Trying to understand how education spending is influencing our education priorities is like looking through murky water, notes this report from the Data Quality Campaign: “[I]t is evident something is there, but it is not exactly clear what.” For example, education leaders need to know whether investments in interventions have an impact, whether schools with high numbers of special-needs students are receiving the resources to which they are entitled, and whether dollars spent on teacher development have led to improvements. Without a clear picture of education spending, there is little to inform decision-makers. The report proposes several solutions. First, states should find new ways to make financial data more accurate and transparent for stakeholders. This starts with changes in data collection, including a shift to a common system of financial information record-keeping across states. Second, raw financial data should be translated for use in public reports, including information that connects education dollars to outcomes. The report also encourages states to create a forum for district leaders to share best practices and learn from one another. To illustrate DQC’s proposed reforms, consider this process with funding for special-needs students: Districts could use financial data to tie how much extra funding is given to special-needs students and what services and equipment they receive. If we had this information for each district, we could begin to identify best practices and apply them across the state and beyond. These reforms require a fundamentally different system than the one currently in place, but this change is crucial if we hope to make informed financial decisions that drive results for students. Meanwhile, Fordham’s taken a stab at peering through the murky water of school financial data in the D.C. metropolitan area. The results may surprise you.
SOURCE: “Using Financial Data to Support Student Success,” Data Quality Campaign (October 2014).
