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The second reform is human capital, immigration, innovation and trade. America must reform its early childhood, elementary and secondary education. The Department of Education must reduce its overhead and end current program spending. The federal government will fund periodic assessment – that is, testing – in order to facilitate accountability. Teachers must educate in English whenever possible. Substitute a new credit for child care expenses and the supplemental income for families for current child care and early childhood education programs. Facilitate choice with education grants, funded by a nonrefundable federal education tax credit, available for private and public schools: Kindergarten students get $5,200. 1st through 3rd grade students get $8,800 per year, 4th through 6th grade students get $9,200 per year, junior high school students get $10,300 per year, and high school students get $10,800 per year. Local governments can mimic the federal education grant system, funded by a nonrefundable tax credit. Schools need choice too and should be allowed to choose which students they want in their classrooms.
Schools need to fix the supply-side by creating quality learning environments. There will be a transition for current public sector education employees. First, apply the Government Reform proposals; specifically, reduction-in-force and business process reform. Second, move teachers with weaker teaching backgrounds to the lower grades and backfill with teachers with stronger backgrounds. Expanded early childhood education funding should increase the number of paid positions and provide a place for qualified displaced teachers from the higher grades to go. The public school infrastructure must be opened to competition.
Reform post-secondary education and training. First, reform technical and vocational education and training. End current training and employment services programs. Make student-directed TVET grants up to a maximum of $7,500 per U.S. citizen over a lifetime beginning at age 18. The states must match federal funding and allow the money to be spent anywhere in the U.S. Also, require tuition for nonresident U.S. citizens to be no more than 5% higher than resident tuition. The grants will be funded by nonrefundable education tax credits. Complement these grants with state-directed TVET grants. Each state will have a board with a mission to prioritize retraining people for in-demand, entry-level positions. These grants will be funded by nonrefundable education tax credits. Finally, end the Trade Adjustment Assistance program.
Second, reform post-secondary academic education. Require cost accountability to drive efficiency. Institute full(er) tuition pricing. Turn over the student loan program, including donating outstanding loans, to universities. The federal government will award grants towards the first associate’s or bachelor’s degree contingent on satisfactory academic progress. The annual amount will be $7,500. The maximum for an associate’s degree will be $15,000. The maximum for a bachelor’s degree will be $30,000. The states must match federal funding and allow the money to be spent anywhere in the U.S. Also, require tuition for nonresident U.S. citizens to be no more than 5% higher than resident tuition. The grants will be funded by a nonrefundable education tax credit. End existing education tax preferences. Coordinate with the Montgomery GI Bill. State and local governments will need less revenue, so end state and local government income, inheritance, estate and gift taxes.
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