A Study of Cost Adequacy, Distribution, and Alignment of Funding for the State's Education System

• In Event: A State's Journey to Achieve Educational Equity: The Role of Stakeholders, Researchers, and the Courts

Abstract

The purpose of this study was to examine three major components of an effective education resource allocation system: (1) the equitable distribution of funding, (2) the alignment of funding to student needs, and (3) the adequacy of funding. The study explored the adequacy, equity, and distribution of resources within the state’s current school funding methods and identified approaches to improve the system’s ability to ensure access to equitable education for all children. The methods included examining extensive data on state and local funding for education and on student outcomes. The team gathered input from stakeholders, created comparisons to the methods and structures used by similar states to achieve growth and positive outcomes for students, and engaged Professional Judgement Panels to identify the level of resources needed to meet outcomes for all students. The study quantifies and models the funding needed to achieve the desired outcomes; and assesses the alignment and mechanisms that are in place to facilitate the effective use of resources.

The significance of this study is related to the state’s major equity court case ruling that the system should ensure that “the educational needs of all children, including at-risk children, to have the equal opportunity to obtain a sound basic education, can be met”. As such, the study examined how the education finance system distributes funding to support educational opportunities for historically underserved student populations. The ruling also states that “the resources necessary to support the effective instructional program” should be provided in “the most cost-effective manner.” This indicates that the state should support, and not hinder, efforts to strategically allocate resources in alignment with local student need. Aligning funding to student needs requires sufficient funding stability and flexibility. Without funding stability, districts struggle to engage in multiyear budget planning — an important component not only for improving student outcomes, but also for maintaining the district’s fiscal health (Williams & Kersten, 2013). Funding flexibility is important to enabling schools to invest funds in proven, effective strategies and programs to serve their specific student populations and to uncovering new promising practices (Hill, Roza, & Harvey, 2008). Moreover, too many restrictions on funding may result in inefficient spending by limiting the extent to which districts are able or compelled to make strategic trade-offs. The adequacy component also addresses strategic implementation of changes to the state’s finance system, including the gradual phase-in of investments and accountability measures.

The overall findings address equity, alignment and adequacy of funding.
1. Equity of Funding: More funding is required by students with greater needs than by others; the current resource distribution is inequitable.
2. Alignment of Funding: Efforts to spend current resources effectively are stymied by unpredictability and increasing restrictions on use of funding.
3. Adequacy of Funding: Some critical educational resources are currently underfunded.

The study paper makes specific recommendations for changes in state policy and education funding to address the findings and improve access to education for all students.

Author

• Jason Willis, WestEd