Investing in Learning. Rethinking the Way We Budget for Education. Ways and Means Sub-Committee on Education Presentation by Education Investment Team Budget Work Group
Nov 15, 2014
Investing in Learning. Rethinking the Way We Budget for Education.
Ways and Means Sub-Committee on EducationPresentation by Education Investment Team Budget
Work Group
Outline
IntroductionWhy Change? Why Now? Proposed ApproachRoles and ResponsibilitiesDiscussion of next steps
Introduction
Design a unified, performance based 0-20 budget model for consideration by the 2012 legislative session.
Governor’s Charge to Education Investment Team
Transform Oregon's approach to education from silos into an integrated and meaningful pathway to success for Oregonians of all ages.
40/40/20 Vision
• 40 percent of Oregon adults should have a bachelor’s degree or higher.
• 40 percent should have at least an associate’s degree or other technical credential.
• 20 percent should have a high school diploma that represents a high level of academic and work readiness skills.
Governor’s Charge to Education Investment Team
We seek your help
We would like feedback.
In turn, we hope that we can provide information and insights that will help you make decisions this session.
The case for the new budget framework
Why change, why now?
The Assignment
How to best allocate resources to achieve outcomes for learners, communities and the general public?
$7.4 billionGeneral/Lottery
Fund
Type of Budgeting
PK-12 CCWD OUSOHS
UOSA
CTSP
C
State Agency Line Item Budget
ODE CCWDChancellor’
s OfficeOHSU OSAC TSPC
State Agency Line Item Budget
Early Childhood, Special Ed
Grants
Universities SWPs
State School FundK-12 Schools &
ESDs
College Support Fund
Community
Colleges
Grant in Aid OHSU
Budget Request Approved by
State Board of Ed
State Board of
Ed
State Board of
Higher Ed
OHSU Board
OSAC TSPC
Budgeting methods vary widely by area…
In making a budget request, state rules allow some agencies to take enrollment into account. Others cannot.
Rules also differ with respect to how agencies factor in expected changes in staff compensation.
…and rules direct agencies to build education budgets differently.
Program
Budget Development
Considers Expected
Enrollment Growth?
Budget Development Incorporates Education-
Sector Inflation Index?
Oregon Pre-K No No
ECSE/EI Yes No
K-12 Yes Yes
Community Colleges
No No
OUS No No
OHSU No No
Revenue Source
2009-11 LAB All
Education
General Fund $6,819,998,207
Lottery Funds $536,375,882
Other Funds $4,729,433,138
Federal Funds $1,755,698,966
Total $13,841,506,193
• Incomplete accounting of revenues available to education institutions.
•Level of program aggregation that obscures sizable programs with distinct goals.
•Lack of human scale or reference to number of students served or staff employed.
•Based on history and formulas, not on outcomes.
The traditional way of presenting the budget omits important information and trends.
Average Annual Growth in General Fund, 2000-11
Absent structure or fiscal goals, education funding eroded in the last decade
Perverse incentives pervade existing funding formula
Accelerated learning = early graduation =
less money
Shorter school year = less student contact =
no change in money
More students identified with special needs
= more money
Longer participation in ESL =
more money
More efficient transportation operations = less money
Chronic absenteeism = smaller class sizes = no change in money
“If there is one lesson of the past decades of reform efforts, it is that funds sent to districts without regard to performance do not have, on average, a powerful impact on student learning.”
- Eric Hanushek (2007)
1 Agree on the outcomes.
2 Understand who the learners are and where the money is going, and what are we getting for it.
3 Determine what evidence says would improve outcomes with the money we have.
Proposed Approach - So what is a better framework?
Agree on the outcomes
Current Reform Strategies to Advance Student Success Along the Continuum:•Rigorous Curriculum•Data System providing regular and timely feedback•Unified Budget allocated to achieve outcomes
40% post-secondary40% post-secondary
40% college
graduates
40% college
graduates
Economic VitalityPer Capita Income
GrowthActive Civic Life
Economic VitalityPer Capita Income
GrowthActive Civic Life
20% at least high
school diploma
20% at least high
school diploma
Goals
% children ready-to-learn
% meeting 3rd grade benchmar
ks % meeting 5th grade benchmar
ks
% meeting 8th grade
benchmarks % 18 year-
olds college & work ready
% adults with
Associates% adults
with completed Bachelor’s
% adults with
advanced degreeOutcomes
Children have
access to quality Pre-
K experience
Students engage in a
rigorous curriculum
Every student “on
track” to graduation
Students complete secondary
with meaningful
skills
Oregonians Pursue
Ongoing Post-
Secondary Education
Output
OR per capita income
% voter turnout
% who volunteer
Benchmarks
To get to the outcomes: Build A Continuum Framework1Create a unified education delivery system with curriculum alignment so that exit standards from one sector equal entrance standards to the next.
2Implement a unified data system so that student and institutional data track across the continuum.
3Produce a unified, transparent budget for the continuum.
In a unified education system:
• Rigorous, relevant curriculum links to standards across the PreK-20 continuum.
• Students’ assessment scores will inform their instructional plans.
• Students will be able to move at a pace dictated by their rate of achievement.
• Multiple delivery mechanisms and choices available to students, who may be enrolled in more than one institution at a time depending on their needs.
Goal for unified education system:
• Cut at least one year on average for time to degree.
• Increase substantially the minimum standards in reading, writing, mathematics for H.S., AA and BA degrees.
• Increase numbers attaining degrees to meet 40-40-20.
To get to the outcomes: Transform the Delivery System
• Accelerating learning.• Reducing remediation.• Applying new learning tools such as
online learning. • Other efficiencies.
To get to the outcomes: Create more value for the dollars available
In a unified education data system:
• Student transcripts, scores and plans will track across the continuum.
• Assessment tools will measure students’ proficiencies at every stage.
• Credits and advancement depend on successful achievement to standards.
• Institutional financial and performance data will be available to system managers and the public.
To get to the outcomes: Transform the Data System
Questions that can be Answered by a Transparent, Outcome-Based Budget1 What are we trying to accomplish for each
level of education and how are we performing?
2 How much variation in performance is there across the state? How does Oregon compare with national and international benchmarks?
3 If we are not producing the expected results, do we need changes in policy, practices, or investment levels? Are there best practices that can be adopted?
FROM
Based on education sectors
Argument about a single number
Budgeting on the margins
Debate: Level of funding
Funding agencies
TO
Based on groups of students
Discussion about investments and
outcomes
Budget the use of all education resources
Debate: How to get better results
Investing in educational outcomes for students
A New Budget Will Change Policy Discussions
40/40/20 Vision
40 percent of Oregon adults should have a bachelor’s degree or higher,
another 40 percent should have at least an associate’s degree or other
technical credential, and the remaining 20 percent should have a high school diploma that represents a high level of
academic and work readiness skills.
Governor Kitzhaber Charge
Understand who the learners are and where the money is going, and what are we getting for it.
Percentage of 55- to 64-Year-Olds with an Associate Degree or Higher, 2007
Percentage of 25- to 34-Year-Olds with an Associate Degree or Higher, 2007
$3.7 billion/yrGeneral/Lottery Fund
Annual Education Expenditures, 2011
$7.8 billion/yrGF/LF, property taxes, federal, and tuitions
State, Local, Federal, Tuition and Fees
Spending per student, 2008-09
State, Local, Federal, Tuition and Fees
Spending per student, 2008-09
State, Local, Federal, Tuition and Fees
Spending per student, 2008-09
State, Local, Federal, Tuition and Fees
Spending per student, 2008-09
$6.7$8.7
Number of Students, 2008-09
Total Spending, 2008-09
State & LocalFederalTuition and Fees, Other
What does evidence say would improve outcomes with the money we have?
Oregon’s Goals For Education Attainment
Dramatic Increases in:• High school graduation rates
• Students meeting rigorous academic standards
• Oregonians enrolling, persisting, and graduating in the postsecondary system
• Oregonians with strong apprenticeships or technical training
• Opportunities for lifelong learning
Questions to Ask?• Who are the learners?• What are the outcomes we want to achieve? • How much is available to invest in the education
continuum? How can we best allocate those resources to achieve our desired outcomes?
• How can we align incentives and use evidence-based practices to get the results we want?
• What parts of the system are ripe for redesign?• What investments are necessary to make the
changes that will allow us to achieve our outcomes?
Roles and responsibilities
Role of the Education Investment Board
1 Recasts the state’s role in PreK-20 as a procurer of educational outcomes.
2 Unbundle distinct services and organize the budget around students rather than systems or institutions.
3 Establishes performance contracts with schools that provide services to students. Contracts include expectations for learning outcomes.
4 Establishes priorities and funding levels among services.
5 Manages reserve funds to ensure minimum funding level per-student is carried for ALL Oregon students throughout economic cycles.
State government procures education outcomes on behalf of learners and the general public.
School districts (including charter schools), community college districts, and public universities provide the services.
Proposed Division of Responsibility
State government steers, through its investments and oversight.
Schools row, providing quality services to learners.
Proposed Division of Responsibility
Key roles of schools
To provide quality education to students.
To continuously improve practices to get ever greater value of the dollars invested.
Role of state in accountability
Review progress, create incentives for continuous improve.
Identify and bust barriers getting in the way of student outcomes.
What are the next steps?
To be continued on Monday’s agenda…
•What additional information do you need to make wise budget decisions this session?•Where are the highest leveraged opportunities for redesign now and in the future?•What else can we do to be helpful?