Designing Finance Structures to Satisfy Equity and Adequacy Goals

Abstract

In addition to setting high standards for student performance, educational policies must consider what resources are essential to provide an adequate educational program to meet all students' learning needs. Policy makers also want to ensure that educators make efficient use of available resources. In this exploration of school finance policy, we advance a conception of adequacy as the ideal state of vertical equity, examine the evolution of this concept through judicial reviews, and discuss methods for determining the level of funding required to achieve adequacy. We then discuss economic and political problems inherent in institutional inefficiencies that are likely to derail efforts to raise achievement in poorly performing schools even after granting them an adequate level of resources. The paper concludes with a description of how a state funding formula might provide a foundation for adequacy in all districts.

Measuring Equity: Creating a New Standard for Inputs and Outputs

“…This concept is especially relevant in the current policy context of schooling that requires equitable outcomes for all children. Some have characterized vertical equity in the ideal as adequacy (King, Swanson, and Sweetland 2003) while Ladd (2008) made the distinction that adequacy is not just about differential treatment, but rather sufficiency of resources. An adequate school finance system provides sufficient resources so that schools provide equal opportunities to learn at high levels for all students (Ladd 2008;Darling-Hammond and Snyder 2003;Odden 2003;Verstegen 2002;Brown 2001;Reschovsky and Imazeki 2001;Picus 2001aPicus , 2001b.…”

School Funding Issues

“…This is particularly true if the amount of resources distributed equitably is not sufficient to provide the instructional resources required to eliminate those gaps. Thus, consideration of equity issues increasingly has been approached from the perspective of adequacy (King, Swanson, & Sweetland, 2005). Other researchers have elaborated by blending sufficiency with desired outcomes in defining adequate financing as sufficient resources to provide students with the opportunity to achieve adequately defined levels of knowledge and skills (Guthrie & Rothstien, 2001).…”

“…There are four primary models used to determine adequate educational spending levels, including the Professional Judgment Model, the Successful Schools Model, the Advanced Statistical Model, and the Evidence-Based Approach Model (King et al, 2005). These four models can provide policy makers options for considerations that utilize measurable means to better address a true understanding of adequate resources.…”

“…The Professional Judgment Model brings a group of educators together to define the components needed to establish a prototype school that, in their opinion, will have enough resources to enable a specified percentage of students to meet established standards (King et al, 2005). The cost of those resources is then estimated to ascertain an adequate level of funding.…”

Education Reform, Equal Opportunity and Educational Achievement: Do Trend Data Adequately Report Progress?

“…Researchers postulate that the variation in student outcomes given equitable revenues is the result of greater needs in schools serving primarily at-risk student populations and that school level data have applications for researchers to address questions of equity, adequacy, and efficiency (King, Sweetland, & Swanson, 2005;Baker, 2005;Goertz, 1997). Recent inquiries in to the equity of resources in Kentucky public schools have revealed tremendous progress in efforts to achieve horizontal equity (Haselton & Keedy, 2002;Picus, Odden, & Fermanich, 2001, Adams & White, 1997 although gaps are beginning to reemerge.…”