Extensive Education Finance Study in California; New Mexico and Other States Also Study Costs

Because California educates one in every eight of America’s schoolchildren, reforming its low-performing, and many believe under-funded, education system is critical to the nation’s future. Using an unprecedented series of studies to analyze costs and formulate recommendations for improvement, researchers in California have launched a broad independent review, designed and led by Stanford University’s Susanna Loeb.

Cost studies are underway or have recently been completed in several states, including one in New Mexico that features a strong focus on public input. In addition, a lawsuit in New Jersey is demanding that the legislature release of a three year-old cost study.

Wide-ranging Project in California

In California, dozens of researchers are working on “Getting Down to Facts,” a comprehensive report on the state’s school funding system and what can be done to improve it. The $2.6 million project’s scope goes far beyond that of most cost studies, comprising 23 studies in three general areas of research: how the school finance system operates today, how current resources could be used more effectively and efficiently, and what additional resources and expenditures are necessary in order to meet a range of educational goals.

In the first area of research, one study is examining how expenditures vary from district to district and how these variations are linked to both district demographics and performance. Other studies examine several features of current policy, including school facility funding, school governance, and non-educational services that benefit children.

The second part of the project asks how educators might use current resources more effectively to increase student performance. Comparative studies will identify ways California might learn from the finance and governance systems in other states. Several studies investigate the effect on educational equity of factors such as teacher salaries and collective bargaining agreements across the state. Other studies examine principal preparation, financial practices across districts, and how to use education data to guide education reform.

The final part of this ambitious project applies methodologies commonly used in traditional studies designed to determine the costs of reaching student achievement goals, including a professional judgment study by Jon Sonstelie of the University of California, Santa Barbara and a cost function study by Jennifer Imazeki of San Diego State University. A series of cost studies by Jay Chambers and Tom Parrish at the American Institutes for Research will utilize several methods for determining costs, look at resource allocation in schools that are “beating the odds” by performing better than expected given their demographic composition, examine how various governance and funding practices in charter schools affect student achievement, and estimate the costs of special education. Finally, a study by Patricia Gandara of UC Davis and Russel Rumberger of UC Santa Barbara will examine the best methods and estimated cost of providing adequate education to English language learner students.

The project is funded by the Bill and Melinda Gates Foundation, the William and Flora Hewlett Foundation, the James Irvine Foundation, and the Stuart Foundation.

New Mexico Study Seeks Public Input

In New Mexico, Jay Chambers is leading a cost study in three phases, the first of which will determine what constitutes a “sufficient basic education.” In addition to consulting education professionals and experts, researchers will hold town hall meetings across the state to seek public input on what constitutes an adequate education and what public schools need to succeed.

Next, the researchers will estimate the cost of providing the defined “sufficient basic education” to all New Mexico students using a combination of the professional judgment methodology, a “beating the odds” successful schools analysis, and the expert judgment methodology.

Finally, researchers will work closely with the legislature to “analyze and evaluate current and potential federal, state and local revenue sources” that can be used to pay for any recommended increases in school funding. The final report is due to the legislature in late 2007.

Nevada, Washington, Wisconsin, Rhode Island, and New Jersey

Nevada, Augenblick, Palaich and Associates recently provided the legislature with their final report, not yet released, from a study designed to estimate the cost of reaching various state and federal standards of student proficiency. Nevada currently has one of the lowest per pupil expenditures in the country, and its student population increased over 12 percent in the last three years.

In the next year, reports are due from costs studies in several states. In Washington, a cost study being performed by Lawrence Picus and Associates is scheduled to be completed in January, 2007. Due out later in the year is a cost study in Wisconsin, being led by Allen Odden at the University of Wisconsin, Madison, and one in Rhode Island, being conducted by R.C. Wood of the University of Florida.

In addition, the Education Law Center filed suit against the New Jersey Department of Education in July, demanding that the Department make public a 2003 cost study that the Department has refused to publicly release. Oral argument is scheduled for September 29, 2006.

Prepared by Matthew Samberg, September 14, 2006