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Estimating Adequate Funding in Wisconsin

Dr. Christopher Saldaña

October 28, 2024

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What does adequacy mean?

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What does it mean to be adequate?

Conceptually in K-12 school finance:

Adequacy means a level of funding/spending on K-12 public education that ensures all students have approximately equal opportunity to meet state performance expectations.

Historically: the operational meaning of “adequate” has been determined by courts.

What does “adequate” mean in Wisconsin (Vincent v. Voight, 2000)?

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What does it mean to be adequate in Wisconsin?

What does “adequate” mean in Wisconsin (Vincent v. Voight, 2000)?

We further hold that Wisconsin students have a fundamental right to an equal opportunity for a sound basic education. An equal opportunity for a sound basic education is one that will equip students for their roles as citizens and enable them to succeed economically and personally.

The legislature has articulated a standard for equal opportunity for a sound basic education in Wis. Stat. §§ 118.30(lg)(a) and 121.02(L) (1997-98) as the opportunity for students to be proficient in mathematics, science, reading and writing, geography, and history, and for them to receive instruction in the arts and music, vocational training, social sciences, health, physical education and foreign language, in accordance with their age and aptitude. An equal opportunity for a sound basic education acknowledges that students and districts are not fungible and takes into account districts with disproportionate numbers of disabled students, economically disadvantaged students, and students with limited English language skills.

So long as the legislature is providing sufficient resources so that school districts offer students the equal opportunity for a sound basic education as required by the constitution, the state school finance system will pass constitutional muster.

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What does it mean to be adequate in Wisconsin?

“So long as the legislature is providing sufficient resources so that school districts offer students the equal opportunity for a sound basic education as required by the constitution, the state school finance system will pass constitutional muster."

Constitutional question?

Is the state of Wisconsin’s legislature providing sufficient resources so that school districts can offer students the equal opportunity for a sound basic education?

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Estimating Adequate Funding in Wisconsin

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Current Context – Wisconsin K-12 Education Funding & Outcomes

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Current Context – Wisconsin K-12 Education Funding & Outcomes

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Estimating Adequate Funding in Wisconsin (Multiple Approaches)

Professional Judgment Panel

Cost Function

Successful Districts

Evidenced-Based

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Estimating Adequate Funding in Wisconsin (Multiple Approaches)

Professional Judgment Panel

Cost Function

Successful Districts

Evidenced-Based

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Method: OLS Regression & Two-Staged Least Squares (Instrumental Variables)�Spendingsdy = f(Outcomessdy, Studentssdy, Input Pricessdy, Structuresdy, Scalesdy, and Inefficiencysdy)�

“Where spending is a measure of current per pupil operating expenses [in school “s” in district “d” in year “y”]; Outcomes are the outcome measure(s) of interest; Students is a matrix of student need and demographic characteristics for [school “s” in district “d” in year “y”]; Input Prices is a measure of geographic variation in the prices of key inputs to schooling such as teacher wages; Structure is a matrix of [school] structural characteristics such as grade ranges served; Scale is a measure of economies of scale usually expressed in terms of student enrollments and, in some cases, also addressing population sparsity; and Inefficiency is a matrix of variables which predict variation in spending but are not related to commensurate shifts in outcomes.” (Baker et al., 2016, pp. 13)

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A Modified Cost Function Approach in Wisconsin

Leveraging new school-level data:

Data Source

Variables

Wisconsin Department of Education (school report card, all staff report,

Wisconsin school-level outcomes (percent proficient), school student demographics (disabilities, poverty, English learners), staff and personnel (compensation, assignment position, hiring organization, school site, and FTE).

National Center for Education Statistics (comparable wage index)

Regional cost-adjustment

Edunomics (National Education Resource Database on Schools)

School spending

U.S. Census

School-community poverty data

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Results

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Statewide Results

**These results are preliminary – please do not cite without reaching out to Christopher Saldaña, cmsaldana@wisc.edu

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Funding Gaps

Adequate funding

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Thank you!

Questions?

cmsaldana@wisc.edu