The incentives include operational autonomy and fiscal rewards for academic progress. The consequences include opportunity scholarships for schools that fail for two consecutive years. Students in failing schools would be able to transfer their education dollars to the school of their choice. Beginning with the 2001-2002 school year, a school's performance designation will be based on student learning gains as measured by annual assessments in grades 3 through 10, and on other appropriate performance data, including attendance, dropout rate, school discipline data, and student readiness for college. The measurements are at the local, state, and national assessments and are widely respected by authorities involved in the standards effort.
Critics claim that it violates the constitutional provision of the separation of church and state.
Precedents in both state and federal courts say otherwise. On June 10,1998, the Wisconsin State Supreme Court ruled that the program does not violate the establishment clause because the parents direct the student funds to the schools of their choice. In November 1998, the U.S. Supreme Court let the decision stand by declining to consider the case. In March 2000, Circuit Judge Ralph Smith ruled that the program was unconstitutional. The case is being appealed.