Federalism in the Land of Oz

By Chester E. Finn Jr.

The United States isn’t the only land where primary-secondary schooling was traditionally the responsibility of the states or provinces, while the national government played a minor, even peripheral role. Nor are we the only people now struggling to adapt that old decentralized arrangement to the realities of the 21st century, with its globalizing economy, rising mobility, instant communications, and ebbing affection for local idiosyncrasy—and agonizing over what mechanisms might best yield a measure of high-standard uniformity and accountability without shackling schools and educators to a deadening, politically vulnerable, bureaucratic sameness.

That something needs to change is clearer every day, as we observe the peculiar risks and odd incentives of a policy regimen in which states set their own standards and tests—and pay for the lion’s share of education costs—even as they are held to account by Washington for their performance and told what to do with poorly performing schools. Yet we have neither the structures nor the trust to turn standards-setting over to Uncle Sam and little appetite for centralizing actual school operations.

Seeking a bit of perspective on such dilemmas, I recently spent a week talking with government officials, policy wonks, and educators in Australia. Its eight states and territories run the public schools, hire their teachers, and generally manage the delivery of primary-secondary education—averaging some 400,000 pupils each. With no “local” school systems, state bureaucracies and the elected state-level officials that oversee them have historically occupied the driver’s seat, while the “commonwealth” government has no constitutional mandate in the K-12 realm and generally relies for influence on the strings it can tie to the less than 10 percent of the education...