School Finance
How are schools funded in Texas?
1. Local school district property taxes
2. State funds
3. Federal funds
2. State funds
3. Federal funds
Example: Dallas ISD (2013-2014)
Local - 800 million dollars
State - 375 million dollars
Federal - 30 million dollars
Total budget: $1.2 billion
Types of taxes:
Proportional - everyone pays the same, the same percentage of each person's total taxable income, regardless of income size
Regressive - higher income individuals pay less percentage of the total taxable income for taxes than lower income, pay less as earn more
Progressive - the percentage of the total taxable income increases as the taxable income becomes bigger, pay more as you earn more
Regressive - higher income individuals pay less percentage of the total taxable income for taxes than lower income, pay less as earn more
Progressive - the percentage of the total taxable income increases as the taxable income becomes bigger, pay more as you earn more
How is it funded?
Income tax - a progressive tax that is a base of the federal financial system
Sales tax - a regressive tax that funds the state level of government and may be applied to the county and city levels
Property tax - funds local schools
Real property - not readily movable, includes land, buildings, and improvements
Personal property - movable, includes machinery, livestock, crops, automobiles, and recreational vehicles, money, stocks, and bonds
Sales tax - a regressive tax that funds the state level of government and may be applied to the county and city levels
Property tax - funds local schools
Real property - not readily movable, includes land, buildings, and improvements
Personal property - movable, includes machinery, livestock, crops, automobiles, and recreational vehicles, money, stocks, and bonds
Income Eligibility Guidelines
How are children qualified for a free and reduced lunch?
Click on the link to find out the current year's Income Eligibility Guidelines from the Department of Agriculture.
Click on the link to find out the current year's Income Eligibility Guidelines from the Department of Agriculture.
What is PEIMS?
The Public Education Information Management System (PEIMS) encompasses all data requested and received by TEA about public education, including student demographic and academic performance, personnel, financial, and organizational information. It the engine that drives funding. PEIMS drives school funding and special programs. PEIMS clerk is usually the least paid person in the front office but one of the most if not the most crucial one. Each student weights differently. The person must enter the correct code or there will be big problems. These people need to receive training. PEIMS is like the social security number of the school.
How to calculate property taxes?
Search for the appraisal: www.county name + central appraisal district (cad).com /.org
www.dallascad.org - Dallas County
www.tad.org - Tarrant County
Sample Calculation:
www.dallascad.org - Dallas County
www.tad.org - Tarrant County
Sample Calculation:
Homestead Exemption - a way of saying thank you for owing property in the district.
Step 1 - Subtract the homestead exemption from the market value.
124,920 - 24,984 = 99,936 (the Taxable Value)
Step 2 - Multiply the Taxable value by the Tax Rate and divide by 100
99,936 x 0.797 / 100 = 796.49 (Tax owed)
Step 3 - Repeat the process for each taxing jurisdiction
Step 1 - Subtract the homestead exemption from the market value.
124,920 - 24,984 = 99,936 (the Taxable Value)
Step 2 - Multiply the Taxable value by the Tax Rate and divide by 100
99,936 x 0.797 / 100 = 796.49 (Tax owed)
Step 3 - Repeat the process for each taxing jurisdiction
Research
1. Teacher quality relates positively to student performance (Darling - Hammond)
2. There are significant relationships between school resources and student outcomes (Ferguson)
3. Significant relationships exist between schooling inputs and students' success (Cooper and associates)
4. A teacher's education is linked to positive student outcomes (Monk)
5. Smaller class sizes in the early grades are associated with higher student outcomes (Finn and Achilles)
6. School funding accounts for one-third of the variation in proficiency test scores but money matters most for children and youth in poverty (Verstegen)
7. The proportion of teachers with master's degree and class sizes affects student learning (as measured by ACT scores); because these variables cost money, this relationship suggests that money matters (Ferguson and Ladd)
8. The more money schools spend, the higher the achievement of their students (Baker)
9. Significant relationships exist between spending on education and labor market outcomes (Card and Krueger; they used earnings as the outcome measures rather than test scores)
*Financing Education in a Climate of Change by Vern Brimley Jr, Deborah A Verstegen, Rulon R. Garfield
2. There are significant relationships between school resources and student outcomes (Ferguson)
3. Significant relationships exist between schooling inputs and students' success (Cooper and associates)
4. A teacher's education is linked to positive student outcomes (Monk)
5. Smaller class sizes in the early grades are associated with higher student outcomes (Finn and Achilles)
6. School funding accounts for one-third of the variation in proficiency test scores but money matters most for children and youth in poverty (Verstegen)
7. The proportion of teachers with master's degree and class sizes affects student learning (as measured by ACT scores); because these variables cost money, this relationship suggests that money matters (Ferguson and Ladd)
8. The more money schools spend, the higher the achievement of their students (Baker)
9. Significant relationships exist between spending on education and labor market outcomes (Card and Krueger; they used earnings as the outcome measures rather than test scores)
*Financing Education in a Climate of Change by Vern Brimley Jr, Deborah A Verstegen, Rulon R. Garfield
4 Factors that Increase Spending
1. Changing enrollment and diversity of students
2. Additional programs and services provided
3. Changing rates of inflation
4. Inequities in the quantity of services provided in the country's thousands of school districts
*Financing Education in a Climate of Change by Vern Brimley Jr, Deborah A Verstegen, Rulon R. Garfield
2. Additional programs and services provided
3. Changing rates of inflation
4. Inequities in the quantity of services provided in the country's thousands of school districts
*Financing Education in a Climate of Change by Vern Brimley Jr, Deborah A Verstegen, Rulon R. Garfield
Equity vs. Equality
Equity should not be considered synonymous with equality in the context of school finance. Equality means treating everyone the same. Equity means treating them fairly. Spending the same number of dollars on each student is evidence of equality; but it may not be equitable - some students, such as those with special needs, require greater expenditures for their education than do other students.
What’s fair is
what the child needs. And what the child needs will be different based on where
the child comes from.
Student Weighting (WADA)
Student weightings are nothing more than cost differentials injected in the formula to compensate for the additional cost of education of some students because of their special needs, the types of educational programs they pursue, to other pertinent cost factors.
* Source: 2013 School Finance 101 on TEA website
Flow of State Funds for Texas Public Schools
Vocabulary:
Supplement - in addition to local or state (such as Title money that goes in addition)
Supplant - in place of (Title money cannot supplant the local or state budget)
Co-curricular - has a direct connection to TEKs
Extra curricular - has not direct connection to TEKs
Supplant - in place of (Title money cannot supplant the local or state budget)
Co-curricular - has a direct connection to TEKs
Extra curricular - has not direct connection to TEKs