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EducationCounsel's Regenstein Co-Authors ERS Report

Regenstein, ElliotWATERTOWN, MA—June 7, 2011— Billions of education dollars are trapped each year. At this time of continued budget shortfalls when every dollar spent on education must yield maximum returns in student outcomes, states are frequently tying the hands of districts. A new report from Education Resource Strategies (ERS), co-authored by EducationCounsel's Elliot Regenstein, highlights areas where state law is preventing resources from being used most effectively, and reveals opportunities to improve education by re-thinking the best ways to meet student needs. With most states unlikely to increase education spending any time soon, now is the time for states to update their policies in ways that allow existing dollars to have their greatest impact.

"Most districts and states are struggling with huge spending cuts and now is the time to break out of the old structures that are tying up resources and often not delivering the quality education our students deserve," says ERS Executive Director, Karen Hawley Miles. ERS, a nonprofit organization, works closely with school districts around the country on resource allocation and improving instruction. "States have the choice to make this kind of transformation possible or impossible. This paper gives guidance to help them make the right choice."

Examples of hidden opportunities discussed in the paper include:

1. Hidden funds tied up in one size fits all class size models: increasing student-teacher ratios by an average of only 1 student per teacher could free up to $6 billion across the nation. This doesn’t have to mean across-the-board increases in class-size. Instead, districts and schools need the freedom to adapt class sizes and student groupings across subjects and throughout the day and year to meet student and subject needs.

2. Hidden funds in special education: implementing new approaches to serving struggling learners could free dollars and improve results for all students. A staggering 20% of education spending is targeted to special education students. There are a variety of approaches to serving this population, as evidenced by the wide range of rates of special education incidence across states. If states above the national average of special education incidence were able to reduce their incidence to the current national average, we estimate savings would be close to $3 billion nationally and as much as 2.5% of total education spending in some states. Real and perceived limitations on how districts and schools can serve special education students have stifled innovation and protected special education from funding cuts at the expense of general education. States can ease requirements and encourage districts and schools to explore other ways to serve struggling learners both within the special education and general education systems.

3. Hidden funds trapped in states’ categorical funding streams: fragmented programs that each come with their own strings attached limit education leaders’ creativity and flexibility to meet student needs better or for less. Districts and schools can receive funding from as many as 90 different federal and state sources, each with their own compliance and reporting requirements. As a result, schools end up creating a disjointed collection of programs and positions that may not meet their needs. Instead states should look at combining smaller funding streams, and trading strict regulation of inputs for better accountability systems that track desired outcomes.

"All school districts need adequate resources, and at a time when money is tight, this paper discusses opportunities for states to work with districts and ensure that all funds are used as effectively and efficiently as possible," said Mr. Regenstein.

To read the full paper go to: http://erstrategies.org/resources/details/restructuring_resources/

Education Resource Strategies (ERS) is a nonprofit organization dedicated to helping urban school systems organize talent, time and money to create great schools at scale. To view the report, go to erstrategies.org.