ERIC Number: EJ763263
Record Type: Journal
Publication Date: 2004
Reference Count: N/A
Selling Supplemental Services: Can School Districts Serve as Both Regulators and Providers?
Education Next, v4 n4 p30-36 Fall 2004
Tutoring services, known in the federal No Child Left Behind Act as "supplemental services," arguably represent the federal government's largest free-market experiment in education. In the rush to capture market share, more than 1,000 tutoring providers have signed up for the program. But market uncertainty, combined with differences in how school districts are administering the law, has produced some extremely rocky terrain for these firms. Within this new marketplace, school districts hold enormous power as a result of their dual role--as both program administrator and potential provider. Districts also have little incentive to inform parents of the money available to them for tutoring, since districts get to keep any unused funds. The district's dual role also gives rise to a conflict of interest. The concern is that districts enjoy an unfair advantage over other providers because of their direct access to parents. To overcome these obstacles, most large providers are going around the districts by beefing up their own marketing efforts. At present, large corporate providers and school districts seem to be ruling the marketplace, and their shares are likely to increase as the program matures because of their ability to meet market demands. While the development of the supplemental services market has been chaotic, its Darwinian nature means that the provider with the best results will most likely win out in the end.
Descriptors: Federal Legislation, Marketing, Tutoring, School Districts, Public Education, Overachievement, Nonprofit Organizations, Federal Government, Conflict of Interest, Educational Finance, Services
Hoover Institution. Stanford University, Stanford, CA 94305-6010. Tel: 800-935-2882; Fax: 650-723-8626; e-mail: email@example.com; Web site: http://www.hoover.org/publications/ednext
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Authoring Institution: N/A
Identifiers - Location: Georgia
Identifiers - Laws, Policies, & Programs: No Child Left Behind Act 2001