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Report Warns to “Watch the Gap” in Education Funding

The United States “consistently spends fewer dollars educating students in its highest-poverty and highest-minority school districts than it does districts with fewer of such students,” concludes The Education Trust in its annual The Funding Gap report, which was issued in January 2008. Emphasizing success stories from states like Arkansas, Maryland and New York, the report suggests that persistent funding gaps in other states reflect a problem of “political will” rather than “technical know-how.”

Kati Haycock, president of the Education Trust, says the report is meant to “shine a light on the work that must be done to make the promise of equal educational opportunity real.” The report further argues that inequitable funding policies weaken the effectiveness of standards and accountability practices.

A Path to Progress

The Ed Trust reports that between 1999 and 2005, 10 states increased funding equity between high-poverty and low-poverty districts by more than $200 per student, and 16 states increased their funding gaps between these districts by more than $200 per student.

The report notes that three of these states – Maryland, Ohio and Wyoming – not only decreased the funding gap, but they went from providing high poverty districts with less funding per student to providing them with more. It also highlights New York’s “path to progress” from being ranked as one of the most inequitable states in the past to being recognized as one that has made significant progress in reducing inequity over the six year period that was studied. The Ed Trust attributes this progress to the successful litigation won by the Campaign for Fiscal Equity and its “vigorous and persistent advocacy on behalf of low-income students and the school districts that serve them.

Another state that has made enormous progress, according to the report, is Arkansas. Responding to a series of court rulings, the Arkansas legislature substantially narrowed its inequity gap by increasing state aid to educate low-income students. The report attributes the success of these states – and others – to their straightforward steps in 1) taking responsibility for education funding at the state level, and 2) using state dollars to target student needs and make up for differences in local abilities to pay for education.

Yet, despite these success stories, the report also highlights states with “troubling” records. According to its data, from 1999 to 2005 Vermont’s funding gap has grown by more than $2000 per student after the state revised “Act 60” and the strong equity mandate the legislature had issued after a Court decision in 1997. On the same note, in Illinois, where the courts have refused to take jurisdiction of an adequacy case, the funding gap has grown from $1,568 in 1999 to $2,238 in 2005. The report also notes that Illinois has had the second largest per-student gap in the country for years.

Methodology

The report analyzes annual financial data from the nation’s 14,000 school districts and includes state-by-state analyses of funding trends from 1999 to 2005. It focuses on the distribution of state and local resources and does not include federal funds. For the first time, The Education Trust also includes statistics on English language learner (ELL) students. The report finds that just as is the case with high poverty and high-minority districts, districts with high percentages of ELLs generally receive less funding than do districts with few or no ELL students. With regard to this funding inequity, the authors of the report conclude “it is not fair and it is not good education policy.”

Prepared by Marcela Briceno, February 1, 2008