Alternative #1

1. Alternative #1 Maintain current funding structrure current

2. Virginia School Funding is Complex • Virginia uses a funding formula to fund the operations of the schools • The burden is shared by the locality and the state using a formula to determine shares • The idea is to spread out the burden of funding over a larger population to raise the “floor” level of services for all students in the Commonwealth

3. The Appropriation Act • Details Virginia’s plan for funding the state’s share of public education • Direct Aid • Incentive Programs • Categorical Programs • Direct Grants (Harris 2002)

4. Fiscal Capacity • Some localities have a greater ability to fund education than others • This ability or lack of ability is called fiscal capacity

5. Composite Index • Virginia has a sound formula for determining a locality’s ability to fund education • That formula is called the composite index

6. Composite Index is a: • Indicates the local ability-to-pay • The measure used to determine the state and local shares of education costs • Based on local sources of revenue • Sales Tax • Income Tax • Property Tax (VDOE)

7. Composite Index • The composite index is computed to have a theoretical range of 0 to 1.0 0.0 1.0 Extreme Extreme Poverty Wealth

8. The Appropriation Act • Sets a composite index of .8000 as the maximum index that will be used to compute local shares • This guarantees a minimum state contribution of 20 percent in those localities with high fiscal capacity.

9. Composite Index

10. Constitution of Virginia, Article I That free government rests, as does all progress, upon the broadest diffusion of knowledge, and that the Commonwealth should avail itself of those talents which nature has sown so liberally among its people by assuring the opportunity for their fullest development by an effective system of education throughout the Commonwealth. Thomas Jefferson

11. Composite Index • A composite index of 0 would indicate that the locality has virtually no ability to pay and that the floor of education services would be carried almost entirely by the Commonwealth (ASCD, 2001)

12. Composite Index • A composite index of 1.0 would indicate a locality has the ability to fund the “floor of education services” without any financial assistance from the Commonwealth (ASCD 2001)

13. Composite Index • A composite index of .5 would indicate a mixed level of fiscal capacity and the cost of delivering the “floor of education services” would be split approximately 50/50 between the Commonwealth and the locality (ASCD 2001)

14. Effort • Capacity is one issue and effort is another • The resources that a locality puts into education is called local effort

15. Effort Capacity • Effort is independent of capacity • A locality can have high capacity to fund programs, but it may not put money into those programs

16. Capacity and Effort in Virginia • Virginia ranks 8th in wealth as measured by per capita income but ranks 37th in state support for public education. -NEA Research Services 2003-04

17. How is the “Floor of Services” Established? • Virginia’s General Assembly examines both capacity and effort in determining funding. • The Standards of Quality (SOQ) provide the basis for funding educational programs and services In Virginia • In 1971, citizens of Virginia approved through a referendum to adopt a revision of Article VII of the State Constitution calling for high quality public schools maintained through the SOQs.

18. Standards of Quality • SOQ are “rebenchmarked” every two years • Prescribed by statute and include basic aid, special education, vocational education, remedial education, gifted education, and related fringe benefits for each of these programs • Includes • Statewide student enrollment • Staffing ratios for teachers and other funded positions • Salaries of teachers and other funded positions

19. How Does the Formula Work? • Each of the 136 school divisions in Virginia are treated as a unit of measurement • Each school division has equal weight, regardless of size, capacity, or effort • The Standards of Quality for each division are funded according to the locality’s composite index

20. The Positive Aspects of Current Education Funding in Virginia • Takes into consideration the wealth of localities • Includes funding for positions in districts according the population of students • The guiding premise is to spread the burden of funding education over a larger population to raise the level of services for all students in the Commonwealth

21. The Positive Aspects of Current Education Funding in Virginia • Funding is provided for • Construction and facilities maintenance costs • Technology Costs • Special Education Costs

22. The Negative Aspects of Current Education Funding in Virginia • The SOQ do not fund salaries appropriately • Each of the 136 school divisions in Virginia are treated as a unit of measurement • Each school division has equal weight regardless of size, capacity, or effort • When determining average salaries, Martinsville has the same weight as Fairfax County because of use of linear estimator model

23. Example $95,000/2 = $47,500 2 school divisions • Fairfax County: Average Salary • 10 teachers (using EQUALIZER formula) • @ $61,000/year $61,000 • Total = $610,000 +$34,000 • Martinsville : $95,000 • 1 teacher • @$34,000 • Total = $34,000 (VEA 2008)

24. True Average $644,000/11 teachers = $58,545.45 Average Salaries • Fairfax County: Average Salary • 10 teachers (using mean/average formula) • @ $61,000/year $610,000 • Total = $610,000 +$34,000 • Martinsville: $644,000/11 • 1 teacher • @$34,000 • Total = $34,000 (VEA 2008)

25. Estimations • Linear Estimator = $47,500 • True Average = $58,545.45 • A difference of over $11,000 • The linear estimator model calculates a lower salary than true average. • This results in severe underfunding to localities which must be made up by local effort

26. AND… Salaries are funded on the composite index

27. Positions in Schools • Virginia funds a basic number or ratio of professional positions for each 1,000 students in the school division. • Example: 51 professional positions per 1000 students

28. Professional Positions • To these funded positions six categorical positions are added • Special education • Vocational education When you add in other JLARC funded consideration, there are an average of 63 funded positions per 1,000 students (ASCD 2001)

29. Basic Aid Formula • Formula applied to calculate costs for the Basic Aid program • Comprise the largest share of SOQ costs • Instructional personnel and materials (Harris 2002)

30. The Reality • This number does not just include ONLY regular classroom teaching positions • Not even the poorest locality in Virginia staffs its schools at that level • The average number of professional positions per 1,000 students in Virginia is 86.46 • The difference in the number of positions must be funded locally (VEA 2008)

31. Funded Professional Positions in Virginia (VEA 2008)

32. The Facts • Virginia funds fewer positions than are needed by school divisions by an average of 23 positions per 1,000 students • The positions that are funded are funded on a salary level that is artificially low due to the linear estimator model (ASCD 2001)

33. The Cost to Localities • 23 professional positions funded entirely with local dollars: • $47,500 x 23 = $1,092,500 • On Average, $1,092,500 for every 1,000 students is funded entirely with local dollars (VEA 2008)

34. Virginia Does Provide Other Funding • Construction and facilities maintenance costs • Technology Costs • Special Education Costs BUT…these are funded inadequately as well