101 How Connecticuts school funding system impacts public schools - - PowerPoint PPT Presentation

SCHOOL FINANCE 101

How Connecticut’s school funding system impacts public schools and communities

Contact Us

For questions or comments about the information presented today, please contact us: Katie Roy, Director and Founder Email: katie.roy@ctschoolfinance.org Cell: 860-912-0775 Twitter: @eduKATEmatters To learn more about the Connecticut School Finance Project, visit us at: www.ctschoolfinance.org Follow us on Twitter: @CTSchoolFinance

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About the CT School Finance Project

• The way Connecticut funds its schools isn’t working. The current

system is unfair to students, schools, and communities across the state.

• Founded in 2015, the nonprofit Connecticut School Finance Project

aims to fix this broken system and be a trusted, nonpartisan, and independent source of accurate data and information.

• Although not a member-based organization, the Connecticut

School Finance Project actively works with a diverse group of stakeholders, including education and community leaders, nonprofit organizations, and individuals interested in how school finance impacts their students and schools.

• We aim to develop fair, well thought-out solutions to Connecticut’s

school finance challenges that incorporate the viewpoints and perspectives of stakeholders.

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CT School Finance Project’s Goals

• Build knowledge about how the current school

funding system works,

• Bring together stakeholders who are impacted by

how schools are funded, and

• Identify solutions to Connecticut’s school funding

challenges that are fair to students and taxpayers, and strengthen schools and communities.

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Equality vs. Equity

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STATE AND DISTRICT OVERVIEW

Over the last 10 years, the total number of students in Connecticut public schools has declined

Source: Connecticut State Department of Education. (2016). CT Public School Enrollment_2000.mdb. Available from http://ctschoolfinance.org/data/ connecticut-school-enrollment.

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500,000 520,000 540,000 560,000 580,000 600,000

Enrollment School Years

Connecticut Public School Enrollment by School Year

Over the past decade, enrollments for Griswold, Norwich and Lisbon have declined

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Source: Connecticut State Department of Education. (2016). CT Public School Enrollment_2000.mdb. Available from http://ctschoolfinance.org/data/ connecticut-school-enrollment.

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Enrollment by School Year by District

Lisbon Griswold Norwich

While Norwich’s school-age population is projected to slightly increase by 2025, Griswold’s and Lisbon’s populations are expected to decrease

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Source: Batt, S., Guarino, Z., & Zheng, Q. (2015). Demographic Change in Connecticut School Districts [Data visualizations]. Storrs, CT: Connecticut State Data Center. Retrieved from http://blogs.lib.uconn.edu/outsidetheneatline/2015/07/24/demographic-change-in-connecticut-school-districts/.

850 702 633 2,323 2,289 2,193 7,512 7,454 7,571

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2015 2020 2025

Projected School-Age Population (5-19-year-olds) by District

Lisbon Griswold Norwich

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Student need is increasing across the state and in Griswold, Lisbon, and Norwich

Source: Connecticut State Department of Education. (2016). CT Public School Enrollment_2000.mdb. Available from http://ctschoolfinance.org/data/ connecticut-school-enrollment.

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5 10 15 20 25 30 35 40 Percent School Years

Connecticut Public School Demographics

% FRPL % EL % SPED

CT’s low-income, EL, and special education populations have increased over the past 10 years

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Student poverty in Griswold, Lisbon, and Norwich has increased significantly over the past 10 years

Source: U.S. Census Bureau. (2016). U.S. Census Bureau Small Area Income & Poverty Estimates, 2015. Retrieved from http://www.census.gov/did/www/ saipe/data/schools/data/2015.html.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Estimated % of Students in Poverty

Lisbon Griswold Norwich

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The percentage of FRPL-eligible students each district serves has also increased significantly over the past 10 years

Source: Connecticut State Department of Education. (2016). CT Public School Enrollment_2000.mdb. Available from http://ctschoolfinance.org/data/ connecticut-school-enrollment.

15% 26% 19% 40% 49% 75%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 2016

% of Students w/ Free and Reduced Priced Lunch

Lisbon Griswold Norwich

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Griswold Public Schools spends less than similar and nearby districts, while Norwich and Lisbon spend slightly more than the state average

$14,011 $15,320 $15,605 $16,249 $16,263 $17,012 $17,689

$0 $4,000 $8,000 $12,000 $16,000 $20,000

Griswold Montville Groton State Average Norwich Lisbon Lebanon

2015-16 Spending Per Student

Griswold Montville Groton State Average Norwich Lisbon Lebanon % FRPL

40% 38% 42% 38% 75% 26% 17%

% EL

1% 3% 3% 6% 14% * *

% SPED

14% 15% 16% 14% 18% 12% 15%

Sources: Connecticut State Department of Education. (2016). 2015-16 Net Current Expenditures Per Pupil. Available from http://ctschoolfinance.org/data/connecticut- public-school-district-spending-per-student-2015-16. Connecticut State Department of Education. (2016). CT Public School Enrollment_2000.mdb. Available from http://ctschoolfinance.org/data/connecticut-school-enrollment.

*Due to the low number of students meeting this demographic, 2015-16 data from these districts is suppressed to ensure student confidentially.

HOW ARE CONNECTICUT’S PUBLIC SCHOOLS FUNDED?

$5.9 $4.1 $0.5

$0 $2 $4 $6 $8 $10 $12 Connecticut Funding ($Billions)

Funding by Source ($Billions)

From Local Sources From State Sources From Federal Sources

What are the funding sources for public education in Connecticut?

Source: U.S. Census Bureau. (2016). Public Education Finances: 2014. Retrieved from http://www.census.gov/content/dam/Census/library/publications/ 2016/econ/g14-aspef.pdf.

$10.5B

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$7,036 $8,901 $9,473 $6,747 $8,762 $10,229 $6,029 $5,082 $5,391 $8,102 $6,631 $5,611

$0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 Griswold Montville Groton Norwich Lisbon Lebanon

Per Pupil Funding by Source, 2014-15

Tuition/Other $pp Federal $pp State $pp Local $pp

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Funding sources differ between Griswold, Lisbon, Norwich, and their peer and nearby districts

Lower $ Per Pupil Higher $ Per Pupil

$14,185 $15,230 $15,581 $15,902 $14,520

Sources: Connecticut State Department of Education. (2016). Connecticut Local Public School District Per Pupil Expenditures by Revenue Source & Property Tax Information, 2013-15. Available from http://ctschoolfinance.org/data/local-school-district-per-pupil-expenditures-by-revenue-source- property-tax-information.

$16,552

LOCAL FUNDING

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While taxpayers contribute $7,036 per student in Griswold, $6,747 in Norwich and $8,762 in Lisbon

$7,036 $8,901 $9,473 $11,320 $6,747 $8,762 $10,229 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000

Griswold Montville Groton State Average Norwich Lisbon Lebanon

2014-15 Local Contribution Per Pupil

Lower $ Per Pupil Higher $ Per Pupil

Source: Connecticut State Department of Education. (2016). Connecticut Local Public School District Per Pupil Expenditures by Revenue Source & Property Tax Information, 2013-15. Available from http://ctschoolfinance.org/data/local-school-district-per-pupil-expenditures-by-revenue-source- property-tax-information.

• CT has a “minimum budget requirement”, also known as the “MBR,” which

all communities must adhere to in providing funding to their local school districts.

• In general, the rule is that a municipality must provide its local school

district with no less local support in the current year than in the prior year, plus or minus any increase/decrease in ECS funding. – However, Alliance District-specific funding is not part of the MBR

• calculation. Consequently, an Alliance District’s total budget can be

reduced by the difference between FY 2015-16 and FY 2016-17 Alliance District funding without violating a community’s MBR.

• During the 2015 legislative session, some changes were made that allow

non-Alliance District communities to lower their MBRs under some

• circumstances. Additionally, the percentage MBR for Alliance Districts was

removed from statute. As a result, communities are no longer required to provide a minimum percentage of their school district budget.

Source: Conn. Gen. Statutes ch. 164, § 10-262i, 10-262f as amended by Conn. Acts 15-99; Conn. Acts 16-03, section 125 (May Special Session).

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Is there a minimum budget amount?

How do cities and towns raise money to pay for public schools?

• Cities and towns raise money to pay for town services

(including public schools) through property taxes. – Cities and towns are able to collect tax on property that is owned by the people who live there. – Cities and towns can collect taxes on “real” property (e.g. office building, apartment buildings, houses) and “personal” property (e.g. cars and boats).

• Not all property in the town is taxable.

– Property that belongs to some nonprofit

• rganizations, like universities, hospitals, and churches,

may be exempt from property tax.

Source: State of Connecticut, Office of Policy and Management. (2011). Statutes Governing Property Assessment and Taxation. Retrieved from http:// www.ct.gov/opm/cwp/view.asp?q=383128.

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The value of “grand lists” varies widely

Municipality Equalized Net Grand List GLYR 2014 GREENWICH $50,031,483,545 STAMFORD $32,163,709,171 NORWALK $17,956,313,819 WESTPORT $16,602,814,905 FAIRFIELD $16,170,416,830 … … NORWICH $2,670,158,201 … GRISWOLD $963,919,193 … LISBON $555,793,822 … … COLEBROOK $225,255,646 EASTFORD $194,982,983 HAMPTON $179,533,474 SCOTLAND $151,789,305 UNION $118,614,798

$49.9B

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Source: State of Connecticut, Office of Policy and Management. (2017). Municipal Fiscal Indicators. Available from http://www.ct.gov/opm/lib/opm/igp/ munfinsr/fi_2011-15_edition_as_of_1-11-17.pdf.

The Equalized Net Grand List Per Capita (ENGLPC) represents the value of taxable property per resident. Norwich’s ENGLPC is the 7th lowest in the state, while Griswold’s is the 17th lowest.

Lower $ Per Pupil Higher $ Per Pupil

23 $82,202 $94,054 $136,941 $148,231 $64,530 $118,448 $116,330 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000

Griswold Montville Groton State Average Norwich Lisbon Lebanon

Equalized Net Grand List Per Capita (2015)

Source: State of Connecticut, Office of Policy and Management. (2017). Municipal Fiscal Indicators. Available from http://www.ct.gov/opm/lib/opm/igp/ munfinsr/fi_2011-15_edition_as_of_1-11-17.pdf.

Municipality FY 2016-17 Mill Rate HARTFORD 74.29* WATERBURY 60.21* BRIDGEPORT 54.37* NEW BRITAIN 50.50* NAUGATUCK 47.67* TORRINGTON 45.75* … … WARREN 14.35 WASHINGTON 14.25 ROXBURY 13.70 GREENWICH 11.202 SALISBURY 10.70 24

63.59

Source: State of Connecticut, Office of Policy and Management. (2017). Municipal Fiscal Indicators. Available from http://www.ct.gov/opm/lib/opm/igp/ munfinsr/fi_2011-15_edition_as_of_1-11-17.pdf.

*For Real & Personal Property only; vehicle mill rate is 37.00 for these communities

“Mill rates” vary significantly too

Lower $ Per Pupil Higher $ Per Pupil

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Source: State of Connecticut, Office of Policy and Management. (2017). Municipal Fiscal Indicators. Available from http://www.ct.gov/opm/lib/opm/igp/ munfinsr/fi_2011-15_edition_as_of_1-11-17.pdf.

27.06 30.61 21.73 41.22 20.50 28.90

5 10 15 20 25 30 35 40 45 Griswold Montville Groton Norwich* Lisbon Lebanon

Town Mill Rates FY 2016-17

*For Real & Personal Property only; vehicle mill rate is 37.00 for Norwich

Mill rates range across Griswold, Lisbon, and Norwich’s similar and nearby towns

The amount of property tax CT residents pay varies widely depending on where they live

Municipality FY16-17 Mill Rate Property Tax – 200k House Property Tax – 2012 Honda Civic HARTFORD+ 74.29* $4,786 $123 WATERBURY 60.21* $8,429 $123 NORWICH 41.22* $5,771 $123 NEW LONDON 40.46* $5,664 $123 MONTVILLE 30.61 $4,285 $102 LEBANON 28.90 $4,046 $96 GRISWOLD 27.06 $3,788 $90 GROTON 21.73 $3,042 $72 LISBON 20.50 $2,870 $68 GREENWICH 11.202 $1,568 $37 26

Source: State of Connecticut, Office of Policy and Management. (2017). Municipal Fiscal Indicators. Available from http://www.ct.gov/opm/lib/opm/igp/ munfinsr/fi_2011-15_edition_as_of_1-11-17.pdf. KBB value for 2012 Honda Civic DX Sedan 4D with 75,000 miles and in good condition.

*For Real & Personal Property only; vehicle mill rate is 37.00 for these communities

+Residential property in the city of Hartford is not assessed at the standard rate of 70%. Instead, Hartford's current

assessment rate for residential property is 32.21%. Due to this difference, the property taxes for the house in this example may be lower in Hartford than the taxes in other towns with lower mill rates.

STATE FUNDING

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Griswold receives $6,029 per pupil in education funding from the state while Lisbon and Norwich receive $6,631 and $8,102, respectively

Lower $ Per Pupil Higher $ Per Pupil

$6,029 $5,082 $5,391 $3,854 $8,102 $6,631 $5,611

$0 $2,000 $4,000 $6,000 $8,000 $10,000 Griswold Montville Groton State Average Norwich Lisbon Lebanon

2014-15 State Contribution Per Pupil

Source: Connecticut State Department of Education. (2016). Connecticut Local Public School District Per Pupil Expenditures by Revenue Source & Property Tax Information, 2013-15. Available from http://ctschoolfinance.org/data/local-school-district-per-pupil-expenditures-by-revenue-source- property-tax-information.

CT has 11 different funding formulas to divide up money between public schools

• Each “type” of school has its own funding formula

that is part of the Connecticut General Statutes (the laws of the state).

• The formula that distributes most of the money is the

Education Cost Sharing (ECS) formula. – This is the formula the state is supposed to use to distribute approx. $2 billion in state education funding to public schools each year.

Sources: Connecticut General Assembly, Office of Legislative Research. (2013). Task Force to Study State Education Funding Final Report. Retrieved from http://www.cga.ct.gov/2013/rpt/2013-R-0064.htm.

• Conn. Gen. Statutes ch. 172, § 10-262h (2013).

Moran, J. (2014). Comparison of Charter, Magnet, Agricultural Science Centers, and Technical High Schools (2014-R-0257). Hartford, CT: Connecticut General Assembly, Office of Legislative Research. Retrieved from http://www.cga.ct.gov/2014/rpt/2014-R-0257.htm.

• Conn. Acts 16-2 (May Special Session).

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The Education Cost Sharing (ECS) formula determines how much money the state is supposed to give to each city/town to fund its public schools. But the ECS formula has some problems and complications

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Key Challenges with ECS

• 1. It doesn’t provide additional funding for all learning needs.
• Only provides additional funding for low-income students.
• No additional funding is provided for English Learners or

special education students.

• 2. It may not accurately determine a community’s ability to pay their

local education costs.

• Currently weights property value at 90% and income at 10%.
• 3. The State can’t afford to fully fund it, so it can’t be fully

implemented.

• It would require ~$600+ million more to fully fund the formula—

resources the state doesn’t currently have available.

• 4. It is only one of 11 different formulas used to fund public schools.
• In CT, we fund schools, not kids.

Sources: Conn. Acts 16-2 (May Special Session)

• Conn. Gen. Statutes ch. 172, § 10-262h (2013)

Connecticut General Assembly, Office of Legislative Research. (2013). Task Force to Study State Education Funding Final Report. Retrieved from http://www.cga.ct.gov/2013/rpt/2013-R-0064.htm. The full funding total was simulated by Kathleen S. Guay based on data provided by the Connecticut State Department of Education.

How does this impact cities and towns?

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Some cities and towns receive less than they should from ECS

Town The Most the Town Should Get Based on ECS Formula FY 2016-17 FY 2016-17 ECS Funding in

• Conn. Acts 16-2

(May Special Session) FY 2016-17 ECS Funding w/ Rescissions Dollars Underfunded FY 2016-17 Percentage Underfunded FY 2016-17 Norwich $46,426,340 $36,395,079 $36,209,664 ($10,216,676)

• 22%

Griswold $13,330,365 $10,832,910 $10,775,767 ($2,554,598)

• 19%

Waterbury $192,973,086 $133,856,066 $133,606,066 ($59,367,020)

• 31%

Bridgeport $224,410,246 $181,355,390 $181,105,390 ($43,304,856)

• 19%

New Britain $119,994,478 $86,445,269 $86,195,269 ($33,799,209)

• 28%

Danbury $61,498,434 $31,540,480 $31,290,480 ($30,207,954)

• 49%

Hartford $228,465,417 $200,768,244 $200,518,244 ($27,947,173)

• 12%

East Hartford $68,257,323 $49,315,667 $49,075,156 ($19,182,167)

• 28%

Hamden $45,085,761 $27,195,481 $26,945,481 ($18,140,280)

• 40%

New Haven $171,765,368 $154,551,977 $154,301,977 ($17,463,391)

• 10%

Manchester $51,040,015 $34,690,424 $34,440,424 ($16,599,591)

• 33%

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Sources: Conn. Acts 16-2 (May Special Session). State of Connecticut, Office of Policy and Management. (2016). FY 17 Municipal Opportunities and Regional Efficiencies (MORE) Lapse Savings. Retrieved from http://tiny.cc/h6i4hy. The full funding total was simulated by Kathleen S. Guay based on data provided by the Connecticut State Department of Education.

Town The Most the Town Should Get Based on ECS Formula FY 2016-17 FY 2016-17 ECS Funding in

• Conn. Acts 16-2

(May Special Session) FY 2016-17 ECS Funding w/ Rescissions Dollars Overfunded FY 2016-17 Percentage Overfunded FY 2016-17 Groton $21,207,527 $25,287,526 $25,040,045 $3,832,518 18% Clinton $4,984,274 $6,416,984 $6,326,998 $1,342,724 27% Lisbon $2,565,865 $3,544,878 $3,518,715 $952,850 37% Guilford $2,107,946 $2,912,239 $2,740,394 $632,448 30% Canterbury $4,085,382 $4,691,736 $4,665,608 $580,226 14% Stonington $1,081,353 $1,792,984 $1,649,159 $567,806 53% Ashford $3,524,860 $3,881,522 $3,859,564 $334,704 9% Voluntown $2,196,954 $2,516,563 $2,502,621 $305,667 14% Lebanon $5,128,904 $5,451,755 $5,410,404 $281,500 5% Hartland $1,057,801 $1,340,757 $1,327,652 $269,851 26%

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Sources: Conn. Acts 16-2 (May Special Session). State of Connecticut, Office of Policy and Management. (2016). FY 17 Municipal Opportunities and Regional Efficiencies (MORE) Lapse Savings. Retrieved from http://tiny.cc/h6i4hy. The full funding total was simulated by Kathleen S. Guay based on data provided by the Connecticut State Department of Education.

While other cities and towns receive more than they should from ECS

IMPACT OF GOVERNOR’S PROPOSED BUDGET

The governor’s budget proposal begins to take steps toward fixing how

• ur state funds its public schools.

However, it falls short of the comprehensive changes needed to address the fundamental flaws of Connecticut’s school finance system.

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Encouraging Aspects of Governor’s Proposal

• Proposes the State use a formula to distribute the ECS grant to

towns and end the funding of local public school districts via block grants based on little more than historical precedent and the political power.

• Separates ECS funding from special education funding, which

makes the amount of funding the State is contributing to special education more transparent and helps ensure Connecticut is able to meet its funding obligations under the federal Individuals with Disabilities Education Act (IDEA).

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Source: State of Connecticut, Office of Policy and Management. (2017). Governor’s FY 2018 - 2019 Biennial Budget. Available from http:// www.ct.gov/opm/cwp/view.asp?a=2958&Q=590066&PM=1.

Shortcomings of Governor’s Proposal

• Continues current practice of using 11 unconnected and arbitrary formulas to

fund its public schools, which fundamentally treats students, schools, and communities unfairly, and pits town against town.

• Does does not provide a weight for Connecticut’s more than 35,000 English

Learners.

• May not accurately recognize the student learning needs of middle-income

communities and reduces the combined total of ECS and special education aid to some higher-need communities, such as New Haven.

• Governor’s proposal for special education funding does not address the

unpredictability of special education costs that continues to impact communities across the state.

• Governor’s special education funding proposal does not give local school

districts a stake in controlling total special education costs without incentivizing the under or misdiagnosis of students with disabilities.

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Source: State of Connecticut, Office of Policy and Management. (2017). Governor’s FY 2018 - 2019 Biennial Budget. Available from http:// www.ct.gov/opm/cwp/view.asp?a=2958&Q=590066&PM=1.

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Under the governor’s proposal, Griswold would receive $6,891 per pupil in ECS+ SpEd funding while Lisbon and Norwich would receive $3,716 and $8,594, respectively

Lower Current Total $ Per Pupil Higher Current Total $ Per Pupil

Source: State of Connecticut, Office of Policy and Management. (2017). Governor’s FY 2018 - 2019 Biennial Budget. Available from http://www.ct.gov/opm/cwp/ view.asp?a=2958&Q=590066&PM=1. Connecticut State Department of Education. (2016). Connecticut Local Public School District Per Pupil Expenditures by Revenue Source & Property Tax Information, 2013-15. Available from http://ctschoolfinance.org/data/local-school-district-per-pupil-expenditures-by-revenue-source-property-tax-information.

As this formula separates state special education funding from the main formula aid funding, this amount has been calculated and presented separately. This amount does not include any other estimated state, local, federal, tuition, or other funding provided to a town to educate students.

$5,059 $4,243 $2,092 $2,190 $6,308 $2,337 $2,658 $1,832 $1,508 $1,408 $1,053 $2,286 $1,379 $1,783 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Griswold Montville Groton State Average Norwich Lisbon Lebanon

Estimated State Funding Per Pupil Under Governor’s Proposal

SpEd Grant $pp ECS $pp

$6,891 $5,751 $3,500 $3,243 $8,594 $3,716 $4,441

OVERVIEW OF SPECIAL EDUCATION SPENDING

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What are the key challenges?

• CT’s current special education funding system isn’t working for

districts: At the district level, special education costs are unpredictable, wreaking havoc on local budgets.

• CT is out of step with other states: CT is 1 of only 4 states with NO

system for funding all special education students.

• CT may not meet IDEA’s state MOS requirement: As a result of state

budget cuts, it appears CT may not meet its MOS requirement, which could result in a reduction in IDEA funding if a waiver from U.S. DOE is not obtained.

• No additional state funding is available: The state does not have

additional financial resources available to solve these problems.

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At the state level, special education spending has been predictable over the past 5 years

$0 $400,000,000 $800,000,000 $1,200,000,000 $1,600,000,000 $2,000,000,000 $2,400,000,000

Total SpEd Spending in CT per Year

Source: Connecticut State Department of Education. (2016). LEA Special Education Expenditures. Available from http://ctschoolfinance.org/data/lea- special-education-expenditures.

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However, CT public school districts have experienced wide changes in special education spending over the past 5 years

• 40%
• 20%

0% 20% 40% 60% 80% 100% 120%

5-Year Percent Change in SPED Expenditures

District % Change in SPED Expenditures A 102% B 70% C 62% D 60% E 58% … … F

• 13%

G

• 13%

H

• 16%

I

• 18%

J

• 24%

Those districts with the largest variances are among the smallest in the state.

Source: Connecticut State Department of Education. (2016). Connecticut End of Year School Reports (ED001s) for Local Public School Districts, 2009-15. Available from http://ctschoolfinance.org/data/ed001s-local-districts.

CT’s special education finance system isn’t working well for students, districts, or the state. The Special Education Predictable Cost Cooperative has the potential to create a better system.

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What key goals does the Co-op achieve?

• Protects Students by ensuring that adequate special education

resource remain available during financial uncertain times, while keeping decisions about and delivery of special education services local.

• Improves Predictability for districts and towns by allowing districts to

know what their special education expenses will be in the prior year, allowing for better budget planning.

• Increases Equity by ensuring that towns with more need receive more

state support for special education costs.

• Increases Transparency and Helps Ensure State IDEA Compliance by

making state support for special education more transparent and helps to ensure the state can meet its maintenance of support requirement under IDEA.

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How does the Co-op work?

• The Co-op is a special education finance system that allows the

state and local governments to share in special education costs.

• The Co-op aggregates special education costs together at the

state level to leverage the fact that, on a statewide basis, special education costs are predictable, even though they are frequently volatile at the district level.

• The state and local governments make contributions to the Co-
• p, and districts are reimbursed for 100% of their actual special

education costs.

• The State contributes to special education costs by re-allocating

the Excess Cost grant and special education portion of ECS to the Co-op.

• Local governments make a Community Contribution to the Co-
• p for each special education student who lives in their town.

APPENDIX

Challenges and potential support for different types of learning needs

Learning Need Potential Challenges Impacting Student’s Education Examples of Potential Support

Student from a low-income family

• Unstable housing situation (may move frequently or be

homeless)

• Food insecure or lack access to healthy foods
• Parents may be less able to dedicate time and

resources to education

• Exposure to traumatic or unsafe situations
• More likely to be absent from school
• May have limited language capability (by the age of

3, children from low-income households hear – on average – 30 million less words than those from affluent households)

• Reading interventionist
• Software to help build

vocabulary and develop language

• Social worker

English Learner student

• May be only English speaker in household
• Cultural differences
• Emigrated from possible violence/warfare
• Unfamiliar with US education system – or any

education system

• ESL/bilingual teacher
• Software to assist in

learning English

• Books and other materials

in first language Student with disabilities

• Each student’s learning needs will be unique and can

vary significant from student-to-student

• Students may have physical, learning, or social-

emotional changes

• Special education teacher
• Physical or occupational

therapist

• Adaptive technology

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Sources: Jenson, E. (2009). How Poverty Affects Behavior and Academic Performance. Teaching with Poverty in Mind. Alexandria, VA: Association for Supervision & Curriculum

• Development. Retrieved from http://www.ascd.org/publications/books/109074/chapters/How-Poverty-Affects-Behavior-and-Academic-Performance.aspx.

Hart, B. & Risley, T. R. (2003). The Early Catastrophe: The 30 Million Word Gap by Age 3. American Educator, 4-9. Retrieved from http://www.aft.org//sites/default/files/ periodicals/TheEarlyCatastrophe.pdf.

Does money matter?

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Shifting scholarly debate

Earlier studies:

• The Coleman Report (1966): Found no clear relationship between school funding and

student outcomes.

• Hanushek (2003): “…a wide range of analyses indicate that overall resource policies

have not led to discernible improvements in student performance.”

Recent studies:

• Jackson/Johnson/Perisco (Northwestern/Berkeley 2015): “For low-income students a 10

percent increase in per-pupil spending each year for all 12 years of public school is associated with 0.43 additional years of completed education, 9.5 percent higher earnings, and a 6.8 percentage-point reduction in the annual incidence of adult poverty.”

• Candelaria & Shores (Stanford 2015): “Seven years after reform, the highest poverty

quartile in a treated state experienced a 4 to 12 percent increase in per-pupil spending and a 5 to 8 percentage point increase in graduation rates.”

• Lafortune, Rothstein, and Schanzenbach (Berkeley 2016): “Using representative samples

from NAEP, we also find that [school finance] reforms cause gradual increases in the relative achievement of students in low-income school districts….” 50

Sources: Does money matter?

• Candelaria, C.A., & Shores, K.A. (2015). The Sensitivity of Causal Estimates from Court-
• rdered Finance Reform on Spending and Graduation Rates (working paper). Stanford
• University. Retrieved from https://cepa.stanford.edu/sites/default/files/

shores_candelaria_causal_estimate.pdf.

• Coleman, J., et. al. (1966). Equality of Educational Opportunity (OE-38001). Washington,

DC: National Center for Educational Statistics. Retrieved from http://files.eric.ed.gov/ fulltext/ED012275.pdf.

• Hanushek, E.A. (2003). The failure of input-based schooling policies. The Economic

Journal, 113, F64-F98. Retrieved from http://hanushek.stanford.edu/sites/default/files/ publications/Hanushek%202003%20EJ%20113%28485%29.pdf.

• Hyman, J. (2014). Does Money Matter in the Long Run? Effects of School Spending on

Educational Attainment (Doctoral dissertation). University of Michigan. Retrieved from http://www-personal.umich.edu/~jmhyman/Hyman_JMP.pdf.

• Jackson, C.K., & Johnson, R., Perisco, C. (2015). The Effects of School Spending on

Educational and Economic Outcomes: Evidence from School Finance Reforms (NBER Working Paper No. 20847). Cambridge, MA: The National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w20847.

• Lafortune, J., Rothstein, J., & Schanzenbach, D.W. (2016). School Finance Reform and the

Distribution of Student Achievement (NBER Working Paper No.22011). Cambridge, MA: The National Bureau of Economic Research. Retrieved from http://www.nber.org/ papers/w22011. 51

Illustrative example of how ECS is calculated

Norwalk Town Variables Amount State Median Weight Equalized Net Grand List $17,956,313,819 Equalized Net Grand List Per Capita $191,628 $133,647 0.9 Median Household Income $76,987 $70,331 0.1 Population 88,485 Formula Variables Foundation $11,525 Enrollment 11,409 Poverty Weight 0.3 % Poverty 50.4 Threshold 1.5 Calculations Need Students 5,752 Town Income Wealth 0.07 Town Property Wealth 0.86 Base Aid Ratio 0.09 Fully Funded ECS Grant $13,623,284

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Sources: Conn. Gen. Statutes ch. 172, § 10-262h (2013). State of Connecticut, Office of Policy and Management. (2017). Municipal Fiscal Indicators. Available from http://www.ct.gov/opm/lib/opm/igp/munfinsr/ fi_2011-15_edition_as_of_1-11-17.pdf.

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How is the Community Contribution calculated?

54

Important things to know about Community Contributions

• All communities will receive some state support for special

education services.

• All communities’ contributions will be lower than their actual

per pupil special education costs.

• To ensure fairness, Community Contributions will reflect each

LEA’s actual special education costs, so that each LEA’s Community Contribution is reflective of its own decision- making.

Special Education Community Contribution

Ini$al Base Community Contribu$on Margin-Adjusted Community Contribu5on Experience Adjustment Equity Adjustment Final Community Contribu$on (Expenditures are made and reimbursements given) Contribu5on Refund

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Final Community Contribution Calculation

• Community Contribution

is calculated on a per pupil basis to normalize district enrollment and spending.

• Final Community

Contribution is assessed at the municipal level.

• Contribution Refund is not

guaranteed Intermediate modifications

57

• The starting point for the Community Contribution for all LEAs

is the average cost per special education student from the prior year, adjusted to account for volatility.

Step 1: Adjusted Initial Base Community Contribution

58

• The Community Contribution is increased or decreased to

reflect each LEA’s spending decisions.

• This keeps the system fair, by making each LEA responsible for

its own choices and preventing a “tragedy of the commons” situation.

Step 2: Experience Adjustment

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Step 3: Conversion from LEA to Municipality

• The final community contribution is assessed at the municipal

level.

• The conversion from LEA to municipality is necessary because

special education expenditures are reported at the LEA level, but each town is responsible for the special education costs of all resident students.

• The total community contribution is the sum of the community

contributions for all resident students per town, no matter the LEA those students attend.

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• The Community Contribution is adjusted for each municipality

based on the need and wealth of the community.

• Higher need communities receive larger “discount.”

Step 4: Equity Adjustment

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• If more funding is collected than is needed to operate the

system, it is refunded to LEAs (like a tax refund).

• Contribution Refunds are determined based on each LEAs
• spending. LEAs spending less than the state average will be

eligible to receive a refund, which will be distributed proportionally.

• Refunds are credited directly to the next year’s Community

Contribution.

Contribution Refund

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• In order to ensure districts with decreasing per-pupil special

education costs do not experience an increase in their Community Contribution when the statewide costs increase, a smoothing factor is applied to the Community Contribution.

• If a district’s per-pupil costs increase or decrease, a

percentage factor of the difference in change is applied to the per-pupil contribution.

• This allows the Community Contribution to decrease when per-

pupil special education expenditures decrease.

• Essentially, this decreases the variability in Community

Contributions from year to year.

Smoothing Factor

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• A reserve system ensures appropriate funds are available in

years where actual special education costs exceed projected special education costs.

• At the beginning of each year, funds are added to the reserve.
• The reserve system is capped at a certain dollar amount, and

funds that exceed this cap are added to the contribution refund.

Reserve System