Money Follows The Child: Fixing Unfair Funding

OVERVIEW
This proposal would fix inequities in per pupil funding by requiring funding rates to be based on student need and requiring money to follow each child to the public school they attend.

The Problem. Millions of public school students in the United States are funded unfairly due to state laws that tie funding to local wealth, fund different school types at different rates, and ignore student need. As a result, children in neighboring zip codes and children who live next door to one another attend schools that are equipped with vastly different resources.

The Solution. This proposal would streamline school funding across the nation by requiring states to adopt need-based per-pupil funding formulas that ensure every child is funded equitably by their state and local education authorities.

  • All states would be required to implement need-based per-pupil funding formulas with extra weight applied to factors such as poverty, English language learner status, and special education needs.
  • The law would set minimum thresholds for state and local contributions to public schools. These thresholds would be based on factors such as regional cost of living and average local revenue capacity.

Legal Basis. This proposal would be implemented via an amendment or reauthorization of a major federal education law like the Elementary and Secondary Education Act (ESEA), which has been used to drive reforms in K-12 education at the state level (e.g. NCLB; ESSA).

Compliance & Accountability. This proposal would tie Title I funding to compliance with the fair funding provisions and offer additional federal funding to states that implement reforms quickly. States would also be required to publicly release annual reports that demonstrate whether state and local contributions meet the thresholds established by the law.

Additional Notes.

  • This proposal is designed to raise the floor for students and schools that have been underfunded for decades and to ensure that every dollar spent on behalf of a child reaches that child’s school.
  • Nothing in this proposal is intended to reduce funding that currently follows a child to their school.