Monday, March 02, 2009

Will the Stimulus Package Help Our Education System?

Eric Hanushek and Alfred Lindseth are skeptical:

An especially egregious element is the $100 million addition to the impact aid program. Impact aid was introduced in 1950 to provide funds in lieu of taxes for schools located near military facilities (which did not pay taxes). It was later expanded to include aid for Native American schools. The distribution of funds under this program is, however, not only highly inequitable, but a very inefficient way to support these schools. For these reasons, virtually every administration since the 1960s has tried to eliminate this program, but now it is being expanded... This example illustrates our biggest concern – that the stimulus program simply locks in a set of bad policies.