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Adrian Moore is vice president of research at Reason Foundation, a non-profit think tank advancing free minds and free markets. Moore oversees all of Reason’s policy research and conducts his own research on a wide variety of policy issues. Dr. Moore is widely published on public policy issues and frequently discusses them on television and radio. Prior to joining Reason, Moore served 10 years in the Army on active duty and reserves. He earned a Ph.D. in Economics from the University of California, Irvine.

What if school funding followed the kid?

In the varied universe of education reforms, one of the more recent and interesting is "weighted student formula."  My colleague Lisa Snell put together a very interesting FAQ on this issue, using Indiana as an example.

1. In a nutshell, what is "weighted student formula"?

The broad concept of weighted student funding (WSF) goes by several names including results-based budgeting, student-based budgeting, "backpacking" or fair-student funding.

It proposes a system of school funding based on five key principles:

  1. Funding should follow the child, on a per-student basis, to the public school that he or she attends.

  2. Per-student funding should vary according to the child's need and other relevant circumstances.

  3. Funding should arrive at the school as real dollars—not as teaching positions, ratios, or staffing norms—that can be spent flexibly, with accountability systems focused more on results and less on inputs, programs, or activities.

  4. Principles for allocating money to schools should apply to all levels of funding, including federal, state, and local dollars.

  5. Funding systems should be as simple as possible and made transparent to administrators, teachers, parents, and citizens.


2. How is this different from funding schools based on enrollment in the current system?

In the current system in Indiana school corporations receive funds based on the number of children enrolled in a corporation and their individual characteristics which are weighted through either categorical programs for education programs or additional funding for student characteristics such as poverty or English learner status.

However, at the district level these resources are not allocated to schools based on individual student characteristics. Schools in Indianapolis, for example, are allocated resources for staffing positions based on the number of full-time equivalent (FTE) salaries the district has calculated that an individual school is entitled to. So when you examine individual school budgets in Indiana you see money flowing to school positions and not children.

Salary averaging across schools means individual schools with similar student populations may receive vastly different real dollar amounts at the school level within a corporation.

New York City public schools are implementing weighted student formula district wide, encompassing 1.1 million students in 1,400 schools. New York City schools begin the transition to Fair Student Funding during their 2007-08 fiscal year. Here is an actual example of how funding would change for the Walter Crowley Intermediate School in Queens, New York, between the 2006-2007 and 2007-2008 budget years.

Under the old approach, Walter Crowley would have received $4 million for instructional programs, $1.2 million for special needs students, and another $1.9 million for "consolidate programs," for a total budget of $7.1 million. Under the weighted, Fair Student Formula approach, Walter Crowley will receive $8.8 million. In short, funding students based on their individual characteristics and not based on a staffing model increases the school's budget by more than $1.6 million.

Since New York City public schools are phasing in the new funding approach, Walter Crowley will only receive a portion of the new formula. However, the new weighted student budgeting also creates transparency by showing what resources each of the 1,400 schools in New York City are entitled to based on the characteristics of their students, not based on a bureaucratic staffing model unrelated to the actual students in the classroom. These numbers simplify the budget process in a way that is transparent to parents and all education stakeholders.


Read the rest of the FAQ here.
Published Thursday, January 24, 2008 6:46 PM by Adrian Moore

© Adrian Moore/Reason Foundation. All rights reserved.

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