by Lance T. Izumi, Fellow in California Studies
Pacific Research Institute
April 4, 2000

Announcer lead: Time for Perspectives. Lance Izumi says that California should look to Arizona for school construction strategies.

Last month, despite a $25-million campaign by its supporters, California voters rejected Proposition 26, which would have made it easier to pass local school construction bonds. In the wake of this result, the question becomes how best to finance future school construction.

One interesting idea comes from a study published by the Arizona-based Goldwater Institute. The study, co-authored by, among others, Lew Solomon, former dean of the UCLA school of education, advocates child-centered school funding. Under this concept, a single dollar amount that includes facilities funding would follow a child when that child selects the public school of his or her choice. This pay-as-you-go per-pupil amount would be allocated from the state's general fund budget.

The study recommends that local property taxes used to pay for school construction be phased out as current debts are paid. In the event that the state's per-pupil allocation is inadequate for immediate building needs, schools could borrow against the revenue stream. The state of Arizona has, in large part, now adopted the Goldwater Institute plan.

There are several advantages to the Arizona model. First, it brings equity to facilities funding. Rich and poor school districts get facilities funding based not on local property value, as in the case of local school bonds, but on equal funding carried by every child. Also, since the funding follows the child, it introduces a needed aspect of competition into the current static education marketplace. If, for example, parents decide to send their child to a public charter school instead of a regular public school, the child takes the facilities funding to the charter school. This mobility of facilities funding will empower parents and act as an incentive for schools to improve educational quality.

The Arizona model is not without question marks, such as what to do about small school districts experiencing hypergrowth. However, overall, it's a novel and innovative concept that deserves to be discussed and explored here in California.

With a perspective, I'm Lance Izumi.