Commission on Education Finance, Equity, and Excellence -- Sept. 10, 2001 Meeting

Questions To Be Addressed by Individuals Who Testify at the Public Hearings of the Commission on Education Finance, Equity, and Excellence
on September 10, 2001

Introduction

The Commission on Education Finance, Equity, and Excellence is at a stage in its deliberations when it must make important decisions about potential changes to Maryland's school finance system. The questions set forth below are at the heart of the Commission's deliberations. The Commission is seeking to make informed and reasoned decisions about these issues. In order to focus public hearings on salient issues, the Commission is distributing these questions to the public prior to the hearings. Individuals who testify before the Commission should tailor their testimony to briefly address one or more of these issues. Written copies of these questions can be obtained from the Commission by calling 410-946-5530 or 301-970-5530 or e-mailing a request to the Commission at Education_Commission@mlis.state.md.us. These questions have also been posted on the Commission's website (http:\mlis.state.md.us\other\education\index.htm). Copies of the Commission's Interim Report (released in December 2000) can be obtained in the same manner.

Questions

(1) Adequacy

Some experts define "adequacy" in the context of funding for public schools as sufficient funds to allow school districts to meet the State's performance standards. Do you think this is an appropriate way to define "adequacy?" Briefly state your reasons.

(2) Flexible Funds v. Restricted Funds

Approximately 56% of State funding for education is currently distributed through the Basic Current Expense formula. These are "flexible" funds that may be used as each local jurisdiction desires. Conversely, approximately 44% of State funding for education is currently "restricted" in some manner by the State (e.g., must be used for a specific purpose). What percentage of State aid do you think should be "flexible" funding? Briefly state your reasons.

(3) Wealth Equalization

Approximately 71% of State funding for public schools is currently "wealth equalized" so that State aid varies depending on the wealth of the jurisdiction. Do you think that this percentage is too high? too low? Briefly state your reasons.

(4) Students with Special Needs

(i) Relative Cost

In Maryland, 31% of all students are eligible for free and reduced price meals, 13% of all students need special education services, and 2% of all students have limited English proficiency. Relatively speaking, do you think that it requires additional resources to educate these types of students? Please rank in order -- from highest cost to lowest cost -- each category of students. Briefly state your reasons.

(ii) Student Weights

Many states adjust the level of funding received by a school district to reflect cost pressures that are associated with characteristics of students that are beyond the control of the school district, such as the number of students who need special education services, have limited English proficiency, or are from economically disadvantaged backgrounds. One method that has been developed for making this type of adjustment involves the use of "multipliers" or "per student weights." Typically, in states that use per student weights, the costs associated with serving students with special needs are determined by multiplying the amount associated with educating students without special needs by the per student weights associated with students with special needs. Should Maryland's school finance system be modified to reflect this approach to distributing aid to students with special needs? Briefly state your reasons.

(iii) Concentration Factor

Some states distribute a portion of state aid for students with special needs using a "concentration factor" that results in school districts which high proportions of students with special needs receiving additional money. Do you believe that the State should provide additional resources to local school systems with high concentrations of students living in poverty? At what level, if any, do you believe a concentration of poverty requires an adjustment? Briefly state your reasons.

(5) Cost of Living Adjustment

Should State funding for public schools be adjusted to reflect differences in cost of living or cost of providing educational services in different jurisdictions? Briefly state your reasons.

(6) State and Local Responsibilities

With regard to the operation of Maryland's public schools, the Commission's consultant believes that the State's primary responsibilities are to establish performance standards, ensure that sufficient funding is provided to school districts to allow them to meet the performance standards, and hold school districts accountable for meeting the performance standards. Generally, this consultant believes that the State is not responsible for determining the types of resources that should be used in particular jurisdictions to achieve the State's performance standards (e.g., types of programs, number and types of staff, etc.). Rather, each local jurisdiction is responsible for determining the types of resources that are needed in that jurisdiction. Do you believe that this is an appropriate view of the responsibilities of the State and local governments? Briefly state your reasons.

(7) State and Local Shares

In Maryland, total spending for public schools is currently divided (approximately) between the State, local, and federal governments as follows: 43% State; 52% local; 5% federal. Since a significant share of State and federal spending is targeted on the basis of local wealth or number of special needs students, these percentages vary significantly among jurisdictions. For example, State share of funding in particular jurisdictions varies from a low of 17% to a high of 63%. Do you think this is a reasonable division of responsibility for total spending on public schools? Briefly state your reasons.

(8) Local Education Effort

(i) Incentives

"Local education effort" is a term that is used to describe a measure of the extent to which a local government utilizes its revenue base to fund public schools. Do you think Maryland should provide incentives for local school systems to increase their local education effort? Briefly state your reasons.

(ii) Second Tier

Some states distribute a portion of state aid outside the state's foundation formula using a "second tier" formula that is based on local education effort. The purpose of a second tier formula is to provide added state support to school districts whose effort is above a specified level. Do you think that Maryland's school finance system should be modified to include a second tier funding formula? Briefly state your reasons.

(9) Revenue Sources

This past year, a consulting firm conducted an adequacy study on behalf of the Commission. Another consulting firm conducted an adequacy study on behalf of the New Maryland Education Coalition. These consultants both concluded that current total funding for public education is insufficient to allow school districts to meet the State's school performance standards. Based on the reports of these consultants, the Commission estimates that the "gap" between "adequate spending" (as defined and measured by the consultants) and total fiscal 2002 spending (State, local, and federal funds) ranges from a low of $377 million to a high of $2.723 billion. If you believe that current total funding for the State's public schools is insufficient, what do think should be the revenue source for increased funding? re-prioritizing within the State budget? re-prioritizing within local budgets? new State taxes? new local taxes? new federal funding? other revenue sources? Briefly state your reasons.