Issue Brief

Education Finance Reform

 

 

Background

 

Pennsylvania continues to have one of the nation's most ineffective and unjust statewide funding systems for elementary and secondary education.  As a result of insufficient state funding, public education in Pennsylvania is very dependent on local wealth; and the access to quality education for children varies widely. 

 

Like most other states, Pennsylvania has adopted statewide student-learning standards as part of its strategy for creating more effective and positive student outcomes. However, until recently state lawmakers have never determined how they might structure a funding system that helps schools achieve high academic standards.  As a start, Pennsylvania performed a “costing-out study” to obtain objective information on how to fund public education so that all students have a real opportunity to meet the learning standards.  In late 2006, the Pennsylvania State Board of Education embarked on “a comprehensive statewide costing out study to arrive at a determination of the basic cost per pupil to provide an education that will permit a student to meet the State’s academic standards and assessments.

 

The results of the PA “costing-out study” reveal that there is an average funding gap across the state of $2,414 per student.  In many districts, however, that gap is much greater, including Reading ($6,437), Upper Darby ($4,388), Shenandoah Valley ($4,286) and Saint Marys ($3,145).  With these kinds of funding shortfalls the youth of Pennsylvania will not be prepared for success in today’s world.  (You may contact the LAMPa office for specific information about the funding gap for specific school districts.) 

 

The study, which was conducted by Augenblick, Palaich and Associates, Inc and released in late 2007, identified the statewide “adequacy gap” that exists - $4.38 billion, with the state share of that at just over $2 billion.  It also determined that the “average total costing out estimate per student is $11,926” with a base cost identified as $8,003.  471 of the 501 PA school districts are currently spending below the cost estimated (the $11,926).

 

Beyond identifying a base cost, the study factored in “added costs” associated with special education, high poverty homes and meeting the needs of English language learners.  The study indicated that these added costs account for 12.6 percent of the overall projected costs to move toward adequacy. 

 

The Study projected the total $4 billion plus costs would break out in the following way:

 

  • $2.7 billion for special education,

  • $2.0 billion for students in poverty,

  • $580.2 million for English language learners,

  • $205.8 million for gifted students,

  • $783.8 million for regional cost differences, and

  • $837.2 million for small school districts

 

The Study outlined expectations on school districts to ensure that any new resources would be directed toward “evidence-based research” initiatives including:

 

  • Target funding for students with special needs

  • Reduce class size, especially in early grades, and add counselors, nurses, instructional facilitators, tutors, and security personnel

  • Implement full-day kindergarten

  • Expand the school day and summer school for low performing students

  • Target professional development, including training for principals

  • Expand the use of technology and associated training for teachers

 

In response to the “costing-out study”, bills have been introduced in the House (HB 2449) and Senate (SB 1338) that would begin to address these funding inequities in a systematic way.  If passed, the bills will ensure that a school district’s funding needs are determined by a formula that takes into account such factors as enrollment, number of low-income students and English language learners, district size, and regional cost differences.  The newly established funding formula will be based on the principles of accountability, adequacy, efficiency, equity and predictability – the same principles outlined by the National Council of State Legislatures as essential for a sound school funding formula.

 

Additionally, the proposed formula would include measures to ensure that the increased funds would be used in ways that best lead to improvements for students.  These measures include extended school day, reducing class size, expansion of Pre-K and full-day Kindergarten, and efforts to guarantee qualified teachers and principals.  Most importantly, the proposal takes seriously the fact that different students have different needs.  

 

 

ELCA Policy Base   (Our Calling in Education, 2007)

 

The belief that “all are created in God’s image, all have equal worth and dignity and should be treated accordingly” stands behind our strong support for our society’s expectation that all young people have equitable access to high quality schools.  All students are entitled to good schools; and when they receive a high quality education, society benefits...

 

“The ELCA’s commitment to equitable access for all calls us to attend to the glaring inequities in this country’s schooling.  The disturbing reality persists that too many young people do not have access to good public schools.  This reality is most pervasive in poor communities, especially where poverty is intertwined with a history of racism and discrimination…  Schools where a substantial majority of students live in poverty consistently represent schools with the fewest resources and some of the lowest performances…

 

“We, of the Evangelical Lutheran Church in America, therefore, commit ourselves to work with others for public policies that boldly and consistently push toward ensuring that all students have equitable access to high quality schools”

 

 

What You Can Do:

 

Visit, call, write and/or e-mail your State Representative and State Senator to let them know how important education finance reform is to you.  Specifically, you are encouraged to…

 

  • Ask them to vote YES on HB 2449 and SB 1338 in order to support a school funding formula that is adequate, equitable, accountable, and efficient

 

  • Ask them to support the appropriation of a significant down payment toward the necessary and adequate funding levels in the 2008-2009 Budget.

 

  June 2008