Investing in the Downturn

Budget cuts and fights to preserve funding will dominate the headlines for at least the next year. But, sometimes, even in a downturn, it's important to invest new funds in particularly promising areas. It's why even in the face of massive financial uncertainty, GM is doing what it can to continue investments in ideas such as the battery-powered Chevy Volt.

A recent article in the Newport News, VA Daily Press gives a good example from education. The article highlights the impressive growth of the Virtual Virginia online learning program. The program offers 22 different AP courses and serves 2,200 students. But, despite the program's success, funding limits capacity and there are wait lists for some courses. And, with looming budget cuts, even the program's current capacity is at risk.

Consider these important facts in the article when thinking about this investment decision:

• The program was designed to serve schools that couldn't afford to hire teachers for AP and other classes.
• More than a quarter of U.S. high school students lack access to advanced courses at their schools, and those at small or rural schools "have the least opportunity to take one or more advanced courses in math, science, English or a foreign language," according to a 2007 NCES report.
• Local districts also save money by not having to hire teachers; Virtual Virginia, for example, only requires districts to pay for textbooks and computer access and assign teachers to monitor students' in-school online sessions.

We don't have enough evidence from the article to run the numbers on the Virtual Virginia program, but it's likely that this type of program is the "Chevy Volt" of public education. It might actually save money. And, it's especially important if we prioritize effectiveness in accomplishing important goals, such as broadening and ensuring equitable access to advanced courses in math, science, and other areas.

The Southern Regional Educational Board, which does study these issues at a much deeper level, just published a thoughtful policy brief making the case for a better, more sustainable funding model for state-run virtual schools. Embedded in the brief is the idea that performance is important--even more so in a downturn.

PS -- Of course, things are so bad at GM that even the Volt is taking a hit.