Fair Student Funding

Fair Student Funding Background

Every child deserves the same opportunity for a great education. And that means every school deserves fair funding. For years, our school budgeting fell short of that promise. Last year we began to change that. Under Fair Student Funding, we began to allocate the largest school funding stream in a more equitable way. We now fund schools based on the needs of the children at each school, because it’s our students who matter most.

Fair Student Funding aims to achieve three major goals:

  • Improve student achievement: School leaders and communities know best what their schools need for their students to achieve. Fair Student Funding eliminates restrictions on dollars and gives schools more opportunity to make the best choices for their students. Fair Student Funding creates new financial incentives for schools to enroll struggling students—and new rewards when schools succeed in improving students’ results.
  • Move toward equity: Last year, Fair Student Funding directed $110 million in new funds toward schools that had not received their fair share of resources, without taking funds away from other schools. Going forward, Fair Student Funding aims to bring all schools up to their fair funding level as soon as resources permit. This year, given the tight fiscal situation, we will adjust schools for changes in enrollment and need levels in a way that keeps them on parity with gains made last year and, in some cases, even brings them closer to the formula.
  • Make school budgets more transparent: Fair Student Funding eliminated many complex funding streams, providing more than five billion dollars to schools in a single, simplified budget allocation. And while Fair Student Funding isn’t perfect, it’s a big step forward and a strong vehicle for improvement over time.

The Basics: A Fair and Transparent Way to Fund Schools

Fair Student Funding is based on simple principles:

  • School budgeting should fund students fairly and adequately, while preserving stability at all schools;
  • Different students have different educational needs, and funding levels should reflect those needs as best as possible;
  • School leaders, not central offices, are best positioned to decide how to improve achievement; and
  • School budgets should be as transparent as possible so that funding decisions are visible for all to see and evaluate.

In keeping with these principles, Fair Student Funding means that:

  • Money will follow each student to the public school that he or she attends.
  • Each student will receive funding based on grade level.
  • Students also may receive additional dollars based on need.
  • Principals have greater flexibility about how to spend money on teachers and other investments—with greater responsibility for dollars and greater accountability for results.
  • Key funding decisions will be based on clear, public criteria.

FSF is Being Implemented Gradually to Preserve Stability

We need to drive more resources into schools that aren’t getting their fair share of funds and encourage all schools to perform better. But we also need to protect what’s already working. That’s why Fair Student Funding is being implemented gradually. Specifically:

  • Fair Student Funding has not resulted in reduced funding for any schools. Schools that are above the formula will continue to receive their Hold Harmless amounts at least through the 2008–09 school year.
  • Schools are funded for the salary increases of teachers who were on their payrolls prior to the start of FSF—as of April 2007.

Two important things to keep in mind:

  • These funding commitments continue to be contingent on adequate State and City funding.
  • Schools may still face funding reductions because of changes in programs outside Fair Student Funding, changes in enrollment, or loss of grant funding.

Going forward, Fair Student Funding provides a flexible vehicle for public feedback and improvement over time. We have made tradeoffs and tough decisions transparent. We have provided extensive data about schools’ funding in more accessible form. We are committed to improving Fair Student Funding in the coming years through input from principals, teachers, parents, and school communities.