Someone should send Kevin Welner’s timely essay, “The Mythical Great Equalizer School System,” to Senator Joe Manchin, who has said he opposes expanding the Child Tax Credit as part of Build Back Better.
Welner’s essay, part of a new collection of essays, Public Education, Defending a Cornerstone of American Democracy, edited by David Berliner and Carl Hermanns, is urgently timely. It examines the educational implications of the philosophy behind what has become the most controversial provision of President Biden’s Build Back Better Bill, now passed by the U.S. House of Representatives and awaiting action in the U.S. Senate: repairing a deeply flawed Child Tax Credit.
Welner, a professor of education at the University of Colorado and executive director of the National Education Policy Center, demonstrates that in a nation with millions of children living in poverty, public schools by themselves cannot provide enough support to compensate for the detrimental effects of alarming economic inequality. Welner examines the old and widely accepted myth that our public system of education is the great equalizer: “Can schools balance our societal inequality? If that inequality is left unaddressed, along with the harm it does to children, can policymakers reasonably expect an outcome of rough equality through focusing instead on building a dazzling public school system that would envelop those children in rich opportunities to learn? Admittedly, this describes an odd (and cruel) policy approach: to first inflict awful harm on children and then pour resources into schools in a desperate attempt to mitigate the harm.” (Public Education, Defending a Cornerstone of American Democracy, p. 87)
The Child Tax Credit has provided some support for child rearing since its passage in 1997. President Biden’s COVID relief bill passed in March of 2021 temporarily fixed problems with the Child Tax Credit as a way to help parents get through a year dominated by COVID-19. For the NY Times, Ben Casselman explains: “Congress last spring expanded the existing child tax credit in three ways. First, it made the benefits more generous, providing as much as $3,600 per child, up from $2,000. Second, it began paying the credit in monthly installments usually deposited directly into recipients’ bank accounts, turning the once-yearly windfall into something closer to the children’s allowances common in Europe. Finally, the bill made the full benefit available to millions who had previously been unable to take full advantage of the credit because they earned too little to qualify. Poverty experts say that change, known in tax jargon as ‘full refundability,’ was particularly significant because without it a third of children—including half of all Black and Hispanic children, and 70 percent of children being raised by single mothers—did not receive the full credit. Mr. Biden’s plan would have made that provision permanent.”
Because the Senate failed to pass Build Back Better by the end of 2021, these changes expired on New Year’s Eve. If Senator Manchin would agree, these reforms can be reinstated in the Senate’s version of Build Back Better, which Congressional leaders still pledge to pass.
You can find some of Welner’s research summarized in a newsletter last October describing the National Education Policy Center’s new Price of Opportunity Project: “Those of us who work in or with schools never question the enormous impact that a teacher or school can have on a student. But this essential truth coexists with another truth: that differences between schools account for a relatively small portion of measured outcome differences. That is, opportunity gaps in the U.S arise primarily outside of schools. This should not be a surprise. Poverty, concentrated poverty, and racialized poverty are pervasive features of America. School improvement efforts cannot directly help children and their families overcome decades of policies that perpetuate systemic racism and economical inequality. When children are born in the United States, their educational and life outcomes can all be predicted based on their parents’ education, income and wealth. Compared to the Scandinavian countries and other so-called Western democracies like Canada, Spain, Australia, and New Zealand, American children are inordinately trapped in intergenerational poverty. Inequality in the U.S. is stark and enduring.”
In the longer essay published in Public Education, Defending a Cornerstone of American Democracy, Welner explains that between 60 and 80 percent of the achievement gaps as measured by standardized tests are attributable to outside-of-school opportunity gaps based on family income. Unlike President Biden, whose Build Back Better Bill acknowledges the lifetime impact of childhood poverty, Welner explains: “Many policymakers and others are still mired in a type of magical thinking. They have somehow convinced themselves that children’s opportunities to learn outside of school are not particularly important—that policy should simply focus on making schools more equal.” (Public Education, Defending a Cornerstone of American Democracy, pp. 91-92)
Inadequate and inequitably distributed school funding across the states only complicates the problem: “Meanwhile the national discussion of school funding is so impoverished…. We hail states like New Jersey and Washington when legislators finally stop dragging their feet in response to decades of court orders in adequacy cases. But the legislators never actually meet or exceed the adequacy standard—and that standard remains far below what is needed…. (N)o state has yet reached… the level of equity that we call ‘minimal adequacy.’ This is defined as the additional resources to give all students a realistic shot at reaching basic levels set forth by state standards…. Even if we were ever to get to that point, vast inequality would remain in place because of opportunity gaps that arise due to societal inequalities.”(Public Education, Defending a Cornerstone of American Democracy, p. 87)
Welner believes that federal policy must address childhood poverty both inside and outside of school, and his essay is timely in the context of the dilemma facing Congress this winter. There is widespread agreement among advocates for children that President Biden’s reforms to the Child Tax Credit are the most basic way to begin ameliorating the opportunity gaps that Kevin Welner identifies as the greatest barrier to school achievement among children living in poverty.
First Focus on Children’s executive director, Bruce Lesley quotes from the recommendations of a 1991 National Commission on Children, recommendations advocates used in 1997 to justify the establishment of the Child Tax Credit: “Because it would assist all families with children, the refundable child tax credit would not be a relief payment, nor would it categorize children according to their ‘welfare’ or ‘nonwelfare’ status. In addition, because it would not be lost when parents enter the work force , as welfare benefits are, the refundable child tax credit could provide a bridge for families striving to enter the economic mainstream. It would substantially benefit hard-pressed single and married parents raising children. It could also help middle-income, employed parents struggling to afford high-quality child care. Moreover, because it is neutral toward family structure and mothers’ employment, it would not discourage the formation of two-parent families or of single-earner families in which one parent chooses to stay at home and care for the children.”
Lesley reminds us that, according to the Urban Institute, “under current law, the share of all new federal spending through 2030 for the adult portions of Social Security, Medicare, and Medicaid will be 71% compared to just 2% for children’s programs.” And he quotes findings from the Committee for a Responsible Federal Budget—that “while much of spending on adults is mandatory, spending on children is disproportionately discretionary…. Spending on children is disproportionately temporary…. Spending on adults is rarely limited while spending on children is often capped…. Most programs for children lack built-in growth…. Programs for children lack dedicated revenue and thus lack the political advantage and protection of programs for seniors that enjoy this benefit.”
Lesley urges Congress to make permanent the reforms to the Child Tax Credit passed temporarily for 2021 in last spring’s COVID relief bill. These reforms benefited 65 million children “including an estimated 4 million children lifted out of poverty….”
However, among the three reforms to the Child Tax Credit in the American Rescue Plan— increasing the amount of the per-child benefit, distributing the tax credit monthly instead of once a year, and making the tax credit fully refundable—one reform surpasses the others for ameliorating child poverty. The Center on Budget and Policy Priorities emphasizes that, for America’s children, permanently making the Child Tax Credit fully refundable for families with very low income is the most important element in Build Back Better:
“In the absence of the full refundability provision, the first two of those changes would lift an estimated 543,000 children above the poverty line, reducing the child poverty rate by 5 percent… But the two changes plus full refundability stand to raise 4.1 million children above the poverty line and cut the child poverty rate by more than 40 percent. In other words, the full refundability feature makes the expansion nearly eight times as effective in reducing child poverty.” “Prior to the Rescue Plan, 27 million children received less than the full Child Tax Credit or no credit at all because their families’ incomes were too low. That included roughly half of all Black and Latino children and half of children who live in rural communities… This upside-down policy gave less help to the children who needed it most. The (COVID) Rescue Plan temporarily fixed this policy by making the tax credit fully refundable for 2021. Build Back Better, in one of its signature achievements, would make this policy advance permanent.” (emphasis in the original)