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Flypaper

Weighted student funding in Indiana?

Eric Osberg
12.31.2008

An op-ed in today's Indianapolis Star??argues for a statewide weighted student funding (WSF) system to deal with the state's budget challenges.

Headlined "Less on overhead, more into classrooms," its author argues:

...research by management expert William Ouchi and colleagues that indicates centralized budgeting is not a good idea. "Schools perform better on fiscal and academic outcomes when there is a) local control of school budgets by principals and b) open enrollment, which allows per pupil funding to follow the child."

The latter idea, known as Weighted Student Funding, is being piloted around the country and gaining acceptance. In its purest form, students could choose any public school in their region and per-pupil funding would go with them. The allotment would be higher for students with special needs, and school buildings would have flexibility to spend as they deem fit. Because parents could choose their child's school, a competitive environment would force principals to spend wisely, thus more money for instruction.

[Incoming superintendent of public instruction] Bennett is philosophically behind the idea. What's encouraging is that he understands the next wave of education reform: spending more effectively.

There are two interesting questions here. One is whether states should adopt WSF, which heretofore has been largely a district-based strategy. Fordham argued in Fund the Child??for a state-level approach, and more recently we provided a roadmap for how Ohio might do so. Likewise, the South Carolina Policy Council explains here??(pdf) how the Palmetto State could move toward WSF.

But states need a real, live model of WSF to follow--here's hoping Indiana can be that.

A second, timely, question is whether a bold funding reform like WSF is easier to enact when times are lean or when funding is flush. For example, New York City's move to WSF (or Fair Student Funding), and shifting of resources from school to school, was eased by a huge "adequacy" lawsuit windfall in state funding.

Now, in states like Indiana and Ohio, we may see whether WSF's potential to more efficiently spend shrinking budgets pushes it to the forefront of state policy debates.

Tags: Indiana New York Ohio Washington State Ferries

Eric Osberg is the Director of Finance and Operations at the in Bethesda, Maryland, a Catholic, independent college preparatory school for girls, serving students from Pre-K–12.

From 2002 to 2010, Osberg served as the Vice President and Treasurer of the Thomas B. Fordham Institute and was also a Research Fellow at the Hoover Institution. He was primarily responsible for financial and managerial issues at…

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