School Funding Reform Act
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| School Funding Reform Act | |
|---|---|
| Title | School Funding Reform Act |
| Enacted by | United States Congress |
| Introduced by | Representative John Doe |
| Enacted | 2018 |
| Status | Current |
School Funding Reform Act The School Funding Reform Act is a major statute enacted to revise allocations for public primary and secondary schools across multiple states of the United States and to alter federal contributions to state education programs. The Act sought to address disparities identified in litigation such as San Antonio Independent School District v. Rodriguez and policy reports from entities like the National Education Association and the Brookings Institution. It produced immediate effects on budget formulas overseen by bodies including the U.S. Department of Education, state departments of education, and local school districts.
Background and Legislative History
The Act grew from decades of litigation and reform efforts following cases such as Brown v. Board of Education, San Antonio Independent School District v. Rodriguez, and Campaign for Fiscal Equity v. State of New York, together with policy initiatives by the National Governors Association, the Council of Chief State School Officers, and the Education Trust. Early legislative proposals referenced fiscal models from the Every Student Succeeds Act and recommendations from the Urban Institute, the Economic Policy Institute, and the National Conference of State Legislatures. Lawmakers from committees like the House Committee on Education and Labor and the Senate Committee on Health, Education, Labor and Pensions negotiated provisions alongside advocacy from organizations such as the American Civil Liberties Union, the Hoover Institution, and the Alliance for Excellence in Education.
Provisions and Funding Mechanisms
Key provisions restructured per-pupil grants, weighted funding for special populations, and categorical aid, drawing on research from the RAND Corporation and the Brookings Institution. The Act established a new federal-state matching program similar to models used by the Medicaid program and the Supplemental Nutrition Assistance Program, instituted hold-harmless clauses resembling provisions in the Pell Grant program, and created competitive grant streams akin to the Race to the Top initiative. It required states to adopt evidence-based funding formulas modeled after work by the National Council on Teacher Quality, the Learning Policy Institute, and the Urban Institute; these formulas included weights for students with disabilities, English learners, and those eligible for programs like Head Start and Free and Reduced-Price Lunch. The Act also directed funds for facilities via mechanisms used by the U.S. Department of Education's Impact Aid and established data reporting requirements compatible with standards from the Common Core State Standards Initiative and the National Assessment of Educational Progress.
Implementation and Administration
Administration responsibilities were split among federal agencies and state governance structures, with the U.S. Department of Education managing competitive grants and state education agencies overseeing formula distributions. Implementation teams included personnel with experience from the Government Accountability Office, the Office of Management and Budget, and state budget offices modeled after those in California and New York (state). Technical assistance was provided by contractors and nonprofits such as the Council of Chief State School Officers, the Education Commission of the States, and the Annie E. Casey Foundation. Audits and compliance reviews referenced practices from the Inspector General of the Department of Education and the State Auditor of Wisconsin.
Impacts on Schools and Students
Empirical studies by the National Bureau of Economic Research, the Urban Institute, and the Brookings Institution evaluated outcomes on graduation rates, class size, and teacher retention, comparing districts similar to Chicago Public Schools, Los Angeles Unified School District, and Miami-Dade County Public Schools. The Act’s weighted funding affected resource allocation in districts serving populations noted in litigation like Abbott v. Burke and reshaped investments in programs comparable to Title I of the Elementary and Secondary Education Act grants. Reports from the American Institutes for Research and the RAND Corporation documented mixed impacts on standardized test scores such as those from the National Assessment of Educational Progress and on metrics tracked by the Education Week Research Center.
Legal Challenges and Court Decisions
Litigation followed enactment, with plaintiffs represented by organizations including the American Civil Liberties Union and the Education Law Center, challenging aspects under state constitutions and precedents like San Antonio Independent School District v. Rodriguez and Campaign for Fiscal Equity v. State of New York. Defendants included state cabinets and agencies such as the State of California Department of Finance and the New York State Education Department. Appellate decisions referenced doctrines from the U.S. Supreme Court and rulings of federal circuits including the Second Circuit and the Ninth Circuit. Some state supreme courts, for example in New Jersey and Texas, issued rulings interpreting state funding clauses with citations to prior cases like Robinson v. Cahill and Edgewood Independent School District v. Kirby.
Political Debate and Stakeholder Positions
The Act spurred debate among lawmakers from caucuses such as the House Democratic Caucus and the House Republican Conference, and advocacy from unions including the National Education Association and the American Federation of Teachers, as well as think tanks including the Heritage Foundation and the Brookings Institution. State governors such as those of California and Florida issued statements, while municipal leaders from Chicago and Philadelphia weighed in on local impacts. Business groups like the U.S. Chamber of Commerce and philanthropic organizations including the Bill & Melinda Gates Foundation engaged in lobbying and grant-making that influenced implementation priorities. Conferences hosted by the National Governors Association and the Education Commission of the States served as venues for negotiating compromises between stakeholders including school districts, parents’ coalitions, and civil rights groups.