1. Expenditure Analysis for Arkansas Adequacy Study – Overview of Findings Prepared for the January 16, 2007 Meeting of the Senate and House Education Committee Gary Ritter and Joshua Barnett, Office for Education Policy

2. Gary Ritter and Joshua Barnett, UA OEP, Slide 2 Purpose of June Report Sources and Uses of Education $$ in AR The level of various types of revenue and the extent to which these have increased since implementation of Act 59 in Special Session of 2003 The equity/distribution of school resources before and after Act 59 (by reviewing district expenditures for various types of districts) The expenditures by function before and after Act 59

3. Gary Ritter and Joshua Barnett, UA OEP, Slide 3 Ten Guiding Questions 1.Total $$$ in 04-05 2.Increase from 03-04 to 04-05 3.Equity in 04-05 4.Resources linked to wealth? 5.Resources linked to poverty? 6.Resources linked to race? 7.Resources linked to district size? 8.Resources linked to struggling students? 9.Salaries increase? 10.Composition of Expenditures?

4. Gary Ritter and Joshua Barnett, UA OEP, Slide 4 Question 1: How much money was in the AR education system in 2004-05? Total Revenue = $8,902 Foundation = $5,425

5. Gary Ritter and Joshua Barnett, UA OEP, Slide 5 Question 1: How much money was in the AR education system in 2004-05? Local Revenue increased 9% Total State Revenue increased 24% Categorical Revenue increased from $50 per student to $400 per student Total Revenue increased 16% Current Expenditures increased 12%

6. Gary Ritter and Joshua Barnett, UA OEP, Slide 6 Question 2: How much have revenues grown from 2003-04 to 2004-05? Revenue Source 2003-04 Revenue Per Pupil 2004-05 Revenue Per Pupil% Change State Revenue (foundation)$3,237$3,83418% Local Revenue (required 25 mills)$1,518$1,5915% Total Foundation Revenue$4,755$5,42414% State Revenue (categorical)$49$422761% State Rev. (other)$442$440-0.5% State Rev. (capital)$82$39-52% Local Rev. (local tax > 25 mills)$727$84516% Federal Revenue$1,000$1,0495% Other Revenue$642$6847% Total Revenue$7,696$8,90216%

7. Gary Ritter and Joshua Barnett, UA OEP, Slide 7 Question 3: Has the distribution of funding become more equitable? Equity Statistic2003-042004-05 Coefficient of Variation 0.080.07 McLoone Index 0.95 Federal Range Ratio 0.340.29 Fiscal Neutrality Correlation Coefficient 0.600.51 Fiscal Neutrality Wealth Elasticity 0.160.13 Education Trust Composite Score -$143-$116

8. Gary Ritter and Joshua Barnett, UA OEP, Slide 8 Question 4: Are resources linked to property wealth? Low WealthHigh Wealth

9. Gary Ritter and Joshua Barnett, UA OEP, Slide 9 27% NSLA87% NSLA Question 5: Are resources linked to student poverty?

10. Gary Ritter and Joshua Barnett, UA OEP, Slide 10 Main Findings: Are disadvantaged districts receiving more resources? Assessed Valuation expenditures : Lowest wealth districts increased by 22% Highest wealth districts increased by 10% NSLA expenditures : Lowest poverty districts increased by 19% Highest poverty districts increased by 23%

11. Gary Ritter and Joshua Barnett, UA OEP, Slide 11 Question 6: Are resources linked to student race? 68 - 87% non-white1.5 - 3.5% non-white

12. Gary Ritter and Joshua Barnett, UA OEP, Slide 12 Question 7: Are resources linked to district size? 375 enrollment7,800 enrollment

13. Gary Ritter and Joshua Barnett, UA OEP, Slide 13 Main Findings: How did spending change in “small” districts (fewer than 500 pupils) before and after Act 59? Current Expenditures 2003-04 = $6,294 Current Expenditures 2004-05 = $7,516 Change in Expenditures from 2003-04 to 2004-05 = +$1,222

14. Gary Ritter and Joshua Barnett, UA OEP, Slide 14 Question 8: Are resources targeted to struggling students? 27% Pro+Adv67% Pro+Adv

15. Gary Ritter and Joshua Barnett, UA OEP, Slide 15 Question 9: How have teacher salaries changed? New Teachers’ Salaries New teacher salary 2003-04 = $27,380 New teacher salary 2004-05 = $30,070 Average Teachers’ Salaries (slide 23) Average teacher salary 2003-04 = $39,409 Average teacher salary 2004-05 = $41,489 Types of Districts with Salary Changes Small Districts (10% in smallest, 5% overall) Poor Districts (7% in poorest, 5% overall) +10% +5%

16. Gary Ritter and Joshua Barnett, UA OEP, Slide 16 Question 10: How has composition of spending changed? 2003-042004-05

17. Gary Ritter and Joshua Barnett, UA OEP, Slide 17 Summary Thoughts Substantial additional resources have been provided to Arkansas’ schools Targeted to poor schools Targeted to small schools Targeted to high-minority schools The question remains – How can we use these additional resources to adequately and equitably educate students across the state?

18. Gary Ritter and Joshua Barnett, UA OEP, Slide 18 How to Contact Us Gary W. Ritter 201 Graduate Education Building University of Arkansas Fayetteville, AR 72701 479-575-4971 oep@uark.edu