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Current Funding Streams in New York State

The 2008 Equity Symposium

Comprehensive Educational Equity:

Overcoming the Socioeconomic Barriers to School Success

November 18, 2008

Lori Connors-Tadros, Ph.D.

The Finance Project

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Goals of the Presentation

• Share preliminary findings of fiscal mapping study of resources to support children birth through age 18

• Discuss implications for the goals of the Campaign for Educational Equity

• Solicit comments and input for further phases of the study

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Purpose of the Study

• Help stakeholders better understand how funding is allocated to programs that serve children and youth from birth through age 18 in New York state

• The fiscal map:– Provides a full accounting of federal and state

expenditures on programs aligned with key policy areas

– Includes an analysis of local education funding

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Context of Study

• Policy context is favorable – increasing focus on state and local government coordination and efficiency

• Fiscal context is challenging – New York faces increasing budget cuts and significant downturn in the local economy

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Research Approach

• State agency contacts identified by the Governor’s Children’s Cabinet

• Written data collection protocols and surveys conducted by phone interviews and email correspondence

• Public data sources, including New York agency documents and federal funding databases

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Participating Agencies

• Office of Education • Department of Health• Office of Children and Family Services • Office of Temporary and Disability Assistance • Office of Mental Health• Department of Labor

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Data Collected

• Programmatic Information:– Key services provided– Program goals– Eligibility for accessing services– Population served

• Expenditure Information:– Total expenditures for children ages birth to 18– FY 07/08 Actual Expenditures– Percentage supported by federal, state, or local education funds– Expenditures for children and youth from low income families– Expenditures by age group -- birth to five; six to 18

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Policy Analysis Framework

• Education and Early Care • Physical Health• Mental Health• Basic Needs, Economic Support, and Child

Safety• Family Support

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Limitations

• Estimating was necessary in many cases for age and income related analyses

• Some information on state and federal programs was not available

• Local (except for education) and private data was not captured

• Policy areas used for analysis are broad, and assigning programs to policy areas is an imperfect process

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Fiscal Mapping Analysis of the Resources to Support

Children and Youth in New York

Preliminary Findings

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Overview of Descriptive Analyses

• What are the relevant sources of public sector funding that support programs and services for New York’s children and youth?

– Approximately one third of the total New York State budget serves children birth through 18

– 111 programs expend $61.9 billion for children and youth

– State and local school aid are major funding sources

– School age children receive proportionately more funding than preschool children

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Figure I: Total State & Federal Funds for Children Ages 0-18 as a % of Total NY Budget

68%

10%

22%

State Funds $24bil(Ages 0-18)

NY Total Government Funds $74.9bil

(Ages 18>)

NOTE: NY Total Government Funds for fiscal year-end 2008 was $110bil, per the NY budget office. NY State & Federal Operating Funds were $77bil and $33bil, respectively.

Federal Funds $11.1bil

32% of Funds allocated to children 0-18

New York State Budget

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State Agency Total # of Programs Total Expenditures

($ in millions)

Department of

Education

37 48,254

Department of Health 40 6,729

Department of Labor 2 44

Office of Children and

Family Services

7 4,006

Office of Mental Health 17 520

Office of Temporary

and Disability

Assistance

8 2,316

TOTAL 111 $61,870

Funding by State Agency

Note: Head Start funding and Local Education Revenues are classified under Dept of Education for this chart.

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Figure II: Total Funding for Children by Funding Type (FY07/08)

Total = $61.9 billion

18%

39%

43%

State Funds $24bil

Local Funds $26.8bil

Federal Funds $11.1bil

Types of Funding

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Figure III: Total Funding By Major Funding Source (FY 07/08) Total =$61.9 billion

32%

39%

29%

State School Aid $19.6bil

Local School Aid $24.3bil

Other Sources $18bil

Major Other SourcesMedicaid ($5.9 billion)

Title I ($1.3 billion)Food Stamps ($1.2 billion)

TANF ($786 million)CCDBG ($314 million)

Note: Local school aid is school year 2006/07; State School Aid is for FY 07/08

Major Funding Sources

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Figure IV: Total Funding for Children by Age GroupTotal = $61.9 billion

15%

85%

Children 0-5: $9.1bil

Children 6-18: $52.8bil

Funding by Age Group

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Per Child Expenditures by Age Group

• Average per child expenditures by age:

• 0 to 5 $6,332

• 6 to 18 $16,109

• 0 to 18 $13,141

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Figure V: Total Funding for Children by Income Level(FY07/08)

Total=$61.9billion

57%

43%

Low Income Children:

Below 200% of Poverty

All Other Children:

Above 200% of Poverty

Funding by Income

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Per Child Expenditures for Children from Low Income Families

• Average per child expenditure by family income:

• Low Income Children $16,545• All Other Children $10,274

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Overview of Policy Area Analyses

How do fiscal resources align with key policy areas related to educational equity?– 111 total programs administered across all policy areas

– Education and Early Care, Physical Health, and Basic Needs policy areas account for 98% of resources

• Policy Areas:– Education and Early Care

– Physical Health

– Mental Health

– Family Support

– Basic Needs

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TOP FIVE PROGRAMS BY POLICY AREA

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Figure VI: Total Expenditures by Policy AreaTotal= $61.9billion (FY07/08)

11%10%

78%

0.06%

1%

Education/Early Care $48.66bil

Physical Health

$6.7bil

$6bil

Basic NeedsMental Health

Family Support

Overall Expenditures by Policy Area

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86%

8% 7%0.1% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

-Policy Areas

Figure VII: State Funding for Children by Policy Area Total=$24bil

Education & EarlyCarePhysical Health

Basic Needs

Family Support

Mental Health

State Funding by Policy Area

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34%33%

30%

3%

0.0%

0%

5%

10%

15%

20%

25%

30%

35%

Policy Areas

Figure VIII: Federal Funding for Children by Policy Area Total=$11.1bil

Education & Early Care

Physical Health

Basic Needs

Mental Health

Family Support

Federal Funding by Policy Area

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PhysicalHealth

Education /Early Care

MentalHealth

FamilySupport

BasicNeeds

Figure IX: Goal Area Funding Mix Allocation($ rounded in millions)

Federal

State

Local

$3,634

$1,794

$1,314

$3,781

$20,455

$24,460

$388

$88

$5

$32

$3,355

$1,557

$1,042

Funding Source by Policy Area

260%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ages 0-5 Ages 6-18

FigureX: Total Funding for Each Group by Policy Area

Family Support

Basic Needs

Mental Health

Education & EarlyCarePhysical Health

Total=$9bil Total=$52.8bil

Funding by Age and Policy Area

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PhysicalHealth

MentalHealth

BasicNeeds

FamilySupport

Education/ EarlyCare

Figure XII: Percent of Funding to Low Income Children within each Policy Area

Non Low-incomeChildren Funding

Low IncomeChildren Funding

27%

73%

2%

98%29%

71%

99.6%

.4%

48%

52%

Funding by Income and Policy Area

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Selected Implications of Findings

• Much of the funding comes from state and local resources– but this funding is often unstable. Are there opportunities to increase contribution of federal resources?

• Funding for family support and mental health services are disproportionately lower than resources for other key policy areas. Are there opportunities to maximize services and/or increase resources in these areas, particularly for children and youth from low-income families?

• Funding to children birth to five is proportionately lower than funding to school age children. Is New York under-investing in these cost-effective services?

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Questions for Further Research

Further research could help answer the following:

• How do private foundations contribute to the funding mix of service delivery in localities?

• How do local funds, other than education, contribute to a full accounting of fiscal resources for children and youth?

• How effective are current funding strategies -- is funding diverse, flexible, stable, and being maximized to support long-term goals?

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In Summary

• The NY funding map and analysis provides a good picture of the current public funding sources supporting services for children and youth.

• It suggests important next steps to develop a strategic financing approach for the Comprehensive Educational Equity Project.

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The Finance Project

Our mission is :

• To support decision-making that produces and sustains good results for children, families and communities. The Finance Project develops and disseminates research, information, tools and technical assistance for improved policies, programs and financing strategies