Student-Based Budgeting Aaron Smith Education Policy Analyst Reason Foundation.

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Transcript of Student-Based Budgeting Aaron Smith Education Policy Analyst Reason Foundation.

Student-Based Budgeting

Aaron SmithEducation Policy Analyst

Reason Foundation

1.What is student-based budgeting? 2.Why should districts adopt SBB? 3.What are the implications for Georgia?

Key Takeaway: Equitable funding and educator empowerment does not stop at the district level.

What is Student-Based Budgeting? The allocation of funds via a weighted-student formula based on student characteristics such as ELL, SPED, and poverty. An individual student receives the same funding regardless of which school they enroll in.

State

District A

District B

SBB can be implemented at two levels:1) State level

State

District A

School 1

School 2

School 3

District B

School 4

School 5

School 6

SBB can be implemented at two levels:1) State level 2) District level

Student-Based Budgeting in the StatesBaltimore, MD

Boston, MA

Cincinnati, OH

Denver, CO

Poudre, CO

Hartford, CT

Houston, TX

New York, NY

Newark, NJ

Prince George’s County, MD

Oakland, CA

Saint Paul, MN

Milwaukee, WI

Minneapolis, MN

San Francisco, CA

Rhode Island

HawaiiRochester City, NYNew Orleans, LALos Angeles, CAChicago, IL

Twin Rivers, CAPhiladelphia, PAAustin, TXCamden, NJ

Jefferson Parish, LAEast Baton Rouge, LAAdams 12 School District, COCleveland, OH

Detroit, MIMemphis, TNClark County, NV

Boston Public Schools

BPS’s Base Allocation in FY2014 was $3,832

Example Base 1.3FRL 0.1At Risk 0.2 1.6 Total Weight1.6 x $3,832 $6,131 Total Funding

SBB is more than funding.

Key SBB Principles

Equitable Funding

Portability

School Autonomy

Transparency

Service-Oriented District Office

Accountability

Why should districts adopt student-based budgeting?

Traditional FTE System SBB

Resource Allocation Primarily distributed via staffing ratios and programmatic allotments.

Actual dollars follow students to the school-level to be spent flexibly by school

leaders.

Traditional FTE System SBB

Resource Allocation Primarily distributed via staffing ratios and programmatic allotments.

Actual dollars follow students to the school-level to be spent flexibly by school

leaders.

Principal Control Typically <5% of budgeted dollars. Typically >40% of budgeted dollars.

Staffing Ratio Example • Positions allocated to schools

based on enrollment • Membership counts at the margin

can add or take away positions

25:1 Ratio School #1 School #2

Students 50 74

Teachers 2 2 Result: Lumpy distribution of resources across schools with less principal control over resources

Traditional FTE System SBB

Resource Allocation Primarily distributed via staffing ratios and programmatic allotments.

Actual dollars follow students to the school-level to be spent flexibly by school

leaders.

Principal Control Typically <5% of budgeted dollars. Typically >40% of budgeted dollars.

Salary Allotments School budgets charged average salaries for staff.

School budgets charged actual salaries for staff.*

*Some SBB districts charge schools based on average salaries for various reasons including legal considerations.

Average Salary Example • School budgets charged for district

average, not actual salaries • Study concluded “Nonwhite, poor, and

low performing students…attend schools with less qualified teachers.” *

Result: Schools in low-income communities often subsidize schools in high-income communities.

Teacher A Teacher B

Years Experience 1 25

Actual Salary $47,000 $62,650

Avg. Teacher Salary $54,825

School #1 School #2

Actual Teacher Salary $47,000 $62,650

Charged to Budget $54,825 $54,825

Net ($7,825) $7,825

Source: Teacher Sorting and the Plight of Urban Schools: A Descriptive Analysis, Educational Evaluation and Policy Analysis, Lankford, Loeb, and Wyckoff

Key Takeaway: Traditional budgeting practices compound school-level inequities and stifle innovation.

Case Study

Spring Branch ISD • Houston, TX

• 35,000 students across 46 schools • Relatively innovative district• Still use traditional budgeting • Principals lack autonomy

A Tale of Two Schools

Northbrook HS (2,145) Memorial HS (2,563)

White Hispanic African American Asian Econmically Disadvantaged ELL0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

63%

18%

2%

16%10%

5%4%

89%

5%1%

83%

20%

Demographic Comparison

Memorial HS Northbrook HSSource: 2013-14 Texas Academic Performance Report, downloaded July 2015

Reading Math Science Social Studies All Subjects 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%90%

81%

97% 98%92%

52%

64%

84%

93%

66%

13-14 STAAR Met Standard

Memorial HS Northbrook HSSource: 2013-14 Texas Academic Performance Report, downloaded July 2015

Per-Pupil Expenditures

Northbrook HS

$6,248

Memorial HS

$5,557

$691 Surplus

Source: Texas Education Agency 2013-14 School Report Card, downloaded July 2015

Beginning 1-5 Yrs 6-10 Yrs 11-20 Yrs 20+ Yrs0%

5%

10%

15%

20%

25%

30%

35%

4%

14%

22%

31%30%

10%

23%

26%28%

13%

Teachers by Years of Experience

Memorial HS Northbrook HSSource: 2013-14 Texas Academic Performance Report, downloaded July 2015

Beginning 1-5 Yrs 6-10 Yrs 11-20 Yrs 20+ Yrs0%

5%

10%

15%

20%

25%

30%

35%

4%

14%

22%

31%30%

10%

23%

26%28%

13%

Teachers by Years of Experience

Memorial HS Northbrook HSSource: 2013-14 Texas Academic Performance Report, downloaded July 2015

Takeaway #1: Schools in low-income communities tend to get less experienced, cheaper teachers—

even within the same district. Not a problem

per se, except…

Teachers

Professional Support

Campus Administration

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

$52,337

$61,029

$90,866

$55,959

$67,793

$106,004

Average Actual Salary by Position Type

Memorial HS Northbrook HSSource: 2013-14 Texas Academic Performance Report, downloaded July 2015

Teachers

Professional Support

Campus Administration

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

$52,337

$61,029

$90,866

$55,959

$67,793

$106,004

Average Actual Salary by Position Type

Memorial HS Northbrook HSSource: 2013-14 Texas Academic Performance Report, downloaded July 2015

Takeaway #2: Because average

salaries are used in budgeting, schools like Northbrook subsidize schools like Memorial and cost savings can’t be used elsewhere.

10%

Northbrook HS Budget Autonomy

District Controlled Principal Controlled Source: Center for Reinventing Public Education, In-Depth Portfolio Assessment, March 2015

10%

Northbrook HS Budget Autonomy

District Controlled Principal Controlled Source: Center for Reinventing Public Education, In-Depth Portfolio Assessment, March 2015

10%

Northbrook HS Budget Autonomy

District Controlled Principal Controlled

Takeaway #3: Lack of autonomy

means principals aren’t empowered to more

effectively align resources with strategy.

Source: Center for Reinventing Public Education, In-Depth Portfolio Assessment, March 2015

Result: Accountability Without Autonomy

Principals can’t allocate resources based on their school’s priorities.

Budgetary Discretion

Accountability for Results

The Principal’s Role in Student-Based Budgeting

Effective principals can raise a student’s achievement level by 2-7 months of learning in one academic year*

*Source: http://educationnext.org/school-leaders-matter/

Lead More Robust Strategic

Planning

Empowered to Align Resources with Strategy

More Immersed in Key Responsibilities,

Not Taken Away From

Technical Wizardry NOT

Required

SBB Implementation Best Practices

Transitioning Budget Autonomy (e.g. full,

tiered, earned)

Training & Support

Dedicated Financial Partners (e.g. Denver Public

Schools)

User-Friendly Software

Education Funding in Georgia

Education Reform Commission recommendations include: Increased District Autonomy in

Teacher Compensation

Increased Funding Equity via New Weight for Low-Income Students

Transparent Weighted-

Student Formula

Key Takeaway: Equitable funding and educator empowerment does not stop at the district level.

State

District A

School 1

School 2

School 3

District B

School 4

School 5

School 6

Thank You!

Aaron Smith Aaron.Smith@Reason.org