How to rethink unions, resource allocation, and school choice in American education

The following is an excerpt from the policy brief, Staffing Surges and Student Outcomes: Rethinking Unions, Resource Allocation, and School Choice In American Education.

The current landscape of American K-12 education is at an inflection point. Years of declining academic outcomes despite ever-growing investments have led reformers to question the status quo and experiment with empowering parents through school choice, like the recalibration of the Department of Education. The influence of teachers’ unions on education policy and resource allocation has come under scrutiny, especially after the COVID-19 school closures. 

This research finds that union dynamics and school choice are intertwined with student outcomes in complex ways.

On one hand, strong unions tend to secure more staffing and resist certain reforms, which can inadvertently contribute to inefficiencies and stagnant performance.

On the other hand, school choice mechanisms introduce competitive pressures that can catalyze improvements but must be implemented thoughtfully to avoid unintended harms (as some voucher studies warn). The evidence to date suggests several clear takeaways.

Unions’ Influence Extends Beyond Teacher Salaries: A major finding in this research is that teachers’ unions have successfully lobbied for increased staffing—often in non-instructional roles—without clear evidence of academic gains. This pattern raises questions about how contracts and collective bargaining can shape spending priorities, potentially crowding out more direct investments in teaching quality.

Competitive Pressures Can Spur Improvement—But Are Not a Panacea: School choice programs (charters, vouchers, education savings accounts) may introduce beneficial competition, prompting nearby schools to become more efficient and student-focused. However, their impact nonetheless depends heavily on design and context. 

Composition of Spending Matters More Than Its Size: Additional education funding alone has a modest effect on student outcomes, and there is significant heterogeneity in the effect of additional spending. While there is some evidence that directed funds towards student instruction and core infrastructure have greater returns, much remains to be learned.

One stronger result, however, is that school districts with high union influence or weak oversight may be more prone to inefficient allocations regardless of the type of spending. 

Performance Pay Shows Potential but Demands Strong Design and Buy-In: Evidence suggests that individual, high-powered bonuses can boost teacher performance and student achievement, especially when tied to clear performance metrics. Yet, group-based or ill-defined incentive structures often fail—and can even backfire—if teachers perceive them as unfair or easily “gamed.”

Parental Empowerment Plays a Key Role in Crisis Response: During COVID-19 school closures, parents able to choose alternatives—like private or charter schools, or homeschooling—could mitigate disruptions and stress. This clarifies the value of giving families more choice and putting competitive pressure on complacent systems to adapt.

Unions Can Serve Important Teacher Interests but May Resist Reforms: Some studies show negative union impacts on test scores and labor-market outcomes, yet others find neutral or localized positive results, suggesting union influence varies by context. Policy changes that limit collective bargaining or introduce new accountability structures have sometimes improved achievement but may face political headwinds.

Transparency Is Key for Both Public and Private Options: School choice does not guarantee high performance unless robust mechanisms—such as transparency and data reporting—are in place for parents to make informed decisions, thereby unleashing competition across schools. Traditional public schools also benefit from competition and oversight, ensuring that new funding or staffing expansions remain focused on raising student achievement rather than ballooning bureaucracies.

The ongoing education reforms across states will provide new insights in the years to come. Policymakers would do well to heed the lessons from the research so far: align resources with student learning, hold all schools accountable for results, and trust parents as partners in education. By doing so, the U.S. can aspire to break out of its student performance plateau and ensure that every child—regardless of ZIP code or background—has access to an excellent education.

Full Policy Brief: Staffing surges and student outcomes: Rethinking unions, resource allocation, and school choice in American education

The post How to rethink unions, resource allocation, and school choice in American education appeared first on Reason Foundation.

Source: https://reason.org/commentary/how-to-rethink-unions-resource-allocation-school-choice-american-education/