Using Fiscal Policy to Increase Equity: Context Matters for the Outcomes of Weighted Student Funding

• In Event: 18.034 - Beyond Interpretation: A Sociocultural Approach to Educational Policy Studies

Abstract

Objectives
The most significant source of intradistrict resource disparity is the distribution of quality teachers which is of grave concern because teachers matter for student achievement and long-term outcomes (Chetty, Friedman, & Rockoff, 2011; Goldhaber, Lavery, & Theobold, 2015; Lankford, Loeb, & Wyckoff, 2002). To address these concerns, more than 20 large school districts have implemented Weighted Student Funding (WSF). WSF increases principal fiscal autonomy and allocates funds from districts to schools based on student characteristics rather than the number of teachers in a school (Miles & Roza, 2006). The limited literature examining this trend demonstrates that local conditions and actors’ choices impact WSF’s ability to affect intradistrict disparities (Malen, Dayhoff, Egan, & Croninger, 2017). This quantitative study examines how New York City’s context mattered in the implementation of Fair Student Funding (FSF), the district’s WSF policy.

Conceptual Framework
One theory of action of FSF, as stated by the New York City Department of Education (NYCDOE), is that by increasing principal autonomy and changing the budget allocation formula, principals will hire a greater mix of teacher experience, the district’s measure of quality (NYCDOE, 2013). While this may be the district’s stated goal, it cannot dictate how principals will choose to use their fiscal autonomy or change teachers’ preference for location and types of schools when applying for jobs (Ladd, 2008). Additionally, the context of the implementation will affect how local actors respond. Applying a sociocultural approach in examining outcomes of WSF’s implementation expands understanding of the contexts and/or processes contributing to a policy’s outcomes.

Methods and Data
During the implementation of this policy, the NYCDOE divided schools into two groups: those historically underfunded and those overfunded according to the new FSF formula. Utilizing NYCDOE provided fiscal and teacher data, I used descriptive statistics to determine which schools and students were part of each group, verify the disparity in teacher sorting, and demonstrate the effects of context on the policy implementation. I employed difference-in-difference regression to examine the change in disparity of teacher experience and student-teacher ratios between the two groups.

Findings
The NYCDOE expected a windfall of state funding when they implemented FSF but instead experienced significant budget cuts (Foley, 2010). Existing schools and new schools created in the analysis timeframe experienced different conditions. Existing schools faced budget cuts and hiring restraints while new schools saw funding increases and greater hiring freedom. With greater principal fiscal autonomy and increased funding, the decrease in teacher sorting disparities was substantive for new schools. Disparities in student-teacher ratios decreased for existing and new schools, indicating that principals may be able to change ratios through hiring but not the experience of the teachers who choose to apply to schools.

Significance
WSF has been implemented across the nation in varying contexts and research shows that local conditions and actors matter in its ability to impact equity; New York City is another example. This study uses quantitative methods to understand the power of context and applies a sociocultural approach, for which qualitative methods are typically employed.

Author

• Lena Batt, University of Wisconsin - Madison