Expenditure Analysis for Arkansas Adequacy Study –

Overview of Findings

Prepared for the January 16, 2007 Meeting of theSenate and House

Education Committee

Gary Ritter and Joshua Barnett, Office for Education Policy

Gary Ritter and Joshua Barnett, UA OEP, Slide 2

Purpose of June ReportSources and Uses of Education $$ in AR

• The level of various types of revenue and the extent to which these have increased since implementation of Act 59 in Special Session of 2003

• The equity/distribution of school resources before and after Act 59 (by reviewing district expenditures for various types of districts)

• The expenditures by function before and after Act 59

Gary Ritter and Joshua Barnett, UA OEP, Slide 3

Ten Guiding Questions

1. Total $$$ in 04-05

2. Increase from 03-04 to 04-05

3. Equity in 04-05

4. Resources linked to wealth?

5. Resources linked to poverty?

6. Resources linked to race?

7. Resources linked to district size?

8. Resources linked to struggling students?

9. Salaries increase?

10. Composition of Expenditures?

Gary Ritter and Joshua Barnett, UA OEP, Slide 4

Question 1: How much money was in the AR education system in 2004-05?

State Rev (foundation), $3,834 , 43%

State Rev (capital), $39 ,

0%

State Rev (other), $440 ,

5%

Local Rev ( > 25 mills), $845 ,

9%

Other Revenue, $684 , 8%

Federal Revenue,

$1,049 , 12%

Local Rev (required 25

mills), $1,591 , 18%

State Rev (categorical),

$422 , 5%

Total Revenue = $8,902

Foundation = $5,425

Gary Ritter and Joshua Barnett, UA OEP, Slide 5

Question 1: How much money was in the AR education system in 2004-05?

• Local Revenue increased 9%• Total State Revenue increased 24%

• Categorical Revenue increased from $50 per student to $400 per student

• Total Revenue increased 16%

• Current Expenditures increased 12%

Gary Ritter and Joshua Barnett, UA OEP, Slide 6

Question 2: How much have revenues grown from 2003-04 to 2004-05?

Revenue Source

2003-04Revenue Per

Pupil

2004-05Revenue Per

Pupil % Change

State Revenue (foundation) $3,237 $3,834 18%

Local Revenue (required 25 mills) $1,518 $1,591 5%

Total Foundation Revenue $4,755 $5,424 14%

State Revenue (categorical) $49 $422 761%

State Rev. (other) $442 $440 -0.5%

State Rev. (capital) $82 $39 -52%

Local Rev. (local tax > 25 mills) $727 $845 16%

Federal Revenue $1,000 $1,049 5%

Other Revenue $642 $684 7%

 

Total Revenue $7,696 $8,902 16%

Gary Ritter and Joshua Barnett, UA OEP, Slide 7

Question 3: Has the distribution of funding become more equitable?

Equity Statistic 2003-04 2004-05

Coefficient of Variation0.08 0.07

McLoone Index0.95 0.95

Federal Range Ratio0.34 0.29

Fiscal Neutrality Correlation Coefficient0.60 0.51

Fiscal Neutrality Wealth Elasticity0.16 0.13

Education Trust Composite Score-$143 -$116

Gary Ritter and Joshua Barnett, UA OEP, Slide 8

Question 4: Are resources linked to property wealth?

$6,860

$6,134

$6,743

$7,484

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

G1 G2 G3 G4 G5 G6 G7 G8 G9 G10

Property Wealth Deciles (1= lowest wealth; 10 = highest wealth)

Cu

rren

t E

xpen

dit

ure

s (w

ith

ou

t tr

ansp

ort

atio

n)

.

2003-04 2004-05 2005-06 B

Low Wealth High Wealth

Gary Ritter and Joshua Barnett, UA OEP, Slide 9

27% NSLA 87% NSLA

Question 5: Are resources linked to student poverty?

$7,076

$5,771

$6,457

$8,166

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

G1 G2 G3 G4 G5 G6 G7 G8 G9 G10

Percentage of NSLA Student Deciles (1= lowest %; 10 = highest %)

Cu

rren

t E

xpen

dit

ure

s (w

ith

ou

t tr

ansp

ort

atio

n)

.

2003-04 2004-05 2005-06 B

Gary Ritter and Joshua Barnett, UA OEP, Slide 10

Main Findings: Are disadvantaged districts receiving more resources?

• Assessed Valuation expenditures:

• Lowest wealth districts increased by 22%

• Highest wealth districts increased by 10%

• NSLA expenditures:

• Lowest poverty districts increased by 19%

• Highest poverty districts increased by 23%

Gary Ritter and Joshua Barnett, UA OEP, Slide 11

Question 6: Are resources linked to student race?

68 - 87% non-white

$6,868

$6,031

$6,809

$7,878

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

G1 G2 G3 G4 G5 G6 G7 G8 G9 G10

Percentage of Nonwhite Student Deciles (1= lowest %; 10 = highest %)

Cu

rren

t E

xpen

dit

ure

s (w

ith

ou

t tr

ansp

ort

atio

n)

.

2003-04 2004-05 2005-06 B

1.5 - 3.5% non-white

Gary Ritter and Joshua Barnett, UA OEP, Slide 12

Question 7: Are resources linked to district size?

375 enrollment 7,800 enrollment

$6,672

$6,844

$7,836

$7,491

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

G1 G2 G3 G4 G5 G6 G7 G8 G9 G10

District Size Deciles (1= lowest ADM; 10 = highest ADM)

Cu

rren

t E

xpen

dit

ure

s (w

ith

ou

t tr

ansp

ort

atio

n)

.

2003-04 2004-05 2005-06 B

Gary Ritter and Joshua Barnett, UA OEP, Slide 13

Main Findings: How did spending change in “small” districts (fewer than 500 pupils) before and after Act 59?

• Current Expenditures 2003-04 = $6,294• Current Expenditures 2004-05 = $7,516

• Change in Expenditures from 2003-04 to 2004-05 = +$1,222

Gary Ritter and Joshua Barnett, UA OEP, Slide 14

Question 8: Are resources targeted to struggling students?

27% Pro+Adv 67% Pro+Adv

$6,092$6,905

$7,895

$6,774

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

G1 G2 G3 G4 G5 G6 G7 G8 G9 G10

Student Performance Deciles (1= lowest % of proficient students; 10 = highest % of proficient students)

Cu

rren

t E

xpen

dit

ure

s (w

ith

ou

t tr

ansp

ort

atio

n)

.

2003-04 2004-05 2005-06 B

Gary Ritter and Joshua Barnett, UA OEP, Slide 15

Question 9: How have teacher salaries changed?

• New Teachers’ Salaries• New teacher salary 2003-04 = $27,380• New teacher salary 2004-05 = $30,070

• Average Teachers’ Salaries (slide 23)

• Average teacher salary 2003-04 = $39,409• Average teacher salary 2004-05 = $41,489

• Types of Districts with Salary Changes • Small Districts (10% in smallest, 5% overall)

• Poor Districts (7% in poorest, 5% overall)

+10%

+5%

Gary Ritter and Joshua Barnett, UA OEP, Slide 16

Question 10: How has composition of spending changed?

62%

4%

4%

5%

5%

10%

4%6%

62%

5%

4%

5%

5%

9%

4% 6%

Instruction

Instructional Support

Pupil Support

Site Administration

CentralAdministration

Maintenance &Operations

Transportation

Food & Other

2003-04 2004-05

Gary Ritter and Joshua Barnett, UA OEP, Slide 17

Summary Thoughts

• Substantial additional resources have been provided to Arkansas’ schools • Targeted to poor schools• Targeted to small schools• Targeted to high-minority schools

• The question remains – How can we use these additional resources

to adequately and equitably educate students across the state?

Gary Ritter and Joshua Barnett, UA OEP, Slide 18

How to Contact Us

Gary W. Ritter

201 Graduate Education Building

University of Arkansas

Fayetteville, AR 72701

479-575-4971

oep@uark.edu