DELAWARE - Changes in education funding policies in Delaware are being recommended to policymakers following a recent study and report by the American Institutes for Research. Some recommendations include:
- Increasing state investment in public education.
- Distributing more resources according to student need.
- Improving funding transparency.
- Allowing more flexibility in how districts use resources.
- Regularly reassessing property values.
DELAWARE STUDENT OUTCOMES
The report analyzed data from the National Assessment of Educational Progress, which showed that Delaware's student outcomes lag behind those of other Mid-Atlantic states and have declined over the past decade, even before the COVID-19 pandemic. It also compared Delaware's school funding system to other states and included both data on school spending, student needs and student outcomes and perspectives of education leaders from districts across the state.
Compared to the states around it, Delaware has greater student needs in terms of economic disadvantage and English language learners. This combined with lower student outcomes means Delaware will likely need to invest greater resources than nearby states to achieve similar positive outcomes, according to the study.
RECOMMENDATIONS
Delaware currently uses a resource-based funding plan. That means the state uses student enrollment to determine the amounts and types of resources a district can fund, like teachers and operational costs. The state covers the majority of funding for education, though districts can also raise funds locally through property taxes.
The study says outdated assessments of property values pose challenges that could be resolved through more regular assessment updates. The discrepancy between assessed and actual property values forces districts to frequently raise tax rates, making the referendum process burdensome and risky in the eyes of surveyed district leaders.
The current state funding system allocates state money independently of districts' abilities to raise revenue locally. Although districts with less capacity receive more state funding than those with greater capacity, the study says the difference is not enough to offset differences in spending from local revenue. Some districts with high property valuation can raise substantial local money at low tax rates on top of state funding, while others may struggle more even at higher tax rates.
Additionally, not only receiving more money but having more flexibility in how to spend it was another study suggestion. District leaders said that some as-needed external funding programs dictate that money received must be spent in certain ways and have specific reporting requirements. For example, it was noted that, if districts have positions they cannot fill either because they can't find the right person or they can't afford their share to meet state funding, they lose the position rather than have cash they could use for another purpose.
"In theory, flexibility of resource use results in more efficiency in meeting the needs of students, under the assumption that those working directly with the students are most aware of their specific needs and what resources might be required to address those needs," the report says.
FUTURE ACTION
Though it says Delaware's current education funding system has certain strengths, the report found that there is opportunity for improvement. Secretary of Education Mark Holodick said state leaders will use the findings to inform discussions on how to revise an education funding system most consider outdated.
"We have known change is needed, but we didn't want to move forward blindly. We needed an independent deep dive into what is working elsewhere, what our own strengths and needs are and ideas we can consider as a state to move forward," said Holodick. According to the report, Delaware's system of funding schools has experienced few changes in recent history. Some of these same recommendations have been shared in previous studies, as well.
The report also suggests a phase-in plan rather than immediate implementation of changes to funding. The report is available at education.delaware.gov.