Search

This report documents a study that examined the current financial picture of public education in 2003. Data for the study were collected from 188 surveys of selected school superintendents in Indiana, Illinois, and Texas. The superintendents were asked how the financial condition of their state and their school districts compared to a few years previous. Following are some of the key findings from the surveys: Overall, 58.4 percent of the superintendents stated that the financial condition of their state was worse at the time they filled out the survey than it was a few years previous; an additional 41.1 percent stated that it was the worst they could recall in their career. The option chosen by the largest number of superintendents (75.7 percent) for reducing costs was to reduce staff by attrition, not layoffs. The second most-chosen option for reducing costs was to increase class size. When asked how optimistic they were that the current economic conditions would improve in the ensuing 2 years, 3.7 percent of the superintendents reported they were "very optimistic"; 21.7 percent said "somewhat optimistic"; 56.1 percent said "not very optimistic"; and 18. 5 percent said "not optimistic at all." (WFA)

This paper focuses on the administrative costs of vouchers programs. It considers the tasks that public and private agencies must undertake and estimates the administrative burdens and cash flow that local programs create. It assumes that all voucher programs, including those meant in part to reduce overcrowding, will be voluntary. The paper starts by identifying the administrative arrangements that must be made for any public voucher program and by outlining typical roles for state government, the local education agency, a special voucher program office, and individual private schools admitting voucher students. It also examines in detail some vital administrative functions that must be coordinated among these entities. The second section focuses on the person-power and financial demands that a voucher program is likely to impose on state government, the local education agency, the voucher program office, and private schools. The final section presents estimates of the probable gross and net annual dollar costs of voucher program administration as borne by state government and cooperating local school districts. All the cost estimates are approximate. (Author/WFA)

Investigations of the linkages between improved schools and local economic development are rare. This paper considers several models that introduce human capital as a potential source of economic growth in the rural South. Results from various econometric models indicate that across the South, county per capita income growth rates from 1970 to 2000 were affected by the initial stock of human capital (percentage of adults with at least some college). The human capital influences were entered in standard growth regressions that were modified to capture spatial economic structure at the county level, thus including spatial lags and spatial error adjustments. For all nonmetro counties in the South, a standard-deviation increase in human capital stock in 1970 increased the real per capita income growth rate by 4 percent for the period 1970-2000 and 8 percent for 1980-2000. Increases in the initial human capital stock had the greatest influence on income growth in service-based counties and the least influence in mining counties. (Contains 28 references and many statistical equations and data tables) (SV)

This report presents a fresh analysis of data from an earlier study (Brookings 2002) on the test scores of African American students in a small, targeted voucher program. This new analysis was undertaken in response to an unpublished paper by Krueger and Zhu (Princeton University) disputing some of the findings of the original study. In 1997 some 1,200 New York City public school students in grades K-4 received vouchers worth up to $1,400 annually to help pay the cost of private school through a program operated by the School Choice Scholarships Foundation. The vouchers were initially guaranteed for 3 years. Because vouchers were awarded randomly, the program was studied as a randomized field trial. Results of the original study showed students who were retested after 1, 2, and 3 years scored higher, on average, than their peers in public schools on the combined reading and math portions of the Iowa Tests of Basic Skills. The new analysis of the program yielded results consistent with the initial findings: Attendance at a private school had significantly positive effects on African American students' test scores but had no effects, positive or negative, on those of Hispanics or other ethnic groups. (Contains 52 endnotes and 4 tables.) (WFA)

This report highlights research that examined education finance data for the 1998-99 school year, the year prior to the introduction of finance reforms in New Hampshire, and the 1999-00 to 2001-02 school years, the 3 years following the introduction of reform. Following are some of the conclusions about New Hampshire's education finance reform. Reform has done little to alter the overall per-public expenditure patterns of New Hampshire communities. Because expenditure changes are not very responsive to the size of education grants, even with very large increases in state aid, the current education-funding system will not narrow per-pupil spending differences. Decreases in local property taxes since reform were greater in communities with higher median incomes than in communities with lower median household incomes. Reform has dramatically changed the price that communities pay for local education services. Neither increasing the level of state support nor making minor adjustments to the formula used to determine how state aid is distributed to each community will alter these results. These findings suggest that current reforms will not achieve key policy objectives and that education finance reform will continue to dominate the public policy agenda in New Hampshire. (Author/WFA)

The research reported in this document was undertaken to determine the relative costs of educating a child in a charter school and a traditional public school in Michigan. To assess the costs, the following research was done: a review of the laws that govern public schools in Michigan; a review of the statutes that govern the funding of public schools in Michigan; and three analyses to assess the relative costs of educating a child in a charter schools and a traditional public school. Following are some of the results of the analyses: (1) A review of the statutes indicated that charter schools are entitled by law to the same operational funding, or less, than the host school district, yet they receive no additional capital funding, establishing that charter schools cost taxpayers less than district schools; (2) charter schools receive $1,036 per student less, on average, than district schools; and (3) charter schools receive no capital funding, which accounts for the largest share of the disparity in funding between charter schools and traditional public schools. The report also contains findings from related research (literature reviews) of charter schools in Michigan. (Contains numerous tables.) (WFA)

The purposes of this paper were to report the results of an examination of differential entry into a publicly funded voucher program in Cleveland, Ohio, and to address other issues around the nature of the voucher population. Specifically, the study attempted to answer the following questions for the academic years 1997-98 through 2000-01: (1) Are there racial/ethnic differences between the applicant cohort and the population from which applicants derive? (2) Are there racial/ethnic differences between applicant subgroups? (3) Do the applicant subgroups differ in terms of family income? (4) Do the groups differ in terms of family size? and (5) Do the groups differ in terms of previous school of enrollment (public or private school). The results of the study showed that applicants to the voucher program were highly similar to the general student population in the district; the process by which vouchers are initially awarded to families is effective in focusing opportunities toward targeted families; and students who won but did not use vouchers were of lower income and more likely to be minority than those who won and used vouchers. (WFA)

This brief report describes funding structures for public schools in North Carolina. It is divided into three sections: state, local, and federal. Following are some highlights from the report. Overall, the state provides 70 percent of school funding, with most of the money designated for professional salaries. The state average per pupil expenditure at the time the report was prepared was $6,284. The lowest contribution made by a county at the time the report was prepared was $83; the highest was $3,684. The range for total per pupil expenditures on the local level at the time the report was prepared was $5,129 to $11,367. In 1999, 49 percent of federal funds were used for special populations, low-income children, the state's fund to meet the national education goals; 32 percent was used for food programs; and 19 percent for such things as teacher professional development, job-training programs, and class-size reduction. The report includes 3 graphs and 11 print and Web sources. (WFA)

This document contains the second year of the U.S. Department of Education's 2002-07 Strategic Plan. The plan outlines the strategies and actions the department will undertake to meet its goals, and it defines the measures and targets the department will use to determine success of the plan. Detailed are the six goals, along with their objectives, of the plan. The six goals are as follows: (1) create a culture of achievement; (2) improve student achievement; (3) develop safe schools and strong character; (4) transform education into an evidence-based field; (5) enhance the quality of and access to postsecondary and adult education; and (6) establish management excellence throughout the Department of Education. Also included are details on interim adjustments to the 2002-07 Strategic Plan; a glossary of abbreviations and acronyms; a brief bibliography; and the following appendices: "Budget-to-Objective Crosswalk"; "Action Step Crosswalk: 2003-2004"; "Information Quality Guidelines"; and "Overview of New Directions for Program Evaluation." (WFA)

The econometrics of higher education emerged from the development of human capital theory and efforts to estimate rates of return to education in the 1960s and 1970s. This paper surveys the various strands of the literature on the econometrics of higher education that have developed during the last 40 years and indicates how a collection of papers fits into this literature. It also discusses: the estimation of rates of return to higher education; determinants of college enrollment, college graduation, and choice of major; studies of the academic labor market; studies relating to models of university behavior; and studies relating to higher education as an industry and higher education governance. The paper stresses that the central econometric problem faced by higher education researchers who employ individual-level data is that of selection. Similarly, the central econometric problem faced by researchers who use market-level data is the difficulty of disentangling demand and supply shocks. Much of the challenge that empirical higher education researchers face is attempting to satisfactorily resolve these problems. (Contains 174 references.) (SM)

This study analyzed the economic benefits of an increase in the proportion of Australian students achieving a 12th-grade equivalent education. Earlier research examined the direct costs and benefits of a program that increased 12th grade equivalent education for the five-year cohort 2003-2007. This study built on that by incorporating the indirect costs and benefits of such a program and modeling an ongoing program to increase the proportion of students completing 12th grade equivalent education. The modeling used the MONASH macroeconomic model. Results indicated that the program will reduce GDP between 2004-14 (relative to business as usual) but increase it in the long run; the program will reduce real private consumption between 2004-11 (relative to business as usual) but increase it in the longer run; and the program will have a positive long term impact on economic welfare. An attachment presents "The Economy-Wide Benefits of an Increase in the Proportion of Students Achieving Year 12 Equivalent Education" (Peter B. Dixon and Maureen T. Rimmer). Two appendices include present value calculations and the MONASH model. (SM)

A policy research study examined the allocation of financial and human resources in 12 school districts that have shown improvements in student achievement over time. The study examined district-level patterns of resource allocation and the decision-making structures that guide spending, as well as barriers and challenges. Data were gathered from national data sets and from interviews, focus groups, and surveys of decision-making personnel in three districts in Arkansas, Louisiana, New Mexico, and Texas. Descriptions of the staffing and fiscal practices of the improvement districts, and comparisons of each district to groups of districts of similar size within their respective state were analyzed. The study found that the 12 improvement districts were able to make sustained improvements in student performance without having substantially more resources than comparable districts. The improvement districts spent available funds more efficiently than other districts by relying on data-driven allocation resources. Additionally, the improvement districts focused on recruitment and retention efforts, salary and incentive structures, and staff-support systems to ensure having a quality staff. Finally, the 12 districts sought to improve students' performance by focusing attention and resources on instructional activities. (WFA)

This document provides basic background on how public K-12 education is funded in the United States. It is intended to be a tool to help policymakers when creating an alignment between funding and accountability. This survey addresses briefly the following topics: how much public education costs; where the money comes from; how the money is spent; how states determine funding levels in public schools; how states account for the needs of school districts; how states account for the needs of a diverse student population; how building and capital expenses are funded; how charter schools are funded; how voucher programs are funded; the federal government's participation in school funding; and the role of the courts in education funding. (Contains 3 charts, 13 references in endnotes, and URLs for the Web sites of 7 information resources.) (WFA)

Little in the current literature reflects the views of those affected by the various proposals being advanced to improve the quality of teachers and teaching. This paper reports on a study that attempted to learn the reactions of teachers to some of the financial-incentive proposals being made to improve the quality of teachers and teaching. A focus group of eight classroom teachers from a suburban high school was convened to discuss some of the issues growing out of proposals to revise teacher compensation packages in order to redirect the dollars to improve student achievement. The focus group members responded to a series of questions (included in an appendix) related to financial incentives and salary-schedule issues. Some of the main ideas from the meeting are as follows: (1) No one individual inside or outside the school is responsible for student achievement; (2) the differing nature of student needs makes measuring student achievement difficult; (3) training and experience are well accepted as basic factors in salary schedules; and (4) there is no common agreement as to what effective teaching is. A followup interview with two teachers was also conducted. (The questions are included in an appendix.) (WFA)

This report summary presents several economic benefits that the state of Illinois receives from its 39 community college districts. The benefits are witnessed at the state, student, and taxpayer level and can be classified into four categories: contribution to local jobs, increased earning by graduates, widespread social benefits, and financial return to taxpayers. In total, the authors project that the community college districts supply $9.9 billion of the annual earnings in the state's economy. Specifically, the districts pay wages and salaries to faculty and staff and educate and train students who will enrich the workforce. From the student's perspective, having completed community college credits improves their future earning potential. For example, the authors estimate that for every full-time year that students attend Illinois community colleges, they will earn approximately $3,800 more per year once they start working. Taxpayers also indirectly benefit from the community college districts within the state. Higher education provided by these institutions translates into a decreased likelihood of tobacco or alcohol abuse on the part of the student and reduced crime, welfare, and unemployment. (JCC)

The Education Commission of the States conducted a national survey on workforce development in the community college. The research instrument was sent to the state agency responsible for oversight of the community colleges in each of the 50 states. Forty-five states responded. The five states that did not respond are Idaho, Hawaii, Maryland, Montana, and South Dakota. Findings include: (1) 21 states provided special funding to community colleges to train workers for high-demand occupations; (2) the type of funding varied, and ranged from under $1 million in some states to $45 million in California; (3) 18 states provided state funds, in addition to federal funds, to support occupational training of disadvantaged students by community colleges; (4) 32 states provided state funding to support customized training for employers; (5) at least eight states required matching funding from the employers served; (6) 20 states funded non-credit occupational training (apart from customized training for employers) at community colleges; (7) 17 states provided special funding to help community colleges purchase, maintain, or replace computers and other equipment for workforce training; and (8) 40 of the 45 respondents answered a question regarding challenges they faced in workforce training. Of these 40, 30 cited lack of funding as a major challenge. (Author/NB)

In 2002 the Supreme Court decided that tuition vouchers for private and religious schools do not violate the First Amendment's establishment clause. With "Zelman v. Simmons-Harris," the case in question, the Court put the school-choice debate back in the political arena, where it belongs, according to this position paper/policy brief. The brief postulates principles that policymakers must incorporate into any choice proposals in the wake of the "Zelman" decision. The brief points out that vouchers are only a funding mechanism, not an instructional change, and introduces two important principles: (1) Vouchers have no direct connection with teaching, curriculum, or other in-school factors that influence student learning; and (2) parents and the general public have a compelling interest in at least basic student learning. The paper goes on to present arguments in favor of accountable choice and concludes that the "Zelman" decision can serve either as another milestone in an unproductive debate over school choice or as a catalyst for rethinking choice and accountability in public education. (Contains 29 endnotes, many of which include references.) (WFA)

This paper discusses the allocation of resources to retention efforts, and whether community college administrators should utilize a cost/benefit rationale. The author intends to provide a conceptual framework within which a broad range of choices regarding retention rates might be better understood. The author quotes Victor Fuchs in support of his arguments. According to Fuchs, the romantic view of reality assumes that resources are unlimited in relation to human wants. The monotechnic view presumes that most problems have a technological aspect, and those trained in that technology should be allowed to find solutions to the problem. In contrast with the romantic and monotechnic view, economic rationality is concerned with balancing societal costs and benefits of the many demands made upon scarce resources. Here, the social optimum is the point at which the benefit from an additional increment of education equals the cost of the resources used to attain that increment. The paper also presents the Equi-marginal Principle, which suggests that the consumer makes choices that allow "the greatest bang for the buck." This principle should and can be applied to choices within the educational sector, according to the article. (NB)

This article analyzes the outcomes of the implementation of California's Proposition 98, the "Classroom Instructional Accountability and Improvement Act of 1988." The Act was meant to guarantee a minimum level of funding for the state's K-12 schools and community colleges. The latest data, however, reveal that Prop 98 has under-funded California community colleges by $2.7 billion over the last 10 years. With the passage of Proposition 13, local tax funding for K-12 schools dried up, so money intended for community colleges has been shifted to the K-12 area through a yearly legislative suspension of the code that requires that 10.93% of Prop 98 funding go to community colleges. This approach creates a combative relationship between the two school systems in the budget planning process. This report compares California's state funding of community colleges to that of other states: Maine's, at number one in the nation, spends $13,292 per FTE student, the national average is $6,300, and California, at number 41, spends $4,017 per FTE student. The state's community colleges operate at about 65% of the funding of California's K-12. The California State universities are funded at $10,822 per FTE student, while the University of California is funded at $25,554 per FTE student. Offers suggestions for solutions. (NB)

This report from the 91st session of the International Labor Organization (ILO) conference examines recent legislation, policies, and practices reflecting new approaches to learning and training. The document was intended to foster discussion regarding a revision of the ILO standard on human resources training and development. Chapter I examines economic and social benefits of learning, education, and training in production of goods and services and the goal of full employment. It reviews the use of education and training to enhance productivity and competitiveness in knowledge and skill-based economies. Chapter II gives an overview of five principles that underlie contemporary human resources development and training policies, laws, and practices. Chapter III defines basic education and training concepts and reviews recent basic education and initial training reform in developing and developed countries. Chapter IV examines policies, legal developments and practices aimed at encouraging learning and training opportunities for workers with a focus on the maintenance and improvement of an individual's employability. Chapter V provides examples of current and emerging priorities and practices in international cooperation in human resources development and training. The document contains concluding remarks; an extensive bibliography; a questionnaire regarding the need for, and content of the new standard; and three appendixes. (SLR)

The first of three papers from this symposium on cross-cultural human resource development (HRD), "Determinants of Supply of Technical Training Opportunities for Human Capital Development in Kenya" (Moses Waithanji Ngware, Fredrick Muyia Nafukho) reports findings from interviews of technical training institute department heads in Kenya who identified these factors about the supply of training places: number of courses offered; amount of fees paid; and departmental capacity. (The supply of training opportunities is a major HRD issue in developing countries.) The second paper, "Dancing with the Cherokee: Reflections on Learning from the 2001 AHRD Globalization Pre-Conference" (Theresa J. Kraemer, Darren C. Short), reports the design of and participants' accounts from a visit to the Cherokee Nation, including new insights on the importance of identity and culture and the role of HRD in educating organizations about cultural ethics and globalization. The final paper, "Training Expenditures and Practices: Findings from the Netherlands" (Jan N. Streumer, A.A.M. (Ida) Wognum, C.H.E. (Kitty) Kwakman, Beatrice I.J.M. van der Heijden, Simone van Zolingen), reports findings from a survey of Dutch HRD managers who answered questions about training activities engaged in by employees in the work place. (Informal learning-while-working activities and short length formal training sessions are most popular; it is difficult to assign an exact cost figure to training; large companies spend more on training than do small companies; and the training function is moving upwards in organization hierarchies.) All three papers contain bibliographies. (AJ)

This paper compares the development since the 1980s of privatization of education services in the U.S. and U.K. In both countries, education management organizations (EMOs) have become institutionalized to some degree, with policy-borrowing between the two countries and common ideological predisposition toward market solutions. Despite this history, privatization remains small-scale and not especially lucrative to those entering the market. In the U.K., the emphasis has been on compulsory competitive tendering and the Private Finance Initiative: public-sector structures to aid privatization within a governmental system. The result is a privatization at "glacial speed," with few opportunities for EMOs. In the U.S., it is the creation of capital markets and the rollout of charter schooling that have sustained privatization. The activities of companies such as Edison and TesseracT are considered. Capital market growth and charter schooling represent much more general alternatives to public provision. (Contains 59 references.) (Author)

This policy analysis presents the "new-school" finance, one that, in contrast to most discussions about funding that have concentrated on spending patterns only, asks how resources are used within schools and classrooms, and whether they are used in ways that can enhance educational outcomes. The analysis, directed toward policymakers and educators in California, reviews a variety of literatures from different areas of education to clarify the implications of this new-school perspective for policymakers, administrators, and researchers. The first section details the political and organizational features of schools that lead to resources being spent with no potential effects on outcome. The second section reviews literature that reports on efforts to move beyond discussions of spending to more detailed analyses of resource use, including educational production functions, school-effectiveness research, and identifying effective teaching conditions. The next three sections detail the implications of the research for researchers, educators, administrators, and policymakers. The analysis concludes that without the kind of political changes necessary for the new-school finance to emerge, spending for education will keep escalating without much improvement to show for it. (Contains 2 tables, 29 endnotes, and 121 references.) (WFA)

In this report, the Canadian Community College Association (CCCA) offers its rationale for urging the government of Canada to increase transfer payments to the provinces in support of postsecondary education by $2 billion per annum, as well as making an additional increase in transfer payments that would contribute to the future expansion of postsecondary capacity in Canada. The findings of a recent study made by the federal Labour Department indicates that some form of postsecondary training is required for 72% of the 1.3 million new jobs expected to be created in the Canadian economy between 1999 and 2004. Only 60% of jobs in 1998 required postsecondary training. The CCCA's submission to the Pre-Budget Consultations addresses four major priorities facing postsecondary institutions: (1) investing in colleges and institutes; (2) investing in college and institute infrastructure; (3) barriers to postsecondary education: student debt/financial aid; and (4) positioning Canada's colleges and institutes on the national research agenda. In addition to the above-mentioned transfer payments, ACCC recommends that the federal government raise the Canada Study Loans Program in-study exemption from scholarships, fellowships, and bursaries; convert one-half of the loan contracted under the Canada Student Loan Program to a grant upon graduation; and undertake a major pan-Canadian analysis of the causes of loan default and high student debt. (NB)

This review assesses the potential impact of large-scale voucher programs, drawing on empirical literature in economics, education, and sociology. First, it describes the intellectual history and practice of vouchers. Second, it delineates an economic framework for understanding the effects that a voucher plan could have on schools and students. This discussion yields three research questions: (1) Are private schools more efficient than public schools? (2) Does the increasingly competitive schooling market promoted by vouchers cause public schools to become more efficient? and (3) Do vouchers result in increased student sorting across public and private schools--perhaps increasing segregation by socioeconomic status--and what does sorting portend for student outcomes? Third, the review provides a general description of research methods that have been utilized to answer these questions and some pitfalls in their application. Fourth, it assesses the empirical research in light of the three research questions. Finally, the review summarizes the main findings, gauges whether firm conclusions can be drawn about the potential of voucher programs, and suggests some new directions for research. It concludes that empirical evidence is not sufficiently compelling to justify either strong advocacy or opposition to large-scale voucher programs. (Contains 148 references.) (Author)

In these times of reforming public education, considerable debate is being given to alternative schooling options. Many policymakers view school choice as a means of increasing parental influence of educational services and of reducing the control of government, professional administrators, and educators. These alternative schooling options have far-reaching impact beyond just the basis of satisfaction of participants. The impact of these school options must be based on what happens to the total public-school system, including how they change public-school enrollment patterns and what impact this may have on the fiscal needs of the public schools. Many state legislatures have enacted legislation that enables parents' choices of schooling for their children without consideration of the impact that these alternatives may have for the existing school-finance structure. These actions have occurred most notably in the passage and revision of legislation dealing with public-school finance, charter schools, home schools, choice enrollment, and vouchers. This paper examines some implications that state finance policy may have on the efforts to reform the traditional public-school system and to give greater freedom to alternative schooling options. (Author)

School choice, as one avenue toward educational reform, must be placed in context, according to this brief policy analysis. Prepared mainly for policymakers in California and stressing implications for public education in California, the report briefly discusses five samples of school choice: (1) magnet schools; (2) charter schools; (3) open enrollment; (4) voucher experiments; and (5) tax credits for private-school enrollment. The report describes how these choice mechanisms are intended to work and what is known about their actual effects on students, parents, and local educators. One key finding is that the claims made by advocates of choice programs far exceed the hard evidence required to judge actual results. The report also touches on accountability as a reform strategy and urges policymakers and local interest groups to consider accountability reforms alongside the desire to spawn more diverse forms of schooling. (WFA)

This document presents five papers, each describing different experiences in the introduction, promotion and implementation of innovative adult training approaches aimed at achieving more flexibility in skill development. An introduction (Anatoli Tchaban) presents background information and a synthesis of the studies covering definitions, concepts and approaches, government policies and institutional frameworks, major issues discussed, and a listing of appropriate strategies to adopt. The following papers are included: "Improving the Relevance of Vocational Training and Delivery Approaches: Recent Developments in Australia's Vocational Education and Training System" (Roland McMillan); "Open and Flexible Learning: Experience in the United Kingdom and in the Moscow Region of the Russian Federation" (John Twining); "Open System for Individualized Training: A French Training Scheme for Adults (Cyrille Salort); "More Flexibility through Modules: Scotland's Vocational Training Reform" (Rob van Krieken); and "Quick Start: Company Specific/Job Specific Training Programmes in the United States" (Clarence Burdette). The first two papers contain extensive bibliographies and the fourth has an appendix describing a vocational certification program in the travel and tourism area. (SLR)