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State-Level Reports and Guide:

Financial Support and Investments

 


How much is enough?

Getting a handle on the adequacy of financial support to schools is no small task. For one thing, no one knows what an adequate per pupil expenditure ought to be. The perfect per pupil expenditure is the one that reliably accomplishes the job. But since financial support is only one aspect of a complex of factors that contribute to student achievement, the “right” number remains elusive, here and throughout the nation. On the one hand, personnel contracts alone usually account for about 85% of any school’s budget, sometimes more. On the other hand, the choices about the mix of personnel, speaks to that school’s strategy for success. Some schools invest heavily in support services for their students – counselors, social workers and psychologists – others might invest in academic support such as literacy coaches. This means that no dollar figure is meaningful by itself, but needs to be seen in a larger context.

The funding picture statewide

This section of Information Works! is less concerned with individual school spending than with how the state looks as a whole, through the various different fiscal lenses designed by the Information Works! team. Each district sits in relation to its fellow districts, but again, resist drawing conclusions without investigating the district strategy for investing its resources and what performance results they get in return.

However, the variety of lenses tell us clearly that RI has significant disparities in the overall resources available to different districts.

School aid as tied to property taxes

Before the 1960's, public schools throughout the U.S. were considered to be an entirely local concern, supported principally by their own communities, mainly through real estate taxes. During the Lyndon Johnson years of “The Great Society,” and the passage and implementation of the Elementary and Secondary Education Act (ESEA) of 1968, the federal government took an interest in the “savage” inequities between different schools’ resources, with an eye especially to the racial inequality that corresponded to the general inequities associated with poverty.

Over the years, that concern filtered down to the states, each of which began to collect and expend at least some portion of state taxes in the form of “state aid” to soften the inequities. Now, at the start of the 21st century, most states are still struggling with a way to make their school financing more equitable. Many states are in court over the issue, which is still hotly debated even in those states that have achieved significant equity.

1997's Budget Article 31 and subsequent amendments

In the late 1980's, the RI General Assembly designed and started to implement a financing formula that, overall, would have shifted a higher portion of the burden of school financing to the state. The recession of the early 1990's halted the full implementation of that formula – which was considered excellent and very progressive in its day. Since then RI has developed a slightly different strategy. The new aid assumes at least level funding for all districts, even those that experience a drop in student enrollment, and tries to offer an across-the-board percentage increase when possible. On top of that, the RI General Assembly allocates money, on a per pupil basis, to support such initiatives as professional development, early childhood and technology. Finally, the Assembly increased the amount of aid for the core urban districts, especially Providence, above and beyond the basic financing and the targeted investments.

One of the complicating factors of school financing, of course, is the inequity between the districts in terms of need or student challenge. Putting a realistic dollar figure on what it would take to overcome such challenges is also maddeningly elusive. Still, as long as we know that the absolute scores for student achievement are closely correlated to median family income within a given district, funding inequities mean we are not offering every child an equal opportunity to learn.

 

 

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For further information call the Rhode Island Department of Education at 401-222-4600 x2231.
Information Works!  is produced in collaboration with the National Center on Public Education & Social Policy,  Dr. Robert D. Felner, Director.