Fair funding for education remains a central sticking point in Pa. budget talks

Students, families, and education advocates join Children First and Education Voters of Pennsylvania to host a rally on the Capitol steps, Nov. 12, 2021, the first day of the landmark trial that changed how Pennsylvania funds its 500 school districts (Capital-Star photo).

Education equity advocates say a new fair funding formula for Pennsylvania schools that would use U.S. Census data to calculate poverty rates rather than state Department of Education numbers would fall short of goals by as much as half.

The proposal by state Senate Republicans would alter legislation passed in the state House last month to satisfy a state court mandate to eliminate a massive funding gap between the state’s wealthiest and poorest school districts.

The House legislation would provide $5.1 billion to 371 school districts where per pupil spending is below the average spent in the districts that achieve the state’s educational sufficiency goals.

The Senate plan, discussed by Majority Leader Joe Pittman (R-Indiana) in a news conference last week, would trim that amount by between $700 million and $1.4 billion, according to advocates who say census data provides a less accurate picture of poverty than the state’s own data.

“If we are not using the accurate calculation for poverty, we are depriving children in low wealth schools of basic resources,” said Maura McInerney, legal director of the Education Law Center. “They still won’t have enough teachers, they won’t have a guidance counselor, they won’t have up to date science labs, they won’t have enough reading and math specialists, which we know are critically important for children living in poverty.”

McInerney was one of the lawyers representing parents and school officials who sued Pennsylvania in a nearly decade-long case alleging that the state’s heavy reliance on property taxes to pay for public education was unconstitutional.

Commonwealth Court President Judge Renee Cohn Jubelirer ruled in their favor last year and ordered Gov. Josh Shapiro and the General Assembly to eliminate disparities that deprived students in poorer communities of their constitutional right to a “thorough and efficient” education.

Jubelirer left the details to lawmakers and a bipartisan commission of House, Senate and executive branch officials, after months of hearings, proposed methods to calculate funding shortfalls that took into account factors such as poverty and the number of English as a second language students.

While the Department of Education derives school district poverty levels from public benefits enrollment data, the Senate Republicans propose using data gathered by the U.S. Census Bureau’s annual demographic survey.

In his July 3 news conference, Pittman characterized the disagreements over school funding as being less about how much the state will spend, and more about how that money will be distributed.

“One of the biggest areas of difference is not only spending on education, but how those dollars get driven to school districts,” Pittman said.

A spokesperson for Pittman did not respond to a list of questions about the proposed change but provided a statement about the general progress of budget negotiations.

“Good progress is taking place, but I continue to underscore nothing is agreed to until everything is agreed to. As we come closer to completion, the Senate looks forward to collaborating with the House on how best to advance all necessary components of the budget,” Pittman said.

Shapiro, in a statement on the budget Sunday, praised Republican and Democratic leaders for “continuing to move the ball down the field” and said that “we’re deep in the red zone.” He added each side is treating the other with respect and making compromises.

Both the House and Senate have sessions scheduled Wednesday and Thursday but the Senate GOP faces pressure to conclude the process as the Republican National Convention begins next week.

Marc Stier, executive director of the Pennsylvania Policy Center, said the proposal appears to be an effort by Republicans to show that they are serious about addressing the Commonwealth Court ruling while reducing the cost over the long term.

The Republican proposal to use census data rather than the Education Department’s poverty data would, Stier said, shortchange kids in poor school districts. He said he believes it will get a cold reception in the Democratic controlled House.

“We believe that they’ve been rejecting this proposal,” Stier said. “My guess is it’s going to be a proposal that falls so far short of what we need, it’s going to be very hard to pass even if the leadership wants it.”

While heavily Democratic Philadelphia would see the largest reduction in new funding, some schools in Republican Senate districts would see larger reductions by percentage, he said.

The funding gap for Wilkes-Barre Area School District, in Sen. David Argall’s (R-Schuylkill) district, would be reduced by nearly $25.5 million, a loss of more than 30%. In Sen, Judy Ward’s (R-Blair) constituency, Altoona Area School District’s funding gap would be reduced by $12.3 million, or more than 22%, according to the Pennsylvania Policy Center’s data.

McInerney, of the Education Law Center, said the census data underrepresents school poverty levels because it is a sample of the community at large and includes families who choose to send their children to religious or other private schools. To determine the shortfall in funding, the state must look at the demographics of the children actually attending public schools.

“Who are the children being served in each school district? What is the poverty level of the students attending the school?” McInerney said.

The divided chambers of the General Assembly have also clashed over alternatives to public education in last year’s budget and in the lead up to this year’s budget deadline.

In 2023, Senate Republicans, with Shapiro’s backing, passed legislation to expand the state’s private school tuition voucher program to provide an additional $100 million for students in the state’s lowest performing districts. House Democrats killed the bill and Shapiro used his line-item veto power to eliminate funding for the program to allow the budget to advance.

Shapiro signs final budget bill after late night votes in the Pa. Legislature

Stier said he believes that an expansion of the voucher program is off the table for the 2024-25 budget. The Senate Finance Committee last week passed Senate Bill 1280, which would create an $8,000 tax credit for families to spend on education-related expenses such as tuition or tutoring.

“I think that was like a show vote to show to supporters that Senate Republicans still support it,” Stier said, adding that he is doubtful the legislation will become part of the final budget.

McInerney said the tax credit is equivalent to a voucher program.

“It has all of the problems that a voucher has, right, because you’re diverting public dollars to private schools without accountability, and to private schools that are allowed to discriminate,” McInerney said.

Funding for the University of Pittsburgh, Penn State, Temple and Lincoln universities have also been a sticking point in recent budget negotiations. Appropriations for the institutions, known as the state-related universities because of the state’s limited oversight, require a two-thirds vote to pass.

House Republicans have held up funding bills over concerns about tuition increases, transparency and social issues such as fetal tissue research.

The House Education Committee on Tuesday unanimously approved Senate Bill 1154, sponsored by Sen. Ryan Aument (R-Lancaster), which would establish a Performance-based Funding Council to develop a new system to distribute funding to the state-related universities.

Rep. Jesse Topper (R-Bedford), the ranking Republican member of the Education Committee, said the legislation would take the politics out of state-related university funding decisions and replace it with data.

“We’re trying to move this towards something that is data driven, provides accountability, and also shows the students and families that are choosing these institutions what that’s doing for them in Pennsylvania,” Topper said.

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