Show me the money

We read new reports on the state of school funding in America so you don’t have to. Here’s what we learned.

PHOTO: Laura Faith Kebede
Education advocates rally outside of the building where Shelby County's Board of Commissioners meet to discuss funding for Shelby County Schools.

Utah spends about $7,000 per student in its public schools, but gives much more to schools with many poor kids. New York spends more than $18,000 per student, but doesn’t give extra money to high-poverty school districts.

What’s the right number, and who should get the most? The questions are at the heart of many of the heated battles in public education: In Detroit, teachers have complained about buildings that are falling apart, while lawsuits from Washington to New York to Kansas have led to protracted legal fights.

It makes sense to look closely at education spending, since several recent studies link more money in schools to better outcomes for students. But describing the state of school funding in the U.S. is tricky, since schools receive a combination of local, state, and federal dollars and because disparities can exist between states, between districts, and between schools.

That’s why we combed through three recent reports from the Education Law Center, Education Trust, and the Urban Institute, which help explain how big the school funding pot is and how that money is really divvied out.

What stands out is that while poor students necessarily don’t get less money than their affluent peers, they usually don’t get the extra money that funding advocates say is necessary for addressing additional needs. Here are some of the major takeaways.

1. A state’s high-poverty school districts usually don’t get more state and local money than its affluent districts.

In 20 states, both kinds of districts get about the same amount of money. In 12 states, more money went to impoverished districts. But in 16 states, more money actually went to wealthier districts, according to the Education Law Center report. (Alaska and Hawaii were excluded. And like the other reports in this piece, it uses data that are a few years old, in this case running through 2015.)

There were some notable outliers: New Jersey gives 20 percent more money to poor districts, for example, while Nevada gives poor districts 40 percent less.

Funding advocates say a flat distribution is nothing to celebrate, since there is evidence that poor students need more money spent on their schools to reach comparable outcomes.

2. High-poverty and low-poverty schools also tend to get about equal amounts of money from their districts.

Recent research has found that schools serving poorer students tend to get the same amount as, or even a tiny bit more than, other schools. But there are exceptions: in some of the least equitable districts, poor students and students of color get between $300 and $500 less than wealthier and white students.

Starting next school year, the federal education law requires states to report how much is spent at each individual school, which advocates are hoping to pressure districts with disparities to close them.

3. When you zoom out, things look worse for students in high-poverty schools, since they’re more likely to be located in states that spend less on education.

Spending disparities grow when you compare poor school districts nationwide to wealthier ones. Here’s why: poor students are more likely to live in states with weaker economies and that spend less on education.

For example, there’s a greater share of poor kids in Mississippi (which spends about $7,000 per student, according to the Education Law Center) than in Massachusetts (which spends about $15,000 per student).

Education Trust tried to quantify that disparity between states. The civil rights and education organization, led by former U.S. Education Secretary John King, found that American students in poor school districts get an average of about $1,000 less in state and local dollars than those in wealthier districts. This is also an important reminder that states spend widely varying amounts per student.

Bruce Baker, a Rutgers professor and the author of the Education Law Center report, said that gaps like these are concerning, though people should keep in mind that costs of living and other factors also vary. “When you start trying to compare nationally, you really have to find a way to thoroughly correct for a whole bunch of different cost factors,” he said.

4. But federal dollars generally do what they’re designed to do: make school spending more progressive.

The Urban Institute analysis shows that federal money — which accounts for only about 10 percent of total education spending — ensures that in almost all cases, poor districts end up with as much or more money than wealthier districts in the same state. (This doesn’t mean, though, that the federal dollars even out the disparities between states.)

5. When you sort schools based on race, school spending disparities are even worse than when you sort schools by income.

Most studies of school funding gaps focus on those between higher- and lower-poverty schools. But the Education Trust report also compared how states fund districts with more students of color versus those with more white students.

In many cases there were substantial differences: 11 states that sent more or the same to poor districts actually sent less to districts with more students of color (and only one was the reverse).

Another recent analysis found that, even controlling for poverty, Pennsylvania school districts with more black students got less funding. An older study found that districts in the Chicago area with more Hispanic students were especially likely to be financially disadvantaged.

“It’s such a compelling data point for why poverty is not a good proxy for race,” said Ary Amerikaner of Education Trust.

6. There’s no correlation between how much a state spends on schools and whether more dollars go to poorer schools. There’s no correlation between a state’s political leaning and how progressively education dollars are distributed, either.

States that spend the most aren’t necessarily the ones that give the biggest share of money to high-poverty schools, as the New York-to-Utah comparison underscores. There’s also no clear political pattern, at least based on how a state voted for president in 2016, though there is research showing that Democratic governors generally mean more money for higher-poverty districts.

School funding and politics
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Local funding

Aurora board to consider placing school tax hike on November ballot

A kindergarten teacher at Kenton Elementary in Aurora, Colorado helps a student practice saying and writing numbers on a Thursday afternoon in February 2017. (Photo by Yesenia Robles, Chalkbeat)

Seeking to boost student health and safety and raise teacher pay, Aurora school officials will consider asking voters to approve a $35 million tax plan in November.

The school board will hear its staff’s proposal for the proposed ballot measure Tuesday. The board may discuss the merits of the plan but likely would not decide whether to place it on the ballot until at least the following week.

Aurora voters in 2016 approved a bond request which allowed the district to take on $300 million in debt for facilities, including the replacement building for Mrachek Middle School, and building a new campus for a charter school from the DSST network.

But this year’s proposed tax request is for a mill levy override, which is ongoing local money that is collected from property taxes and has less limitations for its use.

Aurora officials are proposing to use the money, estimated to be $35 million in 2019, to expand staff and training for students’ mental health services, expanding after-school programs for elementary students, adding seat belts to school buses, and boosting pay “to recruit and retain high quality teachers.”

The estimated cost for homeowners would be $98.64 per year, or $8.22 per month, for each $100,000 of home value.

Based on previous discussions, current board members appear likely to support the recommendation.

During budget talks earlier this year, several board members said they were interested in prioritizing funding for increased mental health services. The district did allocate some money from the 2018-19 budget to expand services, described as the “most urgent,” and mostly for students with special needs, but officials had said that new dollars could be needed to do more.

The teacher pay component was written into the contract approved earlier this year between the district and the teachers union. If Aurora voters approved the tax measure, then the union and school district would reopen negotiations to redesign the way teachers are paid.

In crafting the recommendation, school district staff will explain findings from focus groups and polling. Based on polls conducted of 500 likely voters by Frederick Polls, 61 percent said in July they would favor a school tax hike.

The district’s presentation for the board will also note that outreach and polling indicate community support for teacher pay raises, student services and other items that a tax hike would fund.



School Finance

Key lawmakers urge IPS to lease Broad Ripple high school to charter school

PHOTO: Scott Elliott

Several Indiana lawmakers, including two influential state representatives, are calling on Indianapolis Public Schools leaders to sell the Broad Ripple High School campus to Purdue Polytechnic High School.

In a letter to Superintendent Lewis Ferebee and the Indianapolis Public Schools Board sent Tuesday, nine lawmakers urged the district to quickly accept a verbal offer from Purdue Polytechnic to lease the building for up to $8 million.

The letter is the latest volley in a sustained campaign from Broad Ripple residents and local leaders to pressure the district to lease or sell the desirable building to a charter school. The district is instead considering steps that could eventually allow them sell the large property on the open market.

But lawmakers said the offer from Purdue Polytechnic is more lucrative and indicated they wouldn’t support allowing the district to sell the property to other buyers.

The letter from lawmakers described selling the property to Purdue Polytechnic as a “unique opportunity to capitalize on an immediate revenue opportunity while adhering to the letter and spirit of state law.”

It’s an important development because it was signed by House Speaker Brian Bosma and chairman of the House Education Committee Bob Behning, two elected officials whose support would be essential to changing a law that requires the district to first offer the building to charter schools for $1. Both are Republicans from Indianapolis.

Last year, the district lobbied for the law to be modified, and Behning initially included language in a bill to do so. When charter schools, including Purdue Polytechnic, expressed interest in the building, he withdrew the proposal.

The district announced last month that it planned to use the Broad Ripple building for operations over the next year, which will allow it to avoid placing the building on the unused property registry that would eventually make it available to charter operators.

The plan to continue using the building inspired pointed criticism from lawmakers, who described the move in the letter as an excuse not to lease the property to a charter school. Lawmakers hinted that the plan will not help win support for changing the law.

“It certainly would not be a good faith start to any effort to persuade the General Assembly to reconsider the charter facility law,” the letter said.

The legislature goes back in session in January.

The Indianapolis Public Schools Board said in the statement that they appreciate the interest from lawmakers in the future of the building.

“We believe our constituents would not want us to circumvent a public process and bypass due diligence,” the statement continued. “We will continue to move with urgency recognizing our commitment to maximize resources for student needs and minimize burdens on taxpayers.”

Indianapolis Public Schools is currently gathering community perspectives on reusing the property and analyzing the market. The district is also planning an open process for soliciting proposals and bids for the property. The district’s proposal would stretch the sale process over about 15 months, culminating in a decision in September 2019. Purdue Polytechnic plans to open a second campus in fall 2019, and leaders are looking to nail down a location.