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“Flexibility” Helps Keep Schools Afloat at Cost of Valued Programs
- 05-07-2010
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By UCLA IDEA Staff
Themes in the News for the week of May 3-7, 2010
Last year to provide school districts with a way around their budget crisis, the California Legislature removed restrictions on approximately 40 mandated categorical programs, allowing districts to reallocate about $4.5 billion. On Tuesday, the Legislative Analyst’s Office released the results of a survey that reported how districts were shifting categorical money and changing services in light of this new flexibility (CLA survey).
What is “categorical aid”?
“Categorical aid is money from the state and federal governments targeted to particular programs, such as K–3 Class Size Reduction, and to students with special needs, such as Special Education—the largest state categorical program and a significant federal categorical. In addition to being aimed at certain programs or populations, categorical aid usually comes with restrictions on how the money can be spent. Title I (extra support for students who live in poverty) and Child Nutrition (school breakfast and lunch) are among the largest ongoing federal programs” (Ed-Data).
Predictably, most districts responding to the analyst’s office survey took advantage of not needing to earmark funds strictly for categorical programs (KPCC). By shuffling money around, they were able to balance budgets, retain pink-slipped employees and fund some programs for struggling students.
The impact to categorical programs was softened when many districts used federal stimulus money to backfill reductions to those programs. On average, districts said they spent two-thirds of their share of the $6 billion California received to prevent teacher layoffs and the remainder went to categorical programs and one-time purchases (CLA survey). If districts haven’t used them up already, when the stimulus funds run out in 2010-11, many worry that districts will face a “funding cliff” next year, unable to avoid widespread layoffs or cuts to categorical programs (California Watch).
Many districts shifted funds from adult education, professional development, gifted education and the arts, but others discontinued programs altogether. One-third of responding districts ended class-size reduction for high school freshmen and one-fifth cut the arts, counseling and adult English tutoring (CLA survey).
The LAO recommended freeing all $1.48 billion funds for class-size reduction for kindergarten through third grade, a priority statewide among many districts. Last year, the state eased restrictions on districts exceeding the 20-student classroom limits. Now, districts can receive 70 percent of the funding for classrooms with as many as 33 students. The LAO also recommended merging two separate programs—English Language Acquisition Program and the larger Economic Impact Aid.
The categorical-funding flexibility is a mixed bag. On one hand, it allows districts flexibilty to spend money on educational programs their local communities have prioritized. Plus, district budgets are not exacerbated by meeting costly state obligations. Many districts can and have taken advantage of greater flexibility to prevent layoffs.
On the other hand, the logic behind categorical programs has been that they are too important to be left entirely to local priorities and resources—especially when they benefit students who are poor or have greatest need for the resources. The survey didn’t assess the loss or harm to students and parents that results from reallocating categorical funds (KPCC). There are no guarantees that money originally intended to support English learners and low-income students will be spent on them (Educated Guess). A system that provides less and less to these students runs counter to equity principals and bipartisan political rhetoric. In a 2007 report, Gov. Schwarzenegger recommended a weighted funding formula that gave more money for poor students and those learning English. Some say now is the time to think about a fairer system (Educated Guess). Such a system should certainly remedy the flaws and complexity that plague the current categorical patchwork.
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