Invest Intelligently

Connecticut receives 0 out of 4 available points for redeploying Education Cost Sharing (ECS) funds.

On September 7, 2016, Judge Thomas Moukawsher highlighted a serious need to develop a new education finance model for the state, concluding that the existing ECS formula is not “rational, substantial, and verifiable”.¹ Indeed, the most recent version of the ECS formula was abandoned in 2013 and replaced by grants that are allocated on a town-by-town basis; the total grant is still underfunded by over $600 million.²

Connecticut must find a transparent and fair way to fund all public schools. A fair formula must apply different weights for students with different needs, apply equally to all types of schools (including charters and magnets), and have an ultimate goal of having money follow the child.

Connecticut receives 0 out of 3 available points for efforts to reallocate categorical funds.

In 2015 and 2016, budgetary reductions resulted in the elimination of several grants that impact low-income students. For example, from FY 2014-15 to FY 2015-16, appropriated funding for the Priority School Districts was reduced by $3.5 million.³ This line item was reduced by another $2.5M for FY 2016-17. ⁴ For FY 2015-16 $9 million was lost for the Commissioner’s Network,⁵ reduced by another $.7M in FY 2016-17⁶. FY 2016-17 also saw the reduction of Alliance District grant funding by $6.8M⁷ and the elimination of the School Accountability program⁸.

Rather than making these types of cuts the Connecticut State Department of Education should conduct a comprehensive review of the specific uses of categorical grants and track their efficacy. It should then implement a plan to reallocate funds that have been ineffectively used so that they can be spent instead on efforts that are specifically aimed at improving achievement for low-income students.

The newly created Planning Commission for Education is required to recommend a strategic master plan for public education, which must including funding policies—including measures to promote effective resource allocation.⁹ However, the Planning Commission’s website appears to be inactive.¹⁰

Connecticut receives 1 out of 3 available points for establishing a statewide chart of accounts to rack comparable data on per pupil expenditures.

Legislation passed in 2012 required the creation and implementation of a uniform chart of accounts by 2014-2015.¹¹ However, contrary to this legislation, the Office of Policy Management has directed that “neither municipalities nor school districts are required to replace their current chart of accounts with the UCOA.”¹²

Furthermore, the statutorily required chart of accounts does not include sufficient data to link expenditures to student achievement.¹³ Without this associated data, the public cannot easily understand whether the investments being made in education are making a difference on student outcomes.

Connecticut receives 2 out of 3 available points for encouraging small districts to consolidate and/or share services.

Legislation passed in 2012 required the Connecticut State Department of Education (CSDE) to conduct a study of how small school districts could benefit from shared services.¹⁴ The resulting report explored the demographics of Connecticut’s small school districts, as well as financial incentives and disincentives for efficiency.

2015 legislation also created a process for the State Board of Education to grant innovation waivers¹⁵ to districts stimulating innovation or improving school district administration.¹⁶ This is an opportunity for districts to pilot shared service models.

The CSDE is hosting a RESC Special Education Funding Working Group which is working on how education regional organizations (RESCs) can provide special education services more effectively.¹⁷ The state could benefit from more training like this on how shared services can benefit districts.

Connecticut receives 0 out of 1 available point for improving its applications for federal and private grants. The state should hire an individual with a record of grant-writing success to oversee the application of federal and private grants.