| Study Title: |
"Estimating
the Additional Cost of Providing an Adequate Education" |
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| Date Completed: |
January 2004 |
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| Calculated Base Costs: |
$6.0 billion additional state funding in 2003-2004
dollars. The other studies do not designate where
the funding would originate, i.e., state and/or
local. |
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In the first year, direct 84% of the increase in
state funding to school districts educating high-need
students (43% to the New York City district). Direct
88% of the seven-year $6.0 billion increase (in
current dollars) to districts educating high-need
students (64% to the New York City district). Fifty-five
percent of the state's students attend these districts. |
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This study used an additional
weighting factor for low-income students equal
to 50% of the "foundation cost" in districts
with low concentrations of needy students and 100%
of the foundation cost in districts with high concentrations
of needy students (reduced to 80% after a start-up
period).
Therefore, concentrations of low-income students
initially generate twice the per-student amount
compared to students who are not low-income.
An additional weighting is added for students
living in geographically sparse areas.
No weighting was used for ELL students, and
additional costs for students with disabilities
are calculated separately (not by weighting
factors).
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| Major Recommendations: |
Target state aid to educational need.
Enact a foundation-based approach. According to
the study, "This new approach to State Aid
has four basic components: District's State Aid
= [Foundation Cost X Student Need Index X Regional
Cost Index] - Expected Local Contribution"
Focus on strengthening teaching because teaching
affects student achievement significantly.
Adjust resources for regional cost differences.
Implement over a seven-year period, beginning
in 2004-05.
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| Special Features of the Study: |
Relied on New York State assessments aligned with
the Regents Learning Standards, on some of which
students must score "proficient" or
above to receive a high school diploma.
Set the school funding goal at 80% of students
achieving proficiency (or above) on the assessments
as a proxy for all students receiving the opportunity
to do so.
To supplement the "successful districts"
approach, the State Education Department:
analyzed student need to calculate a weighting
factor for poverty (but not for ELL students)
and
created a Regional Cost Index for nine regions
in the state based on professional salaries.
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| Implementation: |
Not yet implemented
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| Methodology: |
Successful
School Districts |
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Definition of "Adequate Education"
and "Successful School District":
All children are provided the opportunity to
receive an education which will, subsequently,
allow them to lead meaningful and productive adult
lives.
School districts were judged to be providing
this level of opportunity if–on average,
over three years of results–80% of their
test takers scoring at level 3 or higher (i.e.,
proficient or higher) on the two fourth-grade
exams and a set of five high school Regents exams.
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Analysis
The study analyzed the four components of State
Foundation Aid proposed by the Regents:
Foundation Cost
Student Need Index (which adjusts for low-income
students and sparsity)
Regional Cost Index and
Expected Local Contribution.
The study calculated Foundation Cost by identifying
"successful" districts, and using the
average expenditure per student only for the lower
spending 50% of these districts.
Comment: This may skew the study's results
because the study did not determine whether the
"inefficient" label was accurate. Because
salaries and benefits are the bulk of school funding
(especially when facilities and transportation
are not included, as they are not in these studies)
and districts have minimal control over the seniority
of their employees, the higher spending districts
may simply have more experienced teachers and
staff relative to the lower spending districts.
A stated justification for this aspect of the
methodology was that this reduction was necessary
and appropriate in light of the substantial weighting
for students from poverty backgrounds included
in this particular study.
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Indices and Local Contribution
The study developed the Regional Cost Index for
nine "labor regions" across the state,
based on professional salaries. The Regional Cost
Index ranged from 1.0 to 1.496, compared to the
Geographic Cost of Education Index.
The study also developed the Student Need Index,
based on the percent of K-6 students eligible
for a free or reduced price lunch (a three-year
average). The study reviewed the research literature
and recent practice and concluded that funding
for concentrations of low-income students should
be calculated at 100% more than the base expenditure
level, initially, and at 80% more after an unspecified
period of time.
The study builds the Expected Local Contribution
from each district's property tax base and an
"expected local tax rate," which is
$15 per thousand adjusted for ability to pay as
measured by district income per child.
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| Additional Factors: |
Despite its title, the "Regents
Proposal on State Aid for 2004-05" includes
a cost study, "Estimating
the Additional Cost of Providing an Adequate Education,"
other analyses consistent with costing-out studies,
and a multi-year "Foundation Aid Proposal"
based on the study and analyses. It was prepared
by the New York State Education Department and released
in January 2004. |
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| Public Input: |
None.
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| Prepared for: |
New York State Board of Regents |
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| Prepared by: |
New York State Education Department
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