State details spending formula for schools

By Derrick DePledge
Advertiser Education Writer

In the first detailed look at how a new per-student spending formula might work in Hawai'i's public schools, the state Department of Education found that disparities in money going to individual schools could narrow considerably.

The new formula could create more financial equality among schools, but it could also mean that some schools get more money than they do today while others receive less, a switch that could trigger complaints from parents and administrators.

Under the DOE's draft model, developed at the request of the Legislature, most schools would stay within 5 percent to 15 percent of the money they get today for each student, but other schools could gain or lose much more, and some schools may not be able to remain financially viable under the new formula without adjustments.

For example, Kamaile Elementary School in Wai'alae would see a 32 percent increase in money per student under the DOE's model, while Lili'uokalani Elementary would see a 30.9 percent decrease. But school estimates could change significantly depending on how much of the state's total education spending is factored into the student formula and whether actual or average staff salaries are calculated.

"There is a real concern among principals about creating winners and losers, financial winners and losers," said Bob Roberts, a DOE consultant who prepared the draft, which was given to a state Board of Education committee yesterday.

There is growing consensus among policy-makers that Hawai'i schools could soon be in for fundamental change, and a weighted student formula is the main element of reform gaining support.

Gov. Linda Lingle, influential legislators and the leadership of the DOE and Hawai'i State Teachers Association have expressed interest in moving to a weighted student formula, a concept that was introduced among Hawai'i educators several years ago but has grown in popularity now that schools are under pressure to improve student performance.

Lingle also wants to split apart the DOE in favor of local school districts with locally elected school boards, an idea that has been opposed by the DOE and the teachers union and has yet to gain much ground in the Legislature. Citizens Achieving Reform in Education, the governor's advisory committee, is completing its recommendations for Lingle on a weighted student formula and local school boards.

A new formula would replace the existing pattern in Hawai'i where money and resources are sent to schools largely on the basis of enrollment. Under the new formula, a dollar figure would be attached to each student, and the money would follow the student through the school system, possibly to a school of the parents' choice.

The formula would be weighted to help students in early grades, where teacher-to-student ratios are expected to be lower, and at small schools, which have proportionally higher fixed costs. Weights would also be given for gifted and talented students, students still learning English, and students with mental or physical disabilities.

So, for instance, a typical third-grader would have a value of $2,823, a low-income third-grader would be at $3,247, a third-grader still learning English would be at $3,639, and a special education third-grader with severe problems would be at $10,338.

School principals would have more flexibility over school spending and curriculum, and would be held accountable for student test scores and for teacher, student and parent satisfaction.

Roberts and DOE budget analysts raised several concerns about moving to a weighted student formula, but acknowledged that educators in Alberta, Canada, and in Seattle and Houston have seen improved student achievement after adopting variations of the formula.

The DOE's draft, which will likely be used as a reference by lawmakers during debate over education policy next session, noted that the new formula does not address whether money to schools is adequate. It would also require training and professional development for principals and staff during the transition and an investment in information systems that can accurately track school spending.

"I see big, big dollar signs to get this thing going," said Mary Cochran, a BOE member.

The draft found that a new formula would work only if the DOE had full authority to manage education money without dictates from other state agencies, the Legislature or the governor. The draft also found that labor unions and the DOE would have to work together.

A separate report on DOE finances released last week by Lingle claimed that education spending is adequate but concluded that the DOE was too large and centralized to be able to deal with a weighted student formula. The DOE has challenged that report's findings, and Pat Hamamoto, the state schools superintendent, has said that the department could put the new formula into effect if it had more independence.

With support for reform building, but still fragile, some worry that the DOE's draft model may unnecessarily anger school administrators who fear they could lose money under the new formula.

Mike Strembitsky, a former superintendent in Edmonton, Alberta, and an adviser to the governor's reform committee, said he would have recommended that the DOE not put out school-by-school estimates until a more definitive model could be created. For instance, he said, the decision to use actual staff salaries rather than average salaries could explain some of the wider disparities between schools. "It's very difficult now to draw any reliable conclusions and very easy to get people riled up about the findings," he said.

Laura H. Thielen, a BOE member who is also on the governor's advisory committee, asked yesterday that the school-by-school estimates be excluded from the final study given to the Legislature. The BOE will consider the draft later this month. "I think it's going to create a lot of fear at the schools," she said.

James Toyooka, the principal at Lili'uokalani, was surprised to hear his school could potentially lose so much under the DOE's model. "Right now, we already don't have enough money," he said. "Who thought of this formula?"

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com or 525-8084.