[Congressional Record Volume 147, Number 49 (Thursday, April 5, 2001)]
[Senate]
[Pages S3541-S3543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 717. A bill to provide educational opportunities for disadvantaged 
children, and for other purposes; to the Committee on Finance.
  Mr. McCAIN. Mr. President, today, I am introducing legislation to 
authorize a three-year nationwide school choice demonstration program 
targeted at children from economically disadvantaged families. The 
program would expand educational opportunities for low-income children 
by providing parents and students the freedom to choose the best school 
for their unique academic needs, while encouraging schools to be 
creative and responsive to the needs of all students.
  This bill authorizes $1.8 billion annually for fiscal years 2002 
through 2004 to be used to provide school choice vouchers to 
economically disadvantaged children through the nation. The funds would 
be divided among the states based upon the number of children they have 
enrolled in public schools. Then, each state would conduct a lottery 
among low-income children who attend the public schools with the lowest 
academic performance in their state. Each child selected in the lottery 
would receive $2,000 per year for three years to be used to pay tuition 
at any school of their choice in the state, including private or 
religious schools. The money could also be used to pay for 
transportation to the school or supplementary educational services to 
meet the unique needs of the individual student.
  In total, this bill authorizes $5.4 billion for the three-year school 
choice demonstration program, as well as a GAO evaluation of the 
program upon its completion. The cost of this important test of school 
vouchers is fully offset by eliminating more than $5.4 billion in 
unnecessary pork and inequitable corporate tax loopholes.
  Mr. President, we all know that one of the most important issues 
facing our nation is the education of our children. Providing a solid, 
quality education for each and every child in our nation is a critical 
component in their quest for

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personal success and fulfillment. A solid education for our children 
also plays a pivotal role in the success of our nation; economically, 
intellectually, civically and morally.
  We must strive to develop and implement initiatives which strengthen 
and improve our education system thereby ensuring that our children are 
provided with the essential academic tools for succeeding 
professionally, economically and personally. I am sure we all agree 
that increasing the academic performance and skills of all our nation's 
students must be the paramount goal of any education reform we 
implement.
  School vouchers are a viable method of allowing all American children 
access to high quality schools, including private and religious 
schools. Every parent should be able to obtain the highest quality 
education for their children, not just the wealthy. Tuition vouchers 
would finally provide low-income children trapped in mediocre, or 
worse, schools the same educational choices as children of economic 
privilege.
  Some of my colleagues may argue that vouchers would divert money away 
from our nation's public schools and instead of instilling competition 
into our school systems we should be pouring more and more money into 
poor performing public schools. I respectfully disagree. While I 
support strengthening financial support for education in our nation, 
the solution to what ails our system is not simply pouring more and 
more money into it.
  Currently our nation spends significantly more money that most 
countries and yet our students scored lower than their peers from 
almost all of the forty countries which participated in the last Third 
International Mathematics and Science Study (TIMMS) test. Students in 
countries which are struggling economically, socially and politically, 
such as Russia, outscored U.S. children in math and scored far above 
them in advanced math and physics. Clearly, we must make significant 
change beyond simply pouring more money into the current structure in 
order to improve our children's academic performance in order to 
maintain a viable force in the world economy.
  It is shameful that we are failing to provide many of our children 
with adequate training and quality academic preparation for the real 
world. The number of college freshman who require remedial courses in 
reading, writing and mathematics when they begin their higher education 
is unacceptably high. In fact, presently, more than 30 percent of 
entering freshman need to enroll in one of more remedial course when 
they start college. It does not bode well for our future economy if the 
majority of workers are not prepared with the basic skills to engage in 
a competitive global marketplace.
  I concede that school vouchers are not the magic bullet for 
eradicating all that is wrong with our current educational system, but 
they are an important opportunity for providing improved academic 
opportunities for all children, not just the wealthy. Examination of 
the limited voucher programs scattered around our country reveal high 
levels of parent and student satisfaction, an increase in parental 
involvement, and a definite improvement in attendance and discipline at 
the participating schools. Vouchers encourage public schools, 
communities and parents to all work together to raise the level of 
education for all students. Through this bill, we have the opportunity 
to replicate these important attributes throughout all or nation's 
communities.
  Thomas Jefferson said, ``The purpose of education is to create young 
citizens with knowing heads and loving hearts.'' If we fail to give our 
children the education they need to nuture their heads and hearts, then 
we threaten their futures and the future of our nation. Each of us is 
responsible for ensuring that our children have both the love in their 
hearts and the knowledge in their heads to not only dream, but to make 
their dreams a reality.
  The time has come for us to finally conduct a national demonstration 
of school choice to determine the benefits or perhaps disadvantages of 
providing educational choices to all students, not just those who are 
fortunate enough to be born into a wealthy family. I urge my colleagues 
to support this bill and put the needs of America's school children 
ahead of pork barrel projects and tax loopholes benefitting only 
special interests and big business.
  Mr. President, I ask unanimous consent that a copy of this bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 717

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PURPOSES.

       The purposes of this Act are--
       (1) to assist States to--
       (A) give children from low-income families the same choices 
     among all elementary and secondary schools and other academic 
     programs as children from wealthier families already have;
       (B) improve schools and other academic programs by giving 
     parents in low-income families increased consumer power to 
     choose the schools and programs that the parents determine 
     best fit the needs of their children; and
       (C) more fully engage parents in their children's 
     schooling; and
       (2) to demonstrate, through a 3-year national grant 
     program, the effects of a voucher program that gives parents 
     in low-income families--
       (A) choice among public, private, and religious schools for 
     their children; and
       (B) access to the same academic options as parents in 
     wealthy families have for their children.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this Act (other than section 10) $1,800,000,000 for 
     each of fiscal years 2001 through 2004.
       (b) Evaluation.--There is authorized to be appropriated to 
     carry out section 10 $17,000,000 for fiscal years 2002 
     through 2005.

     SEC. 3. PROGRAM AUTHORITY.

       (a) In General.--The Secretary shall make grants to States, 
     from allotments made under section 4 to enable the States to 
     carry out educational choice programs that provide 
     scholarships, in accordance with this Act.
       (b) Limit on Federal Administrative Expenditures.--The 
     Secretary may reserve not more than $1,000,000 of the amounts 
     appropriated under section 2(a) for a fiscal year to pay for 
     the costs of administering this Act.

     SEC. 4. ALLOTMENTS TO STATES.

       (a) Allotments.--The Secretary shall make the allotments to 
     States in accordance with a formula specified in regulations 
     issued in accordance with subsection (b). The formula shall 
     provide that the Secretary shall allot to each State an 
     amount that bears the same relationship to the amounts 
     appropriated under section 2(a) for a fiscal year (other than 
     funds reserved under section 3(b)) as the number of covered 
     children in the State bears to the number of covered children 
     in all such States.
       (b) Formula.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     specifying the formula referred to in subsection (a).
       (c) Limit on State Administrative Expenditures.--The State 
     may reserve not more than 1 percent of the funds made 
     available through the State allotment to pay for the costs of 
     administering this Act.
       (d) Definition.--In this section, the term ``covered 
     child'' means a child who is enrolled in a public school 
     (including a charter school) that is an elementary school or 
     secondary school.

     SEC. 5. ELIGIBLE SCHOOLS.

       (a) Eligibility.--
       (1) In general.--Schools identified by a State under 
     paragraph (2) shall be considered to be eligible schools 
     under this Act.
       (2) Determination.--Not later than 180 days after the date 
     the Secretary issues regulations under section 4(b), each 
     State shall identify the public elementary schools and 
     secondary schools in the State that are at or below the 25th 
     percentile for academic performance of schools in the State.
       (b) Performance.--The State shall determine the academic 
     performance of a school under this section based on such 
     criteria as the State may consider to be appropriate.

     SEC. 6. SCHOLARSHIPS.

       (a) In General.--
       (1) Scholarship awards.--With funds awarded under this Act, 
     each State awarded a grant under this Act shall provide 
     scholarships to the parents of eligible children, in 
     accordance with subsections (b) and (c). The State shall 
     ensure that the scholarships may be redeemed for elementary 
     or secondary education for the children at any of a broad 
     variety of public and private schools, including religious 
     schools, in the State.
       (2) Scholarship amount.--The amount of each scholarship 
     shall be $2000 per year.
       (3) Tax exemption.--Scholarships awarded under this Act 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.
       (b) Eligible Children.--To be eligible to receive a 
     scholarship under this Act, a child shall be--
       (1) a child who is enrolled in a public elementary school 
     or secondary school that is an eligible school; and
       (2) a member of a family with a family income that is not 
     more than 200 percent of the poverty line.

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       (c) Award Rules.--
       (1) Priority.--In providing scholarships under this Act, 
     the State shall provide scholarships for eligible children 
     through a lottery system administered for all eligible 
     schools in the State by the State educational agency.
       (2) Continuing eligibility.--Each State receiving a grant 
     under this Act to carry out an educational choice program 
     shall provide a scholarship in each year of the program to 
     each child who received a scholarship during the previous 
     year of the program, unless--
       (A) the child no longer resides in the area served by an 
     eligible school;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, 200 percent of the poverty line; or
       (D) the child is expelled or convicted of a felony, 
     including felonious drug possession, possession of a weapon 
     on school grounds, or a violent act against an other student 
     or a member of the school's faculty.

     SEC. 7. USES OF FUNDS.

       Any scholarship awarded under this Act for a year shall be 
     used--
       (1) first, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not the school to which the 
     child would be assigned in the absence of a program under 
     this Act;
       (2) second, if the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the State determines is capable of providing such 
     services and has an appropriate refund policy; and
       (3) finally, for educational programs that help the 
     eligible child achieve high levels of academic excellence in 
     the school attended by the eligible child, if the eligible 
     child chooses to attend a public school.

     SEC. 8. STATE REQUIREMENT.

       A State that receives a grant under this Act shall allow 
     lawfully operating public and private elementary schools and 
     secondary schools, including religious schools, if any, 
     serving the area involved to participate in the program.

     SEC. 9. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, 
     if a local educational agency in the State would, in the 
     absence of an educational choice program that is funded under 
     this Act, provide services to a participating eligible child 
     under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.), the State 
     shall ensure the provision of such services to such child.
       (b) Individuals With Disabilities.--Nothing in this Act 
     shall be construed to affect the requirements of part B of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this Act shall be 
     considered to aid families, not institutions. For purposes of 
     determining Federal assistance under Federal law, a parent's 
     expenditure of scholarship funds under this Act at a school 
     or for supplementary academic services shall not constitute 
     Federal financial aid or assistance to that school or to the 
     provider of supplementary academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this Act shall, as a condition of 
     participation under this Act, comply with the provisions of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) and section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       (B) Regulations.--The Secretary shall promulgate 
     regulations to implement the provisions of subparagraph (A), 
     taking into account the purposes of this Act and the nature, 
     variety, and missions of schools and providers that may 
     participate in providing services to children under this Act.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to a State or to the parents of any child under this 
     Act in determining whether to provide any other funds from 
     Federal, State, or local resources, or in determining the 
     amount of such assistance, to such State or to a school 
     attended by such child.
       (e) No Discretion.--Nothing in this Act shall be construed 
     to authorize the Secretary to exercise any direction, 
     supervision, or control over the curriculum, program of 
     instruction, administration, or personnel of any educational 
     institution or school participating in a program under this 
     Act.

     SEC. 10. EVALUATION.

       The Comptroller General of the United States shall conduct 
     an evaluation of the program authorized by this Act. Such 
     evaluation shall, at a minimum--
       (1) assess the implementation of educational choice 
     programs assisted under this Act and their effect on 
     participants, schools, and communities in the school 
     districts served, including parental involvement in, and 
     satisfaction with, the program and their children's 
     education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC. 11. ENFORCEMENT.

       (a) Regulations.--The Secretary shall promulgate 
     regulations to enforce the provisions of this Act.
       (b) Private Cause.--No provision or requirement of this Act 
     shall be enforced through a private cause of action.

     SEC. 12. FUNDING.

       The Committee on Finance and the Committee on 
     Appropriations of the Senate and the Committee on Ways and 
     Means and the Committee on Appropriations of the House of 
     Representatives shall identify wasteful spending (including 
     loopholes to revenue raising tax provisions) by the Federal 
     Government as a means of providing funding for this Act. Not 
     later than 60 days after the date of enactment of this Act, 
     the committees referred to in the preceding sentence shall 
     jointly prepare and submit to the Majority and Minority 
     Leaders of the Senate and the Speaker and Minority Leader of 
     the House of Representatives, a report concerning the 
     spending (and loopholes) identified under such sentence.

     SEC. 13. DEFINITIONS.

       In this Act:
       (1) Charter school.--The term ``charter school'' has the 
     meaning given the term in section 10310 of the Elementary and 
     Secondary Education Act of 1965 (as redesignated in section 
     3(g) of Public Law 105-278; 112 Stat. 2687).
       (2) Elementary school; local educational agency; parent; 
     secondary school; state educational agency.--The terms 
     ``elementary school'', ``local educational agency'', 
     ``parent'', ``secondary school'', and ``State educational 
     agency'' have the meanings given the terms in section 14101 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 8801).
       (3) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (5) State.--The term ``State'' means each of the 50 States.
                                 ______