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New Mexico Cost Study Calls for a 14.5 Percent Increase in School Funding

New Mexico’s current school funding system does not provide adequate learning opportunities for all students, and an increase of 14.5 percent, or $334.7 million, is needed to achieve an equitable level of “sufficiency” for public school education, concludes a study by the American Institutes for Research (AIR) that hopes to revamp the state’s 30 year old school funding formula. “An Independent Comprehensive Study of the New Mexico Public School Funding Formula,” commissioned by the Funding Formula Task Force and issued in January 2008, included an extensive public engagement process and introduced a new link between state funding and accountability in New Mexico schools.

Public Engagement

The study involved a comprehensive public engagement process to determine the goals of public education and define “sufficiency,” commonly referred to as “adequacy” in school finance literature. AIR organized public engagement activities, such as questionnaires and town hall meetings, to attain public and policymaker input in defining the goals and objectives for New Mexico’s public schools. The definition they came up with for sufficiency is based on the Goals Statement, and it was used as the foundation for the cost estimates and to provide guidelines in the development of the project designs in the study.

Implications

The new formula calls for more money for school districts across the state, but some school officials fear a proposed accountability clause that might demand too much from them. Along with increased funding, the study calls for districts to develop a comprehensive Educational Plan for Student Success (EPSS) to show how schools will improve student achievement in different areas. Beyond filing EPSS reports to evaluate progress in reading and math, as already required by many districts, schools will also have to file reports for other aspects including student behavior, attendance, progress in other subjects, and trends within subpopulations.

According to The Santa Fe New Mexican, some superintendents are skeptical about implementing the new EPSS to monitor increased funding because of the amount of work required to complete the detailed reports. Jim Anderson, a school superintendent, recognized the importance of accountability, but he fears that “having to provide so much detail will force districts to be too broad in their goals,” which schools and districts set on their own. Yet other school administrators say they will adhere to increased reporting requirements if it means getting more money because they are tired of dealing with unfunded mandates.

The new accountability measure might also translate into increased attention for subjects that have been discouraged by the No Child Left Behind Act. This new approach can advance a definition of success that strays from the recent narrow focus on standardized assessments in reading and math.

Methodology

AIR used the Professional Judgment Approach as the primary costing-out methodology in its study. However, it also incorporated the expert/evidence based model and the successful schools approach by providing specific materials – such as expert briefs and resource profiles of successful schools – to the Professional Judgment Panels (PJPs) before their deliberations. The PJPs were comprised of educators at different levels representing the diversity of urban, suburban-small town, and rural-remote school districts.

The study included a comprehensive definition of sufficiency to provide opportunity for all K-12 students to achieve state goals regardless of classification or location. It estimates the projected cost to achieve sufficiency for 2006-07 at $2.84 billion dollars, a $334.7 million increase from the $2.5 billion current educational spending in 2005-06 inflated to 2006-07 dollars. AIR breaks down costs by district category, and it estimates that urban, suburban-small town, and rural-remote areas must increment school spending by $88.7 million, $199.5 million, and $46.6 million respectively to achieve sufficiency.

Similarly, the study estimates the per-pupil cost to achieve sufficiency at $8,144, which represents a 14.5 percent increase over the $7,110 budgeted for that year. AIR also reflects differences in per-pupil costs by district category, and it estimates that urban, suburban-small town, and rural-remote areas must increment per-pupil funding by 10, 17 and 24 percent respectively to achieve sufficiency.

This study accounted for students with special needs, including English language learners, students in poverty, and students with disabilities, and it recommended adopting a revised and simplified funding formula that incorporates simplified weighting systems.
AIR also recommended that governing bodies, the Legislature, and individual districts work together in a multi-year phase-in of additional funding.

Prepared by Marcela Briceno, February 8, 2008