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State of the Art Approach to School Finance Adeuacy in Kentucky Report

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State of the Art Approach to School Finance Adeuacy in Kentucky Report

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky ReportAllan Odden Mark Fermanich Lawrence o. Picus37653A State-of-the-Art Approach to School Finance Adequacy in KentuckyKentucky's SEEK school finance prog

ram was the first in the country to be designed to provide an "adequate" funding base for each school within the state. In response to the Kentucky Su State of the Art Approach to School Finance Adeuacy in Kentucky Report

preme Court’s ruling in Rose V, Council for Better Education, [790 s.w. 2d 186 (Kent. 1989)], which stated that the funding system must be adequate, s

State of the Art Approach to School Finance Adeuacy in Kentucky Report

ubstantially uniform and provide an equal opportunity for all children in Kentucky, the General Assembly created a comprehensive new educational syste

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Reportearning related to those content standards; an aligned accountability system that offered rewards for schools making progress towards those standards,

help for struggling schools, and sannions for schools continuously failing to make progress; and, the SEEK school finance formula designed to provide State of the Art Approach to School Finance Adeuacy in Kentucky Report

the needed educational resources - that were both equitably distributed and adequately funded.Last year, the authors conducted a 10 year analysis of

State of the Art Approach to School Finance Adeuacy in Kentucky Report

the equity of the SEEK formula, concluding that equity had actually improved over the ten year period, and finding that in the 2000-2001 school year,

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Reportncluded that when the fiscal numbers were adjusted by weights used to reflect different student needs and by a geographic price of education index (th

at quantified the varying purchasing power of the educational dollar across geographic regions in KentuckyKY Adequacy Study376772holding quality ol ed State of the Art Approach to School Finance Adeuacy in Kentucky Report

ucation resources constant), the equity statistics beat the benchmarks by even wider margins. We concluded that while not perfect, the SEEK school fin

State of the Art Approach to School Finance Adeuacy in Kentucky Report

ance formula was equitable according to standard definitions (Odden & Picus, 2000).Ihe SEEK formula is supposed to be adequate as well as equitable. H

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Report” approach. As we understand it, the methtxl used in 1990 was essentially to define "adequate" as all state funds that were then expended for public S

( hools, inc Teased by an estimated additional cost for all state mandates that at that time were unfunded, as well as all local dollars then spent fo State of the Art Approach to School Finance Adeuacy in Kentucky Report

r schools. For the 1990-91 year, that produced a SEEK Base Guarantee of $2,305 per pupil. This value rose to S2,994 per pupil for 2000-2001, which was

State of the Art Approach to School Finance Adeuacy in Kentucky Report

just short of keeping pace with inflation over those eleven years. In 2000-2001 terms, a fully inflation adjusted SEEK Base Guarantee would have been

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Report90, the SEEK base was about as adequate in 2001 in real terms as it was a decade before in 1990-91.But the adequacy issue today is not really whether

the SEEK base has lx?en appropriately adjusted by some inflation figure or is adequate relative to the 1990-91 base. Rdiher the adequacy question toda State of the Art Approach to School Finance Adeuacy in Kentucky Report

y is whether the SEEK base provides sufficient funding for each school in the state to deploy powerful enough educational suategies to meet the stale'

State of the Art Approach to School Finance Adeuacy in Kentucky Report

s 2014 goals. Those goals seek to have dll students performing dl or above the proficiency level on the state’s student testing system by 2014. Illis

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Report direct link between the funding base and educational strategies that have potential to allow Kentucky's students to meet or exceed the state’s establ

ished proficiency levels. Since 1990, a variety of methods have been developed in different parts of the country that can help identify this linkage i State of the Art Approach to School Finance Adeuacy in Kentucky Report

n both programmatic and fiscal terms. Today, a number of alternative methods for determining adequacy have been developed by the school finance commun

State of the Art Approach to School Finance Adeuacy in Kentucky Report

ity.To help Kentucky policy makers better understand the many complex issues surrounding establishment of an adequacy level, the first section of this

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Report using them. Section two then takes one of the approaches - the state-of-the-art approach, an approach with which these authors have been associated (

e.g., Odden, 2000) - and identifies how it would be used to determine adequacy in Kentucky. Section three then begins to assess the adequacy of the SE State of the Art Approach to School Finance Adeuacy in Kentucky Report

EK formula using the state-of-the art approach, which builds educational strategies and programs up from each of the 1,233 Type A schools in Kentucky.

State of the Art Approach to School Finance Adeuacy in Kentucky Report

In the early months of 2003, our team will use a second methodology - the professional judgment approach -to measure school finance adequacy in Kentu

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Reporthool finance system is adequate is the newest and most dominant issue in school finance across the country (Ladd & Hansen, 1999). To be adequate, the

school finance formula must provide a sufficient amount of funds so thatKY Adequacy Study376774schools can (each all - or at least all but the most se State of the Art Approach to School Finance Adeuacy in Kentucky Report

verely disabled - students (0 state and district proficiency standards. This approach has great appeal for both policymakers and the courts; it seeks

State of the Art Approach to School Finance Adeuacy in Kentucky Report

to link a funding level to a system performance level, a long sought goal.But attractive though the adequacy goal is. it is not easy to define in spec

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Reporttermining school finance adequacy (Ladd & Hansen, 1999: Odden & Picus, 2000):•Economic cost function approach•The successful district approach, i.e.,

identifying expenditure levels in districts/schools that meet performance benchmarks•Professional consensus approach•Cost of effective school wide str State of the Art Approach to School Finance Adeuacy in Kentucky Report

ategies, or the state-of-the-art approach. Except for the cost function approach, different states are using various versions of the other three metho

State of the Art Approach to School Finance Adeuacy in Kentucky Report

ds. Each is described in detail below.Economic Cost Function ApproachThe first approach relies on econometric techniques known as cost functions to es

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

State of the Art Approach to School Finance Adeuacy in Kentucky Reporttudent and district characteristics as well as desired performance levels as the independent variables. The question this approach seeks to answer is:

how much money per pupil is needed to produce a given level of student performance? The result produces an adequate expenditure per pupil for the ave State of the Art Approach to School Finance Adeuacy in Kentucky Report

rage district. This figure could be used, for example, as

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

A State-of-the-Art Approach to School Finance Adequacy in KentuckyPrepared forThe Kentucky Department of EducationbyLawrence o. Picus and Associates.A

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