Saturday, November 24, 2007

Why Are Government Schools So Expensive?

One average, private elementary and secondary schools spend about a third less than government run schools while achieving superior education outcomes. Spending on public schools as a percentage of personal income has soared from 2.3% in 1950 to 4.5% in 1999. Why are the government-run schools so expensive?

First, the growth of personnel in the public school systems is nothing short of astounding. During the period from 1979 to 2000 student enrollment increased by 13%. But education personnel increased by 61%! Even worse, only 40% of school employees are actually teachers.

Second, government school employees are paid on average 35% more than private school employees. Government school teachers' benefits also far exceed their private school counterparts. These differences are largely due to the stranglehold the teacher unions have on our public school system.

Third, it is common to offer tenure to public school teachers. This tends to concentrate teachers in the highest salary levels. Private schools typically do not offer tenure and as such have a more normal distribution of salary levels and attrition.

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