Competency 8.06 Funding for Public Schools

Background

As Pennsylvanians raise expectations for their schools, a key issue is how the state funds public education. There is a huge debate flaring over the equity of how funds are distributed.  Core questions framing the equity debate include:  What's an adequate funding level to ensure all children have access to a quality education?  Are children put at a disadvantage by fiscal inequities between districts? To understand the problems of education in America, it is necessary to look at the way public schools are financed.  

School District Funding

1) General Funds

·           Local -  (property tax, local tax, occupational tax and other)  In Pennsylvania, 58% of education revenues come from local sources - mainly the property tax and, to a lesser degree, the local wage tax.  School boards adjust the property tax rate - the millage rate - to reflect the district's financial needs. 

·           State - All Public schools receive state funds, but some get more than others.  On average 39% of a local school district’s funds come from State sources.  In an Education Week "Quality Counts" report, PA was ranked 49 out of 50 with a D- in funding equity.   Rendell's plan from 2003-04 consisted of several basic elements: property tax reduction, basic education funding, funding for new programs and accountability. According to this report, the plan proposed that the state  should be an equal partner in the funding of public education with school districts. The proposal moved the state’s share of funding from 35% to approximately 50%. 

·           Federal  -  Although federal funding constitutes about seven percent of a school district’s budget, it is needed to fund increased costs due to rising student enrollment and inflation.  The Department of Education's proposed budget was $56 billion for 2005/06.  Some of the specific programs that are funded federally include: special education initiatives, academic progress under the No Child Left Behind (NCLB) Act, local education reform initiatives, and other areas such as education technology and school lunch programs.

  
2) Grants
Grants are very time intensive.  It takes a lot of time to apply for a grant and additional time to provide detail that you are using the grant as stated.  You spend a lot of time to apply for a grant which is time and money and you may not even get the grant.  Often districts rely on a grant writer on the staff which many schools can’t afford to do.  Grants are nice, but its not money you can count on year after year.  Another source is donations from  technology businesses.  These are wonderful, but not every district has such businesses within their district leading again to inequity. 

   Types of Grants

· Federal:  There are many opportunities for federal grants, but it takes time to search and apply for them. 

· Private (difficult to get)

· State (a little easier to get, but not as many):  State grant opportunities in PA can be found on the PDE website:

 *  Some grants require matching funds from the school district

Funding Specific for Technology

In industry, technology is important to have, but no one really wants to pay for it.  However, without technology, many things can not be done to allow the companies to be competitive in today’s information age.  Companies need students who can think, reason, and compute.   Technology is here to stay.  It is a priority in schools today.  It is an expensive investment but a necessity and a part of the future.   Funding has a major effect on technology in schools.  Technology equipment is not cheap even when you buy the less expensive products.  You can see where  some school districts that don’t have the income base could be lagging behind.  When a district can barely afford to buy text books and other necessary school supplies, they're often not able to spend money on computers.  Some people might argue that computers today are a necessary school supply So how do school districts fund

 

E-RATE – a federal initiative that provides discounts on telecommunications and Internet technologies to elementary and secondary schools and public libraries. Discounts range from 20% to 90% of the costs of eligible services, depending on the level of poverty and the urban/rural status.  This is calculated by dividing the number of students on the School Lunch Program by the total number of students in your district.


Link-to-Learn - Governor Ridge's multi-year, $166 million initiative to expand the use of technology in the classroom, including new and upgraded computers for schools and high-tech training for teachers.

Enhancing Education Through Technology (EETT) – Primary goal of this program is to improve academic achievement through the use of technology.  It is also used to assist all students in becoming technology literate by the end of 8th grade.

Summary

Equity of educational funds has been a recurring problem for districts.  Therefore, districts need to come up with other ways to fund their educational program.  Added to the dilemma is funds which are taken away from local districts from charter schools.  It seems like the opportunities are available.  It is just knowing, understanding & finding them that is the issue.  Public schools in America are experiencing much higher levels of expectation. There are new systems of testing and performance standards that will hold schools and teachers accountable for student achievement. Given these ongoing changes, it is becoming increasingly important for districts to design systems that provide their schools with the resources they need to meet the demand for better education.

Resources

http://www.pde.state.pa.us/ed_tech/cwp/view.asp?A=169&Q=82197#OVERVIEW
Enhancing Education Through Technology (EETT)

 www.issuespa.net/articles/view.do?id=5003
School Funding Equity, Part I: How
Pennsylvania Funds its Public Schools

 www.issuespa.net/articles/view.do?id=5004
School Funding Equity, Part II: The Quest to Define Equity

 http://www.issuespa.net/issues/173/
School Finance

 http://lrs.ed.uiuc.edu/wp/access/funding.html
An Educator's Guide to Funding Issues

 http://www.nsba.org/site/doc.asp?TRACKID=&VID=2&CID=892&DID=35292
President Bush's Proposed FY 2006 Federal Budget for Education

 http://www.nsba.org/site/docs/35100/35033.pdf
Priority Issues:  Federal funding for education 

http://www.cbpp.org/11-7-02sfp2.htm
Overview of k-12 Education Finance

 http://psea.org/article.cfm?SID=532
Weaver, James R. The Unfinished Business of School Funding. Published in the Philadelphia Inquirer, January 13, 2004. 

http://www.psba.org/issues-research/planforpa-psbaposition.asp
The Plan for a New Pennsylvania: PSBA's Position