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…

The School Funding Reform Act (SFRA), New Jersey's school finance law, requires the Governor, in consultation with the Commissioner of Education, to review certain components of the school funding formula every three years. The New Jersey Department of Education (NJDOE) issued four Educational Adequacy Reports (EAR) between 2013 and 2022, but none…

Over the past four years, Florida has seen tremendous growth in the amount of public funds being spent on private education. This report finds that in 2022-23, an estimated $1.3 billion in funding will be redirected from public school districts to private education, representing 10% of state K-12 education funds allocated through the Florida…

A.C.A. §6-61-234 (Act 148 of 2017) directs the Arkansas Higher Education Coordinating Board (AHECB) to adopt polices developed by the Arkansas Division of Higher Education (ADHE) necessary to implement a productivity-based funding model for state-supported institutions of higher education. At its October 27, 2017 meeting, the AHECB approved the…

The majority of states with a weighted, student-based K-12 funding formula include weights that allocate additional funding based on the enrollment of students in poverty, students with special education needs, and English learners (ELs). Research shows that all three of these student groups need additional support and resources to succeed. Many…

This chapter describes a comprehensive set of best practices for the evaluation of state formula funding models and state higher education funding in general, based on existing practices within the United States. It represents a review of practices that lead to stakeholder engagement as an objective, collaborative process.

In an effort to reduce state spending on special education in public schools, New Jersey moved to census-based funding as part of the new school funding formula, the School Funding Reform Act (SFRA), adopted in 2008. The census approach funds all districts using the statewide average classification rate and a statewide average "excess…

State funding for public higher education institutions is crucial in supporting college access and completion, particularly among students from historically under-represented groups, yet little is known about the mechanisms that states use to allocate funds and how they are affected by financial challenges. This article provides the first detailed…

Policymakers commonly assert that Broad Access Institutions (BAIs) cannot be "all things to all people" when cutting their funding. BAIs were founded with comprehensive missions to generate postsecondary access through low barriers for admission and affordable tuition and promote student-centeredness through institutional foci on…

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…

Nearly every state has flaws in how it funds public education, particularly when it comes to equitable funding for historically underserved students. While challenges vary by state, there are five common pitfalls in education finance equity: (1) Formulas do not fully account for differences in student learning needs; (2) There are too many school…

This paper examined how performance-based funding (PBF) policies shape institutional performance and student outcomes for public four-year or above historically Black colleges and universities (HBCUs). By conducting a systematic review of the literature, the findings expanded on two main areas, as underscored by the pieces reviewed: (a) how the…

In the United States, K-12 school finance is largely controlled by the states. Every year, hundreds of billions of dollars in public funds are distributed based on 51 different configurations of formulas, rules, and regulations to over 13,000 districts that vary in terms of the students they serve, their ability to raise revenue locally, and many…

This article provides a review of prior empirical work exploring whether and to what extent school district racial composition affects the costs associated with providing equal educational opportunity to achieve a common set of outcomes. This prior work mainly involves education cost function modeling on several states and in an earlier version of…

The proverbial clock is ticking for many Kansas school buildings, whether due to implications of a complete slowdown due to code compliance, or due to failure of critical systems. Regardless of the reasons, millions of square footage of learning spaces are in jeopardy of no longer being able to serve students in adequate teaching and learning…