An Examination of Resource Inputs and Equity in New Orleans
Open Access DepositedEnsuring that all students, regardless of their needs, receive differentiated school-level resources that enable equal opportunities for educational success is a fundamental goal of the public education system in the United States of America. Yet, research consistently finds that resources within districts are often distributed unfairly to certain groups of students (Steifel et al., 1998; Rubenstein, 1998; Rubenstein et al., 2007; Iatarola & Stiefel, 2003; Miller & Rubenstein, 2008; Goldhaber, Lavery, & Theobald, 2015; Wolf, 2018). In recent years, several large urban districts in the United States have implemented district-level weighted student funding (WSF) models, which provide funding to schools using a funding formula to fund schools based on student needs characteristics, while also providing schools with additional budgetary flexibility to improve equity. The underlying theory behind these models is that targeting resources based on student needs, coupled with increased school-level budgetary flexibility to manage resources, can better align resources with student needs (Petko, 2005; Miles & Roza, 2006; Tuchman, Gross & Chu, 2022). Several studies focus on district-level WSF models and their impact on resource distribution across schools, mostly concentrating on whether WSF allocations to schools are equitable, or the extent to which other factors, such as the distribution of non-WSF sources of funds or school-level budgeting practices, contribute to resource disparities across schools (Roza & Hawley-Miles, 2004; Roza, Hagan, & Anderson, 2021; Jarmolowski et al., 2022). However, despite the extensive research on district-level WSF models, how they interact with charter schools remains a notable gap in the literature. This study investigates the equitable distribution of several resource inputs in New Orleans, where every public school option is a charter school, to better understand how its unique context influences the relationship between resource distribution and certain student needs groups. Initially, the study examines the equity implications associated with WSF allocations using a vertical and horizontal equity lens. Vertical and horizontal equity levels are assessed over time and across different iterations of New Orleans’ WSF formula using a regression model to account for school size and configuration. Consistent with other research exploring the equity implications associated with WSF allocations in other districts, this study finds that the distribution of WSF models in New Orleans is highly equitable for certain student needs groups in the years under examination (Levin et al., 2013; Malen et al., 2017). Schools with larger percentages of students with disabilities and English language learners, both categorized as student need groups in the formula, receive considerably larger per-pupil WSF allocations relative to schools with lower percentages. However, economically disadvantaged students, who were not a student need category in the WSF formula, are only associated with a marginal increase in WSF allocations. Moreover, schools in New Orleans with similar percentages of students with needs receive comparable WSF allocations over time, suggesting high levels of horizontal equity. Further, this study finds that formula modifications can potentially have equity ramifications. Changes in the overall design of the funding formula in New Orleans coincided with larger WSF allocations for schools with larger English language learner populations, but notably lower allocations associated with students with disabilities. Equity implications associated with total spending in New Orleans are assessed utilizing the same methodology used to examine the vertical equity of WSF allocations and total spending. This study finds that when using actual personnel salaries and benefits, non-WSF funding sources in New Orleans appear to initially have a negative influence on vertical equity, which diminishes over time. Specifically, the implicit weights associated with WSF allocations in schools with larger percentages of each student need group examined in this analysis initially exceeded the implicit weights associated with total general fund spending, implying that non-WSF funds had a regressive impact on equity. However, per-pupil WSF allocations and total spending gradually become more similar over time. Finally, this study investigates the equity implications associated with how schools in New Orleans utilize their resources by examining spending by function. Using a methodological approach that is almost identical to the methods used to explore the vertical equity of WSF allocations and total spending, this study shows that the equity implications differ considerably by function and subgroup. In New Orleans, schools with larger percentages of economically disadvantaged students spend relatively less on instructional and student support service spending compared to their wealthier counterparts. This suggests that high-poverty schools in New Orleans encounter different constraints relative to schools serving wealthier students. One constraint identified in this study appears to be linked to higher overhead costs in schools serving more economically disadvantaged students, particularly in transportation and operations and maintenance. These overhead costs may restrict their capacity to allocate resources in ways that are conducive to student success. Similarly, schools serving higher numbers of English language learners are generally associated with lower shares of spending on expenditure functions tied to instruction, instructional support, and student learning and support. The results indicate that schools serving more English language learners face constraints that impede their ability to allocate more resources to spending functions directly tied to student success compared to schools serving fewer English language learners. Moreover, the study finds that one constraint may be tied to specific overhead spending functions. Specifically, English language learners are more likely than non-English language learners to attend schools with significantly higher charter management organization-level expenses. This finding raises significant equity concerns, particularly if schools serving fewer English language learners have more financial flexibility to direct more resources related to instruction and student learning due to lower charter management level expenses. In contrast to economically disadvantaged students and English language learners, the spending patterns associated with schools serving larger percentages of students appear to have positive equity implications. Specifically, schools with larger percentages of students with disabilities tend to spend more on the spending functions directly tied to student success when compared to schools serving smaller percentages. Moreover, they also appear to have fewer constraints tied to overhead costs, enabling them to allocate a considerably larger share of their budget towards the expenditure functions that are most likely to influence student outcomes. The equity implications associated with spending patterns in New Orleans are shaped by its unique context, which emphasizes charter schools, choice, and autonomy. To date, very few studies have thoroughly or exclusively examined the WSF model used in New Orleans, despite its uniqueness, or the broader equity implications associated with how charter schools in WSF models influence school-level spending patterns. The results of this study suggest that relative to other public schools in Louisiana, charter schools in New Orleans allocate higher percentages of their total general fund towards overhead functions and less towards spending functions directly tied to student success. These findings align with prior research, which indicates that relative to traditional public schools, charter schools offset higher costs associated with the loss in economies of scale with lower instructional spending (Arsen & Ni, 2012; Carpenter, 2013; Reed & Rose, 2015; Buerger & Harris, 2021). When compared to other public schools in Louisiana, the spending patterns in New Orleans charter schools can have significant implications for the quality and breadth of education services and supports provided by schools, particularly given prior research suggesting that increased instructional and student support spending can have a positive impact on student outcomes (Jackson, Johnson, & Persico, 2016). Moreover, it suggests that despite having larger proportions of students with needs, charter schools in New Orleans face greater challenges balancing high overhead spending with expenses directly tied to student learning and support. The inherent tension between overhead costs and providing resources that directly contribute to student outcomes raises the concern that the loss in economies of scale for schools in New Orleans may have adversely influenced the allocation of resources that enhance student success. Furthermore, the disproportional distribution of overhead costs tied to certain groups of students who have greater needs challenges one of the underlying assumptions of WSF models that providing schools with more budgetary autonomy results in more effective spending decisions and the implementation of education practices and programs that align more closely with student needs (Tuchman, Gross, & Chu, 2022; Atchison & Levin, 2022).
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