“Elementary and Secondary Education in Kansas: Estimating the Costs of a K-12 Education Using Two Approaches”

January 2006

The input-based approach does not attempt to cost out a specific level of achievement.

The outcome-based approach attempts to determine the cost of the state Quality Performance Accreditation (QPA), which was recently revised to incorporate the requirements of NCLB. The QPA includes a graduation rate of 75 percent (or improvement over previous year); Attendance rate of 90 percent in elementary and middle schools; 95 percent participation rate on statewide assessments; and meeting proficiency goals that make yearly progress toward the NCLB’s mandated 100 percent proficiency by 2014.

$3.1-$3.2 billion in 2006-07, compared to current formula’s estimated $2.8 billion.

$316.2 million in 2006-07 using the Input-based approach. Base per pupil costs totaling from $4,375 to $4,943 per student in 2005-2006, depending on class-size, an increase of $118-$686 over current base state aid.

$399.3 million in 2006-07 using the Outcome-based approach (Cost Function). Base per pupil cost of $4,167 in 2005-06, a decrease of $90 from current funding, but $4,659 in 2006-2007, a $402 increase from the current formula. [N.B. As standards become more rigorous as NCLB’s 2014 100% proficiency deadline approaches, cost estimates increase exponentially]

Poverty and bilingual “weights” to adjust the base cost to reflect additional costs for these students are significantly higher than the current formula allows for “at-risk” students: almost 50% for the poverty adjustment and 10 percent for the bilingual adjustment.

Special Education: Additional $3,496 per SPED student in 2005-06.

Operating expenses, costs of transportation, ELL services are included in the study. Facilities and capital/debt funding are not included. Includes a particularly detailed analysis of special education funding. Also provides a regional cost index that varies funding from approximately 2 percent below average to 5 percent above average.

None

The input-based approach attempts to estimate the cost of providing the curriculum, services, and programs mandated by the State Board of Education, along with operating costs that include instruction, administration, maintenance, equipment and staff. The study constructed prototype districts of varying sizes and determined types and numbers of staff required for different class size models, the associated salaries and other program costs. The study then attempted to determine enrollment weights based on each class size model. This approach does not address the performance outcome targets of NCLB or the State Board of Education.

The outcome-based approach attempts to estimate how much it should cost districts to meet the performance outcomes outlined above, by using the Cost Function Method.

The study finds a strong association between district spending and the associated outcomes. The cost function suggests that a 0.83 percent increase in spending was associated with a 1 percent increase in district performance measures, significant at the 0.01 confidence level.

The study also finds that at-risk children are not being served as well as they could be. There is little consistency as to which students are identified as “at-risk” or which programs qualify as serving them. Significantly, the study also found that the state’s method of funding at-risk services has little relationship to the students actually receiving services. The same is true of the bilingual programs.

None.

Legislative Division of Post Audit