State Board of State Board of EducationEducation

Costing-Out Costing-Out StudyStudy

Robert E. Feir, Project ManagerRobert E. Feir, Project ManagerPASBO // March 15, 2007PASBO // March 15, 2007

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Why do we Need a Study?Why do we Need a Study?

““Commonwealth” Commonwealth” Our students compete on a global Our students compete on a global

stagestage Education quality currently relies too Education quality currently relies too

much on local community wealthmuch on local community wealth Unfair for some children to be Unfair for some children to be

advantaged at the starting gate while advantaged at the starting gate while all are expected to meet the same all are expected to meet the same standards in this era of accountabilitystandards in this era of accountability

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EquityEquity

$0

$4,000

$8,000

$12,000

$16,000

Spending/ Pupil, 2004-05

HighLow

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AdequacyAdequacy

How much How much spending is needed spending is needed to assure every to assure every student can meet student can meet the state the state standards?standards?

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Costing-Out Study Costing-Out Study BackgroundBackground

Standards-based reform movementStandards-based reform movement How much does it cost to meet How much does it cost to meet

standards?standards? Studies in at least 35 statesStudies in at least 35 states Act 114 of 2006Act 114 of 2006 State Board to contract for study to State Board to contract for study to

determine cost of all students meeting determine cost of all students meeting state standards and performance state standards and performance expectationsexpectations

RFP led to contract with Augenblick, RFP led to contract with Augenblick, Palaich, & Associates of DenverPalaich, & Associates of Denver

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State Board PrioritiesState Board Priorities

Independence: contractors must Independence: contractors must perform their work in a professional perform their work in a professional manner free from political manner free from political interference or State Board interference or State Board influenceinfluence

Transparency: all interested Transparency: all interested Pennsylvanians should have access Pennsylvanians should have access to information about the study and to information about the study and how it is conductedhow it is conducted

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The StandardThe Standard

The study will determine the cost of The study will determine the cost of meeting this standard:meeting this standard:

100% attainment of the state’s 12 100% attainment of the state’s 12 academic standards areasacademic standards areas

100% proficiency on PSSA100% proficiency on PSSA

By 2014By 2014

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Overview of the StudyOverview of the Study

Cost out elements school Cost out elements school districts need to provide so districts need to provide so students can meet the standardstudents can meet the standard Base CostBase Cost Adjustments for district cost pressures Adjustments for district cost pressures

(size and location)(size and location) Adjustments for students with special Adjustments for students with special

needs (special education, poverty, English needs (special education, poverty, English language learners)language learners)

Personnel wagesPersonnel wages

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Four MethodsFour Methods

Four methodologies are being Four methodologies are being used to estimate the cost of used to estimate the cost of adequacyadequacy Successful school district approachSuccessful school district approach Professional judgment approachProfessional judgment approach Evidence-based approachEvidence-based approach Cost function approachCost function approach

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Successful School Successful School DistrictDistrict

Infers base cost Infers base cost from basic from basic spending of spending of successful successful districtsdistricts

Includes efficiency Includes efficiency screensscreens

Examines schools Examines schools in high in high performing/low performing/low spending districtsspending districts

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Professional JudgmentProfessional Judgment Costs out resources Costs out resources

identified by 10 identified by 10 panels of about 80 panels of about 80 educators for educators for hypothetical schools hypothetical schools and districtsand districts

Provides base cost Provides base cost and adjustment for and adjustment for district sizedistrict size

Provides adjustments Provides adjustments for special needs for special needs studentsstudents

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Evidence-BasedEvidence-Based

Based on researchBased on research

Will involve about Will involve about 100 Pennsylvania 100 Pennsylvania educators and educators and citizens (including citizens (including board members) in board members) in web-based activityweb-based activity

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Cost Function ApproachCost Function Approach

Statistical analysis Statistical analysis of performance of performance and spending dataand spending data

Includes an Includes an efficiency analysisefficiency analysis

Examines the cost Examines the cost of enrollment of enrollment changes and changes and sparcity/densitysparcity/density

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Other ActivitiesOther Activities

Meet with various stakeholdersMeet with various stakeholders School board membersSchool board members ParentsParents BusinessBusiness

Develop transportation cost modelDevelop transportation cost model Analyze student and taxpayer equityAnalyze student and taxpayer equity

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Not Included in StudyNot Included in Study

Capital costsCapital costs Food service costsFood service costs Design of a new funding formulaDesign of a new funding formula

Results of study can be used by elected Results of study can be used by elected officials for this purposeofficials for this purpose

Act 114 does not include design of Act 114 does not include design of formulaformula

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ScheduleSchedule

Contract signed: December 2006Contract signed: December 2006 Data collection: January-February 2007Data collection: January-February 2007 Data analysis: February-SeptemberData analysis: February-September Professional judgment panels: March-Professional judgment panels: March-

MayMay Interim report: MayInterim report: May Final report: NovemberFinal report: November 6 regional meetings on final report: 6 regional meetings on final report:

November-December 2007November-December 2007

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State Board OversightState Board Oversight

Education Costing-Out Committee:Education Costing-Out Committee: Dr. James E. Barker, ChairDr. James E. Barker, Chair Karl R. GirtonKarl R. Girton Mollie O’Connell PhillipsMollie O’Connell Phillips Larry A. WittigLarry A. Wittig

Staff:Staff: Jim Buckheit, State Board Executive Jim Buckheit, State Board Executive

DirectorDirector Dr. Robert E. Feir, Project ManagerDr. Robert E. Feir, Project Manager

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For More InformationFor More Information

Check the State Board’s website:Check the State Board’s website: http://www.pde.state.pa.us/stateboard_http://www.pde.state.pa.us/stateboard_

ed/site/default.asped/site/default.asp

Contact:Contact: Robert E. FeirRobert E. Feir

717/230-8616717/230-8616

rfeir@edstrat21.comrfeir@edstrat21.com