Case for Education Revenue Still Weak

As MBAE has said previously, Governor Patrick is to be commended for making education a priority and emphasizing its link to economic prosperity.  We think that a discussion about the Governor’s education funding proposals in the State House and beyond is important and timely.  Business support, however, will remain elusive unless we can move beyond the rallies and press conferences to substantive answers to legitimate questions about where current investments are yielding the greatest returns and how new expenditures will be linked to results.

Over the past week, MBAE has taken some flak for its refusal to support any increase in funding that is not highly targeted and based on strong evidence of what works.   We shared this position with Executive Office of Education staff when the Governor’s FY14 budget proposal was announced January 23^rd and discussed it with Education Secretary Matthew Malone at a meeting with MBAE Board members on March 7^th.

Our major concern is with the $226 million in unrestricted funds distributed to districts through what is known as Chapter 70.  This money is described in the Governor’s budget summary as including “an increase of $25 per pupil for every district” as part of a commendable effort to bring every district to the same level of foundation spending per pupil (the intention of the foundation budget formula developed by MBAE as part of the Education Reform Act of 1993.)  The Governor’s plan, however, includes no requirement that these funds be used to support initiatives that have demonstrated results, and there is no commitment to measure the effectiveness of these additional dollars.

Of the $553 million proposed increase for education, the $131 million for early childhood education comes closest to the type of investment that fits MBAE’s criteria.  The funding includes eliminating wait lists for income-eligible 4-year olds to attend pre-school.  There is ample data that connects pre-school education to reading proficiency by 3^rdgrade (an indicator of future school success), reduced drop-out rates, and other benefits that make this a sound social and economic investment.   The new Quality Rating and Improvement System developed by the Department of Early Education and Care has the potential to guarantee funds are directed only to effective, high quality programs.

The same holds true for the $5 million earmarked for extended learning time in Gateway City middle schools.   This could be money well spent if it is used for effective programming that helps students complement their academic knowledge with valuable skills and experience that makes them future ready; not just to spend more seat time in the school building.

Similarly, the $152 million proposed to make higher education more accessible and affordable for middle and low-income families can have valuable benefits for students and for ensuring the state maintains the skilled workforce necessary to support economic growth.   It is good news that the funds would be tied to campus performance and outcomes that the Department of Higher Education is already measuring and reporting as part of its Vision Project.  More details on exactly what linking funds to performance means in practice must be forthcoming.  For example, if it includes improving educator education programs – a key lever for raising student achievement in pre-K-12 – this investment would be more compelling.

MBAE’s position on this issue, and any other, is the result of serious deliberation by our Board of Directors and consultation with others in the business community and knowledgeable education policy makers.  We don’t take a stand lightly and don’t expect everyone to agree with us (although we welcome the Boston Herald’s editorialsupport).  Yet, since the Secretary of Education is quoted in a State House News story running in several papers as saying MBAE is “wrong and they need to get their facts straight” and implying that our questions should be dismissed because we are “closely linked to the charter school movement”, we thought we’d state our position once again.

MBAE has a  25-year record of providing the perspective of business leaders on education issues; we have and can forge policy solutions to expand access to high quality education for all children.  Our recommendation is  that Massachusetts do nothing less than what President Barack Obama called for in his 2010 State of the Union Address:

“Instead of rewarding failure, we only reward success. Instead of funding the status quo, we only invest in reform–reform that raises student achievement.”