Education Funding

Report Suggests More Flexibility In How Schools Budget

By David J. Hoff — February 18, 2004 3 min read
  • Save to favorites
  • Print

As education policies focus more forcefully on student achievement, policymakers need to overhaul 20th-century school finances in ways that support and encourage learning, a report scheduled for release this week says.

“Investing in Learning: School Funding Policies to Foster High Performance,” from the Committee for Economic Development. (Requires Adobe’s Acrobat Reader.)

Such changes would encompass a wide-ranging agenda to revolutionize tax policy, teacher pay, and school districts’ budgeting, according to the report, which was set to be issued Feb. 17 by the Committee for Economic Development.

“If you have financial policies that are sending one message and other aspects of the educational system sending another,” said Janet S. Hansen, a vice president and the director of educational studies for the business- oriented policy group, based in Washington, “it’s going to be hard to get [the latter] message heard.”

See Also...

See the accompanying story, “Spending Tips.”

To accomplish such an overhaul, the report argues, school principals would need authority to spend in the best ways possible the dollars allocated to them. In addition, policymakers would have to create new data systems that provided examples of effective practices, and teachers would have to be paid according to their ability rather than seniority.

The report also calls on states to conduct thorough analyses of how much it would cost to reach the ambitious achievement goals of their standards-based initiatives and the federal No Child Left Behind Act.

While many cost studies of state policies conclude that paying for all of those measures would require pumping several billion more dollars into state spending, the CED suggests that policymakers should concentrate first on finding ways to spend existing money to best advantage.

“It will be easier to make the case [for additional funding],” Ms. Hansen said in an interview, “once people are more confident that education is using the resources it has effectively.”

Search for Answers

In its report, “Investing in Learning,” the Committee for Economic Development addresses the types of questions school finance experts are already pondering.

For example, many states are studying the costs of their standards-based initiatives, or how much it will cost to meet the goals of the No Child Left Behind Act.

Meanwhile, top researchers have joined a five-year project underwritten by the Bill & Melinda Gates Foundation to define best ways to spend public money to achieve state learning goals. (“Gates Grant Will Fund Four-Year Study of School Finance,” Oct. 22, 2003.)

Many states also are working to change their tax policies so they can collect enough money to pay for the increasing costs of schools and other services.

The CED weighs in with recommendations that reflect the perspective of the management experts who constitute most of its membership of business executives and high-level government leaders. The group also includes educators.

Regarding taxes, the group suggests changing tax policies to avoid the current “structural and cyclical problems with state revenues,” but doesn’t take a stand on whether to increase taxes.

The report also suggests scrapping the salary schedule used by most school districts that set teacher salaries based on seniority and education degrees.

“The traits rewarded by single-salary schedules (experience and additional education) appear to have little to do with improving student outcomes,” the report says. The group says that “some portion” of teacher pay should be tied to student achievement.

A recent study gave a positive evaluation to the pay-for-performance experiment in Denver. (“Denver Performance-Pay Plan Yields Student Progress,” Jan. 14, 2004.)

The group also proposes that districts offer mathematics and science teachers salaries that are higher than those for other teachers, making teaching jobs more competitive with those in higher-paying sectors.

While such methods are common in business, teachers’ unions object to them because the traditional teacher salary structure rewards educational level and experience—the two factors that deliver improved student achievement, said Carolyn York, the manager of collective bargaining and compensation for the 2.7 million-member National Education Association.

Many of the ideas urged by the CED have been successfully implemented or are currently in the experimental stage, the report adds.

In addition to the Denver teacher-pay program, the Milken Family Foundation is expanding a program that sets salary scales based on teachers’ classroom achievement. The program is now reaching 75 schools in six states.

Events

School Climate & Safety K-12 Essentials Forum Strengthen Students’ Connections to School
Join this free event to learn how schools are creating the space for students to form strong bonds with each other and trusted adults.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Well-Being Webinar
Reframing Behavior: Neuroscience-Based Practices for Positive Support
Reframing Behavior helps teachers see the “why” of behavior through a neuroscience lens and provides practices that fit into a school day.
Content provided by Crisis Prevention Institute
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Mathematics Webinar
Math for All: Strategies for Inclusive Instruction and Student Success
Looking for ways to make math matter for all your students? Gain strategies that help them make the connection as well as the grade.
Content provided by NMSI

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Explainer How Can Districts Get More Time to Spend ESSER Dollars? An Explainer
Districts can get up to 14 additional months to spend ESSER dollars on contracts—if their state and the federal government both approve.
4 min read
Illustration of woman turning back hands on clock.
Education Week + iStock / Getty Images Plus Week
Education Funding Education Dept. Sees Small Cut in Funding Package That Averted Government Shutdown
The Education Department will see a reduction even as the funding package provides for small increases to key K-12 programs.
3 min read
President Joe Biden delivers a speech about healthcare at an event in Raleigh, N.C., on March 26, 2024.
President Joe Biden delivers a speech about health care at an event in Raleigh, N.C., on March 26. Biden signed a funding package into law over the weekend that keeps the federal government open through September but includes a slight decrease in the Education Department's budget.
Matt Kelley/AP
Education Funding Biden's Budget Proposes Smaller Bump to Education Spending
The president requested increases to Title I and IDEA, and funding to expand preschool access in his 2025 budget proposal.
7 min read
President Joe Biden delivers remarks on lowering prices for American families during an event at the YMCA Allard Center on March 11, 2024, in Goffstown, N.H.
President Joe Biden delivers remarks on lowering prices for American families during an event at the YMCA Allard Center on March 11, 2024, in Goffstown, N.H. Biden's administration released its 2025 budget proposal, which includes a modest spending increase for the Education Department.
Evan Vucci/AP
Education Funding States Are Pulling Back on K-12 Spending. How Hard Will Schools Get Hit?
Some states are trimming education investments as financial forecasts suggest boom times may be over.
6 min read
Collage illustration of California state house and U.S. currency background.
F. Sheehan for Education Week / Getty