1. Basner, Schoffstall, & Streif
ALASKA’S K-12 EDUCATION SPENDING PUBLIC FINANCIAL MANAGEMENT
PADM 628 – DR. PROTASEL APRIL 9, 2016
Basner, Schoffstall, & Streif

2. “The task of the fiscal process must be to avoid the seductions of both the cynic and the sentimentalist”

3. “In an era of limited resources and unwavering confidence in public education, policymakers and taxpayers are asking to see demonstrable returns on their education investments. They want assurances that schools are using resources efficiently to increase student achievement. Consequently, both policymakers and education leaders want sound information that will help them ‘budget for results.’ They want data that they can use to compare the quality and cost effectiveness of various programs and expenditures”
US Dept. of Education

4. Alaska & National Current Expenditures for Education

5. Alaska & National Math and Reading Proficiency

6. Agenda Budgeting and Politics
Performance Based Budgeting and Education
Return on Spending Index
Alaska Education Expenditures
Discussion & Recommendations

7. Budgeting and Politics
Decision Stream/Cluster
Description
Expenditure
“Politics of choice. Sorts through budget requests; decides who gets what, who wins, and who loses.”
Implementation
“Is a contest between the goal of maintaining accountability and agency discretion.”
Balance
“Decides three issues: (1) the role of the budget in managing the economy, (2) the scope of government programs, and (3) which level of government will balance its budget at the expense of the other.”

8. Performance Based Budgeting
Evolved during era of scientific management
First implementation at Federal level was with passage of National Security Administration Amendment in 1949
Budget and Accounting Procedures Act of further expanded it to other agencies
Saw a decline in 60s and 70s with introduction of planning programming budgeting
Identifies and eliminates waste or justifies programs for additional funding
Identifies performance/efficiency. Results based.
Expensive to implement due to amount of data which must be collected (past, present, …. )

9. PBB and Education Measurement-
1. Sources of resources and how have they changed over time?
2. Spending per pupil and how has that changed over time?
3. How much do teachers make and how has that changed over time?
4. How much of the education dollar is spent on instruction, administration, and other services?
5. How much is spent on administrative personnel?
6. How do patterns of resource use vary between high and low spending school districts?
7. How much of the education dollar is spent on special education?
8. How do districts that maintain higher levels of student achievement use their dollars?
Additional Considerations: Expenditures, Outcomes & Demographics

10. Return on Spending Index (RoSI)
An ROSI is a productivity statistic used to identify economically efficient schools
SchoolMatter’s (S&P) RoSI:

11. Indicators of Efficiency
3 Phases in Education

12. Indicators of Efficiency
OUTPUT INDICATORS
State Proficiency Test Scores
NAEP Test Scores
College Readiness Tests
Graduation Rates
INPUT INDICATORS
Individual & Family Characteristics
Community Characteristics
Expenditures

13. Indicators of Efficiency - Expenditures
Instructional
Instructional Support
Noninstructional
Boser (2014) Findings
Some of the nation’s most affluent school systems showed a worrying lack of productivity
In some districts, spending priorities were clearly misplaced
**The 65 percent initiative seeks to increase classroom resources and reduce wasteful administrative costs**

14. Alaska’s cost per-pupil ranks near the top
Top areas in per-capita spending:
Washington D.C. ($20,530)
New York ($19,529)
New Jersey ($18,523)
Alaska ($18,217)
Connecticut ($17,321)
United States Average ($10,763)
Utah ($6,432)

15. How does Alaska pay for Education?

16. Total Cost Distribution

17. Alaska Costs Per Student

18. Discussion Summarization of elements to consider:
Challenge to create an accurate formula
Political challenges (i.e., trying to use results to under-fund ed.)
Cost of annually collecting data (is it worth it?)

19. Conclusion
PBB and ROSI in education useful for decision makers and planners
Assist in identifying best practices and areas which require improvement
PBB and ROSI only a piece of a larger puzzle
Best used as a tool to identify and implement efficiency, NOT to indicate failure and reduce funding