School Financing In Pennsylvania

Equitable, adequate, and predictable public education funding for all students of PA

Historical Perspective

Public education in PA started in 1776 The State’s share of funding for public

education increased from 20% in 1794 to 55% in the 1975.

The State’s share of funding for public education has decreased since 1975 to the current average of about 32%

Today’s Funding System

Inherently inequitable and inadequate Student education is greatly influenced by zip

code

District 2003-2004 Expenditure

per ADM

District 2003-2004 Expenditure

per ADM

Difference

South Allegheny 2002-2003: 52%

Proficient in Reading

$7,974 Upper Saint Clair 2002-2003: 84%

Proficient in Reading

$10,332 $2,358

Oxford Area 2002-2003: 52% Proficient in

Reading

$8,156 Phoenixville 2002-2003: 73% Proficient in

Reading

$12,512 $4,356

The Haves and Have-Nots2002-03 Major Subsidies per Student by Tax Effort and Proficiency Targets

Incl: Basic, Special Ed, Voc Ed, Performance Grants, and Read-to-Succeed Dollars per ADM(Not Shown: Top 5 Taxing Districts--in Poconos)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 0.01 0.02 0.03 0.04 0.05 0.06 0.07TAX EFFORT

2002-03 Household School Taxes as % of PI

PRO

FIC

IEN

CY

2003

-04

% P

rofic

ient

(Rea

ding

)

Width of bubbles: 2002-03 Level of "Major Subsidy" (Basic, Special, Vocational, Performance Grants, and Reading) per 2002-03 ADM.Green: greater than $4,091 per pupil (HIghest 125 districts). Red: less than $1,944 per pupil (Low est 125 districts).

median=3.12%

2008-09 AYP Rdng Target=63%

Low Tax, High Proficiency

Low Tax, Low Proficiency

High Tax, High Proficiency

High Tax, Low Proficiency

TARGET AREAMany of these districts are not well-served by existing

distribution system.

Philadelphia

Wm Penn

Reading

Chester-Upland

WilkinsburgSE Delco

Morrisville

Pittsburgh

Allentown

Bristol Twp

Coatesville

Avon Grove

Wdlnd Hills

Norristown

Fleetwood Area

Blue Ridge

Scranton

Shnksvl-Stonycrk

Harrisburg

Northgate

Neshaminy Pottsgrove

Duquesne

Steelton-Highspire

Austin AreaSayre Area

Baldwin-Whthl

Weatherly

South Side

Bnslm Twp

National Context

44 out of 50 states have experienced school finance litigation

Most litigation is based on adequacy Requires determining cost of adequate

education In PA - PARSS lawsuit, court put issue back

in hands of legislature

Our Plan for Pennsylvania

“Education, then, beyond all other devices of human origin, is the great

equalizer of the conditions of man, the balance-wheel of the social machinery.” – Horace Mann

Basic Education

Central distribution of resources equally to local education agencies on a per pupil basis

Base funding per pupil determined by cost of preparing students to proficient/advanced on PSSA test.

We looked at the avg. expenditure, adjusted for inflation, and compared to data on achievement and McCozzi adequacy model

Based funding per pupil to be provided by PA is $11,180 in 2007-2008.

Weighting

Base funding shall be weighted as followso Regular Ed. 1.0 x baselineo Limited English Proficiency 1.1 x baselineo Poverty 1.2 x

baseline(qualify for free and reduced lunch)

o Alternative Education 1.5 x baselineo Special Education excess cost

Charter and Cyber Schools

Charters will be funding using same formula, but shall assume – transportation, construction, benefits, etc..

Charters will be monitored for adverse selection bias as it relates to LEP, Poverty, Alternative Ed, and Special Ed

Cyber Charters will have base funding determined by separate calculation

Transportation & Construction

Keep current subsidy models for transportation and Construction

Sources of Revenue

This model focuses on distribution, not sources of State revenue

We assume that the tax revenue is centrally collected and distributed – radical idea!

Local school boards may levy additional taxes for local needs

Grants are separate from basic funding

Governance

Creation of Educational Equity Panel to: Annually Review adequacy of base funding Annually determine base funding rate for following

year Determine formula for Cyber Charters

Educational Equity Panel

PA League of Urban Schools

PARRS PA Chamber of Commerce PTA PSEA Majority Chair of the House

Education Committee Minority Chair of the House

Education Committee

Majority Chair of Senate Education Committee

Minority Chair of Senate Education Committee

Governor Secretary of Education PSBO PASA PSBA PaFT

Ongoing Concerns….

Is adequacy enough? Should equity be the real goal?

Should wealthier districts be allowed to create/perpetuate the gap between haves and have nots by funding additional programs?

Should school district consolidations be encouraged to minimize disparities?

Implementation & Accountability

Two Approaches Legislation in House and Senate to enable taxing

and distribution authorities and authorize the Educational Equity Panel

Amend the PA constitution Legislation in House and Senate Passed in two consecutive sessions Voted on during public election

Amend PA Constitution

“ 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 and shall appropriate funds that ensure the adequate, equitable and predictable resources to enable each child to reach state standards.”

Opportunities & Obstacles

There appears to be public support for increasing school funding

There are proposals in the legislature for the state to increase its financial support for local school districts. Do you favor or oppose this?

80%

14%

6%

76%

16%

8%

74%

15%

11%

Favor

Oppose

Don't know

0% 20% 40% 60% 80% 100%

2005 2004 2003

2003, 2004, and 2005 Mansfield University Public Mind Survey

Opportunities & Obstacles

Mobilize a grass-roots, state-wide coalition Must be sustained for several years

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”

- Theodore Roosevelt

Our Team

William Bray Christine Hakes Carey Harris William Harst Amy Stewart James Testerman Jennifer Waltz