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K 12 Funding (1 27 09)
 

K 12 Funding (1 27 09)

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    K 12 Funding (1 27 09) K 12 Funding (1 27 09) Presentation Transcript

    • Funding K-12 Public Schools The “nuts & bolts” of school finance in Washington State Ben Rarick Office of Program Research January 27, 2009
    • Overview of the Presentation A presentation in 2 parts:  Part 1 - Build a basic foundation of knowledge about the  funding formulas. Part 2 – Tracking the data on school funding  Provide an overview of school spending & funding statistics.  Identify emerging policy issues and areas of rapid change in the  finance of Washington public schools. 2 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Part 1 – The formulas 3 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • General Apportionment Basic Funding Concepts Student Enrollment Formula Staff Units (Cert. Instructional, Administrative, & Classified Staff) Salaries & Benefits (LEAP 12E document) Nonemployee Related Costs (NERC) (provided on a per cert staff basis) = State General Apportionment “The State funds a certain number of staff units based on how many students are enrolled. Staff units are funded at different amounts in different districts” 4 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Formula factors - enrollment Factor #1 - Enrollment  Reported by districts first school day of each month,  September – May. Average of 9 monthly counts produces “annual average  enrollment” (AAFTE). FTE defined in W.A.C. as minimum 4 hrs/day Grades 1-3;  5 hrs/day Grades 4-12. FTE enrollment is different than headcount enrollment.  About 979,594 FTE enrollment for SY 2008-09.  About 1,031,311 October headcount enrollment.  The difference? Some students are part-time.  E.g. running start and skill centers  5 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Formula factors – staff allocations Factor #2 - Staff Units for 3 types of school staff  Certificated Instructional Staff  Up to 53.2 staff units per 1000 in grades K-4 (18.8 pupils/staff)  The minimum allocation in K-3 is 49.0/1000 and in grade 4-12, 46.0/1000.  The difference between the minimums and maximums K-4: “use it or lose it”  CIS includes Teachers and Educational Staff Associates (Nurses, Social  Workers, Speech/Language Pathologists, etc) Vocational & Skill Centers get enhancement, as do small schools/school  districts. Certificated Administrative Staff  4.0 staff units per 1000 AAFTE (250 pupils per staff)  Includes superintendents, principals, vice principals, etc  Classified Staff  17.02 staff units per 1000 AAFTE (58.75 pupils per staff)  Statutory minimum: 16.67 per 1000 students  (RCW 28A.150.260) Includes janitors, aides, bus drivers, clerks, etc  6 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Formula factors – Salaries & Benefits Factor #3 - Salaries & Benefits  Certificated Instructional Staff - salary determined by multiplying base salary by “staff  mix” factor (a metric combining years of experience & education level). Example: Everett School District (grandfathered school district)  SY 2008-09 base CIS salary: $36,135 (x) staff mix of 1.53947  Therefore, state-funded CIS salary allocation for SY 2008-09: $55,629  13 districts are “grandfathered” at higher base salaries for 2008-09.  Certificated Administrative Staff salary allocations are set in the Budget (LEAP doc  12E) and are subject to I-732 increases annually. SY 2008-09 - Salary amounts range from a high of $84,362 (4 districts) to a low of  $57,986 (89 districts). Classified staff salary allocations are similarly established in the Budget.  SY 2008-09 - Salary amounts range from a high of $36,777 (Seattle) to a low of  $31,865 (225 districts). Fringe Benefit Rates & Insurance Benefit Rates  Fringe: Includes pensions, Medicare, other  Governor‟s budget for FY10: Certificated: 16% of salary & Classified: 17% of salary  Governor‟s budget for FY10: Insurance benefits (including health, life, disability): $774  per employee, per month ($9288/year). 7 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Formula factors - NERC Factor #4 - Non-employee related costs (NERC)  Includes such things as supplies, materials, texts, computer costs, etc  Estimated $10,179 per certificated staff unit for SY2009-10.  Translates to about $504 per student FTE.  This $504/student is spent by districts, on average, in following  distribution (approximate):  Central Purchases - $141  Technology - $117  Utilities - $97  Instructional Materials (books, etc) - $70  Professional Development - $48  Insurance - $23  Maintenance & Custodial Costs - $17  Security - $5 Vocational ($24,999) and skill centers ($19,395) receive more.  8 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Additional amounts for higher cost students Special Education  .9309 x‟s the Basic Education allocation, 12.7% cap per enrollment  Basic Education Allocation Rate (“BEA Rate”) estimated at about $5,225 for  SY2008-09. Birth - to - Pre-K: BEA x‟s 1.15.  Opportunity for safety net funding.  Bilingual Education  $904 rate per bilingual student for SY2008-09.  Free/Reduced Lunch Eligible (Learning Assistance Program)  $285 rate per student unit in SY2008-09.  Additional LAP units provided for districts with:  Concentrations of poverty above 40%; and  Concentrations of English Language Learners above 20%.  Highly capable  Maximum 2.3% of district enrollment.  $406 rate per eligible student in SY2008-09.  9 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Local Effort Assistance (LEA) Districts cannot levy more than 24% of their levy base (comprised  of eligible state & federal funds) 91 districts are grandfathered at higher levy rates (e.g. Kahlotus @ 33.9%)  The issue: property poor districts must tax at higher rates to raise  the same dollar amount. Property Poor Districts Property Wealthy Districts Highest 12% Levy Rates Lowest 12% Levy Rates Wellpinit $ 36.76 Shaw Island $ 0.16 Nespelem $ 20.91 San Juan $ 0.20 Taholah $ 12.29 Orcas Island $ 0.21 Keller $ 9.45 Lopez Island $ 0.22 Mount Adams $ 6.86 Grapeview $ 0.28 State LEA formula equalizes to 12% - “meeting half way” 10 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • A few notable levy facts… 16 districts with no voter approved levy  9 more districts have levies too small to maximize LEA eligibility.  These 25 districts represent $2.7 million in unrealized LEA  payments. 244 districts raise less than their levy lid allows  196 districts raise less than 95% of their levy lid (66% of districts).  132 districts raise less than 80% of their levy lid (45% of districts).  Represents approximately $158 million in unrealized levy  capacity. 51 districts in “roll back status” – voter approved levy exceeds lid.  11 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Pupil Transportation formula The formula multiplies the number of children transported for each radius mile  route category, x‟s a distance weighting factor, x‟s a funding rate per mile. The distance weighting factor is designed to adjust for the use of “as the crow flies”  linear miles, rather than actual miles driven. The minimum load factor is designed to adjust for diseconomies of scale associated  with low ridership & the special load factor is designed to adjust for transporting specialized populations. Formula does not pay for routes within a mile of school; however, K-5 students within  a mile generate additional funds which may pay for roadway improvements, crossing guards, bus routes, etc. Example for one basic student on a two-mile bus route*: # of students Distance weighting # of Trips to/from Funding Rate Transported Factor for 2mi route school per Unit (FY06) X‟s X‟s X‟s 1 3.2 2 $42.52 Total (for example student) $272.13 Source: OSPI *if district qualified for minimum load factor, the amount for this child would be more 12 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Formula overview Why do some districts get more money than others? Grandfathered Salary Status for certificated instructional staff.  Differences in # of high cost students (special education, bilingual,  free/reduced lunch eligible, etc). Differences in staff mix (less experienced staff generate fewer state  dollars). Differences in administrator and classified salary rates (LEAP  Schedules). Small school/district enhancement (remote & necessary).  Levy Equalization Assistance (State Assistance for Property Poor  Districts). Local deductible revenues (e.g. timber sales).  Transportation formula (radius miles, # of riders, etc).  13 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Part II – Selected Spending & Funding Statistics A) B) Areas of Rapid Budget Growth 14 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Projected K-12 Enrollment Growth K-12 FTE Enrollment Projections – 1997 to 2021 Source: Caseload Forecast Council, November 2008 forecast 1,150,000 K-12 FTE Enrollment 1,106,837.24 1,100,000 1,050,000 988,847.91 1,000,000 979,594.18 993,996.40 984,825.18 936,434.76 975,278.50 950,000 900,000 850,000 School Year 1/19/2009 15 Prepared by the House Education Appropriations Committee Staff, OPR
    • Overview of K-12 State Funding 2009-11 BASIC EDUCATION PROGRAMS Maintenance-level Estimates Highlights: (Dollars in Millions) GENERAL APPORTIONMENT (RCW 28A.150.260) $10,048 66.7% •About $15 billion per biennium in SPECIAL EDUCATION (RCW 28A.150.370) $1,325 8.8% K-12 (at Maintenance-level). TRANSPORTATION (RCW 28A.160.150) $610 4.0% LEARNING ASSIST. PROGRAM (RCW 28A.165) $260 1.7% •Basic Education usually about BILINGUAL (RCW 28A.180) $164 1.1% 80% of total. INSTITUTIONS (RCW 28A.190) $41 0.3% SUBTOTAL: BASIC EDUCATION PROGRAMS $12,448.1 82.6% •Largest Recent % Growth is in 2009-11 NON-BASIC EDUCATION PROGRAMS Education Reform Budget (2003- (Dollars in Millions) 05: $75.6 million). STUDENT ACHIEVEMENT FUND (I-728) $911 6.0% INITIATIVE 732 COLA & OTHER COMP INCREASES $355 2.4% LEVY EQUALIZATION (LEA) $486 3.2% EDUCATION REFORM $377 2.5% ENHANCED STAFFING RATIOS (K-3 CIS & Classified) $296 2.0% TWO LEARNING IMPROVEMENT DAYS $71 0.5% STATEWIDE PROGRAMS/ALLOCATIONS $40 0.3% STATE OFFICE & ED AGENCIES $35 0.2% HIGHLY CAPABLE $19 0.1% EDUCATIONAL SERVICE DISTRICTS $18 0.1% FOOD SERVICES $6.3 0.0% SUMMER, OTHER SKILLS CENTERS, & VOC. EQUIPMENT $5.7 0.0% PUPIL TRANSPORTATION COORDINATORS $1.8 0.0% Subtotal: Non-Basic Education Programs $2,623.0 17.4% TOTAL - STATE FUNDS $15,071.1 100.0% This is not a complete list of every non-basic education programs 16 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Where does the Money Come From? Total K-12 Revenues by Source Washington is heavily state funded. National Other Revenues & average is Reserves around 50%. 3.6% State 71.6% Federal 8.9% Local Taxes 16.0% 17 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • What is the Money Spent On? K-12 expenditures by function Teaching & Teaching Support Food Services is over 70% of budget. 3.5% Pupil Transportation Administration is about 12%. 4.1% Building Administration Teaching 5.9% 60.7% Central Administration 6.2% Teaching Support 8.5% Other Support Services 11.0% 18 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Per Pupil Spending Over Time All Funding Sources Total Per-Student Spending 1994 to 2008 $10,000 Note: This chart shows the rate of funding changes $9,418 over time as compared to inflation. It is useful for Seattle evaluating rates of change in funding, but not $9,000 Consumer necessarily the level of funding. Price Index $8,000 Adjusted $7,000 Implicit Total Per Student Spending Price $5,608 $6,000 Deflator Adjusted $5,000 $4,000 $3,000 $2,000 $1,000 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sources: Reflects school year amounts from OSPI F195/F196 School Financial Services and OSPI enrollment reports. From Citizen’s Guide for K-12 Finance 19 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Per Pupil Spending Over Time Just State Funding Sources State Funding Per-Student Spending 1994 to 2008 $8,000 Seattle Note: This chart shows the rate of funding changes Consumer over time as compared to inflation. It is useful for Price Index $6,740 evaluating rates of change in funding, but not $7,000 Adjusted necessarily the level of funding. $6,000 Implicit Price State Funding Per Student $5,000 Deflator $4,342 Adjusted $4,000 $3,000 $2,000 $1,000 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sources: Reflects school year amounts from OSPI F195/F196 School Financial Services and OSPI enrollment reports. From Citizen’s Guide for K-12 Finance. 20 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • K-12 Share of Total Budget has declined Percent of Near General Fund-State Spent on K-12 Public Schools 60.0% 50.0% 44.0% 42.3% 41.7% 41.3% 40.5% 38.8% 40.0% 30.0% 20.0% 10.0% 0.0% 1997-99 1999-01 2001-03 2003-05 2005-07 2007-09 What percent K-12 comprises of the total budget reflects spending priorities, but also Source: Winsum caseload growth in K-12 relative to other budget areas (e.g. medical assistance). 21 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Two different ways of looking at K-12 finance How much is funded ($’s) vs. What is funded (programs/services) Estimate of Educational Programs & Service Levels Supported by the Budget, based on Statewide Averages 2009-10 General Apportionment to Public Schools Estimated state-funded student-teacher ratio: Estimated state-funded class size: 21.0 grades K-4 26.2 grades K-4 24.3 grades 5-12 29.2 grades 5-8 29.2 grades 9-12 $55,094 Average state-funded teacher salary $62,382 Average state-funded administrator salary $74,126 Average state-funded total teacher compensation $33,616 Average state-funded classified salary Estimated number of state-funded staff in a school of 500 students: 1.4 Administrators 0.2 Student Health Services (Nurses/Social Workers) 0.5 Librarians/Media Specialists 6.8 Classified Staff (Aides, Secr, Custodians, Food Service) 0.8 Guidance Counselors Non-employee Related Costs (NERC) $10,179 Amount allocated per certificated instructional staff person $504 Amount allocated per student Of the amounts provided on a per pupil basis, districts on average spend the allocation in the following proportions: $95 Utilities $17 Maintenance & Custodial Costs $22 Insurance $137 Central Purchases $46 Professional Development supplies $114 Technology $68 Instructional Materials (books, etc) $5 Security Important note: Most state allocations are for allocation purposes only. How districts choose to utilize resources will vary considerably across the state, and will also vary considerably from what is depicted here. 22 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Two different ways… (continued) Learning Assistance Program 1.5 Estimated hours of additional instruction per week supported by LAP budget Instruction assumed to be provided in groups of 15 LAP quot;studentsquot; by a fully certified teacher Transitional Bilingual Education Program 4.9 Estimated hours of additional instruction per week supported by bilingual budget Instruction assumed to be provided in groups of 15 bilingual students by a fully certified teacher Highly Capable Student Program 2.1 Estimated hours of additional instruction per week supported by highly capable program budget Instruction assumed to be provided in groups of 15 students by a fully certified teacher Special Education Excess Cost Allocation $4,862 Estimated excess cost allocation per eligible student for the 2008-09 school year Based on 93.09% of basic education allocation rate, including compensation increases. The Student Achievement Fund (I-728) $460 Amount per pupil allocated from the Student Achievement Fund to support various reform initiatives. Districts on average spend the allocation in the following proportions (per pupil): Estimates of what these amounts fund in a school of 500: $110 K-4 Class Size Reduction Teacher FTEs in a elementary school 0.9 $148 Grade 5-12 Class Size Reduction Teacher FTEs in a secondary school 0.9 $48 Extended Learning 0.9 Hours/week of extended day for 1/3 of the study body $84 Professional Development 0.5 FTE coach or instructional facilitator $6 Early Education Interventions $3 Facility Improvements $16 Indirect Costs $44 Other (including savings) $460 total 23 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Small school districts are prominent in Washington State Out of the 295 school districts in Washington:  106 school districts have fewer than 500 students.  77 school districts have fewer than 250 students.  41 school districts have fewer than 100 students.  21 school districts have fewer than 50 students.  8 school districts have fewer than 25 students.  3 school districts have fewer than 10 students.  Benge – 5.5 students (southeast of Ritzville)  Evergreen (Stevens) – 5.5 students (northwest of Spokane)  Star – 9.5 students (Pasco)  Small school/district subsidy in K-12 budget: $46 million/year.  26 districts had more than $20,000/pupil in total revenues for 2007-08;  however, none of them had more than 200 students. Enrollment as of December, 2008 24 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Rapid change in Washington K-12 finance areas of budget growth Increase in English Language Learners (ELL)  Since 1987, K-12 enrollment is up 35%, while ELL enrollment is up 520%.  Safety Net for High Cost Special Education Students  2005-07 safety net: $16 million state funds.  2009-11 Governor Proposed: $74 million state funds.  National Board Certification (NBPTS)  By the end of the next biennium, National Board certificates in WA are projected to be 4  times larger in number than in 2006. Budgeting for 4,550 NBPTS teachers for the 09-11 biennium.  Supplemental pay/TRI pay for teachers  Since 2001, base pay is up 18%, while „total supplemental pay‟ is up 80%.  Online learning/ALE  Number of students taking courses for credit online has more than tripled since „06.  In ‟08, about 6500 students enrolled online; in „06, there were about 1800 enrolled.  Running Start  Participation (headcount) has increased five-fold since 1993.  Currently about 13,500 FTE.  WASL Budget  2003-05 WASL budget: $35.9 million.  2009-11 Governor Proposed: $81.1 million.  25 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Emerging Issues in K-12 Finance in WA State 3 Lawsuits Pending  Special Education Coalition (Appeal) – Special Ed Funding  Federal Way – Salary Equity  McCleary – General Adequacy  Basic Education Finance Task Force  School Construction Task Force  Pupil Transportation Funding Study  WASL Work Group  Comprehensive School Health Task Force  Federal Stimulus Package & NCLB Negotiations  State Board of Education – “Core 24” & Accountability System  26 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Appendix – Tracking Districts with Low Fund Balances Districts with Ending Fund Balances Below 2% (2007-08) Fund Balance as Total Ending Fund % of Revenues Balance Revenues District Enrollment Evaline 47 -10.5% $ 443,598 $ (46,560) Montesano 1,271 -0.5% $ 10,878,262 $ (49,597) Onalaska 870 0.4% $ 7,658,838 $ 27,508 Arlington 5,289 0.4% $ 45,579,812 $ 184,713 Colville 2,183 1.2% $ 18,251,355 $ 218,470 White River 4,297 1.7% $ 39,140,008 $ 651,617 Cashmere 1,426 1.8% $ 12,126,970 $ 223,390 Bridgeport 696 1.9% $ 7,265,137 $ 140,215 North Thurston 13,158 1.9% $ 114,173,567 $ 2,222,393 Statewide Average 7.5% Source: OSPI F196 Report for 2007-08 27 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Appendix National Comparisons of K-12 Spending Public School Current Expenditures Per Student School Year 2007-08 D.C. Vermont New York New Jersey Wyoming Massachusetts Delaware Maine Connecticut Maryland New Hampshire Rhode Island Pennsylvania Alaska Hawaii Illinois Michigan Virginia Wisconsin Arkansas Minnesota West Virginia Oregon, $10,773 Kansas Montana U.S. Average, $10,615 Georgia Ohio Indiana Colorado Louisiana Kentucky Washington, $9,980 New Mexico California, $9,870 Nebraska South Carolina Iowa Alabama North Dakota Missouri North Carolina Florida Texas South Dakota Oklahoma Tennessee Idaho, $7,785 Mississippi Nevada Utah Arizona $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 Source: Rankings & Estimates, National Education Association, Dec. 2008 From Citizen’s Guide for K-12 Finance 28 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR
    • Appendix National Comparisons of Student/Teacher Ratios Students Enrolled Per Teacher in K-12 Public Schools, Fall 2007 Utah Arizona California, 20.9 Nevada Oregon, 19.1 Washington, 19.0 Idaho, 18.1 Michigan Colorado Indiana Alaska Ohio Minnesota Kentucky Illinois Hawaii Florida Alabama U.S. Average, 15.4 Oklahoma Delaware New Mexico Wisconsin Mississippi Pennsylvania Texas Tennessee North Carolina South Dakota South Carolina West Virginia Maryland Louisiana Georgia Kansas Iowa Montana Missouri Massachusetts Nebraska Connecticut Arkansas New York New Hampshire Wyoming North Dakota New Jersey Virginia Maine Rhode Island Vermont D.C. 0 5 10 15 20 25 Source: Rankings & Estimates, National Education Association, Dec. 2008 - From Citizen’s Guide for K-12 Finance 29 1/19/2009 Prepared by the House Education Appropriations Committee Staff, OPR