The distribution of state funding to school districts has a tremendous impact on student learning opportunities. State leaders juggle different priorities, tradeoffs and incentives when designing funding formulas with the goal of ensuring every student has the learning opportunities to succeed. This toolkit offers a strategic guide for reforming…

All states have a formula that determines how state funding is distributed to school districts. Most state formulas anticipate or require that school districts raise some funds locally and adjust state allocations based on that anticipated local share of school funding. In theory, state funding formulas attempt to provide school districts with the…

At their best, K-12 public school systems can be engines of social and economic mobility. Unfortunately, schools in lower-income districts -- whose students have the greatest academic needs -- often receive less funding than their counterparts in more affluent districts. Discussions about closing these funding gaps usually zoom all the way out to…

The vast majority of funds for pre-K through grade 12 public schools in the United States -- nearly $800 billion or over 90% -- come from state and local funding sources. States, not school districts, are obligated to ensure that all students have access to the resources they need to succeed. States can take steps to reduce disparities between…

The method California uses to count students for funding purposes is an important decision that drives both resources and behaviors. For more than 100 years, California has funded school districts based on the average number of students who attend school each day. Although this average daily attendance (ADA) method was once used by many states,…

As school systems work to recover from the COVID-19 pandemic, states continue to grapple with persistent teacher shortages, a lack of teachers of color in the workforce, and high turnover rates undermining recruitment efforts. Teachers' effectiveness and their likelihood of staying in teaching are strongly influenced by the quality of preparation…

While there has been disinvestment into higher education, there is also a significant disparity in state investment for certain types of public institutions, specifically for less-resourced institutions such as HBCUs (Williams, 2020). There is not much literature that examines the relationship of formula funding or state appropriations on…

For decades, school finance reform in many states has been driven by (or reacted to) litigation arguing that schools need additional funding. In the 1970s and 80s, school finance cases prompted reforms to increase equity, equalizing dollars per pupil across districts. In the 1990s, the focus began shifting to educational outcomes, with a…

Hold-harmless provisions in state aid formulas are meant to restrict declines in revenues for school districts. They may take several forms, including limits on the changes in state aid from year to year, supplemental funding for districts with declining enrollment, alternatives for calculating the state aid amount, or use of past enrollments in…

Michigan's K-12 education system has arguably never truly supported all students to reach their full potential and prepare them for post-secondary opportunities and success. Instead, Michigan's education system has served as an engine of inequality when it should be providing opportunities for all kids to learn. Now is a critical time to address…

Students of color continue to experience disparities in enrollment, retention and completion of postsecondary education -- a reality that's been exacerbated by the COVID-19 pandemic. In light of persistent and systemic inequities, policymakers are increasingly interested in exploring funding approaches that support greater access and attainment to…

States and districts allocate hundreds of billions of dollars annually to fund K-12 schools, and this allocation is largely driven by one calculation: how states count student enrollment. They do this in one of five ways: (1) A single count on a single day; (2) Two counts twice per year; (3) Multiple counts over a period of time; (4) An attendance…

This article explores state school funding in Ohio and examines the concepts of equity and adequacy. This is accomplished not by conducting an empirical study but through a thorough review of the current environment of school funding in the state. For Ohio, the concepts of equity and adequacy are especially pertinent when considering that Ohio's…

Concerned with low on-time graduation rates, state lawmakers continue to turn to outcomes-based funding (OBF) as one policy approach to support postsecondary degree attainment and workforce goals. Policymakers have also been confronted with constituent complaints about student debt loads, course schedules and academic programs that force students…

This is the third paper on the topic of outcomes-based funding written by Dennis Jones for Complete College America. The first paper, "Performance Funding: From Idea to Action" (ED535356), proposed a set of design and implementation principles to help states develop and implement their own outcomes-based funding models. The second paper,…