Educational Economics – Marguerite Roza

In one district studied for this book, the school board was determined to increase funding for middle schools, which it thought received less money than other schools. As CRPE researchers discovered, middle schools were already receiving more money per pupil than elementary and high schools, but the district did not know it. Another district proposed closing its small schools thinking they were more expensive, when in fact some were not. Districts that do create individual school budgets are taking steps toward tracking a portion of their spending by school.

In these places, the district then totals up the number of full-time-equivalent staff positions and converts them into dollars using districtwide average salaries for each type of staff. This approach has three major problems: the budgets fail to include the impact of central budget spending, they rely on average costs rather than actual costs, and they aren’t stated in terms that are meaningful relative to a school’s student population.

The first glaring problem is that where districts are computing school-based spending, these figures do not provide a complete picture of what is spent on each school. On average, school budget reports make up only 45 to 62 percent of a district’s operating budget (Chambers 1999; Krop, Carroll, and Ross 1995).

The remaining funds are in central budgets, most of which are reported and managed centrally and include, for example, programs for gifted students, teacher professional development, specialists, and the like. While some of this spending does not directly affect students (e.g., debt financing, Office of the General Counsel, and human resources), other spending represents supplemental funds or services that schools receive above and beyond those reported in the school budgets.

In many cases, central spending ends up benefiting select schools more than others (e.g., special program staff, focused professional development, roaming specialists, truancy programs).

Where Do $chool Funds Go? Also of interest from the Urban Institute Press: Saving America’s High Schools, edited by Becky A. Smerdon and Kathryn M. Borman Good Schools in Poor Neighborhoods: Defying Demographics, Achieving Success, by Beatriz Chu Clewell and Patricia B. Campbell with Lesley Perlman Examining Comprehensive School Reform, edited by Daniel K. Aladjem and Kathryn M. Borman Where Do $chool Funds Go? Marguerite Roza BOARD OF TRUSTEES Joel L. Fleishman, Chairman Robert M. Solow, Vice Chairman Robert D.

Reischauer, President Adam Abram Afsaneh Beschloss Jamie S. Gorelick Richard C. Green, Jr. Fernando A. Guerra, MD Freeman A. Hrabowski III Charles Mee Mary John Miller Melvin L. Oliver Jeremy Travis Anthony Williams Judy Woodruff LIFE TRUSTEES Joan T. Bok Warren E. Buffett James E. Burke Joseph A. Califano, Jr. Marcia L. Carsey Carol Thompson Cole William T. Coleman, Jr. John M. Deutch Anthony Downs George J. W.

Goodman William Gorham Aileen C. Hernandez Carla A. Hills Vernon E. Jordan, Jr. Bayless A. Manning David O. Maxwell Arjay Miller Robert C. Miller Lois D. Rice William D. Ruckelshaus Herbert E. Scarf Charles L. Schultze William W. Scranton Dick Thornburgh Mortimer B. Zuckerman THE URBAN INSTITUTE is a nonprofit, nonpartisan policy research and educational organization established in Washington, D.C., in 1968.

Its staff investigates the social, economic, and governance problems confronting the nation and evaluates the public and private means to alleviate them. The Institute disseminates its research findings through publications, its web site, the media, seminars, and forums. Through work that ranges from broad conceptual studies to administrative and technical assistance, Institute researchers contribute to the stock of knowledge available to guide decisionmaking in the public interest. Conclusions or opinions expressed in Institute publications are those of the authors and do not necessarily reflect the views of officers or trustees of the Institute, advisory groups, or any organizations that provide financial support to the Institute.

Contents Acknowledgments ix Introduction 1 Fuzzy Math 5 Who’s in Charge Here? 15 When Agendas Collide 33 Driving Blind 47 What Does It All Mean for Schools?

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.

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