Education Funding

School Aid Remains Rendell’s Big Challenge

By Catherine Gewertz — January 14, 2004 4 min read
  • Save to favorites
  • Print

Pennsylvania Gov. Edward G. Rendell spent his first year in office in an uphill battle for the education agenda that defined his candidacy. And if it’s true that politics is the art of half a loaf, it’s possible he’s still feeling pretty hungry.

Taking office last January, the energetic former Philadelphia mayor carried an ambitious to-do list, dominated by a massive overhaul of what experts contend is one of the most inequitable school financing systems in the country.

But the Democrat stumbled onto a rocky political landscape: a legislature dominated in both chambers by Republicans. Mr. Rendell had to accept a deeply compromised version of the education package he originally proposed.

As his first year draws to a close, his reviews vary. To some, he extracted miraculous education victories from a disinclined legislature. To others, he settled for crumbs and failed to tackle big-picture school-funding problems.

Most acknowledge the difficulty he faced with an opposition-party legislature, and are willing to wait at least one more year before judging his ultimate success in improving education for Pennsylvania’s 1.8 million schoolchildren.

“To know Rendell is to know he lives to fight again,” said G. Terry Madonna, a political analyst who directs the Center for Politics and Public Affairs at Millersville University, near Lancaster, Pa.

Scaling Down

Gov. Rendell proposed $560 million in new school spending last March, as well as a 2.5 percent hike in the state’s basic education subsidy. He wanted to cut local property taxes, drive more money to poorer districts, and boost the state’s share of education spending from 36 percent to 50 percent. He offered to finance those changes largely with a 34 percent hike in the personal-income tax and expanded slot-machine gambling.

Lawmakers later that month adopted a bare-bones budget before Mr. Rendell could present any of his key education proposals. To regain leverage, the governor vetoed the entire basic education subsidy, forcing some districts to threaten closure. (“Pennsylvania Schools Wait, Worry as Budget War Continues,” Oct. 8, 2003).

That standoff lasted until Dec. 23, when the $7.3 billion education budget for fiscal 2004 was finally signed. In the end, he settled for $278 million in new spending, but got a bigger subsidy increase than he had sought—2.9 percent. Lawmakers promised to provide $175 million that low-performing districts can use to improve achievement, but not until the fall of 2004.

The legislature approved a 10 percent hike in the income tax—less than a third of what Mr. Rendell wanted—but reached no agreement on property-tax reduction, slot- machine gambling, or revising the way the state distributes money to districts.

Mr. Rendell’s aides called the new funds a “down payment” on a larger future investment, and said it was a political triumph to raise school spending when most other states cut it, and to get an income-tax hike through an anti-tax legislature.

“For us to get any of our agenda is mind-boggling. It’s a major feat,” said Donna Cooper, the governor’s policy director.

Democrats blame the GOP for blocking money the schools need to improve.

“It was really an unfortunate missed opportunity,” said state Rep. T.J. Rooney, who is also chairman of the state Democratic Party. “Republicans don’t think as big as Ed Rendell does, and they fought him every step of the way.”

But Josh Wilson, the political director of the state Republican Committee, said the governor’s plan was “overly ambitious” and that party members “held their ground” against tax hikes and school spending they thought unjustified.

‘Beginning of a Journey’

Mr. Rendell kept education in the limelight, said Ronald Cowell, a former state legislator who now is president of the Education Policy and Leadership Center, a Harrisburg advocacy group. But he laments that no progress was made on designing a reliable and more equitable school-funding formula.

One study showed that poor districts in Pennsylvania spend as little as $5,300 per pupil annually, while the wealthiest spend as much as $14,000. Several other studies have estimated that it will take $1 billion to $2 billion more a year to equalize spending among districts.

Experts acknowledge that the state doesn’t have a workable funding formula.

“We need a formula that’s more than, ‘whatever you got last year, add some, and a few dollars more or less for this or that,’” said William T. Hartman, a Pennsylvania State University education professor who focuses on school finance. “I’m outraged,” he said. “After six months of battling back and forth, very little has changed in school finance.”

Joseph Bard, who directs the Pennsylvania Association of Rural and Small Schools, said his members by and large think Mr. Rendell “kept the faith” by holding up subsidy payments as leverage on a better package for schools. But the funding picture has changed so little that it bodes poorly for real improvement, he said.

Timothy Potts, the executive director of the Pennsylvania School Reform Network, a school advocacy group, wishes that Mr. Rendell had fought harder to tackle the funding-formula issue during the first year and “determine what is the cost of success in education” in Pennsylvania.

It is unrealistic to expect Mr. Rendell to deliver on all his promises in the first year, said Millersville University’s Mr. Madonna. Refraining from attacks on Republican leaders and being willing to compromise will give him political capital he can use to gain more ground, Mr. Madonna said.

Pennsylvanians will be better able to judge their governor in a year or two, Mr. Potts added, when they can see better whether his first year was “the beginning of a journey down a path that is better for kids, or a resting place.”

Related Tags:

A version of this article appeared in the January 14, 2004 edition of Education Week as School Aid Remains Rendell’s Big Challenge

Events

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
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, and responsible adoption.
Content provided by Lightspeed Systems
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 Absenteeism Webinar
Removing Transportation and Attendance Barriers for Homeless Youth
Join us to see how districts around the country are supporting vulnerable students, including those covered under the McKinney–Vento Act.
Content provided by HopSkipDrive
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
Reading & Literacy Webinar
Two Jobs, One Classroom: Strengthening Decoding While Teaching Grade-Level Text
Discover practical, research-informed practices that drive real reading growth without sacrificing grade-level learning.
Content provided by EPS Learning

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 School Mental Health Projects Get 3-Month Reprieve as Court Rules Against Trump
The projects to expand school-based services have faced nearly a year of funding uncertainty and legal limbo.
5 min read
A student adds a note to others expressing support and sharing coping strategies, as members of the Miami Arts Studio mental health club raise awareness on World Mental Health Day, Tuesday, Oct. 10, 2023, at Miami Arts Studio, a public 6th-12th grade magnet school, in Miami.
A student adds a note expressing support and sharing coping strategies during a World Mental Health Day activity on Oct. 10, 2023, at Miami Arts Studio, a magnet school in Miami. Most recipients of two federal school mental health services grants the Trump administration has attempted to cancel over the past year will see their funding continue at least through June 1.
Rebecca Blackwell/AP
Education Funding Some Halted Federal Funds for Community Schools Will Flow, But More Remain Frozen
Schools in Illinois will regain access to some federal grant funds, but programs nationwide continue to struggle.
5 min read
Image of money symbol, books, gavel, and scale of justice.
DigitalVision Vectors
Education Funding The Trump Admin. Says It Supports Career-Tech. Ed. It Canceled CTE Grants Anyway
Nineteen projects—many in rural areas—lost funding that was helping students prepare for college and careers.
12 min read
As part of the program, the Business students at Donald M. Payne Sr. Tech Campus in Newark, NJ on Feb. 26, 2026m have access to computers with subscriptions to the latest software to help them prepare for the workforce.
Business students at the Donald M. Payne Sr. School of Technology in Newark, N.J., work in a computer lab on Feb. 25, 2026. A U.S. Department of Education grant was helping students in business and other fields at the school access enrichment programming, college courses, and financial support after graduation. But the department terminated the grant, along with 18 other similar awards across the country, last summer.
Oliver Farshi for Education Week
Education Funding Educators Warn Flat English Learner Funding Falls Short of Growing Demand
Educators remain uncertain about the future of federal funds for English learners.
3 min read
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025.
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025. While educators feel relieved that federal dollars for supplemental English-learner resources will continue in the next fiscal year, they remain uncertain for the years to come.
Noah Devereaux for Education Week