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Pennsylvania Education Policy Fellowship Program 2006-2007

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Pennsylvania Education Policy Fellowship Program 2006-2007. FUNDING PUBLIC EDUCATION WHAT’S FAIR AND EQUITABLE?. What Changes are Necessary to Make Pennsylvania’s System of Funding Public Education More Fair and Effective?. Prepared By: Dallas Hack Jacquelyn Kelly Thomas Lubben - PowerPoint PPT Presentation
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Pennsylvania Education Policy Fellowship Program 2006-2007 FUNDING PUBLIC EDUCATION WHAT’S FAIR AND EQUITABLE?
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Page 1: Pennsylvania Education Policy Fellowship Program  2006-2007

Pennsylvania Education Policy Fellowship Program

2006-2007

FUNDING PUBLIC EDUCATIONWHAT’S FAIR AND

EQUITABLE?

Page 2: Pennsylvania Education Policy Fellowship Program  2006-2007

2

What Changes are Necessary to Make Pennsylvania’s System of Funding Public

Education More Fair and Effective?Prepared By:

Dallas HackJacquelyn KellyThomas LubbenJoan SchanckAlan VandrewCoy VickersJay Weaver

Teresa Weaver

Page 3: Pennsylvania Education Policy Fellowship Program  2006-2007

3

“THE GENERAL ASSEMBLY SHALL PROVIDE FOR THE MAINTENANCE AND

SUPPORT OF A THOROUGH AND EFFICIENT SYSTEM OF PUBLIC

EDUCATION TO SERVE THE NEEDS OF THE COMMONWEALTH.”

-Article III, Section 14 of the Constitution of the Commonwealth of Pennsylvania

Page 4: Pennsylvania Education Policy Fellowship Program  2006-2007

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Timeline of Funding Public Education in PA

• 1831 - The Common School Fund Established• 1834 - Free School Act• 1895 - State’s First Compulsory Attendance Law• 1897 - State Funding System Incorporates # of Students• 1903 – State’s First Minimum Teacher Salary Enacted• 1923 – First Effort at Equalizing State Aid• 1930 to 1950 – State Share of Costs from 19% to 40%• 1957 – Formula Includes Actual Instructional Expense (AIE)

Page 5: Pennsylvania Education Policy Fellowship Program  2006-2007

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Timeline of Funding Public Education in PA

• Mid 1960’s to 1983 – State Aid would equal 50% of the median AIE per student (55% achieved in 1974/75)

• 1983 – Equalized Subsidy for Basic Education (ESBE) enacted – 50% funding repealed

• 1992 – ESBE Abandoned • Current – No Funding Formula

– 07/08 School Districts receive an amount = to the 06/07 Basic Instructional Subsidy plus they could qualify for one or all of seven additional supplements:

• Poverty, Foundation, Tax Burden, Growth, Small District Assistance, Limited English Proficiency, or Inflation Index Supplement

Page 6: Pennsylvania Education Policy Fellowship Program  2006-2007

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National Funding of Education for Fiscal Year 2005

0.0

10.0

20.0

30.0

40.0

50.0

60.0

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90.0

Nevada Pennsylvania Virginia Tennessee Iow a Wyoming Kentucky West Virginia New Mexico Vermont

State

Sta

te R

even

ue a

s %

of T

otal

Rev

enue

Series1

Page 7: Pennsylvania Education Policy Fellowship Program  2006-2007

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State Revenue as % of Total District Budget

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Random School District

% o

f Sta

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hare

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95/96 State Share of Revenue04/05 State Share of Revenue

Page 8: Pennsylvania Education Policy Fellowship Program  2006-2007

8

30

35

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'92 '94 '96 '98 '00 '02 '04 '06

% of State Share of Revenue for an Representative District from 1992 to 2006

Page 9: Pennsylvania Education Policy Fellowship Program  2006-2007

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What’s Fair and Equitable?

Recommendation from Finance Group:

Weighted Student Funding (WSF)a.k.a. Standards-Based Funding Formula

Page 10: Pennsylvania Education Policy Fellowship Program  2006-2007

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Overview of the Standards-Based Funding Formula

• Combines these two formulas:

– PA ESBE (Equalized Subsidy for Basic Education)

– MD formula implemented in “The Bridge to Excellence in Public Schools Act of 2002”

Page 11: Pennsylvania Education Policy Fellowship Program  2006-2007

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ESBE = Equalized Subsidy for Basic Education

The ESBE formula distributed funds to school districts based on the following:

Per Pupil $ Amount X Number of Students X

Districts Aid Ratio (Calculated Annually)

Students were weighted for the calculation:Kindergarten = 0.5Elementary =1.0Secondary = 1.36

Page 12: Pennsylvania Education Policy Fellowship Program  2006-2007

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The Bridge to Excellence in Public Schools Act

• Law enacted in Maryland in 2002 as a result of the “Thornton” Commission Report which included a “costing out” study.

• Commission established to study MD’s school finance system because of low test scores and variation in educational quality.

• Determined per pupil foundation to achieve student success ($6,612 in 2002).

• Determined pupil weighting factors.

Page 13: Pennsylvania Education Policy Fellowship Program  2006-2007

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Standards-Based Funding Formula

Standards-Based Funding Formula =(A) Foundation Amount X (B) Weighted

Pupils X (C) Aid Ratio

Page 14: Pennsylvania Education Policy Fellowship Program  2006-2007

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Components in Funding Formula for 2007/08:

(A) Standards-Based Foundation Amount per Pupil = $ 7,785 (MD per pupil foundation amount adjusted for Act 1 “index” to 2007/08)

(B) Weighted Pupils:• Kindergarten = 0.5 or 1.0 (half or full day)• Special Education = 1.17• Limited English Proficiency = 1.0• Economically Disadvantaged = 1.1• Students not enrolled in public School = 0.5 (Home, Charter,

Cyber Students)(C) Market Value/Personal Income Aid Ratio (Currently calculated

annually – to determine the “wealth” of a district)

Page 15: Pennsylvania Education Policy Fellowship Program  2006-2007

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Education Funding

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Aid Ratio

Per P

upil

Am

ount Basic Instruction

SubsidyStandards BasedSubsidy

5 Low est Aid Ratios 5 Middle Aid Ratios 5 Highest Aid Ratios

Page 16: Pennsylvania Education Policy Fellowship Program  2006-2007

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Obstacles to Achieving Standards-Based Funding

• Push Back from Wealthy Districts• State Courts and Legislative Action• General Public’s Perception of Spending on

Education• State Control vs. Local Control• Political Support for Tax Cuts not Increases• Accountability of All Involved

Page 17: Pennsylvania Education Policy Fellowship Program  2006-2007

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Accountability of State & Local Officials

• Substantially Increase the State’s Role• Make State Dollars Follow the Child According

to Need• Ensure That Districts Allocate State and Federal

Funds According to WSF• Encourage Districts to Allocate Local Funding

According to the Principles of WSF• Include All Public School Options Fully Within

the WSF Approach• Shower the Public with Data

Page 18: Pennsylvania Education Policy Fellowship Program  2006-2007

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The Goal of Public Education• A population able to compete in the 21st century era of globalization

• Achievable by effective education with adequate funding that must also be equitable

• Our nation requires it

• Our children deserve it


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