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Education Finance History Orientation Presentation to House Education Committee January 9, 2007 Stev

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Title: Education Finance History Orientation Presentation to House Education Committee January 9, 2007 Stev


1
Education Finance History Orientation
Presentation to House Education Committee
January 9, 2007 Steve Norton Executive
Director, NHCPPS
…to raise new ideas and improve policy debates
through quality information and analysis on
issues shaping New Hampshires future.
2
All of our reports are available on the
web www.nhpolicy.org
New Hampshire Center for Public Policy Studies
Board of Directors Martin L. Gross, Chair John B.
Andrews John D. Crosier Gary Matteson Todd I.
Selig Donna Sytek Georgie A. Thomas James E.
Tibbetts Brian F. Walsh Kimon S.
Zachos Staff Steve Norton Dennis Delay Doug Hall
…to raise new ideas and improve policy debates
through quality information and analysis on
issues shaping New Hampshires future.
3
School Funding in NH History Recent
Status Projections Current Policy Situation
November 14, 2006
4
Who was John Legat?
5
In what year did the State of New Hampshire take
control over the funding of the public
schools? (this is a trick question)
6
Local Control Re-emerges 1890
  • 1647 Provincial legislature required all towns
    with more than 50 households to have a school
    funding is left to town meetings and selectmen.
  • 1784 Voters approved constitution that states
    …it shall be the duty of the legislators and
    magistrates… to cherish …public schools.
  • 1789 State legislature enacted first law on
    schools under the constitution. It starts by
    stating all the (prior) laws of this State
    respecting schools … hereby are repealed. In the
    new law the legislature set the specific amount
    to be raised for schools in each town and
    established personal fines for selectmen who did
    not do so. Tax used was statewide property tax
    (with different definition of property).
  • 1834 Supreme Court ruled that any town may
    raise more money for schools than the legislature
    requires, but not less.
  • 1906 Of all public school funding, 2/3 was
    ordered by legislature 1/3 added by local
    choice many towns still raised only that ordered
    by the legislature

7
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8
Town of Hanover Thick black line is the amount
ordered to be spent on the Hanover schools by the
N.H. legislature. Thinner line with circles is
the amount actually raised and spent. Until 1898
the town of Hanover, like most towns, raised and
spent exactly what the legislature ordered.
(Source Walter A. Backofen, The Town of
Hanover as a Window on Public-School Funding in
the State of New Hampshire 1789-1919, Dartmouth
College Library Bulletin, November 1998, p.33)
9
The State Tries to Participate
  • 1919 - set minimum tax rate of 3.50 per thousand
    and maximum rate of 5.00 per thousand for
    standard schools
  • 1921 - pro-rate state aid if not enough
    appropriated
  • 1947 - minimum 3.50, maximum 6.00 cost set
    at 100/elementary 125/high school student
  • 1951 - maximum tax rate raised to 17.00 again
    pro-rate state aid if not enough appropriated
  • 1957 - calculate cost based on amount
    appropriated
  • 1985 - repeal maximum tax rate enact
    Augenblick aid formula with automatic
    adjustment if not enough appropriated
  • 1999 - 3,201/pupil for adequate education 3.50
    minimum rate raised to 6.66 Other taxes raised
    and new formula established
  • 2004 Statewide tax rate set at 3.33 aid
    capped
  • 2005 Statewide rate set at 2.20 equitable
    replaces adequate

10
School finance reform efforts in NH in the 20th
century
  • 1919 Initiated by Governor coupled with
    content reform
  • goal of 50 of funds from state
  • insufficient funds resulted in pro-rating aid
  • 1947 Initiated by Legislature goal of 50 of
    funds from state insufficient funds resulted in
    pro-rating aid
  • 1997 Initiated by Courts goal of an adequacy
    floor insufficient funds resulted in cap on
    growth of aid

11
I earnestly ask you to at least approximately
solve the great problem. Governor John H.
Bartlett January 9, 1919 to raise the work of
such schools as are now below a reasonable
standard, as nearly as practicable, to the level
of the better schools of the state.
12
  • "No power is to be taken from the school
    boards...except the power to have poor schools."
  • Dr. Ernest Hopkins, President Dartmouth College,
    1919

13
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14
School Funding in NH History Recent Status (1999
2005) Projections Current Policy Situation
November 14, 2006
15
  • Claremont II - December 17, 1997
  • The education decision ? The responsibility for
    ensuring the provision of an adequate public
    education and an adequate level of resources for
    all students in New Hampshire lies with the
    State.
  • The tax decision ? To the extent that the
    property tax is used in the future to fund the
    provision of an adequate education, the tax must
    be administered in a manner that is equal in
    valuation and uniform in rate throughout the
    State.

16
The Adequacy Reform Began in 1998
  • Legislature passed HB999 - new state adequacy
    aid in response to NH Supreme Court ruling in
    Claremont II
  • Old Foundation Aid of 66 million was repealed
  • Raised/introduced taxes for education
  • Re-introduced statewide property tax for schools
    in tax year 1999 at 6.60 rate
  • Distributed 407 million for school year
    1999/2000
  • Legislature has regularly amended and changed the
    amount of aid and the distribution formula.
  • Goals of plaintiffs were
  • greater pupil equity
  • greater taxpayer equity

17
Change in Pupil Equity
  • How have the differences in spending per pupil
    among the school districts that were cited by the
    Supreme Court changed since the reform?

18
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19
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20
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21
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22
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23
Different Measures of Per Pupil Equity
24
Change in Taxpayer Equity
  • How have the differences in tax rates among the
    towns that were cited by the Supreme Court
    changed since the reform?

25
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26
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27
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28
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29
Different Measures of Taxpayer Equity
30
Change in Taxpayer Equity
Change in Pupil Equity
No change in pupil equity ever occurred.
  • The initial increase in taxpayer equity in 1999
    has nearly all eroded away.

31
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32
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33
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34
Before reform, NH was last in state aid for
schools.
35
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36
School Funding in NH History Recent Status (1999
2005) Projections Current Policy Situation
November 14, 2006
37
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38
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39
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40
School Funding in NH History Recent Status (1999
2005) Projections Current Policy Situation
November 14, 2006
41
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42
Recent annual increases in spending as measured
by total district spending
43
Recent annual increases in spending as measured
by average spending per pupil
44
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45
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46
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47
In February 1998 the Center used this graphic to
explain the sequence of steps that would
logically follow from the Claremont II decision.
48
This graphic shows the steps that were taken and
are in place in 2006.
49
Supreme Court Guidelines (December 1997)
  • sufficient oral and written communication skills
    to enable students to function in a complex and
    rapidly changing civilization
  • sufficient knowledge of economic, social, and
    political systems to enable the student to make
    informed choices
  • sufficient understanding of governmental
    processes to enable the student to understand the
    issues that affect his or her community, state,
    and nation
  • sufficient self-knowledge and knowledge of his or
    her mental and physical wellness
  • sufficient grounding in the arts to enable each
    student to appreciate his or her cultural and
    historical heritage
  • sufficient training or preparation for advanced
    training in either academic or vocational fields
    so as to enable each child to choose and pursue
    life work intelligently and
  • sufficient levels of academic or vocational
    skills to enable public school students to
    compete favorably with their counterparts in
    surrounding states, in academics or in the job
    market.

140 words
50
Supreme Court Guidelines (December 1997)
Without intending to intrude upon prerogatives
of other branches of government, … we anticipate
that they will promptly develop and adopt
specific criteria implementing these guidelines
and, in completing this task, will appeal to a
broad constituency. While the judiciary has the
duty to construe and interpret the word
education' by providing broad constitutional
guidelines, the Legislature is obligated to give
specific substantive content to the word and to
the program it deems necessary to provide that
education within the broad guidelines.
51
RSA 193-E2 (October 1998 and current)
  • Skill in reading, writing, and speaking English
    to enable them to communicate effectively and
    think creatively and critically.
  • Skill in mathematics and familiarity with methods
    of science to enable them to analyze information,
    solve problems, and make rational decisions.
  • Knowledge of the biological, physical, and earth
    sciences to enable them to understand and
    appreciate the world around them.
  • Knowledge of civics and government, economics,
    geography, and history to enable them to
    participate in the democratic process and to make
    informed choices as responsible citizens.
  • Grounding in the arts, languages, and literature
    to enable them to appreciate our cultural
    heritage and develop lifelong interests and
    involvement in these areas.
  • Sound wellness and environmental practices to
    enable them to enhance their own well-being, as
    well as that of others.
  • Skills for lifelong learning, including
    interpersonal and technological skills, to enable
    them to learn, work, and participate effectively
    in a changing society.

148 words
52
Supreme Court Decision (September 8, 2006)
  • We affirm the trial courts finding that the
    State has failed to define a constitutionally
    adequate education and stay consideration of its
    remaining findings.
  • These trial court findings have been stayed
  • failed to determine the cost of an adequate
    education
  • failed to satisfy the requirement of
    accountability
  • (the current education funding law) creates a
    non-uniform tax rate in violation of Part II,
    Article 5 of the New Hampshire Constitution

53
Supreme Court Decision (September 8, 2006)
RSA 193-E2 largely mirrors the seven criteria
that we cited with approval in Claremont II…. We
characterized those criteria as establishing
general and aspirational guidelines for
defining educational adequacy and made clear that
the legislature was expected to develop and adopt
specific criteria for implementing the
guidelines. In the years since RSA 193-E2 was
adopted, this court and the State have
acknowledged that constitutional adequacy has yet
to be defined. Standing alone, RSA 193-E2 does
not fulfill the States duty to define the
substantive content of a constitutionally
adequate education in such a manner that the
citizens of this state can know what the
parameters of that educational program are. The
right to a constitutionally adequate education is
meaningless without standards that are
enforceable and reviewable.
54
Supreme Court Decision (September 8, 2006)
As to the core definitional issues, we will
retain jurisdiction with the expectation that the
political branches will define with specificity
the components of a constitutionally adequate
education before the end of fiscal year 2007.
Should they fail to do so, we will then be
required to take further action to enforce the
mandates of Part II, Article 83 of the New
Hampshire Constitution. Any definition of
constitutional adequacy crafted by the political
branches must be sufficiently clear to permit
common understanding and allow for an objective
determination of costs. Whatever the State
identifies as comprising constitutional adequacy
it must pay for. None of that financial
obligation can be shifted to local school
districts, regardless of their relative wealth or
need.
55
Next Steps ?
Do Nothing
Revise definition of adequate
Amend cherish clause
Supreme Court 9/8/2006
Constitutional amendment
Amend tax clause
Amend to remove court
Operational definition of adequate education
Cost out the definition
Create formula to distribute aid
56
Operational Definition
  • Input Criteria
  • something similar to current state minimum
    standards, accreditation standards, checklist of
    conditions, etc.
  • Outcome Criteria
  • standardized testing of knowledge and skills,
    graduation, employment, entry wages, etc.

57
Sample Input Criteria Questions
  • How many years of school constitute an adequate
    education?
  • What, if any, music programs must be part of the
    curriculum?
  • Are all school sports and clubs beyond adequate
    or not?
  • Is there a maximum allowable class size?
  • Must school buildings comply with fire, safety,
    electrical, and ventilation standards?
  • To what extent is career guidance a requirement?
  • Is a high school adequate if it offers no foreign
    language courses?
  • If textbooks are required, how current must they
    be in science and history?
  • What, if any, minimum academic or experience
    standards must teachers meet?
  • What earth sciences knowledge must graduates have?

58
Sample Outcome Criteria Questions
  • How is it determined if a student is grounded
    in the arts?
  • What is the minimum performance that must be
    achieved by individual students on each
    standardized test?
  • How will fluency in spoken English be measured?
  • If schooling beyond 8th grade is required, why
    are standardized tests not given at higher grade
    levels to measure adequacy?
  • Which students are educable and which are not?
  • Which technological skills must be demonstrated
    and how?
  • Is a high school adequate if it offers no foreign
    language courses?
  • What earth sciences knowledge must a school
    completer have?
  • Is a school providing an adequate education if no
    students ever successfully complete its
    graduation standards?

59
Basic Costing Methods
  • Use Existing Schools
  • select a subset of existing schools and use their
    actual spending history with adjustments (HB999
    of the 1999 session)
  • Build Model Budgets
  • blue ribbon committee develops theoretical
    budgets for schools of different sizes and grade
    levels (Massachusetts)

60
Distributing/Targeting Aid
  • What do we know about targeting of aid (after
    the definition of adequate education?)
  • The State is responsible for ensuring the
    resources to provide each student an adequate
    education.
  • State aid does not have to be uniform per pupil.
  • Cost of adequate education may vary based on
    characteristics of the students to be educated.
  • The targeting of aid has nothing to do with the
    method used to raise the revenue.
  • Any proposal to provide 0 in state aid to a
    particular town has the heavy burden of showing
    how the cost of an adequate education is 0 for
    the students in that town or how the state is
    otherwise providing the necessary resources to
    that town.
  • What is the measure of a poor town?

61
3 Political Goals Are in Mathematical Conflict
Cap/limit the total amount of aid
Hold harmless current aid to all towns
Target more aid to poor towns
62
What is the Deadline ?
We affirm the trial courts finding that the
State has failed to define a constitutionally
adequate education and stay consideration of its
remaining findings. … we will retain
jurisdiction with the expectation that the
political branches will define with specificity
the components of a constitutionally adequate
education before the end of fiscal year 2007.
Should they fail to do so, we will then be
required to take further action …
63
What powers does a Court Master have?
64
All of our reports are available on the
web www.nhpolicy.org
New Hampshire Center for Public Policy Studies
Board of Directors Martin L. Gross, Chair John B.
Andrews John D. Crosier Gary Matteson Todd I.
Selig Donna Sytek Georgie A. Thomas James E.
Tibbetts Brian F. Walsh Kimon S.
Zachos Staff Steve Norton Doug Hall
…to raise new ideas and improve policy debates
through quality information and analysis on
issues shaping New Hampshires future.
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