1. FIXING PENNSYLVANIA’S INEFFECTIVE K-12 FUNDING SYSTEM: ARE WE MAKING PROGRESS? The 4th Annual Education Policy and Leadership Conference Harrisburg, PA – March 2006 Presentation By: Eric Elliott, PSEA Research Division eelliott@psea.org

2. TARGETING BY AID RATIO MEASURES DISTRICT WEALTH RELATIVE TO STATE AVG. THEORY: STATE’S SHARE OF ACTUAL INSTRUCTIONAL EXPENSES PROS: –FAMILIAR –STABLE (PREDICTABLE) CONS: –BASED ON QUESTIONABLE ESTIMATES AND ASSUMPTIONS –FLOOR

3. MAJOR SUBSIDIES HITTING TARGET (SORT OF)

4. ADDITIONAL MONEY HAS FOLLOWED PATTERN

5. SO PATTERN REMAINS IN 2006-07

6. TARGETING BY TAXES AND TEST SCORES ADMINISTRATION, LEGISLATURE FOCUSING ON TAXES (POSSIBLE REFERENDA) FEDS FOCUSING ON STUDENT A.Y.P. (POSSIBLE SANCTIONS) AID RATIO NOT CORRELATED WITH THESE PROS: –DIRECTS MONEY TOWARD POLICY PROBLEMS –SIMPLE, FEW “CLIFFS” (IF ANY) CONS: –UNFAMILIAR –UNSTABLE ? (FOCUS COULD SHIFT AGAIN IN FUTURE)

7. MAJOR SUBSIDIES WEREN’T HITTING TARGET AREA

8. RECENT BUDGETS HAVE HELPED…

9. …BUT HAVEN’T BEEN ENOUGH

10. CORRELATIONS

11. CORRELATIONS

12. CORRELATIONS