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Finance Issues (FI)
NCLB Reauthorization

To better inform the national debate on No Child Left Behind (NCLB) reauthorization, ECS collected and synthesized recommendations by national organizations to improve the federal law.

ECS' database is organized around 16 issue areas that captured most recommendations. Some organizations did not offer recommendations for all issues, at least according to our analysis. And several recommendations appear more than once since they applied to multiple issue areas.

The summary and full text of all organizations' original recommendations for Finance Issues (FI) are listed in this report. Please see the main page for additional reports and sources for the database.

Highlights
(See Abbreviation Key at end of table)
 
Organizations that addressed this issue: 14 of 15
AASA; AFT; Comm. NCLB; CCSSO; ECS; Ed Trust; FEA; NAESP; NASBE; NASSP; NCSL; NEA; NGA; and NSBA

Organizations that did not address this issue: 1 of 15
BCSA

Comments
By far, the most common recommendation under Finance was to adequately fund the far-reaching federal law. Despite the challenges of identifying actual costs, some organizations called upon Congress to study the fiscal responsibilities borne by states and districts to carry out NCLB's requirements and goals. Other proposals included more flexibility to spend federal funds and eliminating financial penalties for not fully participating in No Child Left Behind.



Visit ECS' Database on NCLB Reauthorization main page for more information, explanations and access to organizations' original reports. Please note that ECS plans to expand the database as more information becomes available.

Database Last Updated: July 2007

This database was created and compiled by Mary Fulton, ECS policy analyst.
For questions and comments: 303.299.3679 or mfulton@ecs.org
NCLB Reauthorization : American Association of School Administrators (AASA)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Eliminate under-funding of federal programs by switching from grants to contracts with states and include specific compensation for activities.
FI 1 - Full Recommendation Eliminate under-funding of federal programs by changing the agreement between the federal government and states and the state and their districts from a general grant to a contract with specific compensation for each required activity involved.
FI 2 - Summary of Recommendation Focus federal funds on increasing achievement among highest-poverty students.
FI 2 - Full Recommendation Focus federal dollars on supplementing district efforts to increase achievement among the highest-poverty students.
Parent and Community Involvement (CPI)

NCLB Reauthorization : American Federation of Teachers (AFT)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Offer grants for states to develop common standards, curriculum and assessments for more consistency in proficiency and growth definitions.
FI 1 - Full Recommendation

Offer grants for voluntary consortia of states to develop common academic standards, curriculum and assessments to provide more consistency in the definition of proficiency and growth across participating states.

Rationale: This initiative would allow states in the consortium to pool their resources and develop appropriate assessments that align with the regular state assessments for English language learners and students with disabilities, as is currently allowed but rarely done due to limited state resources.

FI 2 - Summary of Recommendation Fund NCLB at levels promised in 2001 reauthorization.
FI 2 - Full Recommendation

Fund NCLB at the level promised in the 2001 reauthorization.

Rationale: As of January 2006, the difference between the amount that Congress promised for NCLB programs and what it has actually provided for these programs is $40 billion. Current funding is not enough to serve all eligible students, and many of those students being served are not being served sufficiently, particularly in districts with the greatest concentrations of poverty.

Parent and Community Involvement (CPI)

NCLB Reauthorization : Business Coalition for Student Achievement (BCSA)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation No recommendations identified for this issue.
Parent and Community Involvement (CPI)

NCLB Reauthorization : Commission on No Child Left Behind (Comm. NCLB)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Allow districts to reserve 1% of SES funds for administration.
FI 1 - Full Recommendation Strengthen the administrative support for districts to operate supplemental education service (SES) programs effectively by allowing them to reserve 1% of the funds expended on SES for administration.
FI 2 - Summary of Recommendation Bolster state and district capacity to help low-performing schools by increasing Title I set aside funds and focusing restructuring on highest-need schools.
FI 2 - Full Recommendation Bolster the capacity of states and districts to help low-performing schools by increasing the amount of federal funds set aside by states for school improvement from 4% of Title I funding to 5%, and by allowing districts to focus their restructuring efforts on the lowest-performing 10% of their schools.
FI 3 - Summary of Recommendation Withhold funding if states do not develop and implement English language proficiency standards, assessments and achievement objectives.
FI 3 - Full Recommendation Withhold a portion of a state’s administrative funding if that state has not fully developed and implemented English language proficiency standards, assessments and annual measurable achievement objectives.
Parent and Community Involvement (CPI)

NCLB Reauthorization : Council of Chief State School Officers (CCSSO)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Ensure NCLB funding levels reflect increased state roles and responsibilities to improve student achievement and close achievement gaps.
FI 1 - Full Recommendation Retain and provide additional funds at the state level that appropriately reflect the increased roles and responsibilities placed on states under ESEA for systemic actions to help improve student achievement and close achievement gaps.
FI 2 - Summary of Recommendation Provide additional and ongoing funding for state interventions in underperforming districts and schools, including for assessments and data systems.
FI 2 - Full Recommendation Provide additional, long-term, consistent funding for state education department action and intervention in underperforming districts and schools (such as through full and increased funding for School Improvement Grants); for key areas such as state assessments (particularly including alternate assessments and English proficiency assessments), state data systems, and technology; and for research and development to inform state and district efforts.
Parent and Community Involvement (CPI)

NCLB Reauthorization : Education Commission of the States (ECS)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Meet federal NCLB funding obligations once accurate costs are determined.  
FI 1 - Full Recommendation Require federal government meet NCLB funding obligations, once accurate levels of need are determined.  
FI 2 - Summary of Recommendation Identify NCLB requirements delayed due to costs and respond accordingly.
FI 2 - Full Recommendation Identify which NCLB requirements are being delayed in which states because of cost concerns, and structure market incentives to respond to the findings.
Parent and Community Involvement (CPI)

NCLB Reauthorization : Education Trust (Ed Trust)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Prohibit transfer of Title II funds for teacher and principal quality to other Titles under NCLB.
FI 1 - Full Recommendation Prohibit the transfer of Title II funds for high quality teachers and principals to other Titles of No Child Left Behind.


FI 2 - Summary of Recommendation Require, within five years, districts participating in Title I to show that non-federal funds (including teacher salaries) are equitably distributed across schools. Districts must report funding gaps until parity is achieved and ensure schools in need of improvement receive their fair share of funding.

FI 2 - Full Recommendation Amend Title I provisions under NCLB:
  • Require that, within five years of enactment, all school districts participating in Title I provide evidence that non-federal funds, including those for teacher salaries, are distributed equitably across schools
  • Put all school districts receiving Title I funds on notice that entering into any new contracts or other new binding agreements preventing them from achieving an equitable distribution of funds would jeopardize eligibility for Title I funding
  • Clarify that the law is not intended to compel school districts to use forced or involuntary personnel transfers to meet the comparability requirements
  • Until districts achieve funding equity, they would be required to annually publish—on the NCLB-required school report cards of any Title I school receiving less than the district-wide average of state and local funds—the amount by which a school is short-changed
  • Districts that have not yet achieved compliance with these requirements -- no later than three years after enactment -- would be required to provide resources to “make whole” any school designated for Comprehensive School Improvement and not receiving its fair share of state and local funds; such funding must be established before the any funds designated for School Improvement are factored into the calculation of the school’s budget
  • After two years of implementation of the law the Education Department's Inspector General would be required to audit five states and 10 districts per year to determine progress on this requirement.
FI 3 - Summary of Recommendation Require districts to only allocate actual expenses to Title I budgets, including teacher salaries.
FI 3 - Full Recommendation Require districts to only allocate actual expenses to Title I budgets, including actual teacher salaries for teachers supported with Title I funds.
FI 4 - Summary of Recommendation Expand Education Finance Incentive Grant (EFIG) Program to encourage and reward equitable state education funding policies. Grants also should reflect state effort/capacity and regional cost of education.
FI 4 - Full Recommendation Expand the Education Finance Incentive Grant (EFIG) Program by distributing new Title I funds through this formula to encourage states to develop more equitable education funding policies and reward states that already are equitable with their own resources. State per-pupil expenditure figures should be adjusted in the EFIG formula to reflect state effort/capacity, and to reflect regional differences in the cost of education as estimated by the Education Department.
FI 5 - Summary of Recommendation Focus Title II funds on high poverty schools, divided equally between district and principal-led efforts to improve teacher effectiveness.
FI 5 - Full Recommendation Provide high poverty schools with more federal funding by focusing all of the Title II funds that districts receive on high poverty schools: 50% on district-level activities to support efforts to improve teaching at these schools; and 50% directly to these schools to support principal-led efforts to enhance teacher effectiveness.
FI 6 - Summary of Recommendation Increase school improvement funds and require that 70% of these federal and state funds target schools “In Need of Comprehensive Improvement.”
FI 6 - Full Recommendation Increase funding for school improvement and require that 70% of federal and state school improvement funds be targeted to schools “In Need of Comprehensive Improvement.”
FI 7 - Summary of Recommendation Require that, within three years, districts close gaps between state and local funds provided to schools “In Need of Comprehensive Improvement” and average funding for non-Title I schools.
FI 7 - Full Recommendation Require that, within three years after enactment, districts make up the difference between state and local funds provided to a school identified “In Need of Comprehensive Improvement” and the district-wide average school funding for non-Title I schools if there is such a difference.
FI 8 - Summary of Recommendation Target 50% of new Title I funds at high schools and use 50% of proposed Curriculum Development Fund for high school level materials.
FI 8 - Full Recommendation Target 50% of any new Title I funds at high schools. In addition, use 50% of the proposed $750 million Curriculum Development Fund to develop and provide high school level materials aligned to state standards.
FI 9 - Summary of Recommendation Require districts to publish, on school report cards, the amount by which state and local funding for Title I schools is below district average. Require districts to publish plans for ensuring equitable school-to-school funding within three years.
FI 9 - Full Recommendation Require districts to annually and individually publish, on school report cards, the amount by which state and local funding for any Title I school is below the district average. Districts also must publish plans and timelines for ensuring equitable school-to-school funding within three years.
Parent and Community Involvement (CPI)

NCLB Reauthorization : Forum on Educational Accountability (FEA)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Increase funding for states and districts to carry out Forum on Educational Accountability recommendations.
FI 1 - Full Recommendation Raise authorized levels of NCLB funding to cover a substantial percentage of the costs that states and districts will incur to carry out the Forum on Accountability's recommendations, and fully fund the law at those levels without reducing expenditures for other education programs.
FI 2 - Summary of Recommendation Fund Title I to serve 100% of eligible children.
FI 2 - Full Recommendation Fully fund Title I to ensure that 100% of eligible children are served.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National Association of Elementary School Principals (NAESP)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Provide federal grants to states for promising innovations in assessment.
FI 1 - Full Recommendation Provide federal grants to states for promising innovations in assessment.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National Association of State Boards of Education (NASBE)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Provide funding to comply with testing requirements.
FI 1 - Full Recommendation Provide states with all necessary funding to comply with the required tests, including both development and ongoing administrative costs.
FI 2 - Summary of Recommendation Provide adequate funds for federal education mandates. 
FI 2 - Full Recommendation Ensure funds provided for federally mandated education initiatives are adequate to achieve the goals of these programs.
FI 3 - Summary of Recommendation Limit reporting requirements to financial accountability and efficiency, and to constitutional and statutory requirements.
FI 3 - Full Recommendation Limit federal reporting requirements to those necessary to account for funds, to demonstrate compliance with constitutional and statutory requirements, and to assist in determining the most effective use of federal funds.
FI 4 - Summary of Recommendation Maintain accountability and oversight of state education board federal funds, provide adequate funding for state education departments and direct new funds through state boards.
FI 4 - Full Recommendation Ensure federal government maintains the current framework of accountability and oversight of federal education funds that is provided by state boards and maintains the funds necessary for state departments of education to perform needed duties, services and functions. Further, any new federally funded education initiatives intended for states should be, as they have historically been, directed through the state board of education.

Such a framework is necessary since state boards of education are the only state policymaking authority focused solely on education, and state boards work in close consultation with their governors and legislatures to implement the state’s education agenda.

FI 5 - Summary of Recommendation Provide funds to states for educating significant numbers of low-income immigrant children.
FI 5 - Full Recommendation Provide federal education funds to states with significant numbers of low-income immigrants to offset the costs of educating their children. Such funding is appropriate since control over immigration is exclusively a function of the federal government.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National Association of Secondary School Principals (NASSP)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Eliminate funding reduction as AYP sanction.
FI 1 - Full Recommendation Eliminate funding withdrawl as a sanction for Title I schools that are not meeting proficiency levels, and allow school districts to transfer funding in year three of corrective action. Imposing funding sanctions is a regressive policy that impedes a school’s ability to provide the services required to improve student achievement.
FI 2 - Summary of Recommendation Eliminate requirement that Title I funds be used for transportation for school improvement purposes.
FI 2 - Full Recommendation

Eliminate requirement that Title I funds be reserved for transportation; funds needed for transportation should be in addition to—not subtracted from—a district’s Title I allocation. 

  • Use of Title I funds for transportation costs is a regressive policy. Title I funds are intended for school improvement purposes and should be used for in-school programs. 
  • As more Title I schools reach year three of corrective action, the full 20% set-aside will potentially be used for supplemental services and school choice, leaving little funding for other instructional support in schools that have the greatest demonstrated need. 
  • A negative consequence of the transportation set-aside is that school districts are supplanting state transportation funds with federal funds.
FI 3 - Summary of Recommendation Allow carryover and more flexible use of SES funds by states and schools.
FI 3 - Full Recommendation

Allow schools and states to carryover supplemental services funds an additional year if they are unspent due to calendar constraints, and to spend the funding in a more flexible manner on Title I services. 

  • Current federal law and regulations require schools to reserve a percentage of Title I funds for supplemental services expenses. If the funds are not expended by the end of the year, there is a small window of time within which schools can use these funds for other purposes. There is not always sufficient time and flexibility to expend these funds. 
  • The late release of unused set-aside funds and the resulting impracticality of being able to spend all those funds in that school year, results in the appearance of excessive carryover and decreased district need, which is quite the opposite of reality.
  • Funds that are not appropriated until late in the school year should be carried over to the next school year.
FI 4 - Summary of Recommendation Allow use of Title II funds for teacher mentoring programs.
FI 4 - Full Recommendation

Allow use of funds under NCLB Title II to create meaningful teacher mentoring programs that significantly sustain the retention and development of new teachers. 

  • An issue of paramount concern is the importance of mentoring and sustaining new teachers, because research indicates that many new teachers leave the profession within the first five years of service. 
  • Funding to provide programs designed to retain these teachers and provide them with the skills to persist is essential to meet the intent of NCLB.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National Conference of State Legislatures (NCSL)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Clarify conditions placed on states' federal funds for increasing student proficiency and limit financial consequences for not participating in NCLB.
FI 1 - Full Recommendation Revise NCLB defects by unambiguously stating any conditions placed on funds that the federal government appropriates to the states to help students gain proficiency and, second, by eliminating any coercion to participate in NCLB and limiting the punitive financial consequences should a state decide not to participate.
FI 2 - Summary of Recommendation Conduct GAO study to determine whether NCLB is an unfunded or underfunded federal mandate.
FI 2 - Full Recommendation Request a Government Accountability Office (GAO) study evaluating whether NCLB, as currently implemented, violates Sec. 9527 by requiring states to spend their own money or change their accountability system in order to comply with the law.
FI 3 - Summary of Recommendation Conduct GAO study of state/district costs for complying with NCLB administrative processes and achieving proficiency goals.
FI 3 - Full Recommendation Request the General Accountability Office (GAO) conduct a comprehensive study on the costs to states and districts of 1) complying with the administrative processes of NCLB and 2) achieving the proficiency goals of NCLB and/or closing the achievement gap. Furthermore, any time the federal government conducts a cost estimate of NCLB, it specifically should include the compliance costs as well as the costs of reaching the proficiency goals of the law.
FI 4 - Summary of Recommendation Provide states with enough funding to cover compliance costs of NCLB, based on comprehensive study.
FI 4 - Full Recommendation Provide states, at a minimum, with enough funding to cover the compliance costs of NCLB. This level of funding should not be based on the arbitrary authorization levels established by Congress or the statutory formulas of Title I. This level of funding should be based on a comprehensive study of the actual costs of complying with NCLB.
FI 5 - Summary of Recommendation Clarify conditions and obligations for accepting federal funds to close achievement gaps, and eliminate financial penalties for not fully participating in NCLB. 

FI 5 - Full Recommendation Ensure that any conditions placed on funds that the Education Department appropriates to help close the achievement gap are stated unambiguously, so that, in deciding whether to participate in the partnership and accept the funds, states will understand their obligations. States should neither be coerced into participating in the partnership nor penalized financially should they decide not to participate fully in the partnership, and NCLB should reflect these principles.
FI 6 - Summary of Recommendation Allow states to focus NCLB intervention funds on students most in need and redirect unused Title I funds for other disadvantaged student services.
FI 6 - Full Recommendation Allow states to change the way they provide intervention services so that their NCLB money is focused on the students most in need. Schools should be required to use their Title I funds to provide intervention services to failing subgroup(s) and low-income students only. If these resources are not needed for the intervention services prescribed by the law, states should be allowed to redirect those resources to other activities that serve disadvantaged students. This would require the federal government to change the requirements for state set-asides of Title I money for transportation and supplemental services.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National Education Association (NEA)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Create grant program to ensure schools offer comprehensive curriculum.
FI 1 - Full Recommendation Create a federal grant program to assist schools in ensuring all students access to a comprehensive curriculum.
FI 2 - Summary of Recommendation Fund ESEA programs at authorized levels.
FI 2 - Full Recommendation Fully fund ESEA programs at their authorized levels.
FI 3 - Summary of Recommendation Ensure states and districts have adequate funding to implement NCLB mandates by enforcing Sec. 9527(a) of law.
FI 3 - Full Recommendation Enforce Sec. 9527(a) of NCLB, which prevents the federal government from requiring states and school districts to spend their own funds -- beyond what they receive from the federal government -- to implement federal mandates.
FI 4 - Summary of Recommendation Provide separate funding stream for school improvement and technical assistance programs.
FI 4 - Full Recommendation Provide a separate ESEA funding stream for school improvement programs to assist districts and schools.
FI 5 - Summary of Recommendation Provide funding for assessments that measure higher order thinking skills.
FI 5 - Full Recommendation Provide adequate funding to develop and improve assessments that measure higher order thinking skills.
FI 6 - Summary of Recommendation Apply AYP consequences to schools only when Title I funded at authorized level.
FI 6 - Full Recommendation Establish a trigger whereby any consequences facing schools falling short of the new accountability system are implemented only when Title I is funded at its authorized level.
FI 7 - Summary of Recommendation Provide separate funding stream for SES and school choice.
FI 7 - Full Recommendation Provide a separate ESEA funding stream for supplemental education services and school choice, if these mandates remain in the law.
FI 8 - Summary of Recommendation Provide adequate funding for appropriate assessments for students with disabilities and ELL students.
FI 8 - Full Recommendation Provide adequate funding to develop and improve appropriate assessments for students with disabilities and English language learner (ELL) students.
FI 9 - Summary of Recommendation Assist schools with using money more effectively.
FI 9 - Full Recommendation Provide technical assistance to schools to help them use money more effectively.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National Governors Association (NGA)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Fund real costs of achieving proficiency for all students, invest in effective education reforms, and do not withhold funding from struggling schools or states.

FI 1 - Full Recommendation Support full funding for the real costs of achieving proficiency for all children. Federal policy and funds should focus on supports and incentives for raising student achievement; federal funds should not be withheld from struggling schools or their states, as this would reduce financial resources at a time when additional assistance is necessary.

Congress must make critical and substantial investments in education to support school reform -- through enhanced and aligned data systems, meaningful technical assistance, reliable research, ongoing professional development, enhanced student support services and strong accountability systems -- for the achievement gap to close and for every child to succeed.
FI 2 - Summary of Recommendation Reduce and streamline NCLB administrative costs and burdens on states to save federal dollars.
FI 2 - Full Recommendation Reduce and streamline the administrative costs and burdens of NCLB on states, which could achieve considerable federal savings.
Parent and Community Involvement (CPI)

NCLB Reauthorization : National School Boards Association (NSBA)
Capacity Building, Innovation and Research & Development (CIRD)
Funding Issues (FI)
FI 1 - Summary of Recommendation Discontinue school choice transportation financial obligations for students when their subgroup meets AYP.
FI 1 - Full Recommendation Discontinue financial obligations of a school district to provide transportation for a student when the subgroup to which the student belongs no longer is identified as not meeting AYP target within the student’s former school even if that school continues to be identified as not making AYP for other reasons.
FI 2 - Summary of Recommendation Defer NCLB sanctions if Title I appropriations do not increase by at least $2.5 billion over previous year.
FI 2 - Full Recommendation Defer sanctions relating to corrective action and restructuring in any year that appropriations for Title I is not increased by at least $2.5 billion over the previous year until Title I is fully funded.
FI 3 - Summary of Recommendation Defer NCLB sanctions if appropriations for students with disabilities are not consistent with IDEA funding levels.
FI 3 - Full Recommendation Defer sanctions relating to corrective action and restructuring in any year that appropriations for students with disabilities are not consistent with the authorized funding levels in Individuals with Disabilities Education Improvement Act of 2004.
Parent and Community Involvement (CPI)


Abbreviation Key for Organizations
AASA = American Association of School Administrators
AFT = American Federation of Teachers
BCSA = Business Coalition for Student Achievement
Comm. NCLB = Commission on No Child Left Behind
CCSSO = Council of Chief State School Officers
ECS = Education Commission of the States
Ed Trust = Education Trust
FEA = Forum on Educational Accountability
NAESP = National Association of Elementary School Principals
NASBE = National Association of State Boards of Education
NASSP = National Association of Secondary School Principals
NCSL = National Conference of State Legislatures
NEA = National Education Association
NGA = National Governors Association
NSBA = National School Boards Association


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