Shifting Risk to Create Opportunity: A Role for Performance Guarantees in Education


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Document Number: 8742

Shifting Risk to Create Opportunity: A Role for Performance Guarantees in Education - The authors suggest that while many school districts are hesitant to hand over schools and school functions to outsiders, the Obama administration's goal of reforming 5,000 of the nation's lowest-performing schools in the next five years would benefit from the services of independent educational entrepreneurs. Performance guarantees, they argue, would establish a standard of performance and provide financial compensation for failed promises � and, most importantly, make someone other than the state or district at least partially responsible for outcomes. (Bryan Hassel and Daniela Doyle, American Enterprise Institute, July 2010)...

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