effects on Teachers’ Attitudes and Students’ Achievement,” American Educational Research Journal, Spring 2000, Vol. 37, No.1, pages 3-31. Available at https://cepa.stanford. edu/sites/default/files/School%20Size.pdf. 9. “AskTED,” Texas Education Agency. Available at http://mansfield.tea.state.tx.us/ 14 10. The independent school district in which each charter school is located was determined using schooldistrictfinder.com. NCPA staffer Liz Loomis supplied Geographic Information Systems (GIS) data on the land area of each ISD in Texas. This data was used to calculate the number of schools per 10 square miles within each district. About the NCPA The NCPA is a nonprofit, nonpartisan organization established in 1983. Its aim is to examine public policies in areas that have a significant impact on the lives of all Americans — retirement, health care, education, taxes, the economy, the environment — and to propose innovative, market-driven solutions. The NCPA seeks to unleash the power of ideas for positive change by identifying, encouraging and aggressively marketing the best scholarly research. Health Care Policy. The NCPA is probably best known for developing the concept of Health Savings Accounts (HSAs), previously known as Medical Savings Accounts (MSAs). NCPA President John C. Goodman is widely acknowledged (Wall Street Journal, WebMD and the National Journal) as the “Father of HSAs.” NCPA research, public education and briefings for members of Congress and the White House staff helped lead Congress to approve a pilot MSA program for small businesses and the self-employed in 1996 and to vote in 1997 to allow Medicare beneficiaries to have MSAs. 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The NCPA helped shape the pro-growth approach to tax policy during the 1990s. A package of tax cuts designed by the NCPA and the U.S. Chamber of Commerce in 1991 became the core of the Contract with America in 1994. Three of the five proposals (capital gains tax cut, Roth IRA and eliminating the Social Security earnings penalty) became law. A fourth proposal — rolling back the tax on Social Security benefits — passed the House of Representatives in summer 2002. The NCPA’s proposal for an across-the-board tax cut became the centerpiece of President Bush’s tax cut proposals. NCPA research demonstrates the benefits of shifting the tax burden on work and productive investment to consumption. An NCPA study by Boston University economist Laurence Kotlikoff analyzed three versions of a consumption tax: a flat tax, a value-added tax and a national sales tax. Based on this work, Dr. Goodman wrote a full-page editorial for Forbes (“A Kinder, Gentler Flat Tax”) advocating a version of the flat tax that is both progressive and fair. A major NCPA study, “Wealth, Inheritance and the Estate Tax,” completely undermines the claim by proponents of the estate tax that it prevents the concentration of wealth in the hands of financial dynasties. Senate Majority Leader Bill Frist (R-TN) and Senator Jon Kyl (R-AZ) distributed a letter to their colleagues about the study. The NCPA recently won the Templeton Freedom Award for its study and report on Free Market Solutions. The report outlines an approach called Enterprise Programs that creates job opportunities for those who face the greatest challenges to employment. Retirement Reform. With a grant from the NCPA, economists at Texas A&M University developed a model to evaluate the future of Social Security and Medicare, working under the direction of Thomas R. 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