Solutions in Scholarships for Low-Income Communities

Maybe you have been following this blog for a while, and you’ve heard us explain “The Big Problem,” “The Failing Attempts at Change” and “The Solution.” If you haven’t, skip down to the bottom and take a look at those brief ideas…

Previously, we’ve described the solution to financially-segregated communities in abstract terms. The solutions have been big ideas that might feel like pie in the sky. Not anymore, friends! Today, we are excited to share with you that, in conjunction with Kennesaw State University in Georgia, we have published a working template for how these scholarships would look if they were put into practice in the state of Georgia.

The document describes:

  • How a state could designate “low-income areas” or “economic development zones”

  • Recommendations for protecting communities from gentrification concerns that all geographically targeted jobs programs can face

  • How the state could estimate the private school enrollment increases that are likely to result when Neighborhood Hope Scholarships are enacted

If you are interested in what it would look like to build a concrete program like this one in your community, take a moment to read this document. 

And if you have questions or concerns, we want to hear them. What is confusing? What do you want more information about? Leave a comment or email us at hello@effective-ed.org

We can’t wait to hear from you!


THE BIG PROBLEM:

Most students are assigned to public schools based on address. As a consequence, financially-secure families cluster in areas with good public schools. Poor families concentrate in areas with weaker schools. This geographic sorting reinforces differences in the quality of public schools across neighborhoods.

Areas with weaker schools also suffer from joblessness, low incomes, low economic activity, low housing values, high crime rates, the prevalence of food deserts and other negative neighborhood characteristics. In the long run, children who grow up in concentrated poverty suffer worse life outcomes than children who grow up in financially-secure neighborhoods.

FAILING TO MAKE CHANGE:

When someone learns about the problem, they often respond with, “Okay, but isn’t there a housing thing where they move kids to better neighborhoods?”

That’s a HUD program called “Moving to Opportunity.” This model falls short of offering relief for the large majority of families living in concentrated poverty in the US. Due to the millions living in poverty, not everyone can move to a better neighborhood. This policy is not only prohibitively expensive but also impossible to use universally. In contrast, enticing financially-secure families to stay in low-income neighborhoods can be costless and possible. 

THE SOLUTION:

How? By offering more school options using “Neighborhood Hope Scholarships.”  These scholarships would be available to all families living in designated low-income communities. With this option, families would be less likely to leave the community once they have school-age children. 

Then, businesses seeking to sell goods and services to the growing community would follow - bringing private investment dollars and creating jobs for local working-class residents. Positive neighborhood effects of family choice programs are now well-documented in academic studies, but until now, no school program has been designed specifically to promote job creation and to reduce poverty rates in low-income communities.