Pennsylvania’s school funding and accountability formula

On July 4, 2008, the General Assembly enacted the first true funding formula in nearly two decades. The formula is calculated by using the General Assembly’s costing-out study to distribute funding based on the actual number of students and needs of each of Pennsylvania’s 500 school districts. This is accomplished by calculating the adequacy target (the level of resources needed to ensure that each student reaches proficiency) for each school district.

The adequacy target is determined by assigning a base cost for every student ($8,003 as identified by the costing-out study for the 2005-06 school year and will be adjusted yearly for inflation) and factoring additional costs, such as number of students in poverty, number of English-language learning students, district size, and geographic price differences.

The state share of funding is then calculated by evaluating each school district’s adequacy target vs. actual spending in the funding year, community wealth and tax effort. The result of the funding formula is a more equitable distribution of state resources: School districts with greater resource needs, high tax effort and low local wealth will receive a greater percentage of state funding, while the tax burden at the local level is relieved by increasing state funding and through Act 1 gaming money.

The formula also includes accountability measures to ensure that increased investment equals increased student achievement. Based on New York State’s “contract for excellence,” Pennsylvania’s funding and accountability formula requires that new funding to school districts is used in prescribed ways to benefit and increase student achievement, such as investment in beginning pre-kindergarten or kindergarten; decreasing class size; extending the school day; implementing tutoring programs; creating new curriculum; instituting professional development; hiring highly qualified teachers and administrators; and expanding library services.

If this system of financing public education is sustained in future state budgets, it will go a long way toward supporting students and schools, and helping communities to revitalize by easing the local tax burden.