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  • DECEMBER 2016

    Study of Funding Provided to Public Schools and Public Charter Schools in Maryland

    Jesse Levin, Bruce Baker, Drew Atchison, Iliana Brodziak, Andrea Boyle, Adam Hall, and Jason Becker

  • 7898_10/16

    Study of Funding Provided to Public Schools and Public Charter Schools in Maryland

    December 2016

    Jesse Levin, Bruce Baker, Drew Atchison, Iliana Brodziak, Andrea Boyle, Adam Hall, and Jason Becker

    1000 Thomas Jefferson Street NW Washington, DC 20007-3835 202.403.5000

    www.air.org

    Copyright 2016 American Institutes for Research. All rights reserved.

  • Contents Page

    Executive Summary ......................................................................................................................... i

    Characteristics of Maryland Local School Systems ................................................................... ii

    Study Purpose ............................................................................................................................. ii

    Compilation of Statewide School Site Spending Database ....................................................... iii

    Analysis of Traditional and Charter School Expenses and Revenues ....................................... iv

    Predicted Charter School Spending for Comparative Purposes ................................................. v

    District Provision of Funding and Services to Charter Schools ............................................... vii

    Recommendations .................................................................................................................... viii

    1. Introduction ................................................................................................................................. 1

    Characteristics of Maryland Local School Systems ................................................................... 1

    Funding and Support for Maryland Charter Schools .................................................................. 7

    Study Purpose ............................................................................................................................. 7

    Organization of the Report ......................................................................................................... 8

    2. Conceptual Framework, Data, and Methodology ....................................................................... 9

    Conceptual Framework of Resource Allocation and Service Delivery Systems in

    Public Education ......................................................................................................................... 9

    Compilation of Statewide School Site Spending Database ...................................................... 10

    3. Analysis of Traditional and Charter School Expenses and Revenues ...................................... 25

    Average Actual Traditional Public School Expenses ............................................................... 25

    Average Actual Charter School Expenses ................................................................................ 34

    Revenues of Traditional and Charter Public Schools ............................................................... 42

    4. Determining Predicted Charter School Spending for Comparative Purposes .......................... 56

    Analysis of Actual Versus Predicted Charter School Expense ................................................. 56

    5. Charter School Funding, Service Arrangements, and Facilities ............................................... 71

    District Funding Formulas for Charter Schools ........................................................................ 71

    Charter/Host District Fiscal and Service Relationships ............................................................ 77

    Charter Financing of Facilities ................................................................................................. 87

    6. Study Recommendations .......................................................................................................... 96

    Recommendation 1: Create Consistent Charter School Financial Reporting ........................... 96

  • Recommendation 2: Prepare District Financial Data Systems for Uniform School Site

    Reporting .................................................................................................................................. 97

    Recommendation 3: Establish Benchmarks for Overhead Expenses ..................................... 100

    Recommendation 4: Model Predicted Expenses for Schools ................................................. 101

    Recommendation 5: Establish Policies and Practices for More Equitable Access to

    Facilities .................................................................................................................................. 101

    References ................................................................................................................................... 103

    Glossary of Terms ....................................................................................................................... 106

    Study Scope of Work as Described in the Request for Proposal ................................................ 109

    Appendix A. School Counts and Enrollment Tables .................................................................. A-1

    Appendix B. Additional Detail Regarding Allocation of Unattributed Allocatable

    Personnel and Non-Personnel ..................................................................................................... B-1

    Appendix C. Regression Model of Traditional Per-Pupil Spending........................................... C-1

    Appendix D. Comparison of Actual Charter School Spending Figures Derived From

    District and State Data to Those From Charter School Fiscal Data ........................................... D-1

    Appendix E. Actual Spending on Alternative, Vocational, and Special Education Schools ....... E-1

    Appendix F. Differences Between September and June Enrollments ......................................... F-1

    Exhibits Page

    Exhibit I. Average Actual Expense per Pupil for Traditional and Charter Schools by

    School District (201213 to 201415) ............................................................................................ v

    Exhibit II. Average Actual Versus Predicted Charter School Per-Pupil Expense by District

    (201415) ....................................................................................................................................... vi

    Exhibit 1. Statewide Demographics of Maryland Traditional and Charter Public School

    Students (201415) ......................................................................................................................... 2

    Exhibit 2. Total Enrollment in Traditional and Charter Public Schools by District (2014

    15) ................................................................................................................................................... 3

    Exhibit 3. Characteristics of Traditional and Charter Public Schools by District (201415)......... 4

    Exhibit 4. Charter School Enrollment in 201415 by School District ........................................... 5

    Exhibit 5. Characteristics of Traditional and Charter Public Schools by Type for Districts

    With Active Charter Schools (201415) ......................................................................................... 6

  • Exhibit 6. Conceptual Framework of the Flow of Funding, Resources, and Services

    Between Service and Mission Centers .......................................................................................... 10

    Exhibit 7. Data Sources, Level of Precision, and Reported Spending Types ............................... 15

    Exhibit 8. Data Sources, Level of Precision, and Reported Spending Types ............................... 16

    Exhibit 9. Statewide Shares of Expense for Traditional and Charter Public Schools

    Broken Out by School-Level Attribution, Allocation, and Centralized Spending (201213

    to 201415) ................................................................................................................................... 21

    Exhibit 10. Statewide Average Expense per Pupil for Traditional and Charter Public

    Schools Broken Out by School-Level Attribution, Allocation, and Centralized Spending

    (201213 to 201415) ................................................................................................................... 22

    Exhibit 11. Statewide Average Expense per Pupil for Traditional and Charter Public

    Schools Broken Out by Attribution/Allocation Category and Grade Configuration (2012

    13 to 201415) .............................................................................................................................. 23

    Exhibit 12. Statewide Average Expense per Pupil for Traditional and Charter Public

    Schools Broken Out by Attribution/Allocation Category and Grade Configuration (2012

    13 to 201415) .............................................................................................................................. 24

    Exhibit 13. Statewide Average Expense per Pupil for Public Traditional Schools by Year

    (201213 to 201415) ................................................................................................................... 26

    Exhibit 14. Statewide Average Expense per Pupil for Traditional Schools by Grade

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