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President Bush`s school choice proposal has the makings of a good idea, even if the president doesn`t appear to know exactly what it is he is proposing.

During a recent question session with Catholic school parents in Philadelphia, the president mistakenly assured a mother of eight that his plan, which is pending in Congress, would not be limited to those with modest incomes. Comparing his program to the GI Bill for veterans` college education, which was not tied to income, he said all families would be eligible for $1,000 vouchers that parents could spend at the school of their choice, public or private.

The president was wrong. Under his administration`s proposal, only families whose income falls below their state or national median income, whichever is higher, would be eligible.

There`s nothing intrinsically bad about such a limit. In fact, the biggest virtue of vouchers is the opportunity they would offer poor and moderate-income parents to shop around for the best available schools, public or private, a privilege now enjoyed almost exclusively by the wealthy.

The slip was a particularly curious one for the self-described

”education president,” as school choice is a defining issue for his campaign. The president and Democratic challenger Bill Clinton agree that choice is a good idea. They disagree on how much is best.

Clinton wants choice limited to public schools, which satisfies teachers` unions but not the parents unlucky enough to be passed over for a slot in a selective public ”magnet” school.

Bush-style choice would include private schools, allowing the magic of market forces to encourage public schools to improve by forcing them to compete.

Would this work? Evidence from the nation`s pioneer voucher program, Milwaukee`s two-year-old effort, is too inconclusive to settle the debate, but it is hard to imagine that vouchers could make Chicago`s public schools much worse. It is easier to imagine that a healthy dose of competition would jolt the Chicago school board`s lethargic bureaucracy out of educational gridlock. Unfortunately, the Bush proposal leaves important questions hanging. It is unclear about how the $500 million cost would be paid, or how many poor youngsters would be helped by a $1,000 voucher in areas where private schools cost more. But while Bush`s ”GI Bill” is no match for the original, it is not the ”GI bull” that American Federation of Teachers President Albert Shanker says it is, either.

Vouchers alone do not provide a panacea for the nation`s educational woes, but they`re a start. Parental involvement also is essential. School discipline must be restored and maintained. High student performance standards must be set and enforced.

At a time when the entrenched bureaucracies of public schools seem to resist reform like oil resists water, vouchers can`t do the job alone. But they can make a difference for parents seeking a fighting chance to help their children get the best possible education.