The Storm on the Oklahoma Horizon

The Storm on the Oklahoma Horizon

Matthew Ladner Senior Advisor for Policy and Research Excel in Ed

United States Treasury currently estimates the amount of federal debt at $19 trillion and unfunded entitlement liabilities at $55 trillion.

10,000 Baby Boomers will reach retirement age per day until 2030, whereupon all surviving Baby Boomers will be age 65 or older.

33% of funds spent by the Oklahoma state government in 2014 originated with Uncle Sam.

Make your plans accordingly.

Oklahoma NAEP 8th Grade Reading Scores 1998 to 2015 Below Basic and Proficient or BeBer

30%

30%

28% 24%

25%

26%

28%

26%

28%

27%

27%

29%

29%

27%

26%

25%

24%

20%

1998

2002

2003

2005

2007

2009

2011

2013

2015

Congressional Budget Office Projections for Federal Costs per Medicaid Enrollee in 2023 (Source: Kaiser Family Foundation)

$16,190

$4,590 $2,550

Elderly

Adult Non-Elderly

Children

Oklahoma State Expenditures, 2000 and 2014 29.6% 28.4% 24.3%

23%

23.2%

15.6% 15.6%

15.5%

9.6% 6.0% 3.8% 2.6%

1.6% 0.9% K-­‐12

HIGHER ED

WELFARE

MEDICAID

CORRECTIONS TRANSPORTATION ALL OTHER

What are Educa,on Savings Accounts?

An educa,on program u,lizing an account controlled by parents with mul,ple educa,onal uses. Under a robust system of accountability (monitoring and audi,ng), parents can direct funds in an ESA to any combina,on of educa,onal uses, including:

Private school tui,on

Exam fees

Tutoring

Therapy for special needs students

Savings for future college costs

Instruc,onal materials and curriculum

Contract public school courses

Online programs and courses

Foundation for Excellence in Education Copyright.2014

11

New to Educa,on, But Not to Parents

Health Savings Accounts

Flexible Spending Accounts

Unemployment Benefits

Coverdell Accounts

Food Stamps

Dependent Care Accounts

Foundation for Excellence in Education Copyright.2014

12

ESAs Embrace Basic Economics

Foundation for Excellence in Education Copyright.2014

13

Next-­‐Gen Accountability Using parent ra,ngs and objec,ve metrics to help parents navigate school choice.

Interac,ve search tools, community advice, and expert reviews to find the right tutor, school, or educa,on service.

Drives quality by requiring users to rate each experience

Foundation for Excellence in Education Copyright.2014

14

The Oklahoma Constitution guarantees K-12 spending and the public supports it strongly, but the system today is underperforming despite an unsustainable level of spending.

The next 15 years seem likely to test the outer limits of our political adaptability.

The working-age taxpayers of 2030 sit in Oklahoma classrooms right now- one of the few things we can control now is how many opportunities we give them to fulfill their potential. By providing the maximum possible flexibility and creating incentives to maximize value, ESAs could play a large role in a Oklahoma plan.

Thank You !

MaYhew Ladner Senior Advisor for Policy and Research Excel in Ed

(512) 844-­‐5504

MaYhew@excelined.org