Friday, August 30, 2013

Finance: Week One Posts to Blog


History 
Since I am not from Texas and do not currently work in Texas, all of the background information that the lecture presented was new for me.  I thought it was interesting to hear, “Everyone taking this course is familiar with the current distinction of Chapter 41 school districts and Chapter 42 school districts”, considering I did not have the faintest idea.   I am sure I will soon have a greater understanding and appreciation for the differences between the two States.

As I read over the resources provided and listened to the lecture, I selected the following events as my top three:
1)  Texas Declaration of Independence from Mexico in 1836
2)  The New Texas Constitution of 1876
3)   The Gulmer-Aiken Committee and Laws

When Texas declared its independence from Mexico in 1836, it was based upon the fact that no system of public education had been established.  I think this is a significant foundational piece.  This structure was important enough to those living there at the time to actually pull away from their current affiliations.  I am sure this was risky business.  You would not think the Mexican government would want to lose Texas.    Another reason this resonated with me was the fact that residents living there at the time were not thinking only of themselves.  They recognized that education impacted all citizens.  A government looking out for the good of all is a significant first step.

The second event on my list of important historical events was the adoption of a new Texas constitution in 1876.  This document established the Permanent and Available School Fund.  The document also contained important language that solidified the government’s belief the a public education was crucial to a democracy.  This assertion was backed up by a statement that supported the idea that provisions should be made to maintain  a public school system.  To me, understanding, on a wide-spread basis, that it is the exchange of information, the development of an informed public that keeps the rights and liberties of our people intact. This is why I find this event significant.

The last event of note is the establishment of the Gilmer-Aiken Committee.  Because of this committee’s work, laws followed.  These laws had impact on how schools were funded and how they operated.  For example, teacher salaries were increased, the school year was formalized, and structure was provided as to how the State Board of Education and Commissioner of Education operated.  The result, although short lived, was an attempt to adequately fund public education.

One of the things I learned within just the first few minutes of this finance course, it that although all state constitutions contain some sort of clause designed to establish an education system, Indiana and Texas have different methods to calculate and distribute funding to schools.  While I will need to have an understanding of the Texas financial structure, I will also need to conduct my own study of Indiana history and current practice.  It is really quite eye opening to compare the two systems.

State Formula

The three issues impacting the state formula I will discuss are:
1)     The number of adjustments
2)    Tier 1 Allotments
3)    Allotments for Special Purposes

The first issue I would bring forward, as a newcomer to Texas finance, is the number of adjustments, special adjustments, and adjustments for specific purposes.  Comments from the lecture support this observation.  Dr. Nicks had covered the basic allotments and special allotments and made the comment, “I bet you are thinking that we have now covered all variables in determining our state funding.  You’d be wrong.”  It is really mind boggling to think of the layer, upon layer of considerations that are needed to determine a school/district’s funding. 

The next issue would be Tier 1 adjustments, weights, and allotments.   It looks to me like adjustments are made based on the size of your district.  It was interesting to me to see there was an adjustment for small districts and mid-size districts.  I wonder why there is no provision for a large district.  As I listened and read through the materials many of the terms and references were unfamiliar to me.  I had to look up what a scarcity adjustment would entail. From reading state statutes, it has to do with districts having fewer than 130 students in average daily attendance for K-12.  There were also rules in this particular section about distances from the next nearest high school district.  This is really an intricate system of funding determination.   On the positive side, it looks like there are provisions made to keep a district from losing funding too rapidly.  It looks like the loss is limited if property values decline or a district experiences a rapid decrease in enrollment.  In Indiana, this has happened due to the sudden closing of major industrial employers.  One day they are there, the next day closed.  This means families must look for employment and schools in other areas resulting in a dramatic decrease in enrollment for some districts.  I am not sure that such safeguards are in place here.  I will have to investigate to learn more.

The last issue is allotments for special purposes.  I looked up all of the allotments for specific purposes in the statutes to learn more about each one and found the following individual item of particular interest.   Districts are entitled to an annual allotment for each student in average daily attendance in grades 9-12.  It is called the High School Allotment.   It looks to me like these students would be accounted for in the basic allotment.  I tried to understand why another allotment might be needed.  In Indiana, we have a per pupil allotment.  We take average daily attendance counts to determine this twice per year so this practice is very unfamiliar.  Reading further about this High School Allotment, I learned that a district’s rating as a Chapter 41 or Chapter 42 may limit access to some funding sources.  Even if this is the case, is would appear that districts otherwise ineligible for state aid may be entitled to receive allotments in this section.  While this does not fully explain this high school allotment, it helps.

The overall issue I faced in reviewing the lecture and materials for this topic can be summed up in one word, confusion.  I found it very difficult to follow the process.  I am sure as I read more and we move through this course I will begin to see how all of these pieces connect and result in the final distributions of funds.  It will be a challenge.

Equity, Equality, and Adequacy

Define and provide two examples of each of these concepts in school finance:
Equality:  Every student has the same access to the same type of educational programs. Equality provides equal funds for educational programs that benefit all students and enables a district to meet state accreditation standards.
Examples:  Math, Science, Language Arts

Equity:  The system is fair and responds to each individual’s needs. Equity funds are provided to meet the individual needs of students.
Examples:  Special Education, High Ability, English Language Learner Services, Compensatory funds for students who are economically disadvantaged

Adequacy:  The school district receives financial support sufficient enough to provide educational programs that create success for all students. 
Examples:  Teacher Salaries, Textbook costs

These three aspects of funding are evident in Indiana, as well as Texas.  In the additional reading I’ve been doing for this course, I have found good information in briefs through the Center for Evaluation and Education Policy and other such scholarly papers written on these topics.  The funding formulas and procedures have been challenging to understand.  I felt like these were topics I could relate to in the work I currently do for our district.

District Plan Comparison

It seems I always start my comments making note that I am not from Texas, well, this entry is no different.

In looking over the Austin Independent School District Improvement Plan (AISD), I found very few similarities to the plans submitted in Indiana.  The first and greatest difference is the District Plan itself.   Each of our schools individually develops and submits school improvement plans.  These plans are focused strictly on academic targets.  I am not sure how directly any type of goal driven budgeting ties to our school improvement plans.  Our improvement plans focus on goals, benchmarks, strategies, data collection and the analysis of each. There is not a budget feature, so to speak, that comes directly into play.    

For our district plan, our school system participates in North Central Accreditation or AdvancEd.  All of the individual school plans feed into the district's accreditation.  Our systems are rated through the use of a rubric against a specific set of standards and criteria.

The AISD Improvement Plan identified a District Advisory Council.  In Indiana, we have school improvement teams that would be comparable.  I tried visiting some of the links listed in the plan to view the various plans but did not have much luck finding an active site.  The next pages appear to be minutes from meetings held throughout the school year.  A similarity between the Texas Council and Indiana Teams can be found in some of the documentation methods to verify input from stakeholders.  The attendance sheets and the minutes would be vital pieces of evidence to prove compliance.  

Many of AISD minutes reference budgets or budget updates.  This is not a component that is prevalent in the school improvement work I am accustomed to in Indiana.  I think it would be extremely helpful and would appear to a glaring omission in our process.  These two structures should not be dealt with in isolation.  

I believe I located a goal in Appendix B related to improving graduation rates for cohorts on Title 1 Campuses.  As I studied Appendix A, I tried to make the connection from the funding sources listed to the goal.  I could identify, under Compensatory Education, the following items directly related to meeting the goal:
1)  drop out recovery programs,
2)  alternative high schools,
3)  summer services,
4)  secondary transition programs,
5)  child care programs,
6)  various reading initiatives.  

The external grant/federal funds listings would all play a role in supporting an increase in student graduation rates. 

Through the comparison of these two plans, I can see the vast differences in strategies employed on a State by State basis.  I cannot comment, at the moment, on which process if more efficient or produces higher achievement.