Eadm 5
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Transcript of Eadm 5
EADM© 2005
W. R. Dolmage
Education FinanceEducation Finance
Elements and
Key Concepts
Elements and
Key Concepts
EADM© 2005
W. R. Dolmage
The Ed Finance Paradox
Everyone thinks it’s important, but few people understand it!
The Ed Finance Paradox
Everyone thinks it’s important, but few people understand it!
Education Finance SCARESSCARES people because of its reputation for being technical and complex
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Money Is Important Money Is Important (almost everyone agrees)
EADM© 2005
W. R. Dolmage
Why Is Money Important?
Why Is Money Important?
Because a lot of money is spent on educationBecause a lot of money is spent on education
Because the level of resources made available Because the level of resources made available to education has a lot of practical to education has a lot of practical implicationsimplications
Because “dollars” are an easily understood Because “dollars” are an easily understood “proxy” for abstract concepts like “proxy” for abstract concepts like “educational effort” and “educational equity”“educational effort” and “educational equity”
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EADM© 2005
W. R. Dolmage
How Much Is “A Lot”?How Much Is “A Lot”?In 2001, governments as a whole in Canada spent 15% of their total expenditure on education compared to 17% for health. Between 1997-1998 and 2001-2002, public expenditure on education grew 2% at the elementary-secondary level and 9% at the postsecondary level.
EADM© 2005
W. R. Dolmage
HOW MUCH in 2001-2002???HOW MUCH in 2001-2002???
In case you didn’t notice, that was:
$68,600,000,000.00In case you didn’t notice, that was:
$68,600,000,000.00
EADM© 2005
W. R. Dolmage
Educational “Effort” in Canada
Educational “Effort” in Canada
EADM© 2005
W. R. Dolmage
HOW MUCH in 2001-2002???HOW MUCH in 2001-2002???
Saskatchewan spent:
$2,555,000,000.00Saskatchewan spent:
$2,555,000,000.00
EADM© 2005
W. R. Dolmage
K –12 Education: 2001-02K –12 Education: 2001-02
Canada $41,008,000,000 of $68,607,000,000
Saskatchewan $1,442,000,000 of $2,555,000,000
Canada $41,008,000,000 of $68,607,000,000
Saskatchewan $1,442,000,000 of $2,555,000,000
EADM© 2005
W. R. Dolmage
ExpendituresK to 12 & TotalExpenditures
K to 12 & Total
$41,008,000,000 $68,607,000,000
$1,442,000,000 $2,555,000,000
EADM© 2005
W. R. Dolmage
School Board ExpendituresSchool Board Expenditures
EADM© 2005
W. R. Dolmage
Where Does K - 12 Education Funding Come From?
Where Does K - 12 Education Funding Come From?
Federal GovernmentFederal Government
Provincial GovernmentProvincial Government
Local GovernmentLocal Government
Private SourcesPrivate Sources
$1,115,500,000$1,115,500,000
$385,100,000$385,100,000
$600,200,000$600,200,000
$263,600,000$263,600,000
Saskatchewan: 2000 - 2001$2,364,300,000
Saskatchewan: 2000 - 2001$2,364,300,000
EADM© 2005
W. R. Dolmage
Expenditure on K-12 Education 1989 - 2000Canada and Saskatchewan (x 1000)
Expenditure on K-12 Education 1989 - 2000Canada and Saskatchewan (x 1000)
EADM© 2005
W. R. Dolmage
Provincial Spending PerK – 12 Pupil, 1999 – 2000Provincial Spending PerK – 12 Pupil, 1999 – 2000
7,905
7,4017,293
8,432
8,130
7,333 7,2397,072
6,239
6,503
7,758
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
B.C. Alta. Sask. Man. Ont. Que. N.B. N.S. P.E.I. Nfld./Lab. Canada
Provinces
Do
lla
rs p
er
Pu
pil
$7,293 $7,758
EADM© 2005
W. R. Dolmage
Per Pupil Spending1985, 1990, 1995, 2001Per Pupil Spending
1985, 1990, 1995, 2001
EADM© 2005
W. R. Dolmage
Education FinanceEducation FinanceAll of our children have All of our children have equality of educational equality of educational opportunityopportunity, and everyone pays , and everyone pays their their fairfair share of the costs share of the costs of education.of education.
So, is there a problem?So, is there a problem?
EADM© 2005
W. R. Dolmage
How Do We MeasureEquality of Educational
Opportunity
How Do We MeasureEquality of Educational
Opportunity
Equality of AccessEquality of Access
Equality of TreatmentEquality of Treatment
Equality of OutcomeEquality of Outcome
EADM© 2005
W. R. Dolmage
Horizontal Equity
Horizontal Equity
Equal Treatment of Presumed EqualsEqual Treatment of Presumed Equals
==
EADM© 2005
W. R. Dolmage
Vertical EquityVertical EquityUnequal Treatment of Presumed Unequals Unequal Treatment of Presumed Unequals
≠≠
EADM© 2005
W. R. Dolmage
Provincial BudgetProvincial BudgetTaxes (Income, Sales, etc.)
ProvincialPot
Profits (Crown Corps., LBS, etc.)
Transfers from Feds
Borrowing
BBUUDGDGEETT
Costs and Programs of the Department of Education
Costs and Programs of All Other Government Departments
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Education
EADM© 2005
W. R. Dolmage
Provincial BudgetingProvincial Budgeting
Assess revenues
Determine policy priorities
Decide on size of the provincial expenditure
Allocate resources among competing priorities, most of which are not related to education.
Assess revenues
Determine policy priorities
Decide on size of the provincial expenditure
Allocate resources among competing priorities, most of which are not related to education.
EADM© 2005
W. R. Dolmage
How the “Pot” is DividedHow the “Pot” is Divided
In 2001 – 2002, the Saskatchewan Provincial Government spent 17.8% of it’s budget on “education.” 9.8% was spent on K to 12 education.
EADM© 2005
W. R. Dolmage
Debt10%
K Š 12 Education10%
Post-Secondary Education
8%
Finance3%
Health34%
Highways5%
Justice4%
Municipal Government
3%
Other8%
Social Services9%
Agriculture6%
Saskatchewan’s 01-02“Pot Pie” Chart
Saskatchewan’s 01-02“Pot Pie” Chart
EADM© 2005
W. R. Dolmage
Local Property TaxLocal Property TaxSchool Boards in Saskatchewan raise revenue locally by levying a tax on all eligible property in the school district’s jurisdiction
Residential Commercial
Farm
Grants in lieu Not ChurchProperty
EADM© 2005
W. R. Dolmage
Horizontal Equity:Recognized Enrolment-based Expenditure
Horizontal Equity:Recognized Enrolment-based Expenditure
The Provincial Government insures that every school every school division has at least a set division has at least a set minimum number of dollars to minimum number of dollars to spend for each pupil spend for each pupil enrolled in its schools. Thus every pupil in the province is being treated “equally.”This minimum is called the “Recognized Enrolment-based “Recognized Enrolment-based Expenditure.”Expenditure.”$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $$ $ $ $ $
EADM© 2005
W. R. Dolmage
Adding an Element of Vertical Equity to the Foundation Grant (2003-04)
Adding an Element of Vertical Equity to the Foundation Grant (2003-04)
Other
Type of School
Pupil Regina, Saskatoon Divisions
Kindergarten $2,196 $2,305
Elementary 4,280 4,473
Middle Level 4,514 4,723
Secondary 5,045 5,271
Note that, in 2003-2004, we actually spent more like $7,000 per full-time-equivalent student in Saskatchewan! Now how did that happen?
EADM© 2005
W. R. Dolmage
Vertical Equity: Saskatchewan’s Response to Inequalities
Vertical Equity: Saskatchewan’s Response to Inequalities
Special Needs Grants, e.g.,Special Needs Grants, e.g.,High-cost disabled pupils
Comprehensive schools factor
Northern/Northern Communities factor
Special needs programs
Transportation
Room and board
Second language programs
Small schools factor
Sparsity factor
etc.
Capital Grants, e.g.,Capital Grants, e.g.,Building
Technical aids, equipment
EADM© 2005
W. R. Dolmage
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Horizontal v. Vertical Equity
Horizontal v. Vertical Equity
It is important to understand that It is important to understand that horizontal and vertical equity are horizontal and vertical equity are mutually exclusive; i.e., you can’t mutually exclusive; i.e., you can’t have more of one without having have more of one without having less of the other.less of the other.
$ $
$
Treat Individualsthe Same
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