Why School Finance Matters

Commentary by Lawrence O. Picus

Why School Finance Matters
March 15, 2007

The Getting Down to Facts project represents the single largest, most comprehensive school finance study ever conducted on behalf of a single state. It is too early to know what impact this important collection of papers will have on state education policy, but the sheer scope of the project underscores the significance of school finance policy in California and across the United States.

In today’s standards-based educational policy environment, there are two major challenges for states: 1) to understand how schools can dramatically improve student learning, and 2) to provide adequate funding so all schools can deploy those strategies to achieve those results. The project's release is the beginning of California’s step toward these objectives. In my work in other states, I have found that understanding how schools can boost student learning and then using that knowledge to design and implement a school finance system that provides adequate funds and distributes them fairly across the state is a complex undertaking. But it can be done.

The first step is to understand what is expected of our schools. In California, we already have high standards for student performance and a system for measuring each school’s ability to meet those standards. The second step is to identify the governance and program strategies that can get all or almost all students to those performance standards. Although the Getting Down to Facts study begins this process, as its authors make clear, much more must be done.

Contrary to some of what is stated in the Getting Down to Facts summary report, there is a great deal of existing research, as well as experience, in California to help the state restructure schools for student success right now. Districts such as Long Beach and Garden Grove have dramatically boosted student performance. I suspect there are dozens of other examples across the state. In other states, I have found multiple examples of schools and districts – large and small, urban, rural and suburban – that have literally doubled performance. Where these examples have been studied, the processes deployed and the resources required have been quite similar.

A successful school would have relatively small class size, strategies that help struggling students immediately and strive to return them to the regular classroom, well trained teachers, and substantial resources for professional development to help teachers meet the educational needs of all students. Schools would also have resources for school site administrators. In addition, a supportive and well organized district office is essential to student success, along with enough resources to maintain our school facilities so that they are inviting and safe places for children to learn. The resource details of these strategies have been reported elsewhere. But the cost is modest and well within the reach of California.

The Getting Down to Facts project makes it clear that the current system is too complex, overly restrictive, and possibly underfunded. It also argues strongly that more money to do more of the same will be both expensive and unlikely to make dramatic improvements in student learning. These findings are right on the mark. But the report, at best, provides only general directions for California’s next steps and implies that much research is needed before the state launches a strategy to boost performance and back that strategy with adequate funding.

I think the Golden State can be more ambitious and that our schools can feel confident to use strategies similar to the ones previously outlined. Leaders in successful schools have reviewed the existing research and established a strong vision of what instruction should be to meet state standards and then organized their staff around that instructional vision. It is hard work, but it can be done with the right support. And we have a very clear idea about the resource needs for those strategies.

So, what do we need to do now in California? California should start the process of doubling student performance right now as the first step toward making its education system world class and the envy of all other states. We need to take bold action to create a system that expects schools to implement strategies that research -- as well as the experience of California districts and schools -- show to work, and give those schools adequate funding. That requires a dramatically simplified school funding system, one that is transparent, simple, and easy to understand. This is not about shifting money from noninstructional uses to instruction. It turns out that most of the resources spent for nonclassroom purposes are essential to supporting the instructional program. Instead, it is about using the instructional resources in the schools more efficiently to implement the strategies we know can work.

To be sure, more research and knowledge would help the process and that research should be funded. But the existing research, knowledge, and experience base is good enough today for California to begin the process of dramatic school improvement. EdSource’s own Similar Students study is an excellent example.

This process of improvement might require more money. But that does not mean we need all the money today. Instead, if every school and school district had a vision of how it would organize for student success and had a focused plan to get there within 5 to 10 years, we could estimate the cost of that vision, and begin appropriating the funds over that same timeframe. I would not be surprised if much of the additional necessary funding could be found in the natural growth of school revenues. If that is the case, then what is really needed is a tighter focus by the state, school districts, and school sites on long-term goals for student success, which we have trouble doing in today’s funding system. That system often does not give districts their final revenue figures until a quarter of the way into the school year.

Why should all citizens of California care about these issues? Because schools are funded with their tax dollars. They have every right to expect those dollars to be used efficiently and effectively to produce student learning. But more importantly, they should care because the success of our schools in helping all children boost their learning in the core subjects of mathematics, science, reading, writing, communication, and social studies is critical to the economic future of our state.

See commentary by Peter Schrag