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Fall 2000 Equity News

Proposals for Change - Bill Vincent

SAGE Advice:  Serving Economically Disadvantaged Students - Doug Haselow

Special Education: Categorical Aids or Pupil Service Weighting - Doug Haselow

 

Proposals for Change

The kids are back at their desks, the legislators soon will return to the Capitol -- and the inequities our school systems continue. When the Wisconsin Supreme Court upheld the constitutionality of our school finance system in July, the basis for the court’s decision was simply that  “... the right to an equal opportunity for a sound basic education has not been shown to be violated by the present school finance system.”

The court did not measure our system by any financial standard and made no determination that the system was either “fair” or “equitable” as some defenders have claimed.  The court acknowledged the financial disparities among districts by saying  “...merely showing disparity of the financial resources among school districts is not enough in this state to prove a lack of equal opportunity for a sound basic education.”

So the definition of  “a sound basic education” is left to the legislature.  AEF representatives have met with State School Superintendent John Benson to discuss his role in more precisely defining that term, and he is considering appropriate administrative or political action in that regard.  He also is considering how his office will address complaints alleging the lack of an equal opportunity for a sound basic education.

For the next year, here's what we'll see:

  • The wide disparities in per pupil revenue and property tax burden will continue
  • School district revenue shortfalls will continue as QEO funding consumes all or almost all available funds
  • Special education incidence and costs will continue to rise more rapidly than inflation, often forcing cuts in other programs
  • Poverty will continue to be addressed only in some schools, and only in K-3
  • Public school property taxes will continue to pay for private school programs

The long-term outlook is pretty gloomy unless we achieve change.  Virtually every interest or advocacy group in and around public education recognizes these discouraging facts of life.  Many have proposed significant modifications of our school finance system that will address some of its most serious problems.

This issue of Equity News is devoted to the specific proposals for changes in our system.  The more important effort will be to convince the legislature to make the appropriate changes. 

Legislators and candidates are not getting a clear message that Wisconsin needs a fairer system of financing schools.  Many seem to have taken the attitude that no change is needed because the Supreme Court did not strike down our system.   And the concern that is most often expressed seems to be focused on revenue limits and the QEO as most districts struggle each year to maintain existing programs.  Revenue limits are a problem, but they are only a part of the larger problem of unequal and unfair funding of our schools.  AEF will provide the leadership, but it will take input and action from our members to make our school finance system fair for all kids and taxpayers. ¨

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SAGE Advice: 

Serving Economically Disadvantaged Students

The new standard requires that school districts with disproportionate numbers of economically disadvantaged students be taken into account in the state financing system.  In the last 15 years, the state has created programs that are generally intended to address low academic achievement commonly associated with economically disadvantaged students.

First, characteristics of children at risk of not graduating were defined and children were identified.  School districts were required to offer programs to serve these children, and now school districts are allowed to contract for those programs and services.   The state has provided 10% additional state aid to help pay for the additional costs of those programs.  The at-risk experience has led to a new alternative education program, which serves a small number of students in a few districts.

Subsequently, the P-5 (preschool through Grade 5) program was created to provide additional funds for poor, low-performing elementary schools and those with large differences in the academic performance among ethnic groups.  The P-5 program also only serves a small number of students in a few schools.

Even the settlement of the Milwaukee desegregation lawsuit provided for additional programs in Milwaukee “...to correct the academic deficiencies of educationally and economically disadvantaged students....”  While that program has been confined to Milwaukee, the budget appropriation has been significantly reduced.

Today, we have the SAGE (Scholastic Achievement Guarantee in Education) program, which provides up to $2,000 per pupil to reduce class size to 15 in Grades K-3 in schools or school districts with concentrations of poverty.   The program is being phased in to Grades 2 and 3 in existing SAGE schools, but is not yet provided in all eligible schools, cannot be provided in P-5 schools and does not serve economically disadvantaged students in grades 4-12.

It seems apparent that the cumulative effect of these programs does not meet the new standard.

A more effective way to meet the standard would be to address the needs of all economically disadvantaged students.  This could best be accomplished through replacement of the current narrowly focused programs with a weighted pupil count for all students eligible for free and reduced lunch.  P-5 and SAGE programs are successful -- but the funds should be used for the same purposes in all schools, for all children in poverty, with lower class size as the priority.

The pupil weighting would apply to both revenue limits and aid allocation.  It would grow with inflation in the same manner that revenue limits are now increased.  For example, a poverty child in a district with revenue limits of $7,000 per pupil would generate $8,400 with a 20% weighting factor.  One year later, a $200 increase in the revenue limit base would provide $7,200 per pupil and would yield $8,640 for every poverty child.

Regardless of the specific way in which Wisconsin would address poverty issues, it seems clear that a narrowly focused program will not meet the new equal educational opportunity standard.  Our system must treat all students in similar circumstances in a similar manner. ¨

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Special Education: Categorical Aids or Pupil Service Weighting

AEF Executive Director

Historically, Wisconsin has provided categorical aids to cover some of the cost of providing special education services, but the portion of costs covered by categorical aid has steadily declined. 

Even in the last legislative session, when unanticipated revenues exceeded hundreds of millions of dollars, the portion of costs covered by categorical aid was approximately maintained, but not increased. Here are two reasons. 

First, state administrations and legislatures tend to resist increases in line item appropriations that are not "sum sufficient."  When a sum certain appropriation is increased, it is only a temporary solution because legislators have to debate the funding and/or proration level during every budget period.  For example, state superintendent John Benson has requested an increase in categorical aid for 2001-02 to just maintain the current aid/cost proportion.  Even if his budget request would be granted for the next two years, we will have the same problem in the next budget cycle. Many remember how the state failed to maintain the overall proportion of school funding before the 2/3 commitment was enacted.

Second, there is a broad recognition that categorical aids which cover a portion of costs are disequalizing as a property wealthy district won’t need to levy as high a property tax rate to pay for the unaided costs.  As a result, many legislators who support greater equalization are not inclined to increase categorical aids.  While it should be considered as matter of fair treatment for poor districts, it is clear that some legislators do not share that view and support categorical aids simply because those aids favor wealthy districts.

A better and more permanent way to finance special education costs would be to create a weighted pupil count that reflects the cost of providing special education services.  Like categorical aid, a pupil weighting would provide additional funds to serve disabled children. 

The principal difference is that an appropriate weighting would provide a permanent source of funds that would increase with inflation. 

For example, in a district with $7,000 per pupil revenue limit, a 50% additional weighting for a moderate disability would provide $10,500 (50% more).  The amount provided through this weighting would increase with inflation just as revenue limits now increase.  Similarly, pupil weighting for limited English proficiency would also provide additional permanent funds.

Imagine a 63% weight for special education at the time categorical aids covered 63% of the cost.  Would the legislature have allowed the 63% weighting to slip to 35% as the categorical aid has?  Of course not, because a reduction in the pupil weighting effectively says that the children are worth less than they had been in the past.  By maintaining the weight at the prior year level, inflation in pupil costs is built into the funding for special education in the same manner that inflation is built into the revenue limits.

Weightings based on categories of disability have been criticized as incentives for labeling children in order to obtain additional funds.  To avoid that potential problem, any weighting system should be based on the services actually provided to the student, and the aid should not be paid until the year after the services have been provided.

The AEF legislative proposal includes a three-level pupil service weighting as a replacement for existing categorical aids for special education:

  • Mild=less than 21% of the day
  • Moderate=21% to 60% of the day
  • Severe=more than 60% of the day 

Many have called for a new, narrow state aid to cover the additional cost of serving disabled children whose individual condition requires their school district to allocate extraordinarily high amounts in order to provide the needed services.  Some have advocated a higher-level categorical aid for this purpose, but that approach retains the disadvantages of a categorical aid. AEF proposes that the state assume full responsibility for any per pupil cost in excess of 250% of the state average, just as it has assumed the cost of providing services to children at the Wisconsin School for the Visually Handicapped.¨

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