Articles

(February 2006) Basic education is a big winner in the state budget sweepstakes, at least based on Governor Ed Rendell’s proposal. Improving basic education has been a continuing theme since the beginning of this administration. It’s been a priority, one that the Governor would like to continue.

What are the pieces of the puzzle?

The table below lists major funding streams for basic education and how the Governor’s budget proposal treats them. Several are based on formulas or subject to other mandated funding criteria. The Governor and legislature will decide others as the budget season progresses.

The Basic Education Funding appropriation represents 55 percent of total state contributions to local public education. The proposed appropriation would increase 5 percent, although not all school districts would receive 5 percent more. Here’s a breakdown of who would get how much of the $224.6 million:

• $80 million based on wealth and enrollment – everybody gets at least a small part.
• $64 million to boost spending in 159 school districts toward a pre-established “statewide foundation level” of $9,030 per student – an amount the Governor says is needed to meet students’ academic needs.
• $55 million to assist the 183 least wealthy school districts.
• $4.5 million targeting 122 small, less affluent school districts.
• $10 million for 39 school districts that have a large percentage of students with limited English proficiency.
• $7.2 million for certain school districts to keep up with inflation.
• $500,000 for six growing districts with a declining tax base.
• $3.5 million to ensure every district receives at least a 2 percent increase, affecting 122 school districts.

Many would qualify for funding under more than one category.

Special Education is among the fastest growing school district costs. The proposed 4 percent increase wouldn’t benefit all school districts equally. Some funds would be set aside for districts with the most exceptional, high-cost needs. Again, all districts would receive at least a 2 percent increase.

The largest spending bump involves the contribution to the School Employees Retirement System. This actuarially mandated payment is $114 million in state funds. However, that’s only half the story because the state’s portion represents only half the total. Taxpayers would be required to match this amount through local taxes.

Another $50 million would be applied to Accountability Block Grants. To date, about two-thirds of the money has been used to fund pre-kindergarten programs, full day kindergarten, and class size reductions in the early grades. The rest was for tutoring and teacher training. Early childhood funding would be supplemented by a $15 million increase in Head Start Supplemental Assistance, Pennsylvania’s investment in pre-kindergarten “at-risk” children.

Finally, the Governor proposes two new programs totaling $30 million: $10 million for 150 schools to boost science in elementary schools, and $20 million targeted to 100 schools for increased access to technology, such as laptops for students and multi-media equipment for teachers.

Will all the puzzle pieces fit?

It’s hard to say.

Rather than just add money, past budgets targeted many increases for specific purposes. This budget is no different, with some of the biggest increases targeting initiatives begun in recent years. Bottom line? The boost in state aid could mean reduced flexibility on how districts spend their resources. From the state’s perspective, targeting money provides a strong incentive for school districts to move in directions state government believes are best for Pennsylvania overall.

Even increases in traditional grant programs reflect policy direction. Seven of the eight recommended increases in Basic Education Funding target less affluent school districts either directly or indirectly, and the eighth merely ensures all districts receive a minimum increase. State government has applied this general approach consistently in recent years, but not to this extreme. The result? A noticeable funding increase per student for the poorest districts. Base-line increases for the richest districts, along with their overall wealth, have enabled them to remain highest in funding per student. That leaves those in the middle to draw the short straw.

There’s one more development worth noting. Traditionally, basic education consumes 34% or less of the General Fund budget [See scorecard]. This proposal would move that percentage to over 35%. And because the proposal gives strong preference to initiatives created by this administration, it signals the Governor has set his policy direction and now wants to focus on consolidating and building on that foundation.

So what does all this mean?

Ultimately, basic education funding will contain many of the elements proposed by the Governor. However, there’s sure to be tinkering, if not some restructuring, as legislators examine how schools in their district fare under the plan, especially since the school districts benefiting from the funding increases differ from those represented by the majority of the legislature.