1. Education Adequacy : Strategies for Achieving Reform in Difficult Times John Poteat February 6, 2004 jpoteat@ncforum.org

2. I. Who Pays for What? II. NC’s Funding Process III. NC’s Accountability model

3. What the Government Does w/ $14.7 B Education HHS Public Safety Debt $13.8 B Agriculture Commerce Environment & NR Clean Water Mgt. Labor Administration Auditor Cultural Resources General Assembly Governor Insurance Revenue Treasurer Secretary of St. State Health Plan Retiree Health Benefit

6. School Finance Impact Impact on Other Agencies  Since 1997, Teacher Pay  $1.4 B  K-12 lion’s share of revenue (1% raise=$37 m)  Enrollment Growth=$125+m  ABCs bonuses=$776.5 m (equivalent to a 21% )  Education spending for K-12 & higher education= 58% of the budget

7. NC’s School Funding Process Wake is 152 Times Larger Than Hyde!

8. Wake ($673 m) Hyde ($7.4 m)Wake ($673 m) PPE $12,779$6,846 superintendent 1 1 teachers 766,372 principals5122

9. North Carolina’s Funding Process Position pays whatever is required Dollar fixed amount Categorical specific need or group teacher principals textbooks teacher assistants central office administration transportation disabled children at-risk children State will pay… 30 yr. teacher w/Ph.D. NBPTS =$58,440 new teacher=$ 25,250 State will pay… textbooks =$56.50 per child teacher assistants =$16,473 State will pay… disabled children=$ 2,720 per child

11. State Average=$2,172 $4,825 $621 Source: 2003 Local School Finance study

12. County Spending Disparities Top Spending County Compared w/ Bottom Spending Counties

13. Disparities in County Funding “… there can be nothing unconstitutional about their doing so or in an inequality of opportunity occurring as a result.” --Leandro v. N.C. (1997)

14. North Carolina’s Model ABCs Accountability Model A=accountability for results B=focus on basics C=local control 1996-97=K-8 schools; 1997-98 HS K-8:reading, math & writing (4 & 7) HS: 10 end-of-course tests Growth Model—schools have targets based upon the school’s population; meet or exceed growth targets

17. ABCs & NCLB Major Features/Differences… A Growth Model versus an Absolute Standard Model ABCs is based on a continuous growth model – does one get better each year is the driving force behind the ABCs NCLB holds all schools to the same standard, regardless of where they are today.

18. ABCs & NCLB Major Features/Differences… ABCs Has Rewards & Consequences Financial/recognition for success –High Growth:$1,500/Expected Growth: $750 –Since 1996-97, $776 million in bonuses Lowest performing schools get assistance teams NCLB has only consequences; NO Rewards

19. North Carolina Highlights… ABCs provides a roadmap for improvement General Assembly has appropriated additional resources for student improvement: –Low-Wealth Supplemental funding (since 1991: $621 m) –Financial Flexibility (83% can be transferred) –Improving Student Accountability –High-Priority Schools