SCHOOL SPENDING
FAIRNESS
Eleven states enacted legislation between February 2007 and July 2008 to address school financing and school spending fairness. Three states – Idaho, Pennsylvania, and Tennessee – increased funding to at-risk and low-income school districts; three states enacted legislation that defines criteria or formulae for funding at-risk and low-income districts; and five states enacted legislation that creates a task force or study group to examine issues of funding equity among school districts.
The table below provides details on legislation that states enacted to addresses issues of school spending fairness between February 1, 2007, and July 1, 2008. 1
| State | Policy
Action since Feb. 2007 |
Description | |
| Alabama |  |
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| Alaska | |
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| Arizona | |
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| Arkansas | |
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| California | |
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| Colorado |  |
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| Connecticut | |
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| Delaware | |
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| District of Columbia | |
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| Florida | |
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| Georgia | |
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| Hawaii | |
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| Idaho | |
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Idaho enacted legislation (SB 1236) in April 2007 that increases state education funding to school districts, partially in order to create greater funding equity between school districts in the state. The appropriation provides $20.13 million in new line item funding for classroom supplies, textbooks and remedial education. For districts and public charter schools that currently expend discretionary funds for these items, which were not previously funded by the state, those monies may now be freed up for other uses. |
| Illinois | |
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| Indiana | |
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| Iowa | |
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| Kansas | |
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| Kentucky | |
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| Louisiana | |
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| Maine | |
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| Maryland | |
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| Massachusetts |  |
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| Michigan | |
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| Minnesota | |
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In May 2007, Minnesota enacted legislation (HF 2245) to establish a school finance reform task force. The task force's goals include creating a standard and index to ensure that the formula remains adequate over time; simplifying the remaining school formulas; analyzing categorical funding formulas; establishing a schedule for implementation of the other new formulas; and examining the role of the regional delivery structure of funding. |
| Mississippi | |
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Mississippi enacted legislation (SB 2666) in 2008 that modifies and expands the definition of an at-risk school, and commits the Legislature to the appropriation of adequate funds for the support of providing assistance to low-performing schools and districts. The bill directs the state board to adopt regulations that require districts that receive allocations of adequate education program at-risk funds to specifically target the expenditure of those funds to implement effective programs to serve at-risk students, and adopt regulations that provide them methods by which districts will be held accountable for the expenditure of at-risk funds. |
| Missouri | |
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| Montana | |
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Montana enacted a resolution (SJR 31) in April 2007 requesting an appropriate interim, statutory committee or sufficient staff resources to do the following: examine future demographics and classes of taxable property which relate to the viability of property taxes to fund education; study the feasibility of a statewide school equalization district with property tax levies against particular classes of property; and study the use of a sales tax and use tax for funding to replace property taxes and provide tax relief. |
| Nebraska | |
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| Nevada | |
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| New Hampshire | |
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New Hampshire enacted legislation (HB 927) in June 2007 that sets forth the substantive educational content of an adequate education, requires the establishment of criteria to identify schools with greater educational challenges for the provision of additional education aid and establishes a joint legislative oversight committee on costing education. |
| New Jersey | |
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New Jersey enacted the School Funding Reform Act (AB 500) in January 2008 to create a fair, equitable and predictable funding formula based on student characteristics, including: the base per pupil amounts, the calculation of a district's adequacy budget, at-risk students proportionment, special education costs, vocational education, early childhood programs, transportation aid, the funding of charter school students and a district's tax levy growth. |
| New Mexico | |
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| New York | |
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| North Carolina | |
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| North Dakota | |
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| Ohio | |
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| Oklahoma | |
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Oklahoma enacted legislation (SB 925) in June 2007 to extend the School Funding Formula Task Force until December 31, 2007. The task force was to review the formula for funding the public schools of this state and make recommendations regarding the following: modernization of the formula; the ability to determine how categorical funds are expended; issues raised by recent school finance litigation; and any other modifications that would enhance the state's ability to provide every child with quality instruction. |
| Oregon | |
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| Pennsylvania | |
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In July 2007, Pennsylvania enacted legislation (HB 842) that increases aid to small schools, aid to low-income districts and at-risk funding. It also establishes aid for districts with high tax rates and low property values, additional funds for districts with high student growth and establishes an inflation adjustment. For 2007-2008, the department is required to pay additional funding for low-performing schools, and high achieving districts receive additional funds. |
| Rhode Island | |
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| South Carolina | |
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| South Dakota | |
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| Tennessee | |
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Tennessee enacted legislation (HB 2293) in June 2007 that increases the state's funding level to schools. The state will now provide 75%, instead of 65%, of the cost of instructional positions to schools. This change will produce an increase in state funding to schools of $285 million for the 2007-08 fiscal year. The legislation modifies the formula to provide 100% funding for at-risk students (eligible for free or reduced lunch) in grades K-12. |
| Texas | |
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| Utah | |
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Utah enacted legislation (HB 1003) in August 2007 creating a 16-member Equalization Task Force. The task force was to review and make recommendations on the equalization of capital funding. The task force was to meet up to eight times on or before December 10, 2007, and issue a final report, including any proposed legislation, on or before December 19, 2007. |
| Vermont | |
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| Virginia | |
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| Washington | |
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Washington enacted two school spending bills. HB 2722, signed into law in April 2008, requires the Center for the Improvement of Student Learning (CISL) to convene an advisory committee that will produce a strategic plan to address the achievement gap for African-American students. The committee will develop a comprehensive plan and improvement measures by December 1, 2008. SB 5627, signed into law in April 2007, makes provision for some significant steps towards a new basic education funding system, including a technical work group and eventually a new comprehensive K-12 finance formula for Washington schools. |
| West Virginia | |
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| Wisconsin | |
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| Wyoming | |
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Source: Education Commission of the States and CFED analysis of State Net data