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The Game of

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Rivka Rappoport

on 22 April 2014

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Transcript of The Game of

The Game of
SCHOOL
FINANCE

Doe$ Money Matter?
So, if American schools outspend the rest of the world’s schools, is Dr. Hoxby correct?
Are our schools swimming in cash?
Money Matter$
Assume Money Matters.
Receive your federal funds.
Receive 1.4 mil. in federal aid.
Receive 13.5 million in federal aid.
Teaneck
Garfield
Federalism in the Context of School Funding
“The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation and foreign commerce. ... The powers reserved to the several States will extend to all the objects which in the ordinary course of affairs, concern the lives and liberties, and properties of the people, and the internal order, improvement and prosperity of the State.”
Federal Government
State Government
School Districts
Schools
Federal Funding
Federal I
o Funds are raised via federal income taxes.
o Prior to Pres. Johnson’s “Great Society Program,” federal funding accounted for less than five percent of all school funding.
o LBJ began program known as Title I whose goal was to bring federal relief to poorer districts aiding impoverished students.
o At this time, federal funding was employed as a means to make public school finance more equitable.
Federal Funding: NCLB
o Since the passage of NCLB the percentage of schools’ federal funding has doubled.
o Over 10% of all school revenue; even higher in poorer districts.
o As of 2006, $13 billion a year.
• Allocation of Title I funds depends on the number of poor students enrolled within the district seeking federal relief.
• Title I has four different formulas that determine how money is distributed.
• Although these formulas benefit districts with high concentrations of impoverished students, the formulas themselves are weighted; thus providing more money to poorer students in wealthier states, and less money to equally poor students in poorer states.
o This defect in the formula is the result of policymakers trying to account for the variation in the cost of living from state to state. The assumption was that in certain parts of the country, education would be cheaper; what’s problematic about this model is that what often the ratio for difference in costs is less than the ratio for the difference in wealth.
o This led to federal funding to be anchored to state and district’s per-pupil funding.
o The more the state gave overall; the more federal government gave.

Why should we care about school funding?
The budget sets the parameters of what a school can and cannot provide
Because nearly everything we have touched on in this class comes back to school finance:
qualified teachers
English Language Learners
Special Education
What is at stake in school funding frequently returns to that age-old question: What is the purpose of education? How do we define an adequate education?
as Guthrie wrote: "Adequate for what? And for whom?
Throughout this presentation we will touch on several different ways in which this question has been answered.
What would you choose?
A Tale of Two Schools: Cameron Elementary School (VA) vs. Ponderosa Elementary School (NC) (CRPE)
• In neighboring states; only 320 miles apart
• Roughly the same number of students
• Enroll an unusually high percentage of low income students
• Struggling to meet performance goals established by NCLB

• “At Cameron, class sizes in kindergarten are kept at 15 students or fewer.
• Employs mostly veteran teachers.
o Average teacher salary is $62, 533/yr.
o National average is roughly $48,000/yr.
• Offers specialized academic services; including math and reading specialists.
• Test scores are for the most part average; third graders at Cameron exceeded the 2006 statewide average test score in Math and Science.

At Cameron Elementary School:
• Resources are scarce.
• Novice teaching staff; experienced teachers often leave when higher paying jobs open up in neighboring districts.
• Test scores below state average
o Barely half of third graders are proficient in math.
State Governments: The Equalizers
-Schools began as a highly decentralized enterprise; Although schools are predominantly funded by local revenue sources, it is the responsibility of the state to ensure that all children within its borders will have access to a free education.
o Prescribed in all states’ constitutions
o States were charged with the task of equalizing wealth/ resources between school districts.
o “local wealth property wealth per capita in a given state’s richest school district can be 50 times that of the poorest, or more?” (Carey & Roza 6)
o must ensure a minimum level of resources
o Led to the distribution of foundation grants whose purpose is to create a statewide floor for funding.
o State share of education now ranges from 50-60% of total school revenue.
What would you decide?
State Funding: Its Aims, Defined
Equity
Defined by its inputs
more funding = better schooling
looks to solve the achievement gap
“Just as more money has not provided a remedy in the past, it will not miraculously do so in the future."
"Dollar bills don't educate students"
“Only a fool would find that money does not matter in
education.”- Hoke County Board of Education v. State of North Carolina I
Money Matter$
Adequacy
Defined by its outputs
Student achievement
Common Core
graduation rates
high minimum outcomes
accounts for the achievement debt
NY: A Case Study
This mirrors the cases in many other states...
Efficiency
interested in
how
the money is spent
the greatest results for the smallest expense
combats growing price of education
Efficient Spending: Qualified Teachers and Smaller Class Sizes
Pre-schoool Education and Intensive Literacy Programs
More Time on Task and Whole School Reform
Glossary of terms for state and local funding
Universal pre-k programs
According to a longitudinal study of Chicago's Child Parent Centers participation in the program was linked to significantly better outcomes:
lower dropout rates
more years of completed education
less likely to be involved in crime
"Cost-benefit analyses of the Perry Preschool Program found that for every dollar spent on high-quality preschool education, the public saved $7.16 in long-term expenditures in educational interventions, welfare, and other social services."
Reading Recovery
one-on-one instruction in elementary school
daily 30-min sessions
80% success rate

What would you do?
Local Revenue
Put it to a vote:
Fieldwork Reflection: Rivka
When additional spending does not always correlate with better test scores, people begin to wonder-does money matter?
Coleman Report (1966)
"Following the passage of the Civil Rights Act Congress established a commission to investigate the educational opportunities available to minority children" (Rebbell and Wardenski 8).
Case study: sent questionaires to thousands of schools
Findings:
Large disparities in resources between schools attended by black children and those attended by white children
less qualified teachers
larger class sizrs
older textbooks
This battle has been playing out on the national stage in a series of court cases
These cases contest the legality of state finance formulas on the grounds that they are not funding education equitably according to the statutes in their constitution.
Recieve your local revenue.
Teaneck: 79 million
Garfield: 24.9 million
An application to locate an additional charter school in your town has been approved by the state. This will cost you 2 million.
Additionally it is a contract negotiation year with the teachers' union. For the fourth year in a row, you cannot afford to raise teacher salaries as their contract requires. Negotiations are not going well. You can either fire 7 teachers or hold a town-wide vote to raise taxes 4% to cover the additional expenses. What do you do?
Your governor spent the federal funds allotted for several years of education spending in one. Between 4 and 6 million is cut from your budget. You can:
charge each student $120 to participate in extracurricular activities and cancel your arts program
fire 10 teachers and outsource custodial staff
"The largest determinants in student achievement are the educational backgrounds and aspirations of other students in the classroom. Schools bring little influence to bear on a child's achievement that is independent of his background and general social context." -The Coleman Report, quoted in
Of Course Money Matters
You district is considering instituting universal pre-kindergarten however, much of your budget for 12-13 is tied up in purchasing technology to prepare for the computer-based PARQ Assessment. You have done some preliminary research and found out that it will cost you approximately 2 million to bring an existing building to code. Do you:
Dip into your surplus "rainy day" funds, though you are worried that the state will continue to drop its underfund your district?
Take money from your technology expenditures, though this will result in less state aid?
Table this initiative for next year?

Extended day programs
NYC Extended Time SURR schools
+ 40 min in classroom time
out-performed non extended time counterparts
Summer school programming
Chicago's Summer Bridge Program
scores increased at a greater rate than during the school year
helps combat summer drop-off in knowledge
Success For All
whole-school reform intended to ensure that all students achieve literacy
90-minute reading sessions
one-on-one attention where required
Fieldwork Reflection: Sunny
Recieve State Funding:
Teaneck: $5.1 million
Garfield: $55.8 million
You Decide:
You have been underfunded by the state for the last 3 school years. This year, you have learned that you will be required to purchase STEM software to support the Common Core. The state does not provide you the money it has promised.
You can:
join a coalition of 10 schools planning to sue the state for its lack of funding, risking legal fees
OR
accept that in order to afford the software, you will be required to outsource 10 paraprofessionals, leading to salary decreases
Tough luck. In response to the threat of a lawsuit, the state sends you $10 per pupil to spend on technology. Now, the mandate is merely "underfunded". You save money on legal fees but must outsource anyway.
What would you do?
Your special education student population is increasing at a rate faster than your regular student body.
Garfield, recieve an additional 200,000 in state aid.
The additional students set Teaneck above the threshold for state funding (14.67% percent of the student population). Teaneck must spend an additional 200,000 to provide more services to its special education students.
The state cannot afford to fully fund your district this year. Recieve 70% of promised funds:
Teaneck: 3.6 million
Garfield: 39 million
Oops!
Public opinion and education spending
efficiency
"Adequacy" in the classroom
"Excellency"?
Focus on outcomes
Common Core
Limited by excesssive mandates
School boards
Take 5 minutes. With your other board members, develop between 3 and 5 district-wide goals for the next school year.

Things to consider:
the performance of your student in relation to your per-pupil spending
the implementation of new programs
the maintenance of old programs

The format:
Goal 1: How do you conceptualize and define a "sound basic education"?
Goal 2: Pick a program you would like to implement
Literacy-based
Extended school day
preschool education
other
Goal 3: Your funding philosophy
Choose 2 more, if you would like

Flow of Funds
Reflect:
Look back at the goals that you wrote for your district.
Did your goals reflect the values associated with equity, adequacy or efficiecy? Which ones?
How do you conceptualize adequacy…equity?
The U.S. average per student expenditure for public elementary and secondary schools in 2011–12 fall enrollment was $10,834.
States with the highest per student expenditures: New York ($18,616), Vermont ($18,571), New Jersey ($18,485), Alaska ($17,032), and Rhode Island ($16,683).
Lowest per student expenditures: Arizona ($6,683), Utah ($6,849), Nevada ($8,247), Oklahoma ($8,285), and Idaho ($8,323)
The U.S. average public school teacher salary for 2011–12 was $55,418.
Per -Pupil Expenditures
How does public opinion affect public school finance at the state and district level?
Reflect
Many schools in your neighboring district are refusing to comply with your Governor's recent push to compete for Race to the top Funding. Parents and teachers are concerned that by designing a curriculum around the core, students will be further subjected to a high stakes testing culture. That being said this federal aid money could be used to fund the salaries of over a dozen literacy specialists. What do you do?
Equalization formula: when property wealth varies significantly between districts, the state applies a formula to property taxes levied in order to subsidize revenues in districts with low per-pupil property wealth.
Foundation Aid (state grants): money given to schools by the state, amount is the difference between designated per-pupil expenditure (minimum foundation) and local revenue; often leads to competitive under-assessment
Catgorical aid (State or federal grants): additional money that is allocated based o the presence of students with certain characteristics
References
Kent, Calvin A. & Kent N. Sowards. “Property Taxation and Equity in Public School Finance.” Journal of Property Tax Assessment & Administration 6.1 (2008): 25-42. Web. 12 February 2014.
Clune, W. H. "The Shift from Equity to Adequacy in School Finance." Educational Policy 8.4 (1994): 376-94.
Rice, Jennifer King. "Equity and Efficiency in School Finance Reform: Competing or Complementary Goods?" Peabody Journal of Education 79.3, K-12 Education Finance: New Directions for Future Research (2004): 134-51. JSTOR. Web. 22 Mar. 2014. <http://www.jstor.org/stable/10.2307/1493298?ref=search-gateway:674ea322a743afb3fa50bc8c30a f2bdb>.
Alexander, Nicola A. "Exploring the Changing Face of Adequacy." Peabody Journal of Education 79.3 (2004): 81-103.
NJ State Report Cards for Garfield High School and Teaneck High School
http://www.state.nj.us/education/pr/1213/03/035150050.pdf
Guthrie, J.W. (1997). School Finance: Fifty Years of Expansion. The Future of Children: Financing Schools. http://www.futureofchildren.org/futureofchildren/publications/docs/07_03_01.pdf
Carey, K. and Rosa, M. (2008). School Funding's Tragic Flaw. Center on Re-inventing
Public Education http://www.educationsector.org/usr_doc/Tragic_Flaw_may14_combo.pdf
Rebell, M.A. & Wardenski, J.J. (2004). Of Course Money Matters: Why the Arguments to the Contrary Never Added Up. The Campaign for Fiscal Equity, Inc. Available at: http://www.schoolfunding.info/resource_center/research/MoneyMattersFeb2004.pdf
Sound Basic Education Task Force. (2004). Ensuring Educational Opportunity for All: Final Report. Campaign for Fiscal Equity. http://www.cfequity.org/pdfs/resources/resources_zarbfinalreport.pdf Read p. 1-14
http://www.nea.org/assets/img/content/NEA_Rankings_And_Estimates-2013_%282%29.pdf

Your town does not beleive you are spending their tax dollars efficiently. Your tax levy fails. Fire 30 teachers districtwide.
Reflect
What do you think?
How do you feel about state and federal mandates?
Do they guide or impede districts in their spending decisions?
Per-pupil spending is $11,521
Per-pupil spending is $11,521
Reflect on your district's test scores: What do you think accounts for the discrepancies in student achievement? How would you go about fixing these discrepancies?
What if the state took over school funding entirely, granting a designated amount of money to each district in the interest of promoting equity?
How did it feel to be a member of a school board?
Did your district accomplish its goals? Why or why not?
Teaneck Scores
Garfield Scores
“Having a high quality teacher throughout elementary school can substantially offset or even eliminate the disadvantage of low socio-economic background.” Erik Hanushek (Rebell and Wardenski)
Ferguson's study of 2 million students and 200,000 teachers and found that teacher quality, as defined by the teacher's score on a literacy-skills test, had a marked and lasting impact on student achievement.
more impactful in younger grades

The STAR study in Tennessee concluded that class sizes below 20 provided students with lasting advantages
within-school experimental study
after 4 years, set students nearly a whole school year ahead
most pronounced in students of color
significant improvements with 5 year longevity
Your district volunteers to participate in a new teacher evaluation pilot program, which will allow you to collaborate with the state and provide them with feedback before it launches state-wide. Receive 1 million in state aid to help implement the program.
Funding Alternatives
• States as primary source of funding
• “site-based management” of fund allocation
• Intergovernmental cooperation

Public opinion
• Knowledge as capital
• A Progressive Taxation model
Full transcript