MCLA School Finance and Business Administration ADMIN 616 & 617 PPT 1

1. MCLASchool Finance and Business AdministrationADMIN 616 & 617PPT 1 “Education is really not a cost; more accurately, it is an investment in human capital.” (Burrup, Brimley, & Garfield, 1999)

2. MCLASchool Finance and Business AdministrationADMIN 616 & 617 Dr. Sheila Tebbano Dates and Times: Sept. 23 - 24, Oct. 21 – 22, Dec. 2 -3 Saturdays 8:00 am – 4:30 pm, (1/2 hr. lunch) Sundays 8:30 am – 2:30 pm (no lunch)

4. School Finance Scenario #1 • Name • School District, Position and Job Responsibilities • Administrative Aspirations and where you are in the process of certification • What is the approximate cost of your position and your department/class for your district?

5. My contact information • mtebban1@nycap.rr.com • (518)782-0511 (home) • Web Site: www.stebbano.com “MCLA Courses” link to finance class

6. Grading Participation in class discussions and attendance are critical to your success in this course. It is expected that all students will prepare for class and complete all assignments. • Attendance is mandatory! Please withdraw if you are unable to attend all six classes. • Class Participation - 25% • Group Work – 20% • Written Assignments and Homework Projects – 30% • Final Project – 25%

7. Syllabus This course will provide a balance between the theory and practice of school finance. …time will be spent on preparing students to skillfully examine the values, policy issues, practical problems, and particular terminology associated with school finance. The goal is to assist future school administrators with the skills necessary to accomplish the following tasks: 1. Engage in educated problem-solving regarding resource allocation questions at the school site and school district levels,2. Present important financial issues to staff members, parents, and members of the public, and3. Participate in school, district, and state level policy discussions regarding school finance and its educational consequences

8. Course Assignments • Read & Synthesize: • Assorted handouts, web assignments , and the textbook http://www.stebbano.com • Detailed interview with a School Business Official in your district, building administrator and a teacher. Paper due on October weekend – printed copy • Create a report of 6-8 web links on a school finance issue with a short paragraph describing the relevance of the web site Due Nov. 11th, via email, as a Word document to mtebban1@nycap.rr.com • Grant Writing Submission and PowerPoint Presentation, due December weekend. • Pre-Practicum assignment also due December 10th

9. School Finance Scenario #2

10. Campaign for Fiscal Equity • http://www.cfequity.org/

11. Basic Precepts of School Finance • Education is not a cost…it is an investment in human capital. • Public sector operations in an economy derive funding from financial resources. A system of diverting funds from the private sector to the public sector must exist.

12. Basic Precepts of School Finance • Education is a producer of goods, for it provides the economic ability (money) to satisfy wants for other goods and services. • Purpose of education in a society is to increase the ability of the recipient to engage in some useful occupation or profession and thus to produce other goods and services.

13. Basic Precepts of School Finance • Equity vs. Equality • From Equity to Adequacy, Policy Brief • Political reality of dealing with school aid and finances • No Child Left Behind, Goals 2000, State Standards, NYS Regents Exams, MCAS Exams, etc • Testing for success or political gambit?

14. US Census DataAnnual Survey of Local Government Finances http://www.census.gov/govs/school/01fullreport.pdf

15. Discussion Topic • What is the average teacher salary in your district and how does it compare to state and national averages? • What does this figure tell you about the district?

16. Group Project: Article

18. History of School Finance • “Education” left out of US Constitution? • 1) 13 colonies already established patterns of school organization • 2) Other needs of the colonies were more important • 3) Forefathers assumed controversy and avoided the subject. (ie. Slavery) • 4) avoid endowing the federal government with powers that might overbalance the powers of the state.

19. History of School Finance • US Constitution, X Amendment: • “…the powers not delegated to the US by the constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” • Thus, education has been and continues to be the function of the state.

20. History of School Finance • 50 states and 50 fumbling stories of how to support education. • 18th-19th Century: • School operations supported by non-monetary services, school patrons • Fuel, custodial services, room and board for the school “marm”, services in place of salary. • Land Grants

21. History of School FinanceDevelopmental Stages of School Finance Theory • Period 1: Emphasis on Local Responsibility w/ no state support • Colonies: rate bills or tuition (European influence) • Massachusetts and Connecticut first states to develop a system of property tax to support schools • 18th-19th Century: property taxes used throughout states and territories

22. History of School FinanceDevelopmental Stages of School Finance Theory • Period 1 continues: • Early 20th Century rural communities and lack of taxable wealth. State support needed. • 1930’s: hopelessness of financing education by complete reliance on local property taxes.

23. History of School FinanceDevelopmental Stages of School Finance Theory • Period 2: Early Grants and Allocations 1930-40’s • Emerging responsibility of the state • Flat grants, non-equalizing state allocations to schools and districts • Education was the financial responsibility of the State (State $ + local $) • Using attendance days in determining state $ would create a more uniform school year. • Consideration of proportional aid.

24. History of School FinanceDevelopmental Stages of School Finance Theory • Period 3: Strayer-Haig “foundation” program 1940’s – 1960’s • Each district would levy a local tax that was required in the richest district of the state to provide a foundation program. The rich district would receive no state funds; other districts would receive state funds necessary to provide the foundation program. • Beginning of state aid formulas!

25. History of School FinanceDevelopmental Stages of School Finance Theory • Period 3: Strayer-Haig “foundation” program • Foundation program ensures equality of educational programs to a point • Local districts use of discretionary funding to improve upon the educational program • Emphasis on local initiative and efficiency • Uniform property assessment required • Foundation program = minimum program requirements

26. History of School FinanceDevelopmental Stages of School Finance Theory • Period 4: Refinement of Foundation Concept 1950’s – 60’s • $ to be distributed based on school population and/or average daily attendance • Fiscal independence of the district • Change state property tax to local property tax causing many problems • Depression created limits to local property taxes

27. History of School FinanceDevelopmental Stages of School Finance Theory • Period 5: Emerging power of equalization 1960-70’s • Foundation program at state and local expense for all districts encouraging incentives for a better educational program. • Open end or shared cost equalization plan guarantees a foundation program with the % being paid by each district and state.

28. History of School FinanceDevelopmental Stages of School Finance Theory • Period 5 • % state funds for poor districts would be high • % of state funds for rich districts low. • State partnership throughout the complete finance program, local control of educational issues guarantees a quality education for each school. • Results: many law suits!!!!!!!!!!!!!!

29. History of School Finance • Manufacturing based declined in the 70’s • Overseas markets have increased • 1984 – A Nation at Risk • Perpetuated a bottom up planning method but not data driven • Beginning of state testing and state take-overs

30. History of School FinanceDevelopmental Stages of School Finance Theory • Period 6 – 1990’s - present • Campaign for Fiscal Equity • New period of determining state aid? • Where’s the money? • Special programs, mandates, etc

31. continued • Late 80’s – 1992 economy slowed down • Hospital crisis • Clinton election – “It’s the economy, stupid.” • Increase in defeat of school budgets

32. Decade of the 90’s • Period of economic growth • Demands on schools increase (accountability) • Testing and take-overs continued to accelerate • School choice • Charter school movement – few schools

33. 21st Century • 1000’s of Charter Schools • Is school choice really a call for services? • No Child Left Behind • Economic down-turn • Unemployment increasing, raises being cut • ENRON, Martha Stewart

34. Sources of Conflict • Tenure • Vacations • Work Day • Benefits • Salaries • Other ideas??

35. Fiscal Policy Institute • http://www.fiscalpolicy.org/FPIBudgetBriefing2005.pdf Balancing New York State’s 2005 –2006 Budget in An Economically Sensible Manner – January 05

36. National Center for Educational Statistics The Education Finance Statistics Center located at http://nces.ed.gov/edfin/ is a clearinghouse of information related to the financing of education.  The site contains links to Frequently Asked Questions (arranged by topics such as Technology, Title I, Elementary and Secondary, Federal Support, etc.)  You can also link to information about free government publications, online statistical charts and graphs, and a variety of other education-related sites.   You can even download a copy of The Public School Accounting Handbook and search for information by entering the name of any school district. 

37. States ranked by percentage of public education revenues received from federal sources:School year 2001-2002

38. Percent distribution of current expenditures for instruction for public elementary and secondary education, by expenditure object:School year 2001-2002

39. Public school district expenditures per student (in constant 2000-01 dollars), by location: 1991-92, 1992-93 and 1994-95 to 2000-01

40. Annual expenditures per student in relation to GDP per capita for elementary and secondary education in selected OECD countries: 2000

41. Annual total expenditures as a percentage of GDP, by GDP per capita in selected OECD countries: 2000

42. Revenues per student for public school districts according to the percentage of students in the school district below poverty level, by source of revenues: 1999-2000

43. Indicators of public effort to fund elementary and secondary education: Selected years 1950-99

44. Percentage distribution of total revenues for public elementary and secondary schools, by region and revenue source: 1989-90 to 1998-99

45. State Report Cards • http://www.edweek.org/ew/qc/2005/tables/17equity-t1.html Compare States • http://www.edweek.org/ew/qc/2005/state_compare.html

46. Understanding School Finance • How does finance affect public schools? • Property tax system of finance • Adversarial system at the state level Pits classes and ages of people against each other • Federal Government contribution to local school districts • Has the contribution changed over the last 30 years? • How has NCLB changed federal contribution?

47. Computer Lab Exercise http://nces.ed.gov/edfin/search/search_intro.asp • Budget: • Federal Aid • State Aid • Local Taxes

48. Web Searching Tools Four Nets for Better Searching http://webquest.sdsu.edu/searching/fournets.htm

49. October Assignment • Interview your school business official and a teacher or non-business administrator.

50. October Assignment • Interview the person who manages the finances for your district - your Superintendent, School Business Administrator, Treasurer, etc. Then interview a teacher or other non-business administrator. • The interview must include but should not be limited to the questions on the assignment sheet. • Synthesize the responses of the interviews and summarize them in a 4 page, typed, double spaced report. Due October weekend.