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But given the complexities of school finance systems, the lack of education policy expertise among those who control the purse strings, as well as the political landmines that come with any attempt to alter funding streams – all of which researchers from the Urban Institute examine in a new paper – lawmakers broaching the topic have rarely succeeded in crafting truly equitable systems, education finance experts say.
The savings stem in part from a cut to a school associate superintendent position and the reduction of the district’s unassigned ending fund balance — a kind of reserve — from 1.75 percent of general fund revenue to 0.78 percent. And the district will freeze all nonessential central office travel to reduce mileage for an estimated savings of $683,641. The last round of budget cuts means that more than 200 filled positions and over 136 vacant jobs have been reduced to cover a deficit that of just over $60 million.
These formulas often attempt to account for state and district revenue and anticipated differences among districts. What they cannot always account for, however, is how districts might respond to different incentives. In these often complex funding models, states aim to strike a balance between giving localities some control while maintaining enough control at the state level to ensure all students can access a quality education.
Now the department is acknowledging that it erred in two calculations that financially affected school districts statewide — one on how much to reimburse for full-day kindergarten programs and another in how much it would pay districts for online charter school students.
South Carolina’s supreme court late last week quietly put an end to a 24-year battle with the state’s legislature over how it funds its most rural school districts.
“Because special education services must be funded regardless of whether there is sufficient state or federal funding to cover the costs in their entirety, the dollars needed to cover the shortfall actually come from the general operating budgets of schools,” the report says. And that means a shortfall of $459 for every pupil in the state.
Instead, teacher raises would be based on a percentage of their current salary and their educational attainment, with higher percentages given to teachers with graduate credits or degrees. It would also allow districts to base raises on how much state funding is available, instead of negotiating wages before state funding is set, Shepherd said. During tough financial times, districts would have the flexibility to lower pay raises, potentially staving off program cuts or staff layoffs.
State spending on K-12 education rose over the past year despite lackluster tax collections, as budgets continue to tick upward from the abyss of the Great Recession. Funding in the states for education increased by 4 percent in fiscal 2017, a bump from 2.9 percent a year before, according to a report released today by the National Association of State Budget Officers.
Arizona’s 35-year-old school-funding formula was created before charter schools and other school choice options were part of the equation. As those options were added, the formula was not overhauled. Instead, it was tweaked to squeeze them in.