A Funding Formula for RI:A Funding Formula for RI:CHILD CENTEREDCHILD CENTEREDEQUITABLEEQUITABLEACCOUNTABLE ACCOUNTABLE

•Providing what our children need Providing what our children need to succeed!to succeed!

•Providing what our children need Providing what our children need to succeed!to succeed!

1. The approach and method used to determine 1. The approach and method used to determine what an adequate education should cost.what an adequate education should cost.

2. Analysis of information to demonstrate that the 2. Analysis of information to demonstrate that the method we are proposing is a better approach to method we are proposing is a better approach to targeting funding to children based on their targeting funding to children based on their needs.needs.

3. Summary of why the goals of attaining horizontal 3. Summary of why the goals of attaining horizontal and vertical spending parity between districts and and vertical spending parity between districts and schools requires redistribution over time.schools requires redistribution over time.

4. Walk through some examples of the methodology.4. Walk through some examples of the methodology.

1. 1. To be financially responsible in the current economy, the formula assumes To be financially responsible in the current economy, the formula assumes that the dollars the state has to contribute to education will not change in that the dollars the state has to contribute to education will not change in 2010. 2010.

2. 2. Devise a single methodology for distributing state aid to all public schools Devise a single methodology for distributing state aid to all public schools in a child-centered manner, that is fiscally responsible and objective. in a child-centered manner, that is fiscally responsible and objective.

3.3. Uses New England & RI data and empirical best practice research.Uses New England & RI data and empirical best practice research.4. The formula will take into account the state’s forecasted revenue 4. The formula will take into account the state’s forecasted revenue

estimation process annually.estimation process annually.5. Estimates what the state needs to provide for a prototypical child. It then 5. Estimates what the state needs to provide for a prototypical child. It then

takes into account student success factors unique to the child. After takes into account student success factors unique to the child. After creating a cost per pupil it is adjusted for differences in revenue & creating a cost per pupil it is adjusted for differences in revenue & expense capacity between districts.expense capacity between districts.

6. 6. Phases out as many state categorical programs as possible to create Phases out as many state categorical programs as possible to create greater flexibility, efficiency and transparency.greater flexibility, efficiency and transparency.

Additional targeted opportunities to be supported by State Funds.Additional targeted opportunities to be supported by State Funds.7. 7. Centralize certain purchasing functions and contracting functions to gain Centralize certain purchasing functions and contracting functions to gain

efficiencies.efficiencies.8.8. Provide incentives to grow, hire and retain the highest quality teachers.Provide incentives to grow, hire and retain the highest quality teachers.9.9. Demonstrates through regression analysis that the model supports the Demonstrates through regression analysis that the model supports the

particular needs of more children better than the current funding model. particular needs of more children better than the current funding model.

• Teachers Teachers • Teacher Aides Teacher Aides • Guidance Counselors Guidance Counselors • Nurses Nurses • Librarian/Media Specialist Librarian/Media Specialist • Technology SpecialistTechnology Specialist• Principal Principal • Assistant PrincipalAssistant Principal• Clerical Clerical • Professional Development per Professional Development per

teacher teacher • Instructional Supplies/Materials Instructional Supplies/Materials

per pupil per pupil • Equipment per pupil Equipment per pupil • Assessment per pupil Assessment per pupil • Student Activities per pupil Student Activities per pupil • Safety/security per pupil Safety/security per pupil

Teachers Teacher Aides Teacher CoordinatorGuidance counselor Librarian Other Support StaffSchool Administration District AdministrationAdministrative Support Some portion of Benefits Instructional Supplies Instructional Supports

Augenblick & Myers Recommended RI Market Basket- NCES

CategoryCategory Proposed Proposed DistributionDistribution

Current Current DistributionDistribution

% of % of Additional Additional Students Students ReachedReached

Free and Free and Reduced Price Reduced Price Lunch Eligible Lunch Eligible StudentsStudents

85.3% 85.3% 67.2%67.2% 18.1%18.1%

English English Language Language LearnersLearners

58.9%58.9% 38.0%38.0% 20.9%20.9%

Career and Career and Technical Technical StudentsStudents

13.0%13.0% 7.7%7.7% 5.3%5.3%

Special Special EducationEducation

15.7%15.7% 6.2%6.2% 9.5%9.5%

1.1. This proposed state share ratio accounts for two different state challenges when determining This proposed state share ratio accounts for two different state challenges when determining where funding should go.where funding should go.

How to account for differences in revenue generation capacity of communitiesHow to account for differences in revenue generation capacity of communities

How to allocate money to communities with high concentrations of children who need How to allocate money to communities with high concentrations of children who need more supportsmore supports

2.2. This calculation takes both of these considerations into account.  EWAV is used as a This calculation takes both of these considerations into account.  EWAV is used as a mechanism for estimating a local districts’ taxing capacity referred to as “revenue raising mechanism for estimating a local districts’ taxing capacity referred to as “revenue raising capacity”. Free and Reduced (FRPL) lunch status is used as a proxy for child need. The capacity”. Free and Reduced (FRPL) lunch status is used as a proxy for child need. The formula looks at each district and weighs these two challenges against each other. formula looks at each district and weighs these two challenges against each other. Whichever is more pronounced for that district gets more emphasis in the calculation. The Whichever is more pronounced for that district gets more emphasis in the calculation. The two variables are added to determine what percent of the total cost of education the state two variables are added to determine what percent of the total cost of education the state needs to provide for that particular district.needs to provide for that particular district.

2. Communities that have very low or very high local revenue capacity and /or who have very 2. Communities that have very low or very high local revenue capacity and /or who have very few or a lot of children who qualify for FRPL will experience the biggest changes. These are few or a lot of children who qualify for FRPL will experience the biggest changes. These are called “outliers.” Given the lack of a consistent method to distribute funds for the past called “outliers.” Given the lack of a consistent method to distribute funds for the past twelve years, most communities will experience a change. The plan will be phased in over 5 twelve years, most communities will experience a change. The plan will be phased in over 5 years.years.

3. EWAV is a measured scale of revenue generation capacity from property values and 3. EWAV is a measured scale of revenue generation capacity from property values and community median income. It is one possible calculation to use. We acknowledge the need community median income. It is one possible calculation to use. We acknowledge the need for reform of revenue assessment practices in Rhode Island and are open to other metrics.for reform of revenue assessment practices in Rhode Island and are open to other metrics.

4. This formula seeks to equalize the money and resources available for equivalent children 4. This formula seeks to equalize the money and resources available for equivalent children and to reduce the operational spending capacity between districts over a phase in period.and to reduce the operational spending capacity between districts over a phase in period.

4.4. * for illustrative purposes only* for illustrative purposes only

•Example calculations before charter schools:•Newport, where there is a low EWAV but high concentration of children at-risk

•Newport Total Estimated Cost = $8,238(2,170)+0.4($8,238)(1,198)=$21,824,110•Newport State Share = (√(.002+.602)/√2)($21,824,110)=(.43)($21,824,110)= $9,259,186•Proposed State Share Ratio = 0.43

•Providence, where there is a high EWAV and high concentration of children at-risk•Providence Total Estimated Cost = $8,238(23,431)+0.4($8,238)(20,506)= 260,595,94925,956,365 •Providence State Share = (√(.8332+.902)/√2)($260,595,949) = 0.87($260,595,949) = $225,956,365•Proposed State Share Ratio = 0.87

•New Shoreham, where there is a low EWAV and low concentration of children at-risk•New Shoreham Total Estimated Cost = $8,238(142)+0.4($8,238)(15)=$1,219,224•New Shoreham State Share = (√(.002+.102)/√2)($1,209,224) = (.07)($1,209,224) = $86,212•Proposed State Share Ratio = 0.07

Getting the money to where children sit. Illustrative examples of high and low poverty districts using proposed formula, at an estimated foundation

cost of $8,238.

• Charter schools would be funded similarly Charter schools would be funded similarly to traditional school districts using the to traditional school districts using the weighted student funding formula, as well weighted student funding formula, as well as the state share ratio for the sending as the state share ratio for the sending district, to determine the state funds sent district, to determine the state funds sent to each school.to each school.

• Charters will continue to be reimbursed Charters will continue to be reimbursed for the local contribution expected for for the local contribution expected for each child by sending districts.each child by sending districts.

WHY CHOOSE THESE STATES?WHY CHOOSE THESE STATES?

Massachusetts: Funds the child and has seen significant improvement in Academic outcomes,Massachusetts: Funds the child and has seen significant improvement in Academic outcomes,

Maryland: Funding Formula best practice State, with two good costing out studies and gains in academic Maryland: Funding Formula best practice State, with two good costing out studies and gains in academic achievement.. achievement.. ..

Source: State Financial Web sitesSource: State Financial Web sites Griffith. (2007) “Education Finance – A National Perspective.” Education Commission of the States. Presentation, Providence, RI. 2007. Taken 1/2/10.Griffith. (2007) “Education Finance – A National Perspective.” Education Commission of the States. Presentation, Providence, RI. 2007. Taken 1/2/10.

This proposal will include funding outside the aid distribution for This proposal will include funding outside the aid distribution for certain high-cost items. The following categorical funding is certain high-cost items. The following categorical funding is proposed:proposed:  

Extraordinary costs related to high cost special education Extraordinary costs related to high cost special education students. The state will assume the costs of these students. The state will assume the costs of these students when they exceed five times the district’s students when they exceed five times the district’s combined core instructional foundation and student combined core instructional foundation and student success factor amount. success factor amount.

Certain start-up and maintenance costs for high cost Certain start-up and maintenance costs for high cost career and technical career and technical education programs. Funding will be education programs. Funding will be provided through a state grant provided through a state grant program.program.

Early Childhood pre-kindergarten programs currently Early Childhood pre-kindergarten programs currently have a categorical have a categorical program to support pre-K initiatives. This program to support pre-K initiatives. This proposal will expand this proposal will expand this investment. investment.

Key wordKey word DefinitionDefinition

EquitableEquitable 1.1. Provides the minimum funding, and high quality resources, Provides the minimum funding, and high quality resources, necessary for each child to reach a common proficiency standard.necessary for each child to reach a common proficiency standard.

2.2. Provides incremental funds for some children with different Provides incremental funds for some children with different characteristics, special needs or skills that require more support.characteristics, special needs or skills that require more support.

Money Money followsfollowsthe childthe child

1. Majority of the state funds must be spent on the classroom and 1. Majority of the state funds must be spent on the classroom and the child. the child.

2.2. Calculation of funding is based on current student enrollment.Calculation of funding is based on current student enrollment.3.3. If enrollment status or child’s location changes between districts, If enrollment status or child’s location changes between districts,

the money moves.the money moves.

TransparentTransparent 1.1. Set cost for child proficiency; mapped to key spending categories; Set cost for child proficiency; mapped to key spending categories; tied to outcomes. tied to outcomes.

2.2. Grow extensive longitudinal data: on children, teachers and Grow extensive longitudinal data: on children, teachers and spending practices. spending practices.

3.3. Funding allocations that align with, support, and enhance learning Funding allocations that align with, support, and enhance learning opportunities.opportunities.

AccountableAccountable 1.1. Utilize YE 2010 UCOA chart of accounts data to evaluate and Utilize YE 2010 UCOA chart of accounts data to evaluate and inform district/schools about targeted changes to spending that inform district/schools about targeted changes to spending that would enhance student outcomes.would enhance student outcomes.

2.2. Publish targeted spending goals and expected outcomes.Publish targeted spending goals and expected outcomes.3.3. Provide guidelines for key spending categories to districts & Provide guidelines for key spending categories to districts &

schoolsschools

Foundation Foundation AmountAmount

The minimum dollars that must be spent to assist a child to help The minimum dollars that must be spent to assist a child to help him/her reach “proficiency” in all subjects as defined by RI state him/her reach “proficiency” in all subjects as defined by RI state standards . Research supported.standards . Research supported.

Student Student supportsupportfactorsfactors

Key challenges or talents experienced by the child that require more Key challenges or talents experienced by the child that require more financial support. Minimally includes a “support factor” that financial support. Minimally includes a “support factor” that correlates to child’s poverty status, ESL, special learning needs correlates to child’s poverty status, ESL, special learning needs and gifted & talented.and gifted & talented.

High-needsHigh-needschildrenchildren

Children whose incremental financial support exceed 5x the cost of Children whose incremental financial support exceed 5x the cost of the foundation amount. the foundation amount.