Shanker Blog: Interpreting School Finance Measures
Last week we released the second edition of our annual report, "The Adequacy and Fairness of State School Finance Systems," which presents key findings from the School Finance Indicators Database (SFID). The SFID, released by the Shanker Institute and Rutgers Graduate School of Education (with my colleagues and co-authors Bruce Baker and Mark Weber), is a free collection of sophisticated finance measures that are designed to be accessible to the public. At the SFID website, you can read the summary of our findings, download the full report and datasets, or use our online data visualization tools.
The long and short of the report is that states vary pretty extensively, but most fund their schools either non-progressively (rich and poor districts receive roughly the same amount of revenue) or regressively (rich districts actually receive more revenue), and that, in the vast majority of states, funding levels are inadequate in all but the most affluent districts (in many cases due to a lack of effort).
One of the difficulties in producing this annual report is that the our "core" measures upon which we focus (effort, adequacy, and progressivity) are state-level, and it's not easy to get attention for your research report when you basically have 51 different sets of results. One option is assigning states grades, like a school report card. Often, this is perfectly defensible and useful. We decided against it, not only because assigning grades would entail many arbitrary decisions (e.g., where to set the thresholds), but also because assigning grades or ratings would risk obscuring some of the most useful conclusions from our data. Let's take a quick look at an example of how this works.
The scatterplot below is taken directly from our report. Each red dot represents a state. The measure on the vertical axis is the adequacy of states' spending on K-12 education in its highest poverty districts. More specifically, it represents actual spending divided by the spending level that would be required for the highest poverty districts (i.e., the 20 percent highest poverty districts) in that state to achieve CONTINUE READING: Shanker Blog: Interpreting School Finance Measures | National Education Policy Center
