The Promise of Fairer School Spending

The Every Student Succeeds Act, the soon-to-be latest version of the Elementary and Secondary Education Act, has passed the Senate and is expected to be signed into law today. While most of the focus of advocates and lawmakers has been on state accountability systems, one provision championed by Sen. Michael Bennet, D-Colo., bears note for its promise to drive more resources to schools serving students from low-income communities.

The Flexibility for Equitable Per-Pupil Funding program will give 50 school districts nationwide the opportunity to combine and distribute federal, state and local funds through one formula that allocates resources based on student needs. Using weighted student funding, districts will be able to send more money to schools serving students from low-income families, English learners and children with disabilities. The populations receiving additional weights will vary by district to best address each community's needs and ultimately serve the most disadvantaged students.

Weighted student funding systems, also known as fair student funding or student-based budgeting, solve several problems with the way school funding typically works. First, these programs ensure that regardless of where a student attends school, his or her school has the resources to support his or her needs. This shift enables key stakeholders to be confident that schools serving the same populations of students have the same budgets.

Second, weighted student funding systems allow for a transparent process of allocating resources. All stakeholders – parents, school leaders and central office staff – understand the formula and can predict the amount of money schools will receive each year. This process allows for a more rational and fair system, eliminating funding based on political considerations or arbitrary decisions by central office staff to place certain programs in particular schools.

Third, weighted student funding formulas empower school leaders to make the best choices for their community. With the autonomy to design programs based on individual contexts, school leaders can best devise instructional and enrichment programs that support their students when school budgets are driven by student need rather than funding for specific programs. Done right, this approach redefines the way central office staff work with school leaders. Instead of holding school leaders responsible for complying with regulations, staff can support them as they innovate and refine their approach.

Indeed, strong leaders are particularly important in this work. Baltimore City Public Schools, for example, prioritized principal accountability when transitioning to a per pupil funding formula. Since making the switch in 2008-2009, the district has cut its drop-out rate in half (from 9 percent to 4 percent), improved student performance and increased enrollment.

As the Department of Education begins to think about the parameters for evaluating the pilot's applications and assessing its success, it must consider some important elements of program design. How, for example, will districts train and support principals? Weighted student funding works best when school leaders have the autonomy to design programs that meet the unique needs of their student population. But not all school leaders intuitively know how to effectively allocate resources, and many haven't had to do this type of work before.

Moreover, under weighted student funding models, school leaders may control between 40 to 80 percent of school-level spending, compared to 1 to 5 percent under traditional models. Districts, accordingly, should set up strong systems for training and supporting school leaders to both reflect on the needs of their students and understand the evidence-based interventions most likely to work. This support may include individual meetings where central office staff walk line by line through a school leader's proposed budget during the initial transition.

The Department of Education should also examine the process districts use to identify the funding formula student weights. How much, for example, does it cost to educate a particular type of student relative to one who doesn't come to school with additional needs? Districts should use rigorous analysis to determine which student groups will receive larger weights and to determine the size of those weights. When selecting their student populations, districts should also select ones that are unique enough to not include most of the students in a district.

Finally, the Department of Education should closely assess not only the amount districts allocate to each student population, but also how well districts intend to use those resources. Districts must be thoughtful in their approach and develop a strategic plan that, in addition to leadership and staff supports, accounts for school culture and community partnerships.

The Flexibility for Equitable Per-Pupil Funding pilot will enable districts to rethink how they allocate and best use federal, state and local resources that are directly tied to student need. To see the most success, districts must be thoughtful in setting their formula weights and designing their programs, and school leaders must have access to the right tools to make the most of their autonomy and empower their staff.

If the program is successful after the three-year pilot period, any school district may apply starting in the 2019-2020 school year. As a result, it is crucial that the 50 pilot participants make the most of this opportunity to pave the way for future districts to take advantage of fairer school spending and ensure every student succeeds.