How Missouri school choice reform could become a powerful economic development engine | Opinion
State economic development programs often focus on diverting taxpayer dollars from where they would otherwise go — such as schools — to developers as a way of encouraging development. Research suggests those subsidies do not deliver on their promises, despite the hundreds of millions spent on them in Missouri alone. What is inarguable: These efforts set education funding and economic development against each other.
It doesn’t need to be that way.
While education is often seen as a personal good — a pathway for individuals to build better lives — there are broader economic benefits. A recent report, “School Choice: An Economic Development Engine,” I authored for the Virginia-based Yorktown Foundation for Public Policy, suggests education reform could serve as a powerful engine for economic development, reshaping communities and fostering growth in ways policymakers rarely consider. The paper highlights how school choice policies, like open enrollment, could deliver both educational and economic benefits.
A persistent problem is that the majority of school districts tie a child’s educational opportunities to their address. This closed-enrollment system effectively links housing markets to school quality, driving up property values in affluent areas with strong schools while suppressing them in lower-income neighborhoods. The result is not only entrenched socioeconomic segregation but also diminished opportunities for children in underprivileged communities.
One need look no further than Kansas City to see it. We all know people who have moved — sometimes across state line — to benefit from better schools. Those districts with sought-after schools have higher home prices, serving as yet another barrier to families of lesser means.
By contrast, open enrollment policies — which allow families to send their children to schools outside their assigned district — offer a way to break this cycle. Open enrollment allows families to stay in neighborhoods, which has positive residential-home-value and family-formation benefits.
The report demonstrates school choice can increase housing values across the board, creating a rising tide that lifts all boats. In Vermont, for example, towns with voucher programs enabling students to attend schools outside their municipality saw higher property values compared to those without such programs. Minnesota’s mandatory open enrollment policy, which allows students to transfer between districts, has similarly led to statewide increases in housing values, even in areas initially resistant to the change.
The benefits go beyond real estate. Better schools mean higher lifetime earnings for students, which in turn generates increased tax revenue and greater economic mobility — key elements of long-term economic growth. These benefits aren’t limited to students who take advantage of school choice; they extend to entire communities. Stronger schools attract new residents, foster economic activity, and build social capital, creating a virtuous cycle of growth.
Despite these advantages, critics of school choice often argue that it could undermine public schools by siphoning away resources. The report acknowledges these concerns but points to evidence that well-designed choice programs benefit all schools, not just those with open enrollment. For instance, when families have more options, schools are incentivized to improve performance to retain students. Furthermore, policies that allow funding to follow the student can equalize resources across districts, ensuring no school is unfairly disadvantaged.
The report also highlights the dangers of limiting access to school choice through means-testing. While targeting programs to low-income families might seem equitable, it can inadvertently reinforce segregation. In places like Milwaukee, restrictive eligibility for vouchers has concentrated poverty in urban areas while wealthier families flee to the suburbs. Broadly accessible school choice programs, by contrast, strengthen communities by ensuring all families— not just the wealthiest — can benefit.
The data from other states makes a compelling case: Education reform isn’t just about improving test scores or expanding opportunities for individual students. It’s about creating stronger, more vibrant communities. By adopting policies like open enrollment, states can unlock economic benefits that reach far beyond the classroom.
Removing barriers to school choice is not just good for students — it’s good for society. Policymakers should consider the Yorktown report’s findings and embrace education that drives individual opportunity and community economic prosperity.