1. The Linkage of Research and School Finance Policy Eric Hanushek Alfred Lindseth

2. Overview of Issues Increased demands for linking policy to rigorous research  NCLB  IES and this conference Range of policies  Specific, programmatic policies Reading First, class size reduction, after school programs  General institutional policies Funding, certification, salary policies, accountability

3. Institutional policies Assertion: More leverage in institutional than programmatic policies Much less knowledge about institutional  Limited analysis of past policies  Missing information on key “design” parameters Requires different approaches

4. Discussion Plan Use finance issues to illustrate concerns Evaluate major court-ordered “equity” and “adequacy” financing changes Link performance-based funding to research  Schoolhouses, Courthouses, and Statehouses

5. Existing Institutional Research: Equity Analysis Court cases flowing from Seranno v. Priest Individual state:  Downes (1992) [California]; Flanagan and Murray (2004) [Kentucky]; Downes (2004) [Vermont]; Cullen and Loeb (2004) [Michigan]; Duncombe and Johnston (2004) [Kansas] National:  Hanushek and Somers (2001); Greene and Trivitt (2008)

6. Existing Institutional Research: Adequacy Analysis

7. Kentucky and National NAEP Trends for White Students, 1992 to 2007

8. Kentucky and National NAEP Trends for Black Students, 1992 to 2007

9. New Jersey and National NAEP Trends for Black Students, 1992 to 2007

10. New Jersey and National NAEP Trends for Black Students, 4 th grade reading, 1992 to 2007

11. New Jersey and National NAEP Trends for Hispanic Students, 1992 to 2007

12. Wyoming and National NAEP Trends for White Students, 1992 to 2007

13. Wyoming and National NAEP Trends for Hispanic Students, 1992 to 2007

14. Massachusetts and National NAEP Trends for White Students, 1992 to 2007

15. Massachusetts and National NAEP Trends for Black Students, 1992 to 2007

16. Performance-Based Funding Cannot separate financing from policy Must get incentives right Cannot do piecemeal policies

17. Performance-Based Funding 1. Standards, Assessment, and Accountability 2. Empower Local Decision Making 3. Direct Rewards and Incentives 4. Information, Evaluation, and Continuous Improvement 5. Rational and Equitable Funding

18. 1. Standards, Assessment, and Accountability Available research On-going research Policy usefulness Good standards ++ Reliable assessments +++ Value-added focus ++ Strong accountability ++

19. 2. Empower Local Decision Making Available research On-going research Policy usefulness Local autonomy + Local funding options +++ Parental choice ++ + Categorical funding

20. 3. Direct Rewards and Incentives Available research On-going research Policy usefulness Performance based rewards – teachers +++ Performance based rewards – administrators Specialties Hard-to-staff schools +++

21. 4. Information, Evaluation, and Continuous Improvement Available research On-going research Policy usefulness Technology of information +++ Data-based Decisionmaking ++ Program evaluation ++ Local evaluation

22. 5. Rational and Equitable Funding Available research On-going research Policy usefulness Needs-adjusted base funding ++ Distortions +++ Fiscal responsibility +++

23. Performance-Based Funding 1. Standards, Assessment, and Accountability 2. Empower Local Decision Making 3. Direct Rewards and Incentives 4. Information, Evaluation, and Continuous Improvement 5. Rational and Equitable Funding

24. Performance-Based Funding 1. Standards, Assessment, and Accountability 2. Empower Local Decision Making 3. Direct Rewards and Incentives 4. Information, Evaluation, and Continuous Improvement 5. Rational and Equitable Funding