The Why Report - Recommendation #9

NSBA RECOMMENDATION #9
Aligned specific sanctions with funding – States should delay implementation of restructuring schools or districts in years when Title I funds are not increased by at least $2.5 billion and the Individuals with Disabilities Education Act funds are not increased by at least $2 billion.

STATEMENT OF THE ISSUE
Congress is not providing adequate resources to help schools raise the achievement of the neediest children – those who are disadvantaged by poverty and those who have special needs. This funding shortfall comes at a time when the federal government is demanding, through NCLB, that schools and districts raise student achievement or face serious consequences such as restructuring, which could result in a school closing, private management company takeover or replacement of the entire staff. Districts face similar consequences.

When schools don’t meet the rising AYP targets, they will move along the sanction continuum and eventually be restructured. Restructuring is an expensive proposition because it involves drastic operational changes to a school or district. It will divert local spending from other programs if federal funds are not sufficient. Currently Congress is only able to fund Title I at 50 percent of its authorized level and provides half of the promised federal share for Individuals with Disabilities Education Act. The combined shortfalls in meeting the mandates of these laws are a significant burden of school systems that should be addressed before restructuring is required.

While Congress provides only half of the Title I funds authorized in NCLB, districts and schools must face expanding mandates under the law from year to year. They must: have aligned standards and assessments by 2005-06; test all grades 3-8 and high school in 2005-06; meet the law’s highly qualified teacher requirements by the end of 2006-07; and test students in science in 2007-08. In addition, schools must do more each year to help their students meet the rising AYP targets. Despite these mandates, Congress has continued a steady decline in adequately funding NCLB over the last few years.

Congress also has never fulfilled its promise in fully funding IDEA at 40 percent average per pupil cost. When lawmakers reauthorized IDEA in 2004, they established a seven-year path to full funding by 2011. However, they have not adhered to that schedule and currently provide less than half of the federal share. Congress’ unwillingness to commit adequate resources to educate students with disabilities is causing districts to pull local funds from other programs to cover the federal share for IDEA mandates. This hurts both the general education program and educators’ ability to help students with disabilities meet the same proficiency targets as their peers. 

LEGISLATIVE REMEDY
NSBA’s bill recommends that districts and schools be allowed to delay implementation of restructuring in any year that Congress fails to increase federal funding for Title I by at least $2.5 billion over the previous year, or fails to increase funding for IDEA by at least $2 billion over the previous year.

SUPPORTING DOCUMENTATION
Federal Title I funds have not kept pace with the increasing demands through NCLB. For the 2006-07 school year, 90 percent of the nation’s school districts participating in the Title I program and half of the states saw their Title I funding cut or frozen. The federal average per pupil spending dropped from $1,425 from 2005-06 to $1,373 for 2006-07 (Center on Education Policy 2006). The decline in Title I funds came at a time when more schools and districts are moving forward along the sanction trail and incurring significant spending to improve student performance.

As the number of schools subject to NCLB’s restructuring grows, states and districts must spend more to help them meet AYP targets. For example, Hawaii will spend $15 million this school year -- twice as much as last year – to help an increased number of schools facing restructuring meet AYP. The number of restructured schools grew from 24 to 50 in Hawaii. The costs of providing support to help schools in need of improvement escalate as the number of years of improvement increases. Hawaii estimated that the cost of providing technical assistance to schools in improvement grew from $6,000 per school in year one, to $29,400 per school in year two, to $94,000 per school for those facing restructuring (Augenblick, Palaich and Associates, Inc. 2004). Additional state and district funds will likely be needed to fund schools facing severe sanctions under the law. Despite the increased number of schools in restructuring, Hawaii will receive less in Title I funds this year.

Since AYP targets ratchet higher over time, more schools are expected to be in restructuring, requiring states and districts to spend more to implement improvement plans if federal funds are not adequate. Meanwhile federal Title I grants to states have been stagnant over the last few years. Half of the states will see their Title I funds reduced for 2006-07; and most states will not be receive sufficient funds to provide support for schools identified as in need of improvement and restructuring (Center on Education Policy 2006).  

Congress should provide adequate funding for Title I and IDEA or defer mandating the expensive implementation of restructuring districts and schools for that year. If restructuring is delayed, districts and schools would still use Title I funds to improve student achievement, including spending up to 20 percent of these funds for school choice and supplemental educational services as well as for implementing other targeted in-school remedies under corrective action. 

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This Why Report addresses 1 of 40 provisions contained in NSBA’s bill, No Child Left Behind Improvements
Act.  To review other Why Reports on key provisions, go here.