The Magic of Per-Student Cost

by
Ian Underwood

Are your state representatives smarter than fifth-graders?

Here’s a word problem that even a fifth-grader should be able to solve:

A boat ferries passengers across a lake.  Ten people want to ride it together.  The captain says:  It costs me $100 to run the boat, so you’ll have to pay an average of $10 each.

On the day of the trip, one of the people discovers a scheduling conflict, and can’t travel at the appointed time  He has to go a little later.  So the other nine think about it like this:  We’ll give $5 to the tenth guy, which he can use to take an Uber.  And we’ll give the captain $10 for each of the rest of us, or $90 in total.

How much does the group spend to get everyone to the other side?

If you’re a fifth-grader, you reason like this:  The captain is going to charge them $100 no matter how many of them are on the boat, so they’re spending an extra $5 for the special needs passenger.   The total cost for the group is $105.

But if you’re a state legislator, or an employee of the state Department of Education¹, you reason like this:  $10 per passenger, times 9 passengers, plus $5, is $95.  So that’s what the group pays — a savings of $5 for letting one of the passengers exercise ‘transportation choice’!

This is the discussion about funding Education Freedom Accounts (EFAs) — or Education Spending Accounts (ESAs), or whatever you want to call them — in a nutshell.

 


¹ The recent report ‘New Hampshire Department of Education Long-term Comprehensive Modeling Analysis Education Freedom Accounts’, which ‘shows’ how the state will save money by implementing EFAs, is based on the latter reasoning.

Author

  • Ian Underwood

    Ian Underwood is the author of the Bare Minimum Books series (BareMinimumBooks.com).  He has been a planetary scientist and artificial intelligence researcher for NASA, the director of the renowned Ask Dr. Math service, co-founder of Bardo Farm and Shaolin Rifleworks, and a popular speaker at liberty-related events. He lives in Croydon, New Hampshire.

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