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School Finance Adequacy: “Costing-Out” Studies Education Policy and Leadership Center May 24, 2006 John L. Myers
© Augenblick, Palaich and Associates, Inc.2 Augenblick, Palaich and Associates School finance equity & adequacy studies Linking school finance to student results Bi-partisan work for policymakers Teacher quality & teacher compensation
© Augenblick, Palaich and Associates, Inc.3 John L. Myers Introduction State Legislator: Policy Analyst: State Budget Office Director of Policy: Governor’s Office Executive Assistant: Governor’s Office Education Program Director: NCSL
© Augenblick, Palaich and Associates, Inc.4 School Finance Background Who is responsible? – State How do formulas work? – Foundation Formulas with Local Taxation Why? – Variation in Property Taxes
© Augenblick, Palaich and Associates, Inc.5 Equity Issues Taxpayer equity Shift to uniform property tax Student equity Unequal funding to achieve equity State share of Funding Is it enough to achieve equity and adequacy?
© Augenblick, Palaich and Associates, Inc.6 School Finance Equity and Adequacy From the1970’s to the early 1990’s: Equity Since 1990: Adequacy more important Historically adequacy was determined politically using input measures and available resources Now adequacy is technically determined and output orientated. Relies on standards-based reform NCLB legislation has increased the need for states to understand the cost of an adequate education
© Augenblick, Palaich and Associates, Inc.7 State Role in Standards-Based Education Reform Set standards Create assessments tied to those standards Hold school districts accountable for meeting the standards Assure that school district have enough resources
© Augenblick, Palaich and Associates, Inc.8 Alternative Methods Used to Set the Base Cost Professional Judgment assumes educators can specify the resources needed to meet state standards. Successful School District assumes a cost can be inferred from past successful practices. “Evidence-Based” assumes research exists to estimate a base cost, i.e., cost estimates for comprehensive school reform designs. Statistical Modeling uses multiple regression techniques to predict the cost.
© Augenblick, Palaich and Associates, Inc.9 Studies have been sponsored by different entities Legislature, governor, or state agency Legislature (required by court) A single education interest group Multiple interest groups (education & civic) Plaintiffs/defendants
© Augenblick, Palaich and Associates, Inc.10 Adequacy Study Results Base Costs vary by the size of school district Higher in Small Districts Large Districts often higher the moderate size Adjustments Need More Attention Adjustments vary by size of school/school district Adjustments far below current spending
© Augenblick, Palaich and Associates, Inc.11 APA Work on NCLB Costs Examined existing NCLB cost studies Estimated NCLB costs for Hawaii Based on the consolidated plan, the accountability workbook and implied operational plans Used a tailored version of the templates The estimate was not an “adequacy study” methodology Worked with the CCSSO NCLB Cost Consortium Spring states start the process Determination of the Cost Definition Templates refined
© Augenblick, Palaich and Associates, Inc.12 Definitions of NCLB Costing NCLB accountability requirements described in the state’s Approved Consolidated Plan (ACP) NCLB accountability requirements plus new ESEA aspects in the state’s ACP NCLB accountability requirements plus new aspects in the state’s ACP plus the administration of all NCLB. The Cost of an Adequate Plan to help all students reach proficiency on AYP and state standards, including prevention The Cost of an Adequate Plan to help all students reach proficiency on AYP, including prevention
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