Education Adequacy:

Strategies for Achieving Reform in Difficult Times

John Poteat

February 6, 2004

jpoteat@ncforum.org

I. Who Pays for What?

II. NC’s Funding Process

III. NC’s Accountability model

What the Government Does w/ $14.7 B

93%7%

Education

HHS

Public Safety

Debt

$13.8 B

Agriculture

Commerce

Environment & NR

Clean Water Mgt.

Labor

Administration

Auditor

Cultural Resources

General Assembly

Governor

Insurance

Revenue

Treasurer

Secretary of St.

State Health Plan

Retiree Health Benefit

2001-02 Public Schools Expenditures=$8.5 B

State ($5.7 B)

#4Federal ($735 m)

#28

Local ($2.1 B)

#47

K-12 Budget Authorizations(% of General Operating Fund)

52.0%

40.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%19

70-7

119

71-7

219

72-7

319

73-7

419

74-7

519

75-7

619

76-7

719

77-7

819

78-7

919

79-8

019

80-8

119

81-8

219

82-8

319

83-8

419

84-8

519

85-8

619

86-8

719

87-8

819

88-8

919

89-9

019

90-9

119

91-9

219

92-9

319

93-9

419

94-9

519

95-9

619

96-9

719

97-9

819

98-9

919

99-0

020

00-0

120

01-0

220

02-0

320

03-0

4

% o

f sta

te b

udge

t

State Average=44%

School Finance Impact

Impact on Other Agencies

Since 1997, Teacher Pay $1.4 B

K-12 lion’s share of revenue (1% raise=$37 m)

Enrollment Growth=$125+m

ABCs bonuses=$776.5 m (equivalent to a 21% )

Education spending for K-12 & higher education=

58% of the budget

NC’s School Funding Process

Wake is 152 Times Larger Than Hyde!

Wake is 152 Times Larger Than Hyde!How Does Hyde Spend $6,000 More than Wake?

676

103,400

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

Hyde County Wake County

Hyde ($7.4 m) Wake ($673 m)Wake ($673 m)

PPE $12,779 $6,846

superintendent 1 1

teachers 76 6,372

principals 5 122

North Carolina’s Funding Process

Position

pays whatever is required

Dollar

fixed amount

Categorical

specific need or group

teacherprincipals

textbooksteacher assistants

central office administration

transportationdisabled childrenat-risk children

State will pay…

30 yr. teacher w/Ph.D. NBPTS=$58,440

new teacher=$25,250

State will pay…

textbooks=$56.50 per child

teacher assistants =$16,473

State will pay…

disabled children=$2,720 per child

2001-02 Total Local Expenditures

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500

State Average=$2,172

$4,825

$621

Source: 2003 Local School Finance study

County Spending DisparitiesTop Spending County Compared w/ Bottom Spending Counties

$749

$4,825

$734

$733

$719

$680

$621

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500

Tota

l Spendin

g P

er

AD

M

Caswell Graham Bertie Columbus Robeson Swain

Orange CountyBottom Six $ Counties

TOTAL=$4,236

Disparities in County Funding“… there can be nothing unconstitutional about their doing so or in an inequality of opportunity occurring

as a result.” --Leandro v. N.C. (1997)

$1,294$1,407

$1,514$1,625

$1,783$1,985

$2,247

$2,485$2,643

$2,974

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,5001

99

4

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

Spending Gap=130%

North Carolina’s ModelABCs Accountability ModelA=accountability for resultsB=focus on basicsC=local control

1996-97=K-8 schools; 1997-98 HS K-8:reading, math & writing (4 & 7)HS: 10 end-of-course tests

Growth Model—schools have targets based upon the school’s population; meet or exceed growth targets

% of Students Scoring At or Above Grade Level, Grade 3-8

63.4%66.2%

68.9% 70.9% 72.7%76.7%

79.2% 80.1% 82.0% 84.4%88.7%

52.9%55.5%58.1%60.0%61.7%66.3%69.1%69.8%71.7%

74.7%80.8%

30.1% 32.0% 34.5% 36.2% 38.4%44.7%

48.5% 49.4%52.0%

56.6%

66.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

19

92

-93

19

93

-94

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

% o

f S

tuden

ts

White State Black

Beginning of the ABCs K- 8 accountability model

ABCs & NCLB

Major Features/Differences…

• A Growth Model versus an Absolute Standard Model

 • ABCs is based on a continuous growth

model – does one get better each year is the driving force behind the ABCs

• NCLB holds all schools to the same standard, regardless of where they are today.

ABCs & NCLB

Major Features/Differences…

ABCs Has Rewards & Consequences

Financial/recognition for success – High Growth:$1,500/Expected Growth: $750

– Since 1996-97, $776 million in bonuses

Lowest performing schools get assistance teams

NCLB has only consequences; NO Rewards

North Carolina Highlights…

• ABCs provides a roadmap for improvement

• General Assembly has appropriated additional resources for student improvement:

– Low-Wealth Supplemental funding (since 1991: $621 m)

– Financial Flexibility (83% can be transferred)

– Improving Student Accountability

– High-Priority Schools