Pennsylvania Education Funding Reform Campaign

1. Pennsylvania Education Funding Reform Campaign PA Education Policy Forum Pittsburgh November 29, 2007 EPLC - November 29, 2007

2. Purpose • Advocates for fair funding and educational opportunity in Pennsylvania • Goal is the enactment and maintenance of a statewide education funding system that supports the principles of equity, adequacy, efficiency, accountability and predictability • Coordinated by the Education Law Center, Good Schools Pennsylvania, and The Education Policy and Leadership Center EPLC - November 29, 2007

3. Campaign Strategies • Inform state policymakers • importance of effective schools • link between funding and student achievement, • elements of a fair and effective funding system • Identify and support champions among state policymakers • Engage education and other community organizations in collaborative effort to build public support for changes in state policy • Mobilize citizen action to call upon Governor and General Assembly to enact changes in state policy, and to hold policymakers accountable for actions on this issue. EPLC - November 29, 2007

4. Costing-Out Study • Creation of Study • Methodologies Used • Assumptions Underlying the Study • Three Elements to Costing-Out Resources > Base cost(excluded food, transportation, community services, capital costs, debt service) > Student-driven costs > Other costs (district size, enrollment trends, regional cost of living) EPLC - November 29, 2007

5. Findings of the Study • Base cost equals $8,003 per student • Extra costs • Disabilities—1.3 times base cost • Poverty—0.43 times base cost • ELL*—1.48 to 2.32 times base cost • Gifted*—0.20 to 0.674 times base cost *Higher in smaller districts EPLC - November 29, 2007

6. Findings of the Study • The average annual total funding needed per student is $12,057.An average of $9,512 per student was spent in 2005-2006. $2,546 in additional funding is needed for all students to reach academic proficiency and performance expectations. • Pennsylvania must increase education spending by $4.61 billion per year over current levels- a 26.8 percent increase—in order to meet established performance standards. EPLC - November 29, 2007

7. Findings of the Study • 474 districts are spending below the levels recommended in the study. 1.68 million students attend these under-funded schools • It costs far more—on average $3,000 more per student—to provide quality education in districts with the highest students needs • Pennsylvania’s transportation spending appears to reasonably address costs faced by districts • Pennsylvania has a large variation of wealth from district to district • The current state funding system is inequitable EPLC - November 29, 2007

8. Findings of the Study • The total of all state and local taxes collected in Pennsylvania is close to national average, but is 6-12 percent lower than collected in six nearby states (DE, MD, NJ, NY, OH, WV). • If additional revenues are provided to improve student achievement, such funds should be collected through state taxes and distributed based on the needs and wealth of school districts. • The costing out process developed for this study could be used by the state as the basis for a new education funding system. EPLC - November 29, 2007

9. Public Opinion Survey • Conducted by Center for Opinion Research at Franklin & Marshall • 800 respondents during October 2007 • Public Education is important • All students have a right to quality education • Current system is not fair • We do not spend enough on education • State should pay half or more EPLC - November 29, 2007

10. Ed Finance Reform Commission • HR 460 - Representatives John Siptroth (D-189) and Beverly Mackereth (R-196) • Creates a 41-member commission • Assignment: Analyzing results of costing-out study and recommend at a minimum two formulae for distributing state funding • Similar Senate Resolution EPLC - November 29, 2007

11. Reform Commission • Four primary goals would be to ensure that: • State funds allocated for basic education are distributed adequately and equitably; • Allocation of state funding addresses unique characteristics among districts, including changes in demography and needs of students; • Allocation of state funding is linked with measures of accountability; and, • School districts remain accountable for meeting state academic standards and attaining student proficiency EPLC - November 29, 2007

12. Reform Commission • Required to: • Consider national trends in ed funding and potential relevance to Pennsylvania); • Review methods that link funding to accountability systems such as value-added; • Examine the impact of federal mandates on the Commonwealth’s schools; • Examine impact of state regulations and standards: • Study demographic patterns to determine impact of growth and decline in enrollment on districts’ operational costs and positive and negative aspects of school consolidation as a means to affect cost efficiencies; EPLC - November 29, 2007

13. Reform Commission • Examine efficiency of consolidating current funding programs used to distribute state ed funds - analyze advantages & disadvantages of targeted categorical funding; • Review potential local cost control mechanisms that may become necessary if commission’s recommendations lead to state assuming greater funding responsibility; • Examine opportunities for improved cooperation & consolidation among districts to improve efficiency and effectiveness of districts’ operations in order to achieve savings and enhance student achievement EPLC - November 29, 2007

14. Competing Property Tax Relief Proposals • Rep. Levdansky - HB 1600 • Rep. DeWeese - HB 1489 • Rep. Rohrer - HB 1275 • Rep. Perzel - HB 1951 • Sen. O’Pake – SB 1163,1164,1165 • Sen. Rhoades – SB 1108 • Others EPLC - November 29, 2007

15. “How Money Matters” • “How Money Matters” Project of EPLC • 18-month research project, including a series of public hearings • Examine relationship of adequate and equitable funding for public schools to student achievement • Identify compelling evidence that money in sufficient amounts and appropriately spent makes a difference EPLC - November 29, 2007

16. Related Issues • Property Tax Relief Proposals • TABOR • Cost-Reduction Task Force • District Consolidation EPLC - November 29, 2007

17. Next Steps • Follow-Up to Costing-Out Study > Action by Governor/Legislature > Funding Reform Commission • Funding Proposal by ASAP and Ed Funding Advocacy Group • Governor’s Budget Message – Feb. 5 • Primary Campaign – Jan. 22 – April 22 EPLC - November 29, 2007

18. Next Steps • Formal Campaign • Launch Campaign Web Site • “How Money Matters” Hearings • Enlist/Support Action by Individuals and Organizations • Legislative Champion Development • Build Media Awareness and Support • Public Advocacy • Policymaker Accountability • Governor, 26 Senate, 102 House EPLC - November 29, 2007

19. What You Can Do! • Lessons Learned • Building State and Local Champions—Who and what does this impact? • Building Legislative Networks—Grassroots Counts • Creating and Using Messages That Resonate • Using Data to Make a Difference • Learning to Make the “Ask” EPLC - November 29, 2007

20. The Education Policy and Leadership Center www.eplc.org Education Law Center www.elc-pa.org Good Schools Pennsylvania www.goodschoolspa.org EPLC - November 29, 2007