Competition Works in Education

There's no debate that the quality of educational outcomes in the Westside School District of Omaha are higher than the Omaha Public School district outcomes. Many would argue the higher valuations (tax base) in Westside and spending translate into better educational outcomes.

But which came first, the chicken or the egg?

Most people with children or those planning to have children check the quality of education in districts before purchasing. If Westside has the best record, people are willing to pay more or in extreme cases, even bulldoze an existing home to buy inside Westside. This type of selection causes valuations inside Westside to rise so the schools get additional funding. But why did they buy inside Westside?

It is my contention that the choices of home buyers are a form of competition between the districts causing the districts to excel in education to attract residents and developers. And OPS used to compete with the best of the suburbs with schools like Dundee and Central High.

Its clear that people are willing to pay more to live in districts where their children are promised a better educational outcome. So we see the benefits of limited competition even in publicly funded education. If the parents can use the tax money allocated to their child to the school chosen by the parent, districts would wake up quickly

The 1999-2000 OPS annual report touts:

"Recent research has shown that reduced class sizes, particularly in the early elementary grades, raises students’ achievement scores and that these gains are sustained even after students move on to larger class sizes."..."Class sizes were reduced to “approximately fifteen students in primary classes and twenty students in intermediate classes.”

Does spending make a difference in educational outcomes? It certainly cost a lot to reduce the class size of academy schools (accomplished in 2000), but did the scores and outcomes go up? Not according to the US Chamber of Commerce report in 2007 although Nebraska also received a "D" on honesty of assessment.