Study Recommendations: District Size Adjustment

Transcript:Study Recommendations: District Size Adjustment:
Study Recommendations: District Size Adjustment Amanda Brown and Justin Silverstein, APA Presentation Overview Review recommended district size adjustment from study Provide additional analysis of recommended size adjustments Committee considerations, including review of future stakeholder feedback areas 2 District Size Adjustment from Study Chart The study team recommended that a new funding formula include a district size adjustment to account for different economies of scale in districts. The study team developed a size adjustment factor based upon: Results of the current study and 2006 adequacy study, combined with school finance research presented in the 2012 AIR report. School finance research depicts the relationship between size and cost as a J-curve: 3 District Size Adjustment from Study The J-curve relationship is consistent with the results of the 2018 evidence- based (EB) and 2015 professional judgement (PJ) studies, that while based on two different district sizes (3,900 for EB, and 50,000 for PJ), but were similar in terms of per-pupil costs. The 2006 study provided smaller size data points- a minimum at 50 students and a smaller data point at 780 students- that also were consistent with the J-curve seen in research. These data points were used to develop the following formula (with the $9,238 base used as the floor of 1.0): For districts above 3,900 students: size adjustment factor = (-.000001735*enrollment) + 1.0868 For districts below 3900 students: size adjustment factor = (-0.281*ln(enrollment)) + 3.4 4 District Size Adjustment from Study Continued This formula was used to develop a size factor to apply to any base amount, shown below at different size points: The study team recommended the size factor for each district be applied to the base separately from any other adjustments. 5 Additional Analysis on District Size Adjustment To support the Commission in determining if the recommended district size adjustment was the best fit for Nevada, APA was asked to provide additional information and analysis. APA reviewed size adjustment policies nationally Compared the study’s recommended size adjustment against: Nevada’s current approach (District Groupings/Basic Support Ratios) Current district expenditures Size adjustments in two other states, Colorado and Kansas States with size adjustments and rural/urban variation 6 Size Adjustments in Other States States often address district differences based upon district or school size, and isolation or density. 9 states adjust for district size 7 states adjust for school size 4 states adjust for district density (students per square mile) 14 states adjust