Adequacy in School Funding by wuxiangyu

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									Adequacy in School Funding:
   A National Perspective

           Jay G. Chambers, Ph.D.
            Senior Research Fellow
      American Institutes for Research (AIR)
      National Forum on Education Policy
      Education Commission of the States
                   July 13, 2006
  Overview of my presentation
• School funding & evolution of equity &
  adequacy

• Cost-based funding

• Adequacy & Costing-out
                 K-12 Revenues Sources &
                 Trends in School Funding
               Percent K-12 Revenue from Federal, State, and Local Sources, 1919-2000
    90.0
                                               Focus on        Standards-       Focus on
    80.0
                                               Equity          based            Adequacy
    70.0                                                       reform
    60.0

    50.0
                  Rapid                                                                      State
%                 Increase
    40.0                                                                                     Local
                  in state
    30.0
                                   Rapid increase                 Stabilized
    20.0
                                   in federal role                federal role
    10.0
                                                                                             Federal
     -
           1919-20 1929-30 1939-40 1949-50 1959-60 1969-70 1979-80 1989-90 1999-00 2002-03
                                              School Year
 Why Adequacy Cases are Winning.

• Built on state education law
  – State has the duty to serve all students.
• Standards-based reform movement pushed
  states to establish standards.
  – States have raised standards &
  – Holding students accountable.
• Systemic lack of resources  barrier to
  learning
  – Most states have not provided the sufficient resources
    to help students reach higher standards.
   Transition from Equity to
Adequacy & Cost-based Funding
• Horizontal equity:
  – treat similar children & taxpayers similarly.
• Vertical equity:
  – treat different children & taxpayers differently.
• Access to resources
  – An input orientation
• Cost-based funding
  – An output orientation
    Differences in Expenditure

• Demand factors = local choice
  – How much do you want to spend? OR
  – What level of outcomes do you want to produce?

• Supply factors = cost differences
  – Input costs - labor costs
  – Pupil-needs – poverty, Engl learners, disabilities, Voc
  – Scale of operation – school & district size (rural factors)
       Designing an “Adequate”
        School Finance System
• What are the goals?
   – Establish learning standards
   – Specify desired results (proficiency levels)
   – Measure the results

• What does it cost?
   – Design instructional programs
   – Specify resources to delivery the programs
   – Estimate the Costs (Costing out studies)

• Who pays for it?
   – Design a funding formula
Public School Funding Process
                                         Balance
                                         against
        Design              State
                                         non-
        Funding         Allocation for
                                         education
        Formula        K-12 Education
                                         needs



       Determine            Set
     Cost To Achieve    Standards &
          Goals            Goals
    Approaches to Costing-out:


•   Cost Function
•   Professional Judgment
•   Successful Schools
•   Evidence-Based
•   Hybrid Approaches
   ELEMENTS OF THE HYBRID
PROFESSIONAL JUDGMENT MODEL

                     Public
                   Engagement
                                    Literature
 Beating the
                                     Review
Odds Analysis
                                  (What works)
                   Professional
                    Judgment
                     Process
 Supporting                       Analysis of
  Studies                          Overhead
  (GCEI, Transp,                   (Central Adm,
   & Facilities)                       M&O)

                   Stakeholder
                      Panel
  Sample Results From
New York Adequacy Project
                   Results

• The Bottom line
  – Cost estimates for each school or district
  – Total cost estimate for the state


• Formula Development
  – How does this fit into a formula?
  – Who pays – local v state v federal?
 Total and Marginal Costs by Type of District
            Total Expenditure Required to Bring All Districts to "Adequate" Spending Levels
                                      (Total Expenditure in Bold)
           $45.0
                      $38.91
           $40.0

           $35.0       $7.20

           $30.0
   Total    $25.0
Expenditure
      (in   $20.0
  billions)                         $15.87
            $15.0      $31.71                                                          $10.53
                                    $4.46
                                                                                        $1.23
           $10.0                                                                                    $5.23
                                    $11.41      $1.92         $3.07        $2.29                     $0.09
            $5.0                                                                        $9.30
                                                              $0.54        $0.46
                                                 $0.42                                               $5.15
                                                 $1.50        $2.52        $1.83
            $0.0
                       Overall    New York      Big Four  High NRC - High NRC -        Average     Low NRC
                                    City         Urban       Other      Rural           NRC
                                                 Cities    Urban and
                                                           Suburban
                                                    Need to Resource Categories

                    Total Additional Expenditure Required to Bring All Districts to "Adequate" Spending Levels
                    Actual Total Expenditure from the NYSED Fiscal File
                         Scale, Need and GCEI
                            by District Size
              Relative Scale and Need Indices by Enrollment Category Based on Model Using
               Actual School Enrollment (separate equations by enr_cat, school size within
                                              sample limits)
              140
                               117
              120                           110                                    112
                      100
                    100 100                              103          100 100        103
                                                    95           99
              100                      93                                92      94
                                  87           88           89

               80                                                                          SCALE INDEX
Index value                                                                                NEED INDEX
               60
                                                                                           Implicit GCEI
               40

               20

              -
                     Overall    <=1,000      1,001 -      2,501 -      5,001 -   >10,000
                                              2,500        5,000       10,000
                                             Enrollment Category
  Policy Perspectives on Adequacy

• Adequacy is a political & technical process
  – No one right answer


• Accountability is critical to success
  – Educators need to be held accountable


• Block grant approach offers simplicity
  – Flexibility at the local level
        Adequacy & NCLB
• Adequacy as a national issue

• NO CHILD LEFT BEHIND what?
       Under NCLB, we have
• 50 different accountability systems

• 50 different funding systems

• 50 different levels of commitment to
  children
     Real Per Pupil Spending, K-12 Education by State, 01/02

NY
CT

ME

NE
MD

IN

GA

ND
VA

AK

NM
KY

NC

WA
ID

NV

UT



$-    $2,000      $4,000    $6,000     $8,000     $10,000      $12,000
                       Dollars per pupil
    State Average Per Pupil
  Expenditure K-12 Education,
               FY2002



                            Real
               Actual   (Cost adjusted)

MAXIMUM    $ 12,102     $ 11,269

MINIMUM    $    4,900   $   5,132

RATIO            2.47         2.20
      U.S. Federal commitment
 % of Revenues from various sources
• Among lowest federal commitment of
  developed nations. (7%)



• Highest in local contribution (43%).
     Poverty Differences used to
      Distribute Federal Funds
• A single poverty threshold used.
  – % Poverty reflects COL differences across
    states.


• Federal $ not adjusted for cost differences
  Policy Questions to Consider
• Is adequacy a national issue?

• Should we permit 50 different systems for
  children?

• Should a child’s education depend so
  heavily on the state in which they are
  born?

								
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