charter funding formula revie...success building on the foundation 8 we must ensure that the funding...
TRANSCRIPT
Dr. Gregory E. ThorntonCEO, Baltimore City Public Schools
Donald Kennedy, Sr.Chief Financial Officer
Charter Funding Formula Review
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Presentation to the Baltimore City Board of School Commissioners September 8, 2015
Alison Perkins-Cohen, Executive Director ONI
Ryan Hemminger, Budget Director
City Schools’ Portfolio: A Great School for Every Child
City Schools’ “portfolio strategy” promotes access to high-quality educational options for all students by
• Regularly reviewing the performance of all schools to ensure children are being prepared for success
• Providing the structure and support to expand successful schools
• Offering a range of schools and programs to meet student needs and interests
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Charter Schools: A Key Part of the Portfolio
• Charter schools
• Expand district capacity to offer high-quality options to all families
• Are a critical engine of innovation
• Help attract and keep families in the district
• Today’s 34 charter schools offer diverse programs, including
• In 2014-15, charter schools served 12,655 students; 5,000 more on waitlists
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Expeditionary learning Environmental education
Montessori, Reggio Emilia Arts integration
Language immersion Single sex, co-ed
International Baccalaureate Project-based learning
Placed-based learning STEM
• A structure that provides autonomy in implementing each school’s Board-approved plan
• Resources and flexibility to foster innovation
• Accountability for results
• An approach to funding that creates an environment where schools can thrive
Keys to Charter School Success
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• Within the reality of limited funding, funding formulas must ensure sufficient resources for all students in all schools
• Resource distribution must support charter schools’ ability to innovate by enabling flexibility, autonomy, and school-based decision making to the maximum extent possible
• Sustainability must be ensured for individual schools and for the district
Challenges in Charter Funding Methodology
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Next Steps in Exploring Funding Options
Engage all stakeholders to identify a formula that
• Provides maximum freedom over resources
• Distributes resources based on the level of supports necessary to meet individual student needs
• Provides commensurate funding to all City Schools students
• Is sustainable for all schools and the district as a whole
• Is fair, transparent, and consistent
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All students in all schools need certain things: a school building, a way to get to school, teachers, administrators, books, furniture, extracurricular activities…
The Foundation: What Every Student Needs
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…But because students are unique, they may need additional supports or resources to achieve success
Building on the Foundation
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We must ensure that the funding formula continues to provide resources based on students’ needs, for example
• ESOL
• Health supports
• Speech, physical, or occupational therapy
Equity for All
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These resources must follow students to whatever school they attend, so that all students can be successful
Equity for All
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• The simplest way to distribute resources is to take all funds, divide by the number of students, and give an equal per-student amount to schools based on enrollment
• That would be equal, but it wouldn’t be equitable
• Some students need additional resources and could not succeed without them
Equal vs. Equitable
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• City Schools has been working on this issue with partners in the Funding Sustainability Work Group (FSWG):
• Coalition of Baltimore Public Charter Schools
• New and Charter School Advisory Board
• Principals from traditional (noncharter) schools
• Advocates for Children and Youth
• American Civil Liberties Union
Developing a Funding Formula
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• October 2013 to August 2014 – FSWG conducts in-depth review of each line item within City Schools’ charter funding formula; unfortunately, FSWG unable to reach agreement in key areas
• April to August 2015 – CEO-convened ad hoc committee of City Schools’ staff and members of the Board of School Commissioners reviews FSWG work and considers options for moving forward
• September to November 2015 – City Schools engages the community in discussion of charter funding
Developing a Funding Formula: Timeline
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Developing a Funding Formula: Method
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• Any formula starts with revenue, which comes in different forms from different sources
• This presentation does not include funds from grants or food service
Revenue
State Revenue
City Revenue
Federal Sources
Non State/Local Revenue
District-Wide Costs
Less: Retiree Health Benefits
Less: Debt Payments
Less: Pre-K
Less: Non State/local revenue
Less: Non Public
Need Based Funding
Less: Special Education
Less: ESOL
Less: Specialized Transportation
Less Administrative Cost (2% )
Net allocable funds for charters
Divide by: Enrollment
(net of preK and non public students)
Charter Per Pupil Allocation
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Current Charter Funding Formula
• Step 1: Combine revenue from all sources
• Step 2: Subtracto Districtwide costso Costs associated with
needs of specific populations
o Administrative costs (e.g., legal, payroll, student records management)
• Step 3: Allocate the remainder on a per-student cash basis
Current Charter Funding Formula
Key supports go with students to schools as cash or services, based on student need
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• Distributes revenue to the extent possible for the purpose for which it was allocated by the state and other sources
• Allocations to schools based on student characteristics, including household income
• As much as possible, distributes resources as cash (as opposed to services), increasing flexibility at the school level
Proposed New Charter Funding Formula
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• Step 1: Combine all the revenue
• Step 2: Deduct expenses for
o Debt service
o Special education, nonpublic placements, and specialized transportation, which far exceed revenue provided for these services
o To ensure commensurate funding for all students, the proposed new formula reserves revenue for these services
Proposed New Funding Formula
• Step 3: Deduct administrative costs and services
• Commensurate funding means sharing costs for shared administrative services (e.g., payroll processing, legal services)
• With the Funding Sustainability Work Group, City Schools identified these services and calculated their cost
• The actual cost exceeds the 2% administrative cost included in the current formula
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Proposed New Funding Formula
• Step 4: Separate designated revenue (including revenue for “compensatory education” for low-income students and for English learners), to be distributed in cash on a per-student basis according to student demographics
• Step 5: Calculate remaining revenue, to be distributed as the base cash amount for per-student allocation
• Step 6: Calculate the actual per-student dollar amounts, based on available revenue and actual number of eligible students enrolled
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Proposed New Funding Formula
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Commensurate Funding, and Equity for All
With the proposed new formula
• Resources continue to follow students based on their needs,with an increased portion incash as opposed to services
• Funds for low-income students are distributed to students in that demographicgroup
• Costs of required district services are shared between all students
• All students can access a high-quality education
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Current Formula Proposed Formula
Resource Allocation
Low income demographic not
considered in the allocation
More resources allocated as
services
Resource allocation includes low
income component; more in line
with state aid allocations
More resources allocated as cash
(Pre-k, ESOL)
Distributes resources to students
based on how revenue is received
by City Schools
Special Education, Non-
Public, Specialized
Transportation, Debt
Service
Treated the same in both formulas
Treated the same in both formulas
Continuing to explore
opportunities to cash out
additional funding
Mandatory Expenses Admin fee does not cover
mandatory costs.
Updated admin fee to reflect real
costs.
Per Pupil Fixed for all students Creates a range based on
demographics
Outcome and Implementation Considerations
• The proposed approach would result in changes to funding for many charter schools
• City Schools is prepared to continue conversations with charter operators and other stakeholders and to receive alternative proposals for charter funding
• Implementation of any new formula will require discussion among all stakeholders to design a transition plan
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• Getting this right is important for all our students, regardless of the school they attend
• Once a formula is finalized, we can focus on the keys to charter schools success:
o A structure that provides autonomy in implementing each school’s Board-approved plan
o Autonomy to innovate
o Accountability for results
A Great School for Every Child
Timeline and Next Steps
• September 3, 2015 – City Schools presents proposed new charter funding formula to the Charter Sustainability Work Group
• September 8, 2015 – City Schools presents funding approach to the public at regular Board meeting
• September 26, 2015 – City Schools and Board host first scheduled forum to hear feedback on the proposed approach and other approaches as developed by the Funding Sustainability Work Group or others
• September – November 2015 – City Schools continues to meet with stakeholders to come to agreement on a formula for FY17
• November 10, 2015 – City Schools presents final recommendation for FY17 charter funding formula to Board
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Send Comments or Questions to:
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Alison Perkins-CohenExecutive Director – New Initiatives
[email protected] | 410-396-8550
Ryan HemmingerDirector – Budget
[email protected] | 443-984-2054
Board of School CommissionersMarnell Cooper, Chair
Tina Hike-Hubbard, Vice-Chair
Lisa Akchin
Cheryl Casciani
Linda Chinnia
Martha James-Hassan
Peter Kannam
Jonathan Townes, Student Commissioner
Senior Management TeamGregory Thornton, Chief Executive Officer
Naomi Gubernick, Chief Of Staff
Linda Chen, Chief Academic Officer
Lisa Grillo, Chief Human Capital Officer
Theresa Jones, Chief Achievement and
Accountability Officer
Donald Kennedy, Chief Financial Officer
Karl Perry, Chief School Supports Officer
Keith Scroggins, Chief Operations Officer
Kenneth Thompson, Chief Technology Officer
Tammy Turner, Chief Legal Counsel
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