From Preservice to Practice: Funding Woes

FroM PrESErvicE to PracticE

fundIng WoeS

“Can you believe the budget cuts that were proposed at last night’s school board meeting?” Karen asked. “I thought the state’s economy was improving, but our district is facing cuts to extracurricular activities and technology upgrades, Stuart. We should be getting more state money per pupil than the wealthy districts. I thought that’s what the legislature approved a few years back with the new funding formula!”

“You’re right, Karen, it’s not fair. But that’s the way it is. We both chose to work here,” Stuart replied. “Although the state unemployment picture is improving, overall tax revenues are still down. Since wages have been down, folks have not been willing to spend as much, so income and sales tax revenues are still not meeting projections to cover the state’s expenditures. The state budget is facing a $600 million deficit, so state aid to schools is going to be down. The board is in a real bind.”

Karen sighed. “I just wish that education received the priority it needs to serve all students fairly. I know that the money comes from local, state, and federal sources, but it seems that the state is unable to keep up with needs of the local districts. It seems the state it saying it has done all it can.”

“I think you are on target with that assessment. Of course the school board could seek a new tax levy to increase local funding, but there seems to be little chance that voters in our community would be willing to approve an increase in property taxes. I have to admit I can understand their resistance to vote for the levy,” Stuart noted. “Increasing those taxes would also affect renters like me, too. My landlord told me that if a school levy was approved, he would pass along the costs by raising my rent.”

“Even if local taxes were increased, I think our school district still would have less than area suburban schools,” Karen responded. “If the situation gets worse, what will the board’s next move be? I’m guessing they’ll increase class sizes in the upper grades and begin laying off high school teachers.”

“I’ll bet you’re right, Karen,” Stuart agreed. “Wealthy districts have figured out ways to generate local money in addition to property taxes. Several of them have established foundations through booster clubs. The businesses that are located in the community contribute heavily each year and get a tax write-off.”

“Too bad we don’t have a few more generous businesses!” Karen said, laughing. Then, turning serious, she asked, “Do you think I have to worry about my job, as a beginning teacher?”

“Probably not this year because it looks like the primary grade teachers are safe. But you never know; most of a school’s budget is in personnel costs. That’s you and me. In the meantime, I guess the best thing we can do is just keep focusing on the students.”

caSe QueStIonS

1. Why is it important for beginning teachers like Karen and Stuart to have a basic understanding of school finance? 2. How does the current economic situation relate to school financing in your state? 3. How does school-district wealth relate to school financing in your state? 4. What percentages of your local school district’s money are derived from local sources? From state sources? From federal sources? If you don’t know, estimate the amounts. Then check to see how close your estimates are.

educational opportunity as students from high-income districts.30 In short, states need to close the gap between the best- and worst-financed local school districts.

Some states may also need to factor private schools into their distribution plans. In June 2002, the US Supreme Court, in a five-to-four vote, ruled in favor of the Cleveland voucher program, which was funded by the state of Ohio. This program provides state money in the form of educational vouchers that may be used by the parents of lowincome students to attend religious or nonsectarian private schools. Subsequent state legislation established the EdChoice Scholarship Program, which extended the tuition vouchers, now labeled as scholarships, to Ohio’s public-school students who attend the state’s lowest-rated public schools. In the 2013–2014 school year, 18,080 students received Ohio vouchers worth $4,250 for students in grades K–8 and $5,000 for high

30“Systems for Determining Adequacy,” The Education Commission of the States (2011) at www .ecs.org/html/issue.asp?issueid=48&subissueID=35 (February 9, 2015); and Michael J. Hoffman, “State School Finance System Variance Impacts on Student Achievement: Inadequacies in School Funding,” JEP: Ejournal of Education Policy (Fall 2013), pp. 1–8.